An Analysis of the Impact of Corporate Social Responsibility in Business Today
CHAPTER ONE
INTRODUCTION
1.1 Background of the study Over the past twenty years an irrefutable shift to Corporate Social Responsibility (CSR) in companies has occurred (Martin, 2004). Corporate Social Responsibility (CSR) is about the contributions a company makes to society through its core business activities, its social investment and philanthropy programs. The concept of corporate social responsibility in business has become a popular subject of discussion and debate within both business and academic circles. The paper analyses the impact behind the shift to CSR through a case study analysis of Kenya Pipeline Company and their ensuing effects regarding CSR.
Additionally, the ethical proclivities associated with CSR have been analyzed to determine what, if any, effect ethics has on Company’s profits (Jeffrey et al, 2006). This will lead KPC to shift from ethical behavior to perceived ethical behavior via the public relations quick fix a façade of public relations that does not actually change the way companies operate. Although many experts noticed the outward growth of CSR, few have noticed that CSR has also been changing internally in meaning - an exception is Carroll's study of the definitional changes of CSR - (Carroll, 1999). The concept of CSR, particularly in terms of how it relates to other organizational goals, has been steadily evolving ever since the concept was introduced half a century ago. The purpose of this study is to trace the conceptual development path of theories on CSR and to reflect on the implications of change towards KPC and give evidence that suggests the company has failed to effectively meet their economic, social, and environmental responsibilities.
Companies like KPC have the responsibility of being economically responsible through producing goods and services, providing jobs or employment, providing prompt and good payment to suppliers, paying taxes as well as meeting the objective of being the margin of making profits.
INTRODUCTION
1.1 Background of the study Over the past twenty years an irrefutable shift to Corporate Social Responsibility (CSR) in companies has occurred (Martin, 2004). Corporate Social Responsibility (CSR) is about the contributions a company makes to society through its core business activities, its social investment and philanthropy programs. The concept of corporate social responsibility in business has become a popular subject of discussion and debate within both business and academic circles. The paper analyses the impact behind the shift to CSR through a case study analysis of Kenya Pipeline Company and their ensuing effects regarding CSR.
Additionally, the ethical proclivities associated with CSR have been analyzed to determine what, if any, effect ethics has on Company’s profits (Jeffrey et al, 2006). This will lead KPC to shift from ethical behavior to perceived ethical behavior via the public relations quick fix a façade of public relations that does not actually change the way companies operate. Although many experts noticed the outward growth of CSR, few have noticed that CSR has also been changing internally in meaning - an exception is Carroll's study of the definitional changes of CSR - (Carroll, 1999). The concept of CSR, particularly in terms of how it relates to other organizational goals, has been steadily evolving ever since the concept was introduced half a century ago. The purpose of this study is to trace the conceptual development path of theories on CSR and to reflect on the implications of change towards KPC and give evidence that suggests the company has failed to effectively meet their economic, social, and environmental responsibilities.
Companies like KPC have the responsibility of being economically responsible through producing goods and services, providing jobs or employment, providing prompt and good payment to suppliers, paying taxes as well as meeting the objective of being the margin of making profits.