Introduction:

Corporations around the world are struggling with a new role, which is to meet the needs of the
present generation without compromising the ability of the next generations to meet their own
needs. Organizations are being called upon to take responsibility for the ways their operations
impact societies and the natural environment. They are also being asked to apply sustainability
principles to the ways in which they conduct their business. Sustainability refers to an
organizations activities, typically considered voluntary, that demonstrate the inclusion of social
and environmental concerns in business operations and in interactions with stakeholders. It is no
longer acceptable for a corporation to experience economic prosperity in isolation from those
agents impacted by its actions. A firm must now focus its attention on both increasing its bottom
line and being a good corporate citizen. Keeping abreast of global trends and remaining
committed to financial obligations to deliver both private and public benefits have forced
organizations to reshape their frameworks, rules, and business models. To understand and
enhance current efforts, the most socially responsible organizations continue to revise their short-
and long-term agendas, to stay ahead of rapidly changing challenges.
In addition, a stark and complex shift has occurred in how organizations must understand
themselves in relation to a wide variety of both local and global stakeholders. The quality of
relationships that a company has with its employees and other key stakeholderssuch as
customers, investors, suppliers, public and governmental officials, activists, and communities is
crucial to its success, as is its ability to respond to competitive conditions and corps-rate social
responsibility (CSR). These major transformations require national and global companies to
approach their business in terms of sustainable development, and both individual and
organizational leadership plays a major role in this change.
Organizations have developed a variety of strategies for dealing with this intersection of societal
needs, the natural environment, and corresponding business imperatives. Organizations can also
be considered on a developmental continuum with respect to how deeply and how well they are
integrating social responsibility approaches into both strategy and daily operations world-wide.
At one end of the continuum are organizations that do not acknowledge any responsibility to
society and the environment. And on the other end of the continuum are those organizations that
view their operations as having a significant impact as well as reliance on society at the
economic, social, and ecological levels, thus resulting in a sense of responsibility beyond the
traditional boundaries of the organization. Most organizations can be placed somewhere in
between.
What is Corporate Social Responsibility?
While there is no universal definition of corporate social responsibility, it generally refers to
transparent business practices that are based on ethical values, compliance with legal
requirements, and respect for people, communities, and the environment. Thus, beyond making
profits, companies are responsible for the totality of their impact on people and the planet.
People constitute the companys stakeholders: its employees, customers, business partners,
investors, suppliers and vendors, the government, and the community. Increasingly, stakeholders
expect that companies should be more environmentally and socially responsible in conducting
their business. In the business community, CSR is alternatively referred to as corporate
citizenship, which essentially means that a company should be a good neighbor within its
host community. The business case for CSR will differ from firm to firm, depending on a
number of factors. These include the firms size, products, activities, location, suppliers,
leadership and rep-mutation (i.e., of the sector in which the firm operates). Another factor is the
approach a firm takes to CSR, which can vary from being strategic and incremental on certain
issues to becoming a mission-oriented CSR leader. The business case for CSR also revolves
around the fact that firms that fail to engage parties affected by their activities can jeopardize
their ability to create wealth for them-selves and society, and increase the risk of legal or other
responses. Taking into account the interests and contributions of those one affects is the basis for
ethical behavior and sound governance. CSR is essentially a strategic approach for firms to take
to anticipate and address issues associated with their interactions with others and, through those
interactions, succeed in their business endeavors. There is growing consensus about the
connection between CSR and business success.
Why Every Company Needs a CSR Strategy:
The topic of corporate responsibility has been captioned under many names, including strategic
philanthropy, corporate citizenship, social responsibility and other monikers. As the names
imply, each carries with it a certain perspective on the role of business in society. Regardless of
the label, for now the dominant paradigm underlying corporate social responsibility or CSR is
centered on the idea of creating shared value. The role of business, according to this model, is
to create value for its shareholders but in such a way that it also creates value for society,
manifesting itself as a win-win proposition. In one fell swoop the idea aims to unite the critics of
CSR from the left and the right, for the notion of CSR has had the dubious distinction of being
criticized by both sides of the ideological spectrum. Civil society advocates question
corporations fundamental motivations for CSR, asserting that corporate programs to fund social
and environmental programs are nothing more than public relations campaigns to boost their
brand reputations, often disproportionately to the Effort itself. This dismissal of CSR resides in a
fundamental distrust of a corporations legitimate intentions to do anything more than increase
its profits. On the ideological right, critics reject the role of CSR in a capitalist society where the
primary responsibility of business is seen as creating financial returns for its shareholders and the
larger economy. A companys value, according to these critics, resides entirely in its ability to
generate financial wealth for its shareholders, and any social or environmental initiative that does
not simultaneously create profit for a company is deemed to be a waste of corporate resources.
This viewpoint is founded on stark delineations between the spheres of responsibility and
influence of government, civil society and the business sector. According to this argument, if
each sector did what it is supposed to do, a prosperous and just society would flourish with
optimal allocation of resources. Further exacerbating attacks from the left and the right is the
utter lack of metrics to evaluate the efficacy of CSR programs.
For a sector driven and evaluated by its measurement of financial returns and investments, the
lack of any agreed-upon measuresto quantify the social or environmental return of money spent
on CSR seems to run counter to corporate ethos.
CSR implementation framework and corporate governance:
A well-designed CSR implementation framework integrates economic, social and environmental
decision making throughout a firmfrom the board of directors to front-line officials and
supply-chain partnersand is therefore intimately connected with effective corporate
governance. A properly governed firm can reap optimal benefits for itself and its shareholders,
and in turn for those who are affected by the firms activities. At all levels of a firm, inadequate
direction and control of its activities and assets can jeopardize its very ability to operate.



This guide proposes an implementation framework comprising six key tasks .In recognition of
the fact that firms are at different levels of sophistication and development with respect to CSR,
it is understood that firms may choose to forego a particular aspect or task when it has already
been undertaken. The framework is intended to help boards of directors, CEOs, managers,
employees and others assess a firms effects on society and the challenges and opportunities
associated with taking these impacts into account in decision making and business activities. As
understood here, a firms CSR approach should be an integral part of its core business objectives
and strategy. Just as importantly, it is also part of a wider trend towards exploring ways to ensure
that the individual and collective activities of the business sector advance progress towards
internationally-agreed challenges, and create an environment where business is itself sustainable.
The Challenges of Crafting a CSR Strategy:
The differing motivations for corporations to undertake initiatives in the three respective CSR
theatres, and the wide variations in how the programs are managed in each theatre, underscore
the challenge for corporations in crafting a unified CSR strategy.
While this may not be representative ofa universal sample, we surveyed 50 CSR managers, who
attended an executive education program in 2011. They reported 168 significant CSR initiatives
at their respective companies roughly divided 40 percent in Theatre 1, 40 percent in Theatre 2,
and 20 percent in Theatre 3. As might be expected, the motivation for the program and the
expected benefits that their companies hoped to derive were very different in the three CSR
theatres. See Table 1.

Conclusion:
According to the emergent literature, there is a growing awareness that business needs to manage
its relationship with the wider society. Corporate leaders are responsible for their corporations
impact on society and the natural Environment beyond legal compliance and the liability of
individuals. To the Novice, this annotated bibliography offers a short but nevertheless deep
introduction to the field. More experienced leaders can gain new perspectives on how to grow in
their approach to sustainability and how to develop innovative business models in accord with
the triple bottom line. CSR is becoming a leading principle of top management and of
entrepreneurs. The number of observations in research in this field clearly delineated models,
leadership competencies, accountability, and structure of partnerships as well as organizational
challenges and limitations and ethics. Organizations can reexamine their pattern of behaviors in
the TBL framework and begin their journey toward a sustainable approach that is integrated into
their business strategy.

Reference:
1. Article on Corporate Social Responsibility: An Implementation Guide for Business By
Paul Hohnen
2. Article on what Corporate Social Responsibility by Zynia L. Rionda, MPA
3. Why Every Company Needs a CSR Strategy and How to Build It by Kash Rangan,
Lisa A. Chase, Sohel Karim
Web resources:
http://ec.europa.eu/enterprise/policies/sustainable-business/corporate-social-
responsibility/index_en.htm
http://www.csreurope.org/