1

Corporate Social
Responsibility

Madhumita Chatterji, Professor, IFIM Business

School, Bengaluru

© Oxford University Press 2011. All rights reserved.

 Chapter 2
EVOLUTION OF COMPANY
AND CSR

© Oxford University Press 2011. All rights reserved.

Chapter 2 EVOLUTION OF COMPANY AND CSR

LEARNING OBJECTIVES
• To understand the concept of corporation

• To trace A brief history of corporations

• Understand how modern corporations come into existence

• Provide A brief outline of corporate governance

• Analyse the importance of CSR in governance

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 EVOLUTION OF COMPANY AND CSR

 INTRODUCTION
 Concept of corporation
 Definition- a corporation is a group or ‘body’ of individuals
seeking some advantages for its members.
 Characteristics
• Limited liability
• Transferable ownership
• Separate legal entity
• Perpetual succession
• Professional management

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 EVOLUTION OF COMPANY AND CSR

 Seeds of early corporation

 The incorporation of a company

 Governance and Management of Companies

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 EVOLUTION OF COMPANY AND CSR

 Theories of corporate governance

 Agency theory

 Stewardship theory

 Shareholder versus stakeholder theory

 Transaction cost theory

 Sociological theory

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EVOLUTION OF COMPANY AND CSR

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 EVOLUTION OF COMPANY AND CSR

 Importance of CSR in Corporate Governance

 Economic responsibility

 Legal responsibility

 Ethical responsibility

 Discretionary (or philanthropic) responsibility

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 EVOLUTION OF COMPANY AND CSR

 LEADERSHIP CRISIS

 Relation between values and skills

 It is the human aspect of the company that would ensure the success
or failure in every field because they are the process creators, process
owners, and process deliverers.

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EVOLUTION OF COMPANY AND CSR
THE SOCIAL IMPACT

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