Corporation always blame for the environmental pollution, financial scandals and causing social problems. Nowadays, business companies are not just the one to blame for, but also, at the same time, those companies can be the saviors for the global regulation and public goods problems. (Scherer and Palazzo, 2008)
Corporate Social Responsibility is not a new issue in business. Over the years, we can see that companies have been engaged with global problems such as poverty, pollutions, climate change and human rights. Companies have been asking to play a positive role in social and environmental issues. However, according to Lougee and Wallace (2008), using a social responsibility metric to measure the net strengths for each company, they found that the average CSR decreased during their 15 year time period. “
Although anecdotal evidence suggests that CSR is rapidly becoming commonplace within U.S. corporations, our findings have a somewhat mixed message. Although U.S. companies have significantly increased their CSR strengths during the past 15 years, CSR concerns appear to have proliferated during the same period, and many remain unaddressed. The net result is that our measure of net CSR strengths (strengths minus concerns) decreased during this period, even among the Domini 400 sample. (Lougee & Wallace, 2008)” Why do companies take part in such a responsibilities?
There are different premises for companies take part in such a responsibility. According to Aguilera, Rupp, Williams and Ganapathi (2007), “Corporations are being pressured by internal and external actors to engage in CSR actions to meet rapidly changing expectations about business and its social responsibilities (Clark & Hebb, 2004; Cuesta Gonzalez & Valor Martinez, 2004; Economist, 2005)… CSR are exposed to decoupling effects so that some companies introduce CSR practices at a superficial level for window-dressing purposes, whereas other companies embed CSR into their core
References: Carroll, A. B. & Shabana, K. M. (2010). The Business Case for Corporate Social Responsibility: A Review of Concepts, Research and Practice Banerjee, S. B. (2008). Corporate Social Responsibility: The Good, the Bad and the Ugly. SAGE Publications. 51-79. Retrieved from http://www.fhi.duke.edu/sites/default/files/CMS-Banerjee.pdf Dahlsrud, A Ghillyer, A. (2012). Business ethics now. McGraw-Hill. Kolk, A. & Tulder, R. V. (2010). International business, corporate social responsibility and sustainable development. International Business Review, 19(1). Retrieved from http://dare.uva.nl/document/177596 Langtry, B Lougee, B. & Wallace, J. (2008). The Corporate Social Responsibility (CSR) Trend. Journal of Applied Corporate Finance, 20(1), p,98-112. Retrieved from http://www.psykol.org/nos/images/d/d5/CSR_trend_studies.pdf McWilliams, A McWilliams, A. & Siegel, D. (2001). Corporate Social Responsibility: A Theory of the Firm Perspective. The Academy of Management Review, Vol. 26, No. 1 (Jan., 2001), pp. 117-127. Retrieved from http://www.jstor.org/stable/259398 Scherer, A Smith, N. C. (2003). Corporate Social Responsibility: Not Whether, But How? London Business School. Retrieved from http://www.london.edu/facultyandresearch/research/docs/03-701.pdf Steurer, R