Corporate Social Responcibility
Corporate Social Responsibility
World Business Council for Sustainable Development defines Corporate Social Responsibility (CSR) as “The continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large.”
Simple definition: Seriously considering the impact of the company’s actions on society.
PERSPECTIVE ON CSR TRADITIONAL VIEW SOCIOECONOMIC VIEW
• TRADITIONAL VIEW :
The classical view states that business is an economic institution directed towards profit whose only responsibility to Society is to provide goods and services and to return maximum benefits to shareholders.
• SOCIOECONOMIC VIEW :
Theorists such as R. Edward Freeman (1984) supporting such view believe that business owes something back to the society that supports it, and that this debt is greater than the debt of the individual members of society.
Foundation principle of Corporate Social Responsibility
In 1899, Andrew Carnegie, founder of the conglomerate U.S. Steel Corporation, published a book called “THE GOSPEL OF WEALTH”, which state for the classical statement of corporate social responsibility.
Carnegie’s view was based on two principle 1) Charity Principle 2) Stewardship Principle.
1. The Charity Principal required more fortunate members of the society to assist its less fortunate members, including the unemployed, the handicapped, the sick & the elderly. These unfortunates can be helped by either directly or indirectly, through such institutes as churches, settlement houses, and the Community Chest movement. Well-to-do people & communities themselves decided to contribute. Carnegie himself donated millions of dollars for charitable and civic purpose. 2. The Stewardship principle, derived from the Bible,
World Business Council for Sustainable Development defines Corporate Social Responsibility (CSR) as “The continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large.”
Simple definition: Seriously considering the impact of the company’s actions on society.
PERSPECTIVE ON CSR TRADITIONAL VIEW SOCIOECONOMIC VIEW
• TRADITIONAL VIEW :
The classical view states that business is an economic institution directed towards profit whose only responsibility to Society is to provide goods and services and to return maximum benefits to shareholders.
• SOCIOECONOMIC VIEW :
Theorists such as R. Edward Freeman (1984) supporting such view believe that business owes something back to the society that supports it, and that this debt is greater than the debt of the individual members of society.
Foundation principle of Corporate Social Responsibility
In 1899, Andrew Carnegie, founder of the conglomerate U.S. Steel Corporation, published a book called “THE GOSPEL OF WEALTH”, which state for the classical statement of corporate social responsibility.
Carnegie’s view was based on two principle 1) Charity Principle 2) Stewardship Principle.
1. The Charity Principal required more fortunate members of the society to assist its less fortunate members, including the unemployed, the handicapped, the sick & the elderly. These unfortunates can be helped by either directly or indirectly, through such institutes as churches, settlement houses, and the Community Chest movement. Well-to-do people & communities themselves decided to contribute. Carnegie himself donated millions of dollars for charitable and civic purpose. 2. The Stewardship principle, derived from the Bible,