Corpres Journal
CORPORATE SOCIAL RESPONSIBILITY
James Patrick Santos
Marc Ramos
I. Introduction
- Corporate social responsibility is the corporate enthusiasm to determine and take responsibility for the results of the company’s activities on the environment and impact on social welfare. The term generally applies to company aspirations that go beyond what may be standardized by regulators or environmental protection groups. It may also be referred to as "corporate citizenship" and can include acquiring short-term costs that do not provide an immediate financial benefit to the company, but instead develop positive social and environmental change.
A study made by Herman Aguinis and Ante Glavas in 2012 arrived to some conclusions why firms engage in CSR. Their journal entitled What We Know and Don't Know About Corporate Social Responsibility : A Review and Research Agenda says that “First, this is due to instrumental reasons such as expected financial outcomes. Second, firms also engage in CSR due to normative reasons that lie in the firm’s values (i.e., doing the right thing). Third, there is a small but positive relationship between CSR actions and policies and financial outcomes. In addition, despite the inconclusiveness regarding the actual size of the CSR– financial outcomes relationship, there are several nonfinancial outcomes that result from CSR such as improved management practices, product quality, operational efficiencies, attractiveness to investors, and enhanced demographic diversity (e.g., women and ethnic minorities). Fourth, only 7% of the studies in our content analysis explored mediators of the CSR–outcomes relationship. Underlying mechanisms identified thus far include a firm’s intangible resources and managerial interpretations of CSR as an opportunity. Finally, regarding moderators, the CSR–outcomes relationship is strengthened when level of exposure and visibility are high and size of the company is large.”
Companies have a lot of capabilities in
James Patrick Santos
Marc Ramos
I. Introduction
- Corporate social responsibility is the corporate enthusiasm to determine and take responsibility for the results of the company’s activities on the environment and impact on social welfare. The term generally applies to company aspirations that go beyond what may be standardized by regulators or environmental protection groups. It may also be referred to as "corporate citizenship" and can include acquiring short-term costs that do not provide an immediate financial benefit to the company, but instead develop positive social and environmental change.
A study made by Herman Aguinis and Ante Glavas in 2012 arrived to some conclusions why firms engage in CSR. Their journal entitled What We Know and Don't Know About Corporate Social Responsibility : A Review and Research Agenda says that “First, this is due to instrumental reasons such as expected financial outcomes. Second, firms also engage in CSR due to normative reasons that lie in the firm’s values (i.e., doing the right thing). Third, there is a small but positive relationship between CSR actions and policies and financial outcomes. In addition, despite the inconclusiveness regarding the actual size of the CSR– financial outcomes relationship, there are several nonfinancial outcomes that result from CSR such as improved management practices, product quality, operational efficiencies, attractiveness to investors, and enhanced demographic diversity (e.g., women and ethnic minorities). Fourth, only 7% of the studies in our content analysis explored mediators of the CSR–outcomes relationship. Underlying mechanisms identified thus far include a firm’s intangible resources and managerial interpretations of CSR as an opportunity. Finally, regarding moderators, the CSR–outcomes relationship is strengthened when level of exposure and visibility are high and size of the company is large.”
Companies have a lot of capabilities in