CORPORATE SOCIAL RESPONSIBILITY

SOCIAL RESPONSIBILITY

Corporate social responsibility (CSR) can be defined as the "economic, legal, ethical and discretionary expectations that society has of organizations at any given time." The concept of corporate social responsibility means that organizations have moral, ethical and philanthropic responsibilities in addition to their responsibility to obtain a reasonable return for investors and comply with the law. A traditional view of the company indicates that their main if not sole responsibility is to its owners or shareholders. However, CSR requires organizations to adopt a broader view of their responsibilities, including not only shareholders but also many other groups, including employees, suppliers, customers, community, local, state and federal governments, environmental groups and other stakeholders. Overall, the various groups affected by the actions of an organization called "stakeholders". The concept of stakeholders is discussed in more detail in a later section.

Corporate social responsibility are related but not identical, to business ethics. Although CSR responsibilities include financial, legal, ethical and discretionary organizations, business ethics usually focuses on moral judgments and behavior of individuals and groups in organizations. Thus, the study of business ethics is considered as part of a broader study of corporate social responsibility.

Carroll and Buchholtz four CSR define explicitly has many facets and social responsibility. Financial liability in the above definition applies to society's expectations that organizations producing goods and services needed and desired by customers and sell products and services at a reasonable price. Organizations are expected to be efficient, profitable, and to keep shareholder interests in mind. Legal liability in connection with the expectation that organizations comply with the laws established by society to regulate competition in the market. Thousands of organizations have legal responsibilities to regulate almost all aspects of operations, including consumer products and laws, environmental laws and employment laws. The ethical responsibility of social expectations that go beyond the law, such as the expectation that organizations conduct their affairs in a fair and equitable. This means that organizations are expected to do more than obey the law, but also make a proactive effort to anticipate and meet the standards of society, although these standards are not formally incorporated into law. Finally, discretionary responsibility of businesses related to society's expectations for organizations to be good citizens. This can involve things such as support philanthropic programs to benefit the community or nation. It may also involve the donation of employee experience and time to worthy causes.

HISTORY 

The nature and extent of corporate social responsibility has changed over time. CSR concept is relatively new, the phrase has only been in use since the late 1960s. But while the economic, legal expectations, ethical and discretionary imposed organizations may vary, it is probably correct to say that all societies at all points in time have had some expectation that organizations should act responsibly, by definition.

In the eighteenth century, the great economist and philosopher Adam Smith put it traditional or classic economic model for business. In essence, this model suggests that the needs and desires of society can best be achieved by unrestricted interaction between individuals and organizations in the market. By acting in an interested manner, the people who produce and supply goods and services which would earn them a profit, but also the needs of others. The view that Adam Smith 200 years ago still is the foundation of a free market economy in the XXI century. But while Smith admitted that the free market does not always work perfectly, and noted that market participants should act honestly and fairly towards others, whether the free market ideals to be achieved.

In the century after Adam Smith, the Industrial Revolution contributed to a radical change, especially in Europe and America. Many of the principles recommended by Smith was confirmed as the introduction of new technologies allows for more efficient production of goods and services. Millions of people got jobs that pay more than they had ever done before, and the standard of living rises sharply. Large organizations developed and acquired great power, and its founders and owners, some of the richest and most powerful men in the world. In the nineteenth century many of these individuals believed and practiced in a philosophy that came to be called "social Darwinism" which alone is the idea that the principle of natural selection and survival of the fittest applies to businesses and social policy. This kind of philosophy entitled murderer, even brutal, competitive strategies and does not much concern about the consequences of successful businesses in their employees, community or society. Although many of the great big men in the late nineteenth century were of the greatest philanthropists ever, their donations are made as individuals, not as representatives of their companies. Indeed, while many were given away millions of dollars of his own money the companies that got rich were practicing business methods, rules, or at least was the exploitation of workers today.

In the early twentieth century, began a reaction against large companies to accelerate. Big business was criticized for being too strong and practice anti-social practice and anticompetitive. Laws and regulations including the Sherman Antitrust Act was enacted to combat big business and protect employees, consumers and society generally. A related movement, also called "social gospel" and called for greater emphasis on working class and the poor. The unions also called for greater social sensitivity on the part of the business. Between 1900 and 1960, the company gradually began to accept more responsibility for profits and obey the law.

In the 1960s and 1970s civil rights movement, consumerism, ecology and expectations of the target company's activities. Based on the general perception that people with great power have a major responsibility, many called for the industry to be more proactive in, but create social problems and begin to participate in solving social problems. Many of the legal mandates were placed in businesses related to equal employment opportunities, product safety, worker safety and the environment. Moreover, society began to expect businesses to voluntarily participate in the solution of social problems if it had caused problems or not. This was based on the notion that companies should go beyond the financial and legal responsibility and assume responsibility for improving society. This view of corporate social responsibility is the prevailing view in many parts of the world today.

The following section provides further details on corporate social responsibility structure. Firstly, the arguments for and against the concept of CSR has been revised. Then, it discusses the concept of stakeholders, which is essential for building the CSR. Finally, several major social problems facing organizations has been revised.

Arguments for and against 

SOCIAL RESPONSIBILITY

The main arguments for and against corporate social responsibility shown. The "economic" argument against CSR is perhaps most closely associated with American economist Milton Friedman, who has argued that the primary responsibility for the company is to make profits for their owners, while the Act. According to this view, self-interested actions of millions of participants in the markets in free will, from a utilitarian perspective, lead to positive results for society. If the operation of the free market can not solve a social problem, it becomes the responsibility of the government, not businessmen, to address the issue.