What is CSR? To what extent is there a business case for CSR?
What is CSR? To what extent is there a business case for CSR?
In recent years, increasing number of customers and businessmen start to concern about the ethical issues in businesses. Although the main purpose of business is to make profits, the social influence of it also appears to be focused by a large proportion of customers and businessmen. Corporate social responsibility (CSR), which is closely connected with this concentration, was put forward in 1953 with the meaning of interacting social, environmental, and economic considerations into the decision-making structures and processes of business (Industry Canada, 2013). Although criticized, there is a business case for CSR because it could enhance customers’ loyalty, improve corporations’ reputation, and reduce the turnover of employees. This essay will firstly define and critically discuss key influences of CSR towards its business aspect, and then clarify whether there is a business case for CSR.
CSR was firstly coined in 1953 with the publication of Bowen’s book named 'Social Responsibility of businessmen ', with the question of ‘what responsibilities to society can business people be reasonably expected to assume’ (Corporate Watch, 2013). To define CSR, it is better to explain what is corporation firstly. E-conomic (2013) defines it as the legal entity which is most used to conduct business. For instance, Starbucks, KFC are both famous corporations. It is stated that “CSR is a company’s status and activities with respect to its perceived societal, or, at least, stakeholder obligations” (Bhattacharya & Sen, 2004, p.9). Stakeholder of corporations includes not only customers, but also other people who do not buy the products, animals, employees, etc. Besides, according to Baker (2004), CSR is about how companies manage their business processes in order to produce an overall positive impact on society. This means companies should not only consider their own profits, they need to bring several benefits
In recent years, increasing number of customers and businessmen start to concern about the ethical issues in businesses. Although the main purpose of business is to make profits, the social influence of it also appears to be focused by a large proportion of customers and businessmen. Corporate social responsibility (CSR), which is closely connected with this concentration, was put forward in 1953 with the meaning of interacting social, environmental, and economic considerations into the decision-making structures and processes of business (Industry Canada, 2013). Although criticized, there is a business case for CSR because it could enhance customers’ loyalty, improve corporations’ reputation, and reduce the turnover of employees. This essay will firstly define and critically discuss key influences of CSR towards its business aspect, and then clarify whether there is a business case for CSR.
CSR was firstly coined in 1953 with the publication of Bowen’s book named 'Social Responsibility of businessmen ', with the question of ‘what responsibilities to society can business people be reasonably expected to assume’ (Corporate Watch, 2013). To define CSR, it is better to explain what is corporation firstly. E-conomic (2013) defines it as the legal entity which is most used to conduct business. For instance, Starbucks, KFC are both famous corporations. It is stated that “CSR is a company’s status and activities with respect to its perceived societal, or, at least, stakeholder obligations” (Bhattacharya & Sen, 2004, p.9). Stakeholder of corporations includes not only customers, but also other people who do not buy the products, animals, employees, etc. Besides, according to Baker (2004), CSR is about how companies manage their business processes in order to produce an overall positive impact on society. This means companies should not only consider their own profits, they need to bring several benefits