Definition of Csr
Introduction
Recently, the expectations of society for companies have increased more than before (Craig, Bhattacharya, Vogel and Levine, 2010), so one significant issue that most firms have been actively involved in is Corporate Social Responsibility (CSR). Some may debate that it decreases company’s profits by spending much money on CSR. However, according to Needle (2004), ‘good’ CSR is also good for business, a firm could benefit from doing CSR. Thus, this paper aims to explain its importance. It begins with the definition of CSR and its four responsibilities, then presents how it influences a business and benefits it can bring. Finally, I am going to describe strategic CSR and discuss why firms have social responsibility.
Conceptual definition of CSR
The formalization of CSR started in the1960s. Since then, it boomed in the 1970s (Carroll, 1999 in Crane and Matten, 2004). In 2001, European Commission gave a definition of CSR: “a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis” (Blowfield and Murray, 2008, p. 13).
In addition, Carroll (1991, in Crane and Matten, 2004) formulate a four-part model of corporate social responsibility, which are economic, legal, ethical and philanthropic responsibilities. The first and basic level of CSR is economic responsibilities, which is a requirement of all corporations. Therefore, companies have duties to satisfy shareholders, employees and consumers. Shareholders tend to benefit by investment, employees who seek fair salaries and security of jobs, and consumers want high quality products as well as reasonable prices.
Secondly, firms have legal responsibilities, they have to obey the law and the rules of market. Furthermore, under ethical responsibilities, firms are obligated to be moral and expected to do right things by the society. It is generally accepted that ethical responsibilities is
Recently, the expectations of society for companies have increased more than before (Craig, Bhattacharya, Vogel and Levine, 2010), so one significant issue that most firms have been actively involved in is Corporate Social Responsibility (CSR). Some may debate that it decreases company’s profits by spending much money on CSR. However, according to Needle (2004), ‘good’ CSR is also good for business, a firm could benefit from doing CSR. Thus, this paper aims to explain its importance. It begins with the definition of CSR and its four responsibilities, then presents how it influences a business and benefits it can bring. Finally, I am going to describe strategic CSR and discuss why firms have social responsibility.
Conceptual definition of CSR
The formalization of CSR started in the1960s. Since then, it boomed in the 1970s (Carroll, 1999 in Crane and Matten, 2004). In 2001, European Commission gave a definition of CSR: “a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis” (Blowfield and Murray, 2008, p. 13).
In addition, Carroll (1991, in Crane and Matten, 2004) formulate a four-part model of corporate social responsibility, which are economic, legal, ethical and philanthropic responsibilities. The first and basic level of CSR is economic responsibilities, which is a requirement of all corporations. Therefore, companies have duties to satisfy shareholders, employees and consumers. Shareholders tend to benefit by investment, employees who seek fair salaries and security of jobs, and consumers want high quality products as well as reasonable prices.
Secondly, firms have legal responsibilities, they have to obey the law and the rules of market. Furthermore, under ethical responsibilities, firms are obligated to be moral and expected to do right things by the society. It is generally accepted that ethical responsibilities is