Southern New Hampshire University
Definition of Corporate Social Responsibility
October 2, 2012
Pr. Katrina Kerr
The definition of corporate social responsibility
The corporate social responsibility ( CSR) seems to be came in the beginning of the millennium after so many wrong actions in past decades. May be, after the shock of scandals business such as Enron, WorldCom and Parmalat, also with the effect of weather change on the environment, all in consider have make many companies and organizations to rethink about their responsibilities towards their customers and stakeholders. Nowadays, business suggested that CSR is a normative, has ...view middle of the document...
Corporate social responsibility embraces not only what companies do with profit, but also how to be profitable company. It goes further than philanthropy, companies’ management, social, and environmental influences, as well as their relationships with stakeholders: the neighborhood, the workplace, the community, the supply chain, and the public policy (Harvard, 2008).
Kinds of social responsibilities
From business view, CSR should be formed in the form that fits on the entire range of business responsibilities. It is suggested by some authors that there are four kinds of social responsibilities constitute total CSR, which are economic, legal, ethical, and philanthropic. In addition, these four components or categories might be described as a pyramid. Just to make sure, that all of these kinds of responsibilities will stay always exist for long, where it has been most concern in ethical and philanthropic functions in the last years. Furthermore each of these four categories deserves closer consideration (Carroll, 1991, p. 40).
In history, business organizations were created as economic units, and designed to provide goods and services to their members. The profit was the primary motivates entrepreneurship. Before anything else, the business organization was the basic economic unit in community. It is a major role of producing the products and services that costumers need and wanted to gain profit in all (Carroll, 1991).
The idea of the profit motivation at some point that got changed into a notion of maximum profits, and has become an enduring value ever since. The other responsibilities are based on the economic responsibility of the organization, because without it the others become under considerations. An economic responsibility is important to perform in a manner consistent with maximizing earnings per share. It is important to maintain a strong competitive position. It is important to maintain a high level of operating efficiency. Finally it is important for companies to success and known as profitable (Carroll, 1991, p. 40).
Society is not only a part of approving business to gain profit ; at the same time business is expected to obey laws and regulations that made by federal law, and regime that relates to which business must operate. As a part of fulfillment of the "social contract" between business and society, firms or organizations are expected to follow their business statement of missions within the agenda of the law. Legal responsibilities reflect the view of "ethics set of roles" means that they represent basic concepts of reasonable operations as established by our lawmakers (Carroll, 1991, p. 41). They are represented as the next layer on the pyramid, but they are appropriately seen as together with economic responsibilities as important principles of the free enterprise system (Carroll, 1991, p. 40). At legal responsibility, it is important to perform in a...