CORPORATE SOCIAL RESPONSIBILITY
Corporate Social responsibility (CSR) what is it??????
According to the World Business Council for Sustainable Development, CSR is “the commitment of business to contribute to sustainable economic development……….” The primary purpose of CSR is to engage with the internal and external stakeholders. Generation of CSR:
In the 1970s from Social Betterment to
After 1970 to Social Responsiveness
There have been three generations of development of CSR, they are: • The first showed that companies can be responsible in ways that do not detract from commercial success. The most prominent changes include adoption of a strategic approach to philanthropy, expansion of the geographic focus of corporate, and evolving of measurement tools. • The second generation is focusing CSR on an integral part of long – term business strategy. • The third generation of CSR is expected to make a significant contribution to address issues such as poverty, exclusion and environmental degradation. This will involve both partnerships with civil society and changes in public policy.
Arguments for CSR:
Those who are in favour of CSR put forth their arguments as below: • Balancing corporate power with corporate responsibility. • Discouraging the creation and imposition of government regulations. • Focusing on social problems.
Arguments against CSR:
Some arguments against CSR are:
• Stakeholders bear the cost of corporate social action (shareholders, employees and consumers) which affect a “corporation’s operating efficiency and weaken competitive position and advantage. • Mismatch of the roles and expectations between the organization and society. • The prospects of corporations becoming even more powerful, as they may already exercise considerable power over society. • Management is trained in functional areas of management and does not have the expertise in handling social issues.
THEORIES AND MODELS...
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