Accessed 4 Jan 2016. The business case for corporate social responsibility. This was the first step towards the European Strategy on CSR adopted in 2002 and since then, the EC has led a series of campaigns for promoting the European approach to CSR which derives from the understanding that CSR is: the responsibility of enterprises for their impacts on society and outlines what an enterprise should do to meet that responsibility (European Commission 2011, para. The Academy of Management Review, 26(1), 117127. This gave way to alternative subjects such as stakeholder theory (see: Donaldson and Preston 1995; Freeman 1994), corporate social performance (see: Swanson 1995), and corporate citizenship (see: Carroll 1998). There are many business case arguments that have been made in the literature, but four effective arguments have been made by Kurucz, et al., and these include cost and risk reductions, positive effects on competitive advantage, company legitimacy and reputation, and the role of CSR in creating win-win situations for the company and society (Kurucz et al. A review of the theories of corporate social responsibility: Its evolutionary path and the road ahead. Baumol, W. J. Its growing popularity led to the unrestricted use of the term CSR under different contexts and by the end of the decade the concept became unclear and meant something different for everyone. For Reagan and Thatcher, the growth and strength of the economies of their countries depended on their ability to maintain a free market environment with as little as possible state intervention (Pillay 2015). The model seems too simplistic to many corporate leaders. In addition, its goal is to develop sound academic concepts as well as empirical data with the idea of creating value for business and society at the same time. Business and Society, 55(1), 2355. Carroll, A. Some publications with regards to CSR had to be excluded from this review because they did not contribute directly to the evolution of the concept but we believe they are of interest in the CSR literature and thus they are listed in Appendix. The feelings represent how you feel about your experience today. Most of the organisations worked on 4P model (Public-Private-People-Partnership) for empowering communities and stakeholders. Visser, W. (2011). We understand that creators can excel further. Notably, these concerns can be observed in a series of events that reflected the approach of the international community towards sustainable development and to a certain extent, to corporate behavior. Cite this article. Jones, T. M. (1980). Even when Porter and Kramer (2011) did not contribute directly to the concept of CSR, they called for a change in the business strategies which, in their opinion, should now focus on generating shared valued as a main objective. And of course, look upstream to design new idea, services and programmes. In fact, it is possible to trace the business concern for society several centuries back (Carroll 2008). It is relevant to point out that even when some scholars begun applying a wider scope to the social responsibilities of corporations, there were others who were skeptical of the notion of CSR. Strategic corporate social responsibility as global brand insurance. Though the ethical responsibility is depicted in the pyramid as a separate category of CSR, it should also be seen as a factor which cuts through and saturates the entire pyramid. oil spills, toxic dumps, polluting factories and power plants) (Earth Day 2018). In the year 2000, the adoption of the MDGs and the creation of the UNGC gave a new dimension to the understanding of social responsibility in which broader responsibilities were placed on corporations, mainly in terms of human and labor rights, environment, anti-corruption and sustainable development. Elkington, J. This religious approach gave way to social reforms and to the Victorian philanthropy which perceived a series of social problems revolving around poverty and ignorance as well as child and female labor (Carroll 2008; Harrison 1966). B. II. Our vision is to become an ecosystem of leading content creation companies through creativity, technology and collaboration, ultimately creating sustainable growth and future proof of the talent industry. International Journal of Management Reviews, 10(1), 5373. This opened the discussion around the benefits of strategic CSR and by the early 2010s it was believed that companies can generate shared value while improving the firms competitiveness through a holistic implementation of SCSR. For decades, companies have been using corporate social responsibility (CSR) to give back to society while bolstering brand reputation. Business for Social Responsibility. By - Pankaj Kulkarni PepsiCo- Exnora Waste to Wealth program won the BSE NASSCOM Social and Corporate Governance Award 2008. Another relevant contribution of Carrolls understanding of CSR is that it does not see the economic and social objectives as incompatible trade-offs but rather as an integral part of the business framework of total social responsibility (Lee 2008). While thinking about its economic responsibilities, businesses employ many business concepts that are directed towards financial effectiveness attention to revenues, cost-effectiveness, investments, marketing, strategies, operations, and a host of professional concepts focused on augmenting the long-term financial success of the organization. Contexts of interest here might include private sector (large vs. small firms), public sector, and civil society organizations (Crane et al. Providing marketing, business, and financial consultancy for our creators and clients powered by our influencer platform, Allstars Indonesia (allstars.id). Between 2001 and 2004 the EC held a series of conferences for discussing CSR (What is CSR in Brussels, Why CSR in Helsinki, and How to promote and implement CSR in Venice) which resulted in its adoption as a strategic element for the Plan of the General Direction of Business of the European Commission (Eberhard-Harribey 2006). Therefore, the economic responsibility is a baseline requirement that must be met in a competitive business world. According to Wood and Jones, Carrolls four domains have enjoyed wide popularity among SIM (Social Issues in Management) scholars (Wood and Jones 1996). The religious roots of the Victorian social conscience gave Victorian Philanthropists a high level of idealism and humanism, and by the late 1800s, the philanthropic efforts focused on the working class and the creation of welfare schemes with examples that could be seen in practice both in Europe as in the United States of America (USA) (Carroll 2008; Harrison 1966). (1984). When Carroll developed his original four-part construct of CSR (1979) and then his pyramidal depiction of CSR (1991), it was clearly done with American-type capitalistic societies in mind. International Journal of Management Reviews, 12, 85105. Most laws grew out of ethical issues, e.g., a concern for consumer safety, employee safety, the natural environment, etc., and thus once formalized they represented codified ethics for that society. An example is the case of the Dow Chemical Company which produced napalm used in the Vietnam War and as a result faced constant protests and accusations (Waterhouse 2017). Furthermore, Werther and Chandler (2005) claimed that an effective integration of SCSR must come from a genuine commitment to change and self-analysis (p. 322) and must be done with a top-down approach throughout the companys operations for it to translate into a sustainable competitive advantage. Long Range Planning, 29(4), 495502. Davis (1960) argued that businessmen have a relevant obligation towards society in terms of economic and human values, and asserted that, to a certain extent, social responsibility could be linked to economic returns for the firm (Carroll 1999; Davis 1960). A retrospective examination of CSR orientations: have they changed? To understand the true relevance of the entire framework and use it on an optimal level, it is necessary for the corporate companies to focus on its practical implications and applications and look beyond the point of debate and discussions. Accessed 18 Apr 2018. Brussels: E. Commission. The State of CSR in 2015 and Beyond. https://www.csreurope.org/history. In this article, he comments on the framework's popular useage and then presents a summary of the four-part definitional framework upon which the pyramid was created. http://globalcompact15.org/report/part-i/un-history-a-giant-opens-up. The antiwar sentiment, the overall social context, and a growing sense of awareness in society during the late 1960s translated into a low level of confidence in business to fulfill the needs and wants of the public (Waterhouse 2017). The data that support the findings of Table 1 is available from the three online data bases consulted (Science Direct, ProQuest and Web of Science) according to the considerations mentioned for the creation of the table. It lays its main emphasis on the aspect of profit generation. The global recognition of CSR has also been influenced by international certifications designed to address social responsibility. Accessed 7 Jan 2016. The modern era of CSR, or social responsibility as it was often called, is most appropriately marked by the publication by Howard R. Bowen of his landmark book Social Responsibilities of the Businessman in 1953. Votaw, D. (1973). New York: Harper & Row. Since then, the literature on CSR begun including strategic traits to the concept and some academics (see: Husted and Allen 2007; Porter and Kramer 2006; Werther and Chandler 2005) begun using the term Strategic Corporate Social Responsibility (SCSR). WebI. Business enterprises, in effect, are being asked to contribute more to the quality of American life than just supplying quantities of goods and services. After Bowen, other authors were concerned with corporate behavior and its response to the social context of the time. This was reflected in the academic publications which provided companies with an approach that looked into how to comply with the new responsibilities that have been given to them by the new legislations that now covered environmental aspects as well as product safety, and labor rights (Carroll 2008). By using this website, you agree to our (2006). 2) The promotion of CSR as a specific European strategy begun with the publishing in 2001 of the Green Paper called Promoting a European framework for Corporate Social Responsibility which intended to reflect the broader context of international initiatives, particularly in line with the UNGC. Having said that, some businesses do give partially out of an ethical motivation. (2018). By using this site, you agree to our. Perhaps the best way to understand the operationalization approach to CSR during the 1980s is by keeping in mind that during this time there were new societal concerns. Nevertheless, their findings show that the surveyed firms were not implementing CSR policies beyond the legal requirements which might be the consequence of the intangibility and immeasurability of such activities (Husted and Allen 2007). (2014a). Accordingly, he provided a definition of social responsibility with which he acknowledged the relevance of the relationship between corporations and society. This meant that the term Corporate Social Responsibility became increasingly popular which resulted in its use under many different contexts and to such an extent that its meaning became unclear, and as a consequence it meant something different for everybody (Sethi 1975; Votaw 1973). There has been an explosion of rigorous theory building and research on the topic across many disciplines and this is expected to continue and grow. Beyond the institutional and public influence in the implementation of CSR, the 2000s saw relevant contributions to the concept through the academic literature. The politics of stakeholder theory: Some future directions. As can be seen in Table 1, in the case of Science Direct, the publications more than doubled from 1097 in the year 2010 to 2845 in 2017 (2.59 times) while in Web of Science they almost quadrupled passing from 479 to 1816 in the same years (3.79 times). A new rationale for corporate social policy. Thomasnet Is A Registered Trademark Of Thomas Publishing 4. B., & Hatfield, J. D. (1985). Since then, the literature around CSR has focused on its implementation and its impact on specific areas of performance which can be linked to a certain extent to the SDGs while the understanding of CSR has remained centered on its potential to generate shared value. from all over the world and contributes to a broad trans-disciplinary and intercultural discussion on the role of business in society. Oxford: Oxford University Press. Accessed 17 May 2018. The four-part definition of CSR was originally published in 1979. Harrison, B. (2008). For Carroll (1991), companies which engage on activities to improve the social context in which they operate are doing so with a philanthropic perspective that is discretionary and voluntary, and as a result, this perspective is less relevant than the other three categories proposed in the Pyramid of CSR. Djelic, M.-L., & Etchanchu, H. (2017). These obligations go beyond legal requirements and the firms duties to its shareholders. It is necessary for the company to understand that before considering the philanthropic responsibilities, it needs to meet its ethical duties before. And, of course, the Ethical Responsibility stands on its own in the four part model as a category that embraces policies and practices that many see as residing at a higher level of expectation than the minimums required by law. Correspondence to https://doi.org/10.1186/s40991-018-0039-y, DOI: https://doi.org/10.1186/s40991-018-0039-y. Corporate Governance: The international journal of business in society, 6(4), 358368. Heald, M. (1970). Though its enthusiasts would like to think of an optimistic or hopeful scenario wherein CSR would be adopted the world over and would be transformational everywhere it is practiced, the more probable scenario is that CSR will be consistent and stable and will continue to grow on a steady to slightly increasing trajectory. Ethics, by contrast, suggests a level of conduct that might anticipate future laws and in any event strive to do that which is considered above most laws, that which is driven by rectitude. 25 years ago I coined the phrase triple bottom line. Heres why its time to rethink it. Corporate social responsibility is the notion that corporations have an obli- gation to constituent groups in society other than stockholders and beyond that prescribed by law and union contract. As a result of his belief, Bowen (1953) set forth the idea of defining a specific set of principles for corporations to fulfill their social responsibilities. Some of societys main concerns during this period revolved around rapid population growth, pollution, and resource depletion (Du Pisani 2006) and were accompanied with social movements with respect to the environment and human and labor rights (Carroll 1999). With this in mind, we would like to bring the attention of the reader towards the following publications: The Functions of the Executive by Barnard (1938) along with The Functions of the Executive at 75: An Invitation to Reconsider a Timeless Classic by Mahoney and Godfrey (2014); the Social Control of Business by Clark (1939); the Social responsibilities of business corporations published by the Committee for Economic Development (1971); the Green Paper: Promoting a European framework for Corporate Social Responsibility published by the Commission of the European Communities (2001) which was the first step towards the European Strategy for CSR; Corporate Social Responsibility: A Theory of the Firm Perspective by McWilliams and Siegel (2001); the search for a definition of CSR by Dahlsrud (2008) with How corporate social responsibility is defined: an analysis of 37 definitions; then The Oxford Handbook of Corporate Social Responsibility by Crane (2008) which provides a summary of CSR history and points out relevant contributions to the concept; the literature review and analysis of the institutional, organizational, and individual levels of CSR provided by Aguinis and Glavas (2012) with What We Know and Dont Know About Corporate Social Responsibility: A Review and Research Agenda; the case study of reporting initiatives from a CSR perspective presented by Avram and Avasilcai (2014) through their Business Performance Measurement in Relation to Corporate Social Responsibility: A conceptual Model Development; the internal and external drivers behind SCSR rationale for the maritime transportation sector presented by Latap (2017) in his unpublished master thesis; and, Capturing advances in CSR: Developed versus developing country perspectives by Jamali and Carroll (2017). of Case Western Reserve Univ. This paper poses a fundamental question on what should constitute CSR and what should be the nature of CSR regulation? For instance, to cultivate the needed talent is explained as the need of companies to foster and retain qualified and skilled employees which result in better and more stable career opportunities (Heslin and Ochoa 2008). (2015b). Dr. Carroll is a Fellow of the Academy of Management, International Association for Business and Society, and Southern Management Association. Today there are countless business women and many of them are actively involved in CSR. New York: McGraw-hill. Other studies have enumerated the reasons for business to embrace CSR to include innovation, brand differentiation, employee engagement, and customer engagement. Avram, E., & Avasilcai, S. (2014). The amount of recent publications revolving around CSR is vast and it seems that the probable future scenario for CSR presented by Archie B. Carroll in 2015 still prevails. United Nations Global Compact. WebCarrolls Pyramid of Corporate Social Responsibility The pyramid is an integrated, unified whole. Smith, W. J., Wokutch, R. E., Harrington, K. V., & Dennis, B. S. (2001). Company. Access the answers to hundreds of Corporate social responsibility questions that are explained in a way that's easy for you to understand. Society has not only sanctioned businesses as economic entities, but it has also established the minimal ground rules under which businesses are expected to operate and function. Our creator-led media are leadersin each respective verticals,reaching 10M+ target audience. In the following centuries, with the expansion of the English Empire and the conquering of new lands, the English Crown exported its corporate law to its American colonies where corporations played a social function to a certain extentFootnote 1 (Chaffee 2017). Developing soft skill, professional skill, project management skill and leadership skill among CSR workforce is continuous process. Authors: Kamilah Kamaludin, Izani Ibrahim, Sheela Sundarasen and OVA Faizal, Authors: Zamira Ataniyazova, Barry A. Friedman and Prabha Kiran, Authors: Mauricio Andrs Latap Agudelo, Lra Jhannsdttir and Brynhildur Davdsdttir, 8thAnnual International Conference on CSR, Sustainability, Ethics and Governance, June 08-10, 2022, Baton Rouge, Louisiana, USA. Sources: Early enterprises chose to fulfill their social responsibility under the pressure of labor conflicts and government departments. As a consequence, the philanthropic responsibility is more discretionary or voluntary on businesss part. It is also relevant to observe that the number of publications declined after 2015 for Science Direct and after 2016 for Proquest, while for Web of Science the amount kept growing. Concepts and Definitions of CSR and Corporate Sustainability: Between Agency and Communion (Vol. (2015). Part of B. The social and emotional climate of a school can impact student engagement in school activities; relationships with other students, staff, family, and community; and academic performance. CSR leaders must empower their subordinates by providing them right attitude, knowledge, information and trainings. Business is my passion and i have established myself in multiple industries with a focus on sustainable growth. Smith, N. C. (2001). From this review it is possible to see that the literature on CSR seems to be lacking specific research with regards to how to address the core business activities through CSR and seems to point out a reason why CSR can be implemented only partially and even may raise questions about its potential benefits. At first, it may seem unusual to think about an economic expectation as a social responsibility, but this is what it is because society expects, indeed requires, business organizations to be able to sustain themselves and the only way this is possible is by being profitable and able to incentivize owners or shareholders to invest and have enough resources to continue in operation. The pyramid of corporate social responsibility. It is not an accident that compliance officers now occupy an important and high level position in company organization charts. Those seeking to refine these concepts will continue to do so. This meant that the scope of social responsibility (from a business perspective) was now inclusive to a broader set of stakeholders and a new definition was set forward: Corporate social responsibility (CSR) refers to the obligations of the firm to its stakeholders people affected by corporate policies and practices. WebPress Office CAV TV Requests for Filming and Photography Chief Executive Connects Awards Our Social Media Policy. Organisations diverse projects and operations touch lives of people in many ways and create value by helping in overall and holistic development of communities within multiple geographies. WebThis article covers Apple's Corporate Social Responsibility programs and initiatives regarding environmental sustainability, equality, and employee rights, along with CSR issues. Lynda M. Applegate; The aim of this article is to find out which have been the main factors and/or events that have influenced the evolutionary process of CSR and how they have shaped the understanding of the concept. Carroll, A. Cross learning in CSR is immensely helpful in supplementing and nurturing CSR programme and projects. Carroll, A. Benites-Lazaro, L. L., & Mello-Thry, N. A. Conscious business decisions by the Companies have directly and indirectly created value for multiple stakeholders and helped in improving lives of the people and species. statement and Strategic corporate social responsibility: sustainable value creation. All authors read and approved the final manuscript. Corporate social responsibility. Although responsible companies had already existed for more than a century before, the term Corporate Social Responsibility was officially coined in 1953 by American economist Howard Bowen in his publication Social Responsibilities of the Businessman. Certainly, the quantity and nature of these activities are voluntary or discretionary. Carroll, A. Examples of Corporate Social Responsibility within Industry. Accordingly, in 2005 the EC launched the European Roadmap for Businesses Towards a Competitive and Sustainable Enterprise that outlined the European objectives with regards to CSR for the following years (CSR Europe n.d.). Business should think of reaching more people by using less money and resources. Business and society: ethics, sustainability and stakeholder management (9th ed.). The pyramid was developed by Archie Carroll and highlights on the four main responsibilities of the organization, namely, Economic, Legal, Ethical, and Discretionary or Philanthropic. Corporate Social Responsibility (CSR) and Millennium Development Goals (MDGs). In addition to issues being raised about the applicability of CSR and, therefore, the CSR pyramid in different localities, the same may be said for its applicability in different organizational contexts. The study found that experts were capable of distinguishing among the four components. Elkington, J. As 2018 marks 25years since the creation of the Triple Bottom Line, Elkington (2018) reviewed the concept in the Harvard Business Review in June 2018 and concluded that there is a need for a new radical approach to sustainability that can tackle the challenges of pace and scale needed. ), Handbook of Marketing and Society. In this review article, the author takes another look at the well-known Carroll's Pyramid of Corporate Social Responsibility (CSR). In 1980, Thomas M. Jones (1980) was arguably the first author to consider CSR as a decision making process that influence corporate behavior. (2006). https://ucsusa.org/global-warming/science-and-impacts/science/ipcc-backgrounder.html#. (2016). (1999). https://sustainabledevelopment.un.org/?page=view&nr=1021&type=230&menu=2059. Hence, a bigger circle represents a higher level of influence. For example, in the 1960s it was defined as seriously considering the impact of the companys actions on society. Another early definition of CSR read as follows: Social responsibility is the obligation of decision makers to take actions which protect and improve the welfare of society along with their own interests (Davis 1975). European Commission. The population bomb. Perhaps Porter and Kramers (2011) most relevant contribution comes from the claim that the purpose of the corporation must be redefined as creating shared value (p. 2) and by pointing out that the first step to do so is the identification of the societal needs as well as the benefits or harms that the business embodies through its products. Corporate social responsibility revisited, redefined. Then, the third generation of CSR proposed by Trapp (2012) can be understood as the result of corporations acknowledging and assuming their new roles and responsibilities towards society. In this sense, business frameworks will have to adapt and evolve in order to embrace the latest tools, but they will need to do so through an overarching and holistic framework that is based on the principles of social responsibility in a way that it combines the notions of sustainability, the generation of shared value, and the belief that companies can redefine their purpose to do what is best for the world. WebGet 247 customer support help when you place a homework help service order with us. (2018). In an important Harvard Business Review article in 1958, for example, Theodore Levitt spoke of The Dangers of Social Responsibility. His position was best summarized when he stated that business has only two responsibilities (1) to engage in face-to-face civility such as honesty and good faith and (2) to seek material gain. In the fast changing world, capacity building of CSR workforce and re-skilling them are always relevant and are key to CSR performance. Stated in more practical and managerial terms, the CSR driven firm should strive to make a profit, obey the law, engage in ethical practices and be a good corporate citizen. As mentioned before, the globalization process of the 1990s increased the global reach of multinational corporations and capitalism expanded rapidly, which meant that corporations began having concerns with regards to competitiveness, reputation, global visibility and an expanded network of stakeholders (Carroll 2015). Accessed 6 Jan 2016. The article concludes by looking to the future. http://www.journals.elsevier.com/business-horizons/most-downloaded-articles/. Business and society. 2956). 2001, and many others). It is then evident that one of the most significant contributions to the literature, Carrolls Pyramid of CSR, was a direct response to the creation of governmental bodies and regulations, which responded to the social expectations of the time. Carroll, A. The corporate social responsibility strategy of the European commission: results of the public consultation. 1985; Burton and Hegarty 1999; Clarkson 1995; Smith et al. This set of responsibilities stand at the top of the pyramid and it harps on the fact that it is imperative to be a good corporate citizen and should provide impetus in improving the quality of life of the society and its people. Considering that the history of CSR is long and vast, it is necessary to point out that this article focuses on publications that have provided an original perspective and understanding to the concept of CSR along with the most significant papers with regards to the evolution of the social expectations of corporate behavior (see Appendix for additional recommended readings). However, as the companys annual revenue continues to outpace the GDP of many countries, the scale of its operations has not come without some controversy. Years later, Carroll (1991) presented the Pyramid of Corporate Social Responsibility with the objective of providing business executives a pragmatic approach to their new obligations to a wider set of stakeholders, obligations that originated from the creation of the EPA, CPSC, EEOC and OSHA. Established in 2000, it is known giving platform in India. (1991). The evolution of the corporate social performance model. Disclaimer: The views expressed in this feature are entirely their own. A three-dimensional conceptual model of corporate social performance. The relationship between CSR and performance: Evidence in China. In 2015, the EC held a multi-stakeholder forum on CSR which concluded that the Commission should continue to play an important role in the promotion of CSR and help embed social responsibility into companys strategies (European Commission 2015). (1991). Harvard Business Review, December, 116. Among the glocal (global+local) drivers of CSR, he suggests that cultural tradition, political reform, socio-economic priorities, governance gaps, and crisis response are among the most important (Visser 2011, p. 269). With regards to the concept itself, Carroll (2015) expects CSR to continue its transactional path but to have a limited transformational evolution. During the 1990s, it was President Clinton who brought the attention towards the notion of corporate citizenship and social responsibility with the creation of the Ron Brown Corporate Citizenship Award for companies that were good corporate citizens (Carroll 1998). Smiths definition of CSR (2001) gave hints of the need of making CSR part of a companys strategic perspective in order to be able to fulfill its long term obligations towards society. (2011). He then comments on several characteristics of the model that were not emphasized when initially published: ethics permeates the pyramid; tensions and tradeoffs inherent; its' integrated, unified whole; its' sustainable stakeholder framework, and; its' global applicability and use in different contexts. With regards to appropriability, the way in which the company manages to retain the value created, Husted and Allen (2007) pointed out that the surveyed companies designed their CSR policies with the aim of creating value, but such value seems to be limited to the economic benefits of the companies themselves and not necessarily for all their stakeholders. This book won the 2014 Academy of Management, Social Issues in Management, Best Book Award. When an examination of the ethical issues business faces today is considered, they typically involve employees, customers, and the environment most frequently. Though the pyramid could be perceived to be a static snapshot of responsibilities, it is intended to be seen as a dynamic, adaptable framework the content of which focuses both on the present and the future. A history of corporate social responsibility: concepts and practices. Porter, M. E., & Kramer, M. R. (2006). Open Access This article is distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license, and indicate if changes were made. ROHIT KANDA. Sethi, S. P. (1975). Source: Developed by the authors as a synthesis of the academic literature. The social responsibility of business is to increase its profits. This is done to enhance or augment the companys reputation and not necessarily for noble or self-sacrificing reasons. The growing concern over business responsibility. Wood (1991), driven by what she saw as a need for a systematical integration of conceptual aspects into a unified theory, built on the models of Carroll (1979) and Wartick and Cochran (1985) to create a model of Corporate Social Performance (CSP). 6 Reasons to Purchase Eri Silk Saree for Your Lady Love! These publications are of relevance because they advanced the public debate around CSR by acknowledging that business functions by public consent, and its basic purpose is to serve constructively the needs of society to the satisfaction of society (Committee for Economic Development 1971, p. 11). California Management Review, 17(3), 5864. Evolution of the academic understanding of CSR. While there has been a recent spike in the popularity of CSR, evidence of businesses concern for society can be traced back to practices originating from the Industrial Revolution. Annual corporate social performance reports frequently go by the titles of CSR and/or Sustainability Reports but their contents are undifferentiated from one another; in other words, the concepts are being used interchangeably by many. Taking on ethical responsibilities implies that organizations will embrace those activities, norms, standards and practices that even though they are not codified into law, are expected nonetheless. However, since the chief aim of enterprises has always been maximizing profit and shareholders interests, early scholars believed that fulfilling social responsibility is meant to increase economic benefits. In short, the distinctiveness and usefulness in research of the four categories have been established through a number of empirical research projects. Minimally speaking, law might be seen as passive compliance. New York: Oxford University Press. Trapp (2012) exemplified the third generation of CSR through a case study of Vattenfall, the Swedish state-owned energy company that in 2008 launched a CSR-backed stakeholder engagement campaign focused on climate change mitigation. The second layer of the pyramid talks about the legal responsibilities of the company. I am a Digital Marketer and an Entrepreneur with 12 Years of experience in Business and Marketing. Later, in the fourth and most recent edition of the book, Chandler (2016) reflects on the evolution of CSR and its growing acceptance as central to the companys strategic decision making as well as to their day-to-day operations. Moreover, Burke and Logsdon (1996) identified five dimensions of strategic CSR which, for them, are essential for achieving the business objectives as well as for value creation:1) centrality, which represents how close or fit is CSR to the companys mission and objectives; 2) specificity, which represents the ability to gain specific benefits for the firm; 3) proactivity, in terms of being able to create policies in anticipation of social trends; 4) voluntarism, explained as the discretionary decision making process that is not influenced by external compliance requirements, and; 5) visibility, which refers to the relevance of the observable and recognizable CSR for internal and external stakeholders (Burke and Logsdon 1996). In the case of ProQuest the publications increased considerably from 2010 to 2016 passing from 5715 to 8188, but decreased to 5670 in 2017. Learning improves performance and minimise risks. Lee has said that the article in which the four part model of CSR was published has become one of the most widely cited articles in the field of business and society (Lee 2008). For example, in the book Corporation Giving in a Free Society published in 1956, Eells (1956) argued that the large corporations of the time were not living up to their responsibility in a time of generalized inflation. It covers Sustainable Development, Corporate Social Responsibility (CSR), Sustainability, and related issues in India. Working alone yields lesser benefits as compared to the working together always. Book In the Legal Responsibility category, it should be acknowledged that most laws and regulations were created based upon some ethical reasoning that they were appropriate. Eberhard-Harribey, L. (2006). ), The Oxford handbook of corporate social responsibility (pp. Whether as a response to the new social expectations, a new regulatory framework, or due to a first-mover strategy, these are two notable examples of companies that begun formalizing and integrating policies that addressed the social and public issues of the time, and as a result the 1970s entered into what Carroll (2015, p. 88) called an era of managing corporate social responsibility. WebBusiness Ethics and Social Responsibility Chapter Outline. However, it was in the 1950s when Bowen (1953) defined what those responsibilities were by explaining that the social responsibility of business executives was to make decisions according to the values of society and provided what was perhaps the first academic definition of CSR. With governments reducing their role in regulating corporate behavior, managers were faced with a need to answer to different interest groups that still expected corporations to fulfill the social expectations of the time. The company has to overcome the various internal and external factors that work as an obstacle for the overall growth and development of the business. This context presents an opportunity for CSR and SCSR to continue growing in terms of conceptualization and implementation, mainly because businesses can adopt it as a strategic framework with the objective of creating shared value (see: Chandler 2016). As a result, Woods model (1991) was broader and more comprehensive than the ones presented earlier by Carroll (1979) and Wartick and Cochran (1985), and its relevance relies on its contextualization of aspects of CSR within the business-social interaction by emphasizing explicitly the outcomes and performance of firms (Carroll 1999). Businesses create profits when they add value, and in doing this they benefit all the stakeholders of the business. European Commission. Notably, Carroll (2015) pointed out that all of these concepts have been incorporated into CSR which is the reason why he defines it as the benchmark and central piece of the socially responsible business movement (see: Chandler and Werther 2013; Heslin and Ochoa 2008; Trapp 2012). See Feldstein, M. (2013). Businesses may consider in supplementing even in smaller well defined CSR projects. Perhaps Chandler and Werthers (2006; 2010; 2013) most valuable contribution comes from their particular perspective on the implementation of Strategic CSR, which in the fourth edition of the bookwritten by Chandler (2016) builds from the previous publications to encompass five major components instead of the four proposed in previous editions: first, the complete incorporation of the CSR perspective into the companys strategic planning process and their corporate culture; second, the understanding that all the companys actions are directly related to the core operations; third, the belief that companies seek to understand and be responsive to their stakeholders needs, which means that the incorporation of a stakeholder perspective is a strategic necessity; fourth, the company passes from a short term perspective to a mid and long term planning and management process of the firms resources which is inclusive of its key stakeholders, and; fifth (the new component), firms aim to optimize the value created (Chandler 2016; Chandler and Werther 2013). Wood (1991) defined three dimensions of CSP: first, the principles of Corporate Social Responsibility, which include legitimacy (institutional level), public responsibility (organizational level), and managerial discretion (individual level). An examination of the influence of diversity and stakeholder role on corporate social orientation. The period after World War II and the 1950s can be considered as a time of adaptation and changing attitudes towards the discussion of corporate social responsibility, but also a time where there were few corporate actions going beyond philanthropic activities (Carroll 2008). Spence employed the ethic of care and feminist perspectives to redraw the four CSR domains by indicating that Carrolls categories represented a masculinist perspective but that the ethic of care perspective would focus on different concerns. WebThe practice of CSR or Corporate Social Responsibility as a paradigm for firms and businesses to follow has evolved from its early days as a slogan that was considered trendy by some firms following it to the present day realities of the 21st century where it is no longer just fashionable but a business requirement to be socially responsible. However, it is necessary to point out that the effect of this growing interest was perhaps more visible in the USA, which is why some examples of the following sections might seem to center on this particular country. This lasted until 1979, when Carroll proposed what is arguably the first unified definition of Corporate Social Responsibility stating that: The social responsibility of business encompasses the economic, legal, ethical, and discretionary expectations that society has of organizations at a given point in time (Carroll 1979, p. 500). The findings also indicate that as social expectations of corporate behavior changed, so did the concept of Corporate Social Responsibility. Ethical considerations are present in each of the other responsibility categories as well. This review focuses on the most relevant academic publications and historical events that have influenced the evolution of CSR as a conceptual paradigm. In 2015, CSR Europe launched the Enterprise 2020 Manifesto which aimed to set the direction of businesses in Europe and play a leading role in developing an inclusive sustainable economy (CSR Europe 2016) and can be understood as a response to the EU Strategy on CSR as well as to the United Nations Sustainable Development Goals. statement and He then comments on several Du Pisani, J. Growing criticisms of the emerging factory system, working conditions, and the employment of women and children were being brought to light, especially in the United States. Research in Corporate Social Policy and Performance. Capitalism and freedom. Carroll, A. A working group led by Brazil and Sweden collaborated with stakeholders and National Standards Bodies for a period of 5 years (20052010) and came up with the approved ISO 26000 Social Responsibility in September 2010 (ISO n.d.-a). (n.d.). 2008). Some articles pointed to additional references outside the initial search scope which were then searched online for their review. WebGet help with your Corporate social responsibility homework. (2018). B. (Eds.). Primarily via business case reasoning, CSR has been more quickly adopted as a beneficial practice both to companies and society. Provided by the Springer Nature SharedIt content-sharing initiative. International Journal of Management Reviews, 10(1), 5373. The Club of Rome. The goal of these expectations is that businesses will be responsible for and responsive to the full range of norms, standards, values, principles, and expectations that reflect and honor what consumers, employees, owners and the community regard as consistent with respect to the protection of stakeholders moral rights. This led to managers being viewed as trustees for the different set of external relations with the company, which in turn translated into social and economic responsibilities being adopted by corporations (Carroll 2008; Heald 1970). WebIn the United States, Social Security is the commonly used term for the federal Old-Age, Survivors, and Disability Insurance (OASDI) program and is administered by the Social Security Administration (SSA). How companies decide to balance these various responsibilities goes a long way towards defining their CSR orientation and reputation. Bowens work proceeded from the belief that the several hundred largest businesses in the United States were vital centers of power and decision making and that the actions of these firms touched the lives of citizens in many ways. 1 is that the understanding of CSR evolved from being a personal decision of businessmen in the 1950s to be understood as decision making process in the 1980s and to be perceived as a strategic necessity by the early 2000s. Information for business, legal and media: The CCPC and our latest news; Our enforcement actions; Competition and consumer protection law; Mergers The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders. With this new perspective, Freeman (2001) and A. L. Friedman and Miles (2002) contributed to the CSR evolution by reinforcing the belief that corporations are responsible to a broader set of stakeholder than before. Further, the factor analysis conducted concluded that there are four empirically interrelated, but conceptually independent components of corporate social responsibility. Also in 1991, Carroll (1991) presented the Pyramid of Corporate Social Responsibility with the aim of providing a useful approach to CSR for the executives that needed to balance their commitments to the shareholders with their obligations to a wider set of stakeholders which originated from the new governmental bodies and regulations of the USA, mainly from the establishment of the EPA, the Equal Employment Opportunity Commission (EEOC), the Occupational Safety and Health Administration (OSHA) and the Consumer Product Safety Commission (CPSC) (Carroll 1991). The Club of Rome, formed in 1968 by a group of researchers that included scientists, economists and business leaders from 25 different countries, published in 1972 the report The Limits to Growth (World Watch Institute n.d.), a study led by the Massachusetts Institute of Technology (MIT) which questioned the viability of continued growth and its ecological footprint (The Club of Rome 2018). The business case for CSR refers to the underlying arguments supporting or documenting why the business community should accept and advance the CSR cause. CSR world should explore togetherness by partnering with other entities. Wartick, S. L., & Cochran, P. L. (1985). It is relevant to point out that this paper will focus on the development of CSR as a definitional construct and will not explore in detail alternative concepts that emerged in the late twentieth century. Corporate social responsibility revisited. Furthermore, this article contributes to the literature on CSR by providing an innovative review of the evolution of the concept that contextualizes its development with a connection to the wider changes happening in each period. These protests put pressure on companies that, in the protestors view, represented the establishment (i.e. Rather, business is expected to fulfill all responsibilities simultaneously. In this discussion, however, the emphasis will be placed on concepts and practices that have characterized the post-World War II era. Legal expectations certainly are based on ethical premises. Davis, K. (1960). Business Ethics A European Review, 26, 321325. One year afterwards, Porter and Kramer (2006) built on the notion that companies can achieve a competitive advantage through SCSR and explained that corporations can address their competitive context through a strategic approach that results in the creation of shared value in terms of benefits for society while improving the firms competitiveness. Springer Nature. Things have changed significantly since then. Second, implementing SCSR with the aim of creating value is inevitably linked to social demands. CSR Europe. Lee, M.-D. P. (2008). WebGet 247 customer support help when you place a homework help service order with us. (2003). Corporate social responsibility: The centerpiece of competing and complementary frameworks. (1998). Given these aspects, the research was carried out following a systematic literature review (SLR) as understood by Okoli and Schabram (2010) who built on from Finks (2005) definition of a research literature review to define it as a systematic, explicit, comprehensive and reproducible method. Accessed 25 May 2018. Swanson, D. L. (1995). Wood, D. J. Pacific-Basin Finance Journal. The authors declare that they have no competing interests. The most relevant include: the creation of the European Environment Agency (1990), the UN summit on the Environment and Development held in Rio de Janeiro which led to the Rio Declaration on Environment and Development, the adoption of Agenda 21 and the United Nations Framework Convention on Climate Change (UNFCCC) (1992), and the adoption of the Kyoto Protocol (1997). It contains best practices, literature reviews and leading foresight thinking in the field of business and society. Green paper: promoting a European framework for corporate social responsibility (COM(2001) 366 final). The family eventually Among her occupations, BD is the book review editor for the journal Ecological Economics, Director of the University of Iceland Arctic Initiative and sits on the boards of several foundations, institutes and private companies. Such is the case of the ISO 26000 which history can be traced to 2002 when the Committee on Consumer Policy of the International Organization for Standardization (ISO) proposed the creation of CSR guidelines to complement the quality and environmental management standards (ISO 9001 and ISO 14001) (ISO n.d.-a). Corporate philanthropy embraces businesss voluntary or discretionary activities. An image of a cartoon face with a neutral expression. The year 2015 can be considered as the most relevant in the decade because the 15 years to follow after it will be marked by the Paris Agreement, the launch of the 2030 Agenda for Sustainable Development, and the adoption of seventeen Sustainable Development Goals (SDGs) which represent a shared vision of humanity and a social contract between the worlds leaders and the people (Ban 2015, para.
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