1.

INTRODUCTION

1.1 BACKGROUND:
Corporate governance plays an important role in firm performance efficient CG account for the

maximization of social and economic benefits in a great way which encouraging Corporate

Social Responsibility (CSR) . This can be done by creating an environment stable to investment,

and by working with the corporate sector for the implementation of community development

programs at the primary level.

Corporate social responsibility (CSR) has become crucial now a days that discusses ethical and

social issues exposing corporate decision-making and managerial behavior. Stakeholders

continuously encourage companies to take CSR initiatives.

Before 1950’s The idea of CSR was not properly enclosed in right Social Position. Businessmen

and investors were not having not a clear idea that it’s linked up with the performance and

management of any organization. In 1950’s the main thought was to do positively helping

activities for society from the corporate sector as a Gesture of Support for Society. While in

1960’s main events and philosophies were involved in describing the Social changes.

Traditional management tasks were applied by corporate sector while dealing with CSR matters

in 1970’s. While during 1980’s the corporate and social concern get closer.While in 1990’s the

awareness about CSR was globally accepted. And finally in this Century CSR aroused as

significant strategic concerns. CSR has been endorsed globally and encouraged by People of

every Society, organizations and patrons. Renowned International organizations Such as World

Bank, international Labor organization also endorse CSR as an important strategic tool.

Refrence Historical background of corporate social responsibility Rosamaria C. Moura-Leite

and Robert C. Padgett

The relationships of KSE 100 Index listed companies to society play a vital role in aspiring small

companies. Lack of research in this regard is the main motivation of this study. It is suggested

that CG and CSR go hand in hand and encourage firms to perform their role towards the

goodness of society. Companies which are contributing towards economic growth have been

thought responsible for creating social problems in areas like safety and health, waste

management, environmental pro-activeness, product quality and resource depletion. Corporation

makes a competitive edge within the instant market place. McWilliams et al. (2006) describe

CSR as “situations where the firm goes beyond compliance and engage in voluntary actions for

the society, beyond the interests of the firm and that which is required by law”. The performance

of firms should not be evaluated only on a profit basis but also on non-economic criteria.

1.1.1 MAJOR THEORIES RELATED TO CSR:

1.The stakeholder theory of CSR

2.Business ethics theory of CSR

3.The shareholder value theory of CSR

https://www.projectguru.in/publications/theories-of-csr/