argues that harming the environment is ethically objectionable. From an ethical perspective, some businesses will adopt CSR policies and practices because of the ethical beliefs of senior management: for example, the CEO of outdoor-apparel company Patagonia, Inc. CSR strategies encourage the company to make a positive impact on the environment and stakeholders including consumers, employees, investors, communities, and others. In part, these benefits accrue by increasing positive public relations and high ethical standards to reduce business and legal risk by taking responsibility for corporate actions. From a strategic perspective, CSR can contribute to firm profits, particularly if brands voluntarily self-report both the positive and negative outcomes of their endeavors. įurthermore, businesses may engage in CSR for strategic or ethical purposes. With some models, a firm's implementation of CSR goes beyond compliance with regulatory requirements and engages in "actions that appear to further some social good, beyond the interests of the firm and that which is required by law". As such, social responsibility initiatives must coherently align with and be integrated into a business model to be successful. Ĭonsidered at the organisational level, CSR is generally understood as a strategic initiative that contributes to a brand's reputation. Moreover, scholars and firms are using the term " creating shared value", an extension of corporate social responsibility, to explain ways of doing business in a socially responsible way while making profits (see the detailed review article of Menghwar and Daood, 2021). In contrast, it has been considered a form of corporate self-regulation for some time, over the last decade or so it has moved considerably from voluntary decisions at the level of individual organizations to mandatory schemes at regional, national, and international levels. Various organizations have used their authority to push it beyond individual or even industry-wide initiatives. In addition national and international standards, laws, and business models have been developed to facilitate and incentivize this phenomenon. While once it was possible to describe CSR as an internal organizational policy or a corporate ethic strategy similar to what is now known today as Environmental, Social, Governance (ESG) that time has passed as various companies have pledged to go beyond that or have been mandated or incentivized by governments to have a better impact on the surrounding community. Form of corporate self-regulation aimed at contributing to social or charitable goals Employees of a leasing firm taking time off their regular jobs to build a house for Habitat for Humanity, a non-profit that builds homes for needy families using volunteers.Ĭorporate social responsibility ( CSR) or corporate social impact is a form of international private business self-regulation which aims to contribute to societal goals of a philanthropic, activist, or charitable nature by engaging in, with, or supporting professional service volunteering through pro bono programs, community development, administering monetary grants to non-profit organizations for the public benefit, or to conduct ethically oriented business and investment practices.
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