Corporate Social Responsibility Essay Example | Topics and Well Written Essays - 2500 words - 2

Corporate Social Responsibility - Essay Example For long-term benefits to the organization, CSR should be made a part of the firm's strategic perspective and operations. This paper proposes to discuss Corporate Social Responsibility (CSR), taking into account various factors including consumer rights, the significance of ethical consumerism, fair trade consumerism, ecological sustainability, and the cause commerce approach which promote the implementation of CSR. It has been recognized that the activities of an organization influence the external environment, hence it is important that the organization should be accountable to not only its stakeholders, but also to a wider community. This concept initially took root in the 1970s, and grew as a concern for the company as a member of society, with a wider view of company performance including its social performance (Crowther & Rayman-Bacchus, 2004: 3). Though community accountability was acknowledged as essential, the focus of big business on financial results was observed to be an impediment to social responsiveness, especially in the early years of the accountability concept taking shape. There is now an increasing move towards accountability of companies towards all participants, and this recent phenomenon of corporate social responsibility is becoming the norm with all organizations (McDonald & Puxty, 1979: 53).Corporate social responsibility (CSR) refers to a company including in its deci sion making and operations, ethical values, employee relations, compliance with legal requirements, transparency, and overall respect for the communities in which they operate. CSR is more than occassional community service action, it is a corporate philosophy that is the driving force behind strategic decision making, selection of partners or collaborators, hiring practices and ultimately brand development (Werther & Chandler, 2006: 8). CSR includes how businesses and organizations manage the impact that they have on the environment and society: particularly how organizations interact with their employees, customers, suppliers, and the communities in which they operate. Also significant is the extent to which they attempt to protect the environment, and solve new corporate problems such as the exploitation of child labour which may be occurring thousands of miles away as part of the corporate activity (Crowther & Green, 2004: 174)."Corporate social responsibility encompasses the ra nge of economic, legal, ethical and discretionary actions that affect the economic performance of the firm" (Werther & Chandler, 2006: 10). This includes legal or regulatory requirements faced in day-to-day operations. Being socially responsible and adhering to the law is an important aspect of any ethical organization. However, legal compliance is only a basic condition of CSR; strategic CSR gives priority to the ethical and discretionary concerns that are less precisely defined and for which there is often no clear or collective consensus from the part of society. Corporate social contract is related to the social responsibility that companies have towards the consumers and to the society at large. Thomas Hobbes' concept of social contract regards corporate activity as morally good if it maximises human welfare, in which collective welfare would be considered above