Positioning Stakeholder Theory Within the Debate on Corporate Social Responsibility
EJBO Electronic Journal of Business Ethics and Organization Studies
Vol. 12, No. 1 (2007)
Positioning Stakeholder Theory within the Debate on Corporate Social Responsibility
Manuel Castelo Branco Lúcia Lima Rodrigues
Introduction
The present-day conception of corporate social responsibility (CSR) implies that companies voluntarily integrate social and environmental concerns in their operations and interaction with stakeholders. The European Commission defines it as “a concept whereby companies decide voluntarily to contribute to a better society and a cleaner environment.” (European Commission, 2001, p. 5) It is related to complex issues such as environmental protection, human resources management, health and safety at work, relations with local communities, relations with suppliers and consumers. The notion of CSR is one of ethical and moral issues surrounding corporate decision making and behaviour. Knowing if a company should undertake certain activities or refrain from doing so because they are beneficial or harmful to society is a central question. Social issues deserve moral consideration of their own and should lead managers to consider the social impacts of corporate activities in decision making. Regardless of any stakeholders’ pressures, actions which lead to things such as the conservation of the Earth’s natural resources or bio-diversity preservation, are morally praiseworthy. However, some argue that the contribution of concepts such as CSR is just a reminder that the search for profit should be constrained by social considerations (Valor, 2005, p. 199). Increasingly CSR is analysed as a source of competitive advantage and not as an end in itself (Branco and Rodrigues, 2006). In effect, the concept of CSR has evolved from being regarded as detrimental to a company’s profitability, to being considered as somehow benefiting the company as a whole, at least in the long run (see, for example, Hess et al., 2002; Porter and Kramer, 2002; Smith, 2003).
Vol. 12, No. 1 (2007)
Positioning Stakeholder Theory within the Debate on Corporate Social Responsibility
Manuel Castelo Branco Lúcia Lima Rodrigues
Introduction
The present-day conception of corporate social responsibility (CSR) implies that companies voluntarily integrate social and environmental concerns in their operations and interaction with stakeholders. The European Commission defines it as “a concept whereby companies decide voluntarily to contribute to a better society and a cleaner environment.” (European Commission, 2001, p. 5) It is related to complex issues such as environmental protection, human resources management, health and safety at work, relations with local communities, relations with suppliers and consumers. The notion of CSR is one of ethical and moral issues surrounding corporate decision making and behaviour. Knowing if a company should undertake certain activities or refrain from doing so because they are beneficial or harmful to society is a central question. Social issues deserve moral consideration of their own and should lead managers to consider the social impacts of corporate activities in decision making. Regardless of any stakeholders’ pressures, actions which lead to things such as the conservation of the Earth’s natural resources or bio-diversity preservation, are morally praiseworthy. However, some argue that the contribution of concepts such as CSR is just a reminder that the search for profit should be constrained by social considerations (Valor, 2005, p. 199). Increasingly CSR is analysed as a source of competitive advantage and not as an end in itself (Branco and Rodrigues, 2006). In effect, the concept of CSR has evolved from being regarded as detrimental to a company’s profitability, to being considered as somehow benefiting the company as a whole, at least in the long run (see, for example, Hess et al., 2002; Porter and Kramer, 2002; Smith, 2003).
References: Vol. 12, No. 1 (2007) Lantos, G