Corporate Social Responsibility
ialCHAPTER II
REVIEW OF RELATED STUDIES AND LITERATURE
To give a better view about the problems cited in this work, the researchers gave a review to these related literature and studies. These literature and studies, both local and foreign, summarized and discussed below concerns with the subjects relating to the factors, concepts, and issues regarding corporate social responsibility of business organizations.
Foreign Literature
Corporate Social Responsibility (CSR) is a critical issue across Asia. From local companies to multi-national conglomerates, how successfully business interacts with its environs and community is of supreme importance.
As early as 1969, corporations have been paying attention to their impact on the local community and the world. Arising from the social justice movement of the 1960s, companies have found that it is good for their bottom line to be involved, to invest in their local community, to pay living wages and offer health benefits to their employees, to provide safe and sanitary work environments, to take care to avoid child or slave labor when purchasing parts and materials from overseas suppliers, to reduce pollutants produced by their product and to promote responsible business practices worldwide. Rather than bending laws or asking for exceptions, these companies strive to go beyond the law to ensure that what they do to make a profit is not at the expense of quality of life, sustainability or fairness to community members, suppliers, employees, investors or customers.
The concept of corporate social responsibility means that organizations have moral, ethical, and philanthropic responsibilities in addition to their responsibilities to earn a fair return for investors and comply with the law. A traditional view of the corporation suggests that its primary, if not sole, responsibility is to its owners, or stockholders. However, CSR requires organizations to adopt a broader view of its responsibilities that includes not
REVIEW OF RELATED STUDIES AND LITERATURE
To give a better view about the problems cited in this work, the researchers gave a review to these related literature and studies. These literature and studies, both local and foreign, summarized and discussed below concerns with the subjects relating to the factors, concepts, and issues regarding corporate social responsibility of business organizations.
Foreign Literature
Corporate Social Responsibility (CSR) is a critical issue across Asia. From local companies to multi-national conglomerates, how successfully business interacts with its environs and community is of supreme importance.
As early as 1969, corporations have been paying attention to their impact on the local community and the world. Arising from the social justice movement of the 1960s, companies have found that it is good for their bottom line to be involved, to invest in their local community, to pay living wages and offer health benefits to their employees, to provide safe and sanitary work environments, to take care to avoid child or slave labor when purchasing parts and materials from overseas suppliers, to reduce pollutants produced by their product and to promote responsible business practices worldwide. Rather than bending laws or asking for exceptions, these companies strive to go beyond the law to ensure that what they do to make a profit is not at the expense of quality of life, sustainability or fairness to community members, suppliers, employees, investors or customers.
The concept of corporate social responsibility means that organizations have moral, ethical, and philanthropic responsibilities in addition to their responsibilities to earn a fair return for investors and comply with the law. A traditional view of the corporation suggests that its primary, if not sole, responsibility is to its owners, or stockholders. However, CSR requires organizations to adopt a broader view of its responsibilities that includes not