Concept of Corporate Social Responsibility

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Table of Contents
Introduction and Thesis Statement..................................................................................................3
About Corporate Social Responsibility...........................................................................................3
Significance of CSR in business......................................................................................................3
Criticism on Corporate Social Programs.........................................................................................5
Conclusion.......................................................................................................................................5
References........................................................................................................................................6

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Concept of Corporate Social Responsibility
Introduction and Thesis Statement
Any business is integrated into society, enjoys its natural and human resources,
infrastructure, advances in science and culture, respectively, society expects from employers to
participate in solving social problems (Dhaliwal et al., 2014, p. 328). Today, socially responsible
activities of any organization are becoming the norm of conduct and ethics part of doing
business. This is due to the following factors:

Social activity of the population that is in favor of all decisions affecting their interests

are taken with their participation;

Government regulation of business activity of big business in the public interest;
Impact of social environment on management decisions in organizations.
The essay aims to highlight the concept of Corporate Social Responsibility in effective

and efficient manner by critically analyzed the role of CSR in the long run.
About Corporate Social Responsibility
In recent years, all over the world in the relationship between the States, civil society
institutions and private companies have been changes that have contributed to the emergence of
new forms of social interaction. One such form is based on a purely voluntary system, built
relationships - is a corporate (social) responsibility (Dhaliwal et al., 2014, p. 328). Currently, the
issue of corporate social responsibility has moved to the forefront. Social activities of the
company and its reputation are interrelated. In accordance to the research of Bondy & Starkey
(2014, p.4), it is revealed that if the firm will invest in social programs, thereby providing social
guarantees to its employees and offering quality and safety of products sold and services in the
long term, the company expects a favorable social environment, and because of this, and
sustainable financial and economic situation.
Significance of CSR in business
Any organization seeking to use the authority and influence in society, it is necessary to
know that the beginning of XXI century. the majority of the worlds leading companies has
formed its own policy of corporate social responsibility (CSR) (Boulouta, & Pitelis, 2014, p.
349).Moreover, to establish a joint company whose purpose is to develop and promote the
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concept of corporate social responsibility, the topic began to be developed by researchers and
experts working in the field of corporate governance, and the study of the concept of corporate
social responsibility has become all the training courses on corporate management of leading
economic institutions (Boulouta, & Pitelis, 2014, p. 349).
The leading association of corporations engaged in the development and promotion of the
concept of CSR, Business for Social Responsibility (Business for Social Responsibility) defines
corporate social responsibility as achieving commercial success in ways that are based on ethics
and respect for people, communities, and the environment (Doh, & Tashman, 2014, p. 131).
The policy of corporate social responsibility according to the Business for Social
Responsibility - is an interconnected set of policies, practices and programs that are integrated
into the business supply chain decision-making processes at all levels of the company and
include the responsibility for the current and past activities and future impact of the company on
the outside environment (Doh, & Tashman, 2014, p. 131).
At the World Business Congress, For Sustainable Development Lord Hill Richard Watt in
the reportMaking Good Business Sense has used the following definition: Corporate social
responsibility - is a constant commitment of business to do business on the basis of ethics and
contribute to economic development, while at the while improving the quality of life of its
employees and their families as well as society as a whole (Wu, et al., 2014, p. 13).
The concept of CSR in companies at different levels of different areas of business may vary,
but it usually includes the following key components:

corporate ethics;

Principles and approaches to corporate

governance;

corporate social policy in relation to

society;

human rights issues in relations with

suppliers;

policy in the sphere of environmental

protection;

relationships with customers;

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Policy for staff.

According to Lund-Thomsen, & Lindgreen, (2014, p. 11), the Main purpose of

corporate social responsibility - the achievement of sustainable development of society, which

are understood the needs of the present generation without jeopardizing the needs of future
generations.

The successful policy of corporate social responsibility into account the interests

and enhances the quality of life of major stakeholders of companies, which include employees,
shareholders, investors, public authorities, customers, business partners, professional
communities, society, and so on (berseder, et al., 2014, p. 101). In this case, companies need
develop constant interaction with stakeholders in order to take into account their opinions and
expectations in the process of making and implementing decisions (Zhu, et al., 2014, p.28).

In the study of Hond et al., (2014, p.790), it is stated that carrying out the process

of implementation of CSR in the company should be carried out in a systematic manner, and to
be integrated into all business processes. When making decisions, companies need to take into
account not only economic but also social and environmental factors that allow them to manage
the impact of their activities on society and the environment and be accountable for it (Orlitzky,
2015). In this company it is important to understand that CSR is not an optional addition to their
main activity and is not limited to philanthropy.

Criticism on Corporate Social Programs

Critics of corporate social programs argue that they are built based on the business

impact and are just cover the harm that cause corporations to society of its activities. Assuming
that any corporate social project - an attempt to achieve a balance between the moral demands of
society and the interests of business, it makes sense to evaluate the projects in terms of the extent
to which the project aims to create a public good, and the extent to which benefits directly to
business (Wu,et al., 2014, p. 13).

Conclusion

In summary, Successful reputable companies show that social responsibility is not

an option for them, but an element of strategic risk management. A growing number of investors
prefer to invest in organizations that demonstrate a high level of social responsibility, and they
are guided by various indices and targets. It is important for rapprochement of positions in

society in relation to understanding the essence of corporate responsibility and the real
contribution business in the socio-economic development of the country. It is important to know
that more and more companies declare their commitment to universal principles of corporate
responsibility, apply them in business practices as a prerequisite for good governance and
successful development.

References

Bondy, K., & Starkey, K. (2014). The dilemmas of internationalization: corporate social
responsibility in the multinational corporation. British Journal of Management, 25(1), 422.

Boulouta, I., & Pitelis, C. N. (2014). Who needs CSR? The impact of corporate social
responsibility on national competitiveness. Journal of business ethics,119(3), 349-364.

Dhaliwal, D., Li, O. Z., Tsang, A., & Yang, Y. G. (2014). Corporate social responsibility
disclosure and the cost of equity capital: The roles of stakeholder orientation and
financial transparency. Journal of Accounting and Public Policy,33(4), 328-355.

Doh, J. P., & Tashman, P. (2014). Half a world away: the integration and assimilation of
corporate social responsibility, sustainability, and sustainable development in business
school curricula. Corporate Social Responsibility and Environmental
Management, 21(3), 131-142.

Hond, F., Rehbein, K. A., Bakker, F. G., & Lankveld, H. K. V. (2014). Playing on two
chessboards: Reputation effects between corporate social responsibility (CSR) and
corporate political activity (CPA). Journal of Management Studies,51(5), 790-813.

Lund-Thomsen, P., & Lindgreen, A. (2014). Corporate social responsibility in global

value chains: where are we now and where are we going?. Journal of Business
Ethics, 123(1), 11-22.

berseder, M., Schlegelmilch, B. B., Murphy, P. E., & Gruber, V. (2014). Consumers
perceptions of corporate social responsibility: Scale development and validation. Journal
of Business Ethics, 124(1), 101-115.

Orlitzky, M. (2015). The Politics of Corporate Social Responsibility or: Why Milton
Friedman Has Been Right All Along. Annals in Social Responsibility,1(1).

Wu, L. Z., Kwan, H. K., Yim, F. H. K., Chiu, R. K., & He, X. (2014). CEO ethical
leadership and corporate social responsibility: A moderated mediation model. Journal of
Business Ethics, 1-13.

Zhu, Q., Yin, H., Liu, J., & Lai, K. H. (2014). How is employee perception of
organizational efforts in corporate social responsibility related to their satisfaction and

loyalty towards developing harmonious society in Chinese enterprises?. Corporate Social

Responsibility and Environmental Management,21(1), 28-40.