Corporate Social Responsibility
Corporate social responsibility is becoming a key initiative and an essential tool in the growth of multinational corporations and the development of third world countries throughout the globe. The two concepts can work hand in hand to provide benefits for all; however difficulties in regulating and implementing corporate social responsibility need to be overcome before effective changes can be made.
Definitions of corporate social responsibility can be somewhat varied depending on the perception and perspective an individual or group has towards the situation; the definition has also varied through time. In general terms, Manakkalathll & Rudolf (1995) define corporate social responsibility (CSR) as “the duty of organisations to conduct their business in a manner that respects the rights of individuals and promotes human welfare.” In contrast to this, Christian Aid (2004, as cited in Pendleton 2004) defines CSR as “an entirely voluntary, corporate driven initiative to promote self regulation as a substitute for regulation at either a national or international level.” Blowfield, 1995 indicates that through time, the definitions and explanations of CSR have become more positive, with increasing understanding of the benefits that can be obtained through successful implementation by organisations.
Pendleton (2004) suggests that the first CSR initiatives were a response to public pressure and media exposes of poor company behaviour. The aim of CSR was to show these people that companies were capable of cleaning up their act. Pendleton (2004) suggests that “contemporary CSR was christened by Shell in it’s response to it’s annus horribilis of 1995.” Monshipouri, Welch & Kennedy (2003) also outline this issue as a key turning point in which Royal Dutch/Shell in a completely socially irresponsible act, spilt hundreds of thousands of gallons of oil in a remote under-developed area in Nigeria; where the locals are still suffering from their ordeal to this date.
Definitions of corporate social responsibility can be somewhat varied depending on the perception and perspective an individual or group has towards the situation; the definition has also varied through time. In general terms, Manakkalathll & Rudolf (1995) define corporate social responsibility (CSR) as “the duty of organisations to conduct their business in a manner that respects the rights of individuals and promotes human welfare.” In contrast to this, Christian Aid (2004, as cited in Pendleton 2004) defines CSR as “an entirely voluntary, corporate driven initiative to promote self regulation as a substitute for regulation at either a national or international level.” Blowfield, 1995 indicates that through time, the definitions and explanations of CSR have become more positive, with increasing understanding of the benefits that can be obtained through successful implementation by organisations.
Pendleton (2004) suggests that the first CSR initiatives were a response to public pressure and media exposes of poor company behaviour. The aim of CSR was to show these people that companies were capable of cleaning up their act. Pendleton (2004) suggests that “contemporary CSR was christened by Shell in it’s response to it’s annus horribilis of 1995.” Monshipouri, Welch & Kennedy (2003) also outline this issue as a key turning point in which Royal Dutch/Shell in a completely socially irresponsible act, spilt hundreds of thousands of gallons of oil in a remote under-developed area in Nigeria; where the locals are still suffering from their ordeal to this date.
References: Bennett, J (2002). Multinational corporations: Social responsibility and conflict. Journal of International Affairs, vol 55, no. 2, pp.393-410 Blowfield, M Deresky, H (2006). International Management, Managing Across Borders and Cultures (5th eds). Pearson Prentice Hall: New Jersey, USA Grit, K Husted, B.W. & Allen, D.B. (2006). Corporate social responsibility in the multinational enterprise: Strategic and institutional approaches. Journal of International Business Studies, vol 37, pp.838-849 Knox, S Manakkalathil, J. & Rudolf, E. (1995). Corporate social responsibility in a globalising market. Advanced Management Journal, pp29-33 Monshipouri, M., Welch, C.E Pendleton, A. (2004). The real face of corporate social responsibility, Consumer Policy Review, vol.14, no.3, pp.77-82 Rodriguez, P., Siegel, D.S., Hillman, A