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Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................3
Overview of Corporate Social Responsibility.............................................................................3
Evolution of the concept of Corporate Social Responsibility......................................................3
Importance of Corporate Social Responsibility for Organizations..............................................4
CSR Application in organization-Example..................................................................................5
Conclusion.......................................................................................................................................5
Bibliography....................................................................................................................................7
According to the first (the classical approach) and most traditional responsibility of
business is to increase profits for its shareholders. This view is called the theory of corporate
selfishness, expressed Nobel laureate in economics Milton Friedman (Milton Friedman) in 1971
in the article Social responsibility of business - to make money. As a general lack the theory
can be considered a temporary restriction (Flammer, 2015, p. 11). So, if in the short term the
company incurs additional costs in the long-term benefits from improved corporate image, the
development of relations with the local community.
The study of Y. Lacey, Miriam, Kevin Groves (2014, p. 399) stated that the second
concept, called the theory of corporate altruism is just the opposite of the theory of M. Friedman
and appeared simultaneously with its publication. The basic idea - business must take care not
only about profit growth, but also to make the most affordable contribution to social problems,
improve the quality of life of citizens and communities, as well as to the preservation of the
environment. The authorship of this theory belonged to the Committee on Economic
Development (Peloza, Ye & Montford, 2015, p.19).
The third view is the theory of rational egoism (enlightened self-interest) based on the
fact that the social responsibility of business - its just good business because it helps to reduce
the long-term loss of income. The costs of social and charity programs reduced operating profit,
but in the long run to create a favorable social environment and therefore sustainable profits.
Philanthropic and sponsorship programs promote legalized reduce the taxable base of the
company and give a good publicity effect. This is the main motive of the social activity of the
company (Fernandez-Feijoo, Romero & Ruiz, 2014, p. 244).
Importance of Corporate Social Responsibility for Organizations
Also, an interesting interpretation and model of CSR, which has become one of the base
for modern research on this issue, According to the position A. Carroll, corporate social
responsibility can be represented as a multi-level pyramid. Lying at the base of the pyramid
economic responsibility is directly determined by the basic function of the market as a producer
of goods and services to meet the needs of consumers and thus make a profit. According to the
study of Bolton & Mattila (2015, p. 140) under legal responsibility understand the functioning of
the company under the existing legislation. Ethical responsibility implies the companys activity
consonant with the expectations of society, based on the existing standards of morality, is not
exclusively economic institutions, the sphere of their interests moved to interact with interested
parties (stakeholders), participation in local community development, and government support in
social issues. The concept of corporate social responsibility is gradually moving from an abstract
concept into concrete observation and is pragmatic.
Bibliography
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Malaysia. Global Business and Management Research: An International Journal, 6(3),
210.
Bolton, L. E., & Mattila, A. S. (2015). How Does Corporate Social Responsibility Affect
Consumer Response to Service Failure in BuyerSeller Relationships?. Journal of
Retailing, 91(1), 140-153.
Christensen, L. J., Mackey, A., & Whetten, D. (2014). Taking responsibility for corporate social
responsibility: The role of leaders in creating, implementing, sustaining, or avoiding
socially responsible firm behaviors. The Academy of Management Perspectives, 28(2),
164-178.
Fernandez-Feijoo, B., Romero, S., & Ruiz, S. (2014). Commitment to corporate social
responsibility measured through global reporting initiative reporting: Factors affecting the
behavior of companies. Journal of Cleaner Production, 81, 244-254.
Flammer, C. (2015). Does corporate social responsibility lead to superior financial performance?
A regression discontinuity approach. Management Science.
Hu, V. I., & Scholtens, B. (2014). Corporate social responsibility policies of commercial banks in
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Peloza, J., Ye, C., & Montford, W. J. (2015). When companies do good, are their products good
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