Explain with examples what is meant by Corporate Social Responsibility and discuss why it is important to modern business
In today’s world, Corporate Social Responsibility (CSR) has been one of the topics that every company must be concerned with. It is usually viewed as a legal obligation for every company to create social benefits alongside with the profit gains (Peng and Meyer 2011, p.297). CSR is a crucial factor for our society and environment. If there is no campaign to encourage us to save our planet, how can people be aware and know theirs obligation to save the world. This paper will explain the meaning of corporate social responsibility, advantages and disadvantages of CSR through the example of The Body Shop. In addition, it will discuss why it is important to modern businesses.
The meaning of Corporate Social Responsibility has changed since the early 20th century and it has never been a straightforward. The importance of CSR arose with the role of leadership, how a leader can manage the company with an ethical approach to society and what can be done for the environment. Furthermore, the focus of CSR has changed the behavior of organizations, not the role of leadership anymore. It created a debate about what companies should do for society. Subsequently, the structure of CSR places less stress on organizational behaviours and more on the responsibility (Blowfield and Murray 2011, p.7). However, the most well-known and accepted model of CSR is Carroll four-part model, which he defined as “ CSR includes the economic, legal, ethical and philanthropic expectations placed on organization by society at a given point of time” (Carroll 2009, cited in Crane and Matten 2010, p.53).
Moreover, the case of The Body Shop’s CSR is discussed as four-part model as an example. Firstly, economic responsibility, it is a basic responsibility of a business and The Body Shop has done very well on this area. Customers can be ensured a fair price with good...
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