Csr/ Cfp
Business Research and Professional Practice: BKEY 501.
Literature review: PRIMARK LTD - The Imporance of Values on The Relation Between Corporate Social Responsibility and Financial Performance.
Prepared by: Paulina Dominowska, Hematollah Safi, Hengameh Samie, Patrycja Dominik.
Numerous research papers are devoted to the relationship between Corporate Social Responsibility and a given company 's financial result. CSR has been identified as the duty of organizations to be responsible for their environment and for their stakeholders, in a way that takes into account not only financial aspects (Go ̈ ssling and Vocht, 2007). A particularly broad definition of CSR was presented at the World Business Council for Sustainable Development: ‘‘Corporate Social Responsibility is 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 of the local community at large’’ (Holme and Watts, 1999, p. 3).
According to Waddock (200), the pressure for corporate accountability is rising. This includes different aspects, like legal, social, moral, and financial. Customer demands are rising with the increasing transparency of markets. Barnett and Salomon (2006) stated that there is a higher number of potential investors who value the way corporations meet their social responsibilities (Barnett and Salomon, 2006). According to the study by Friedman (1970) management’s main obligation is to increase the revenue. Contrary to this, the author assumed that social performance is needed in order to achieve business legitimacy. It was argued by Freeman that there is a link between social responsibility and financial performance and he emphasized a positive connection between the two in the long term. The main clue in this theory is that companies’ success depends on the ability of maintaining its relationships with key groups, such as investors and shareholders, but also
Literature review: PRIMARK LTD - The Imporance of Values on The Relation Between Corporate Social Responsibility and Financial Performance.
Prepared by: Paulina Dominowska, Hematollah Safi, Hengameh Samie, Patrycja Dominik.
Numerous research papers are devoted to the relationship between Corporate Social Responsibility and a given company 's financial result. CSR has been identified as the duty of organizations to be responsible for their environment and for their stakeholders, in a way that takes into account not only financial aspects (Go ̈ ssling and Vocht, 2007). A particularly broad definition of CSR was presented at the World Business Council for Sustainable Development: ‘‘Corporate Social Responsibility is 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 of the local community at large’’ (Holme and Watts, 1999, p. 3).
According to Waddock (200), the pressure for corporate accountability is rising. This includes different aspects, like legal, social, moral, and financial. Customer demands are rising with the increasing transparency of markets. Barnett and Salomon (2006) stated that there is a higher number of potential investors who value the way corporations meet their social responsibilities (Barnett and Salomon, 2006). According to the study by Friedman (1970) management’s main obligation is to increase the revenue. Contrary to this, the author assumed that social performance is needed in order to achieve business legitimacy. It was argued by Freeman that there is a link between social responsibility and financial performance and he emphasized a positive connection between the two in the long term. The main clue in this theory is that companies’ success depends on the ability of maintaining its relationships with key groups, such as investors and shareholders, but also
References: Bhattacharya, C.B. and Sen, S. (2004). Doing better at doing good: when, why, and how consumers respond to corporate social initiatives. California Management Review, 47, pp. 9–24. Sweeney, L. and Coughlan, J. (2008). Do different industries report corporate social responsibility differently? An investigation through the lens of stakeholder theory. Journal of Marketing Communications, 14, pp. 113– 124. Whetten, D.A., Rands, G. and Godfrey, P. (2002). What are the responsibilities of business to society? In Pettigrew, A., Thomas, H. and Whittington, R. (eds), Handbook of Strategy and Management. London: Sage, pp. 373–408. Brammer, S., Millington, A. and Rayton, B. (2007). The contribution of corporate social responsibility to organizational commitment. International Journal of Human Resource Management, 18, pp. 1701–1719. http://journalofinternationalmanagement.wordpress.com/2011/05/16/reacting-to-bad-publicity-over-sweat-shop-issue-the-case-of-primark/