Frieman versus Caroll
Universität Siegen
SEminarpaper on topic
CORPORATE SOCIAL RESPONSIBILITY
„Should Firms Go Beyond Profits? Friedman vs Carroll“ Themensteller: Prof.Dr. Andreas Dutzi Withanage Eshari Samanthika
Name, Vorname: Shahkhanim Chernina
Matrikel-Nr.: 927057
E-Mail: shahkhanim.chernina@student.uni-siegen.de
Ort, Datum: Siegen, 16.07.2014
Contents
1 Introduction 1
2 The main idea of CSR 2
2.1 History of CSR 2
2.2 Types of CSR 4
3 Profitability of CSR 6
3.1 Friedman’s Approach 7
3.2 Carroll’s Approach to CSR 9
3.3 Determining factors for CSR 12
4 Discussion 14
5 Conclusion 15
6 References 16
List of Figures
Figure 1 Carroll’s Pyramide. 10
1 Introduction
Relevance of this subject is that modern life constantly dictates new rules of the game. Today the future of the companies in many respects if not generally is defined by quality of corporate governance which is considered as one of effective ways of increase of investment appeal of the companies and, as a result, improvement of investment climate in the country. What it is necessary to understand as corporate governance? Whether means it system of the obligatory rules governing the relations in sphere of action of the companies, or corporate governance implies imperious and administrative activity of individuals, including representatives of top management and shareholders? And whether the concepts "corporate governance" and "management of corporation" are equivalent? Lack of uniform approach to understanding of corporate governance in many respects is explained by dynamism of the specified sphere. In the last some years among politicians and in a business environment the concept "corporate social responsibility" (is actively used further — CSR), develops business community of CSR strategy, creates departments of realization of the last, in the countries of Europe open the whole scientific research institutes on studying of this phenomenon. But,
SEminarpaper on topic
CORPORATE SOCIAL RESPONSIBILITY
„Should Firms Go Beyond Profits? Friedman vs Carroll“ Themensteller: Prof.Dr. Andreas Dutzi Withanage Eshari Samanthika
Name, Vorname: Shahkhanim Chernina
Matrikel-Nr.: 927057
E-Mail: shahkhanim.chernina@student.uni-siegen.de
Ort, Datum: Siegen, 16.07.2014
Contents
1 Introduction 1
2 The main idea of CSR 2
2.1 History of CSR 2
2.2 Types of CSR 4
3 Profitability of CSR 6
3.1 Friedman’s Approach 7
3.2 Carroll’s Approach to CSR 9
3.3 Determining factors for CSR 12
4 Discussion 14
5 Conclusion 15
6 References 16
List of Figures
Figure 1 Carroll’s Pyramide. 10
1 Introduction
Relevance of this subject is that modern life constantly dictates new rules of the game. Today the future of the companies in many respects if not generally is defined by quality of corporate governance which is considered as one of effective ways of increase of investment appeal of the companies and, as a result, improvement of investment climate in the country. What it is necessary to understand as corporate governance? Whether means it system of the obligatory rules governing the relations in sphere of action of the companies, or corporate governance implies imperious and administrative activity of individuals, including representatives of top management and shareholders? And whether the concepts "corporate governance" and "management of corporation" are equivalent? Lack of uniform approach to understanding of corporate governance in many respects is explained by dynamism of the specified sphere. In the last some years among politicians and in a business environment the concept "corporate social responsibility" (is actively used further — CSR), develops business community of CSR strategy, creates departments of realization of the last, in the countries of Europe open the whole scientific research institutes on studying of this phenomenon. But,
References: 1. Baker, M. (23 May 2008): “Arguments against Corporate Social Responsibility” Business Respect magazine. http://www.mallenbaker.net/csr/against.php (abgerufen 20.06.2014) 2 3. Bowen, H.R. (1999): “CSR: Evolution of a Definitional Construct” Business & Society, Vol. 38: p. 268-295 4 5. Carroll, A. (1991): “The Pyramid of CSR: Toward the moral management of organizational stakeholders” Business Horizons, Vol. 34, Issue 4: p.39 – 48 6 7. CSR Programs: Investing in local communities to solve global challenges. http://csr.cisco.com/pages/csr-programs (abgerufen 17.06.2014) 8 9. European Commission (25 October 2011): “Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions” Brussels, 25.10.2011 COM(2011) 681 final. 10. Frederick A. (26 April 2011): “The Five Elements of the Best CSR programs” The Forbes Magazine http://www.forbes.com/sites/csr/2011/04/26/the-five-elements-of-the-best-csr-programs/ (abgerufen 22.06.2014) 11 12. Friends of the Earth (28 April 2008): “British American Tobacco Report Shows Truth Behind the Greenwash”. http://www.foe.co.uk/resource/press_releases/british_american_tobacco_r_27042005 (abgerufen 23.06.2014) 13 14. Marquard, B. (6 July 2006): “Theodore Levitt was a Top Marketing Authority at Harvard” The Boston Globe, p. B13 15 16. Nalband A. & Kelabi, S. (2014): “Redesigning Carroll’s CSR Pyramid Model” Journal of Advanced Management Science, Vol. 3 ,N 4: p. 236 - 238 17 18. Watrick, S. & Cochran, P. (2001): “The Evolution of the Corporate Social Performance Model” Academy of management review, Vol 10. P. 758 – 769 19 Additional Readings Brand Strategy (2007): “10 key things to know about CSR” London Bowen, H. R. (1953): “Social Responsibilities of Businessman” New York Corporate Social Responsibility: http://csr.com/about/social-responsibility Mane, H.G. (24 November 2006): “Milton Friedman was Right“, The Wall Street Journal.