In which of the following ideas are the ethical roots of the economic model of corporate responsibility found?

The evolution of the corporate social performance model. Int J Corporate Soc Responsibility 1, 3 (2016). Smith, W. J., Wokutch, R. E., Harrington, K. V., & Dennis, B. S. (2001). The boundaries of strategic corporate social responsibility. Most downloaded Business Horizons articles. Crane A, Matten D. (2007). Waterhouse, B. C. (2017). This gave way to the 1980s where the discussion revolved on the ways for implementing CSR. In the fast changing world, capacity building of CSR workforce and re-skilling them are always relevant and are key to CSR performance. 2018). Even when the SDGs do not represent any commitments for the private sector, the countries that adopt them will have to create specific policies and regulations that will translate into pressure for firms to implement new business practices or to improve their current ones. As a result, a new rationale was brought forward by the Committee for Economic Development (1971) of the USA based on the premise that the social contract between business and society was evolving and that the private sector was expected to assume broader social responsibilities than before. In the same article, Elkington (2018) points out to the B Corporations (commonly known as B Corps) as an example of firms that now approach business with a dedication to do what is best for the world (Elkington 2018, para. Djelic, M.-L., & Etchanchu, H. (2017). Chrisman, J. J., Carroll, A. banks and financial institutions as well large scale corporations) but had a strong focus on those with direct links to war. Businesses create profits when they add value, and in doing this they benefit all the stakeholders of the business. Capacity building of the CSR workforce and re-skilling. A history of corporate social responsibility: concepts and practices. Mauricio Andrs Latap Agudelo. Society has not only sanctioned businesses as economic entities, but it has also established the minimal ground rules under which businesses are expected to operate and function. Corporate social responsibility: readings and cases in a global context (2nd ed., pp. Growing criticisms of the emerging factory system, working conditions, and the employment of women and children were being brought to light, especially in the United States. Capitalism and freedom. Corporate social responsibility as a new paradigm in the European policy: how CSR comes to legitimate the European regulation process. It is also relevant to observe that the number of publications declined after 2015 for Science Direct and after 2016 for Proquest, while for Web of Science the amount kept growing. Later, with the growth of business during World War II and the 1940s, companies begun to be seen as institutions with social responsibilities and a broader discussion of such responsibilities began taking place (Heald 1970). Society expects such gifts, but it does not label companies as unethical based on their giving patterns or whether the companies are giving at the desired level. CSR tends to focus on what is done with profits after they are made. Given these aspects, the research was carried out following a systematic literature review (SLR) as understood by Okoli and Schabram (2010) who built on from Finks (2005) definition of a research literature review to define it as a systematic, explicit, comprehensive and reproducible method. Likewise, Visser revisited Carrolls pyramid in developing countries/continents, in particular, Africa, and argued that the order of the CSR layers there differ from the classic pyramid. The Academy of Management Review, 16(4), 691718. Small business social responsibility: expanding core CSR theory. What we know and dont know about corporate social responsibility: a review and research agenda. That is, they want to do what is right for society. The relevance of these figures comes from placing the events that played a significant role in shaping the understanding of CSR within the evolutionary process of the concept, some of them linked to the sustainable development agenda. Corporate Governance: The international journal of business in society, 6(4), 358368. However, it is relevant to highlight Archie B. Carrolls (2015) work on the competing and complementary frameworks of CSR in which he concluded that all of them are interrelated and overlapping and pointed out that all of these concepts have already been incorporated into CSR, which is an aspect that is sometimes overlooked. The factor of Corporate Social Responsibility has been around for more than six decades now, but its importance and practice came into the picture much later. 2022 BioMed Central Ltd unless otherwise stated. In addition, business is expected to operate in an ethical fashion. Use and reuse of resources for better CSR, 7. statement and Part of the ethical expectation is that businesses will be responsive to the spirit of the law, not just the letter of the law. 2) The promotion of CSR as a specific European strategy begun with the publishing in 2001 of the Green Paper called Promoting a European framework for Corporate Social Responsibility which intended to reflect the broader context of international initiatives, particularly in line with the UNGC. Cross learning is key to CSR strategies. School staff are committed to making This way, corporations would be able to understand its interrelationship with their social environment and be able to adapt its business strategies (Porter and Kramer 2006). The business case for corporate social responsibility: a review of concepts, research and practice. Journal of Consumer Marketing, 18(7), 595632. Following this systematic strategy allowed to review published journal articles with high impact factors along with publications of relevance mentioned by the authors of such articles. Continue Reading. The creation of these international bodies and the adoption of international agreements represented international efforts for setting higher standards with regards to climate-related issues and, indirectly to corporate behavior (see: Union of Concerned Scientists 2017). He goes on to say that in developing countries, economic responsibility continues to get the most emphasis, but philanthropy is given second highest priority followed by legal and then ethical responsibilities (Visser 2011). By the early 2000s, CSR had become an essential strategy for many organizations, with multi-million dollar companies, such as Wells Fargo, Coca-Cola, Walt Disney, and Pfizer incorporating this concept into their businesses processes. To be fair, it must be acknowledged that some writers early on have been critical of the CSR concept. Wood (1991), driven by what she saw as a need for a systematical integration of conceptual aspects into a unified theory, built on the models of Carroll (1979) and Wartick and Cochran (1985) to create a model of Corporate Social Performance (CSP). In essence, then, both contain a strong ethical dimension or character and the difference hinges upon the mandate society has given business through legal codification. California Privacy Statement, To balance the growing power of businessmen, Frederick (1960) proposed a new theory of business responsibility based on five requirements: 1) to have a criteria of value (in this case for economic production and distribution), 2) to be based on the latest concepts of management and administration, 3) to acknowledge the historical and cultural traditions behind the current social context, 4) to recognize that the behavior of an individual businessmen is a function of its role within society and its social context, and, 5) to recognize that responsible business behavior does not happen automatically but on the contrary, it is the result of deliberate and conscious efforts; then McGuire (1963), who reviewed the development of business institutions and observed changes in the scale and type of corporations, changes in public policies, and regulatory controls for businesses as well as changes in the social and economic conditions of the time. Carroll (2015) reviewed the concepts of stakeholder engagement and management, business ethics, corporate citizenship, corporate sustainability, and the creation of shared value and concluded that all of them are interrelated and overlapping. 2008). The company has to overcome the various internal and external factors that work as an obstacle for the overall growth and development of the business. The first section is focused on the recognition and expansion of CSR and its implementation, while the second section is focused on the strategic approach to CSR provided by the academic publications of the time. Carroll, A. (2018). The second feature comes in line is that the company needs to ensure that it dedicatedly complies with all the prevalent laws, regulations, and compliances. Accessed 17 May 2018. In India, the term Corporate Social Responsibility (CSR) is widely being used even though related concepts and terms, such as business responsibility, sustainable development, philanthropy, sustainability, corporate citizenship, responsible business, triple bottom line, shared value, value creation, business ethics, socio-economic responsibility, bottom of pyramid, stakeholder management, corporate responsibility, and corporate social performance. Considering that the history of CSR is long and vast, it is necessary to point out that this article focuses on publications that have provided an original perspective and understanding to the concept of CSR along with the most significant papers with regards to the evolution of the social expectations of corporate behavior (see Appendix for additional recommended readings). Stay up to date on industry news and trends, product announcements and the latest innovations. Conducting research literature reviews: from the internet to paper. Directive 2014/95/EU of the European parliament and of the council. Finding the right kind of partners is absolutely important to the success of a CSR strategy. Businesses are expected and required to comply with these laws and regulations as a condition of operating. In the case of ProQuest the publications increased considerably from 2010 to 2016 passing from 5715 to 8188, but decreased to 5670 in 2017. Dr. A. During the first Earth Day, 20 million people across the USA joined protests to demand a clean and sustainable environment and to fight against pollution, which was caused mainly by corporations (e.g. Spence employed the ethic of care and feminist perspectives to redraw the four CSR domains by indicating that Carrolls categories represented a masculinist perspective but that the ethic of care perspective would focus on different concerns. Virtually all economic systems of the world recognize the vital importance to the societies of businesses making profits. Even when Carrolls (1979) approach to social responsibility corresponded to the discussion on corporate behavior of the time, and was mainly driven by the social movements of the 1960s and the new legislations in the USA, its relevance relies on the fact that his definition builds on from the work of other scholars (including the CED) to provide a clear and concise conceptualization that could be applicable under any context, which was not the case of previous definitions of CSR (see previous definitions from: Davis 1973; Frederick 1960; M. Friedman 1962; McGuire 1963; Walton 1967). (n.d.-a). Corporate social responsibility revisited, redefined. Cross learning in CSR is immensely helpful in supplementing and nurturing CSR programme and projects. (2005). At that time, CSR was most prevalent in these more free enterprise societies. The most relevant include: the creation of the European Commissions Environment Directorate-General (1981), the establishment of the World Commission on Environment and Development chaired by the Norwegian Prime Minister Gro Harlem Brundtland (1983), the Chernobyl nuclear disaster (1986), the publication of the report Our Common Future presented by the Brundtland Commission which provided a definition of sustainable development (1987), the United Nations (UN) adoption of the Montreal Protocol (1987), and the creation of the Intergovernmental Panel on Climate Change (IPCC) (1988). from all over the world and contributes to a broad trans-disciplinary and intercultural discussion on the role of business in society. Find and evaluate OEMs, Custom Manufacturers, Service Companies and Distributors. In A. Crane, A. McWilliams, D. Matten, J. An examination of the influence of diversity and stakeholder role on corporate social orientation. Journal of management studies, 39(1), 121. To exemplify the principle of protection of labor welfare, Heslin and Ochoa (2008) briefly present the case of Levi Strauss which was faced with the legal and social challenges of employing children under the age of 15 in Bangladesh. PubMedGoogle Scholar. Reduction in per beneficiary cost can be achieved by the partnership, collaboration, cross learning and reuse of resources. During the 1970s, the understanding of CSR was influenced by social movements and new legislations. By constructing the boundaries of CSR, the paper offers scope for During the 1960s there was also a new social context marked by a growing protest culture that revolved mainly around civil rights and anti-war protests. (1998). Business Ethics and Social Responsibility Chapter Outline. During the 1990s, it was President Clinton who brought the attention towards the notion of corporate citizenship and social responsibility with the creation of the Ron Brown Corporate Citizenship Award for companies that were good corporate citizens (Carroll 1998). Authors: Denise Baden. Stated in the form of an equation, it would read as follows: Economic Responsibilities+Legal responsibilities+Ethical Responsibilities+Philanthropic Responsibilities=Total Corporate Social Responsibility. Union of Concerned Scientists. Elsevier Journals. CSR expert Dr. Wayne Visser has said that Carrolls CSR Pyramid is probably the most well-known model of CSR (Visser 2006). Okoli, C., & Schabram, K. (2010). Thomas Register and Considering that the SDGs do not represent any commitments for the private sector, it is relevant to mention that the EU law, through the Directive 2014/95/EU, requires large companies of public interest (listed companies, banks, insurance companies, and other companies designated by national authorities as public-interest entities) to disclose non-financial and diversity information beginning on their 2018 reports and onwards (European Commission 2014b; n.d.). Academy of Management Review, 10, 75869. In India, the term Corporate Social Responsibility (CSR) is widely being used even though related concepts and terms, such as business responsibility, sustainable development, philanthropy, sustainability, corporate citizenship, responsible business, triple bottom line, shared value, value creation, business ethics, socio-economic Concentrate on your CSR efforts but same time CSR leaders must learn from variety of successful CSR programmes. Shared value creation focuses on identifying and expanding the connections between societal and economic progress (Porter and Kramer 2011, p. 2). This perspective of the creation of shared value is evident on what Leila Trapp (2012) called the third generation of CSR, which she explained as the moment in which corporations reflect their concerns about social and global issues on their activities, even when some of those concerns might not be directly linked to their core business. CSR initiatives are conceptualized and implemented through Corporate Foundations, Non-Government Organisation (NGOs) and Agencies and not-for-profit organisations. The functions of the executive. Correspondence to Cochran, P. L., & Wood, R. A. Understanding political responsibility in corporate citizenship: Towards a shared responsibility for the common good. 1013). By using this website, you agree to our Springer Nature. Part of When seen in this way, the pyramid is viewed as a unified or integrated whole (Carroll and Buchholtz 2015). Accessed 2 Mar 2018. of Case Western Reserve Univ. The Academy of Management Review, 6(1), 2128. A literature review of the history and evolution of corporate social responsibility. Privacy Its growing popularity led to the unrestricted use of the term CSR under different contexts and by the end of the decade the concept became unclear and meant something different for everyone. Volunteering in various community programs, corporate contribution, fundraising for social issues, and other such initiatives should be undertaken and initiated by the company with the motive of giving back to society. In the current era, it is expected from the corporate companies to come forward and help the various institutions and communities and take part in filling the shortages for the welfare of the society and as a part of their corporate social responsibilities. https://sustainabledevelopment.un.org/?page=view&nr=1021&type=230&menu=2059. Business and Society, 38(2), 1882005. In addition, its goal is to develop sound academic concepts as well as empirical data with the idea of creating value for business and society at the same time. Accessed 25 June 2018. ISO. 44). We also want to thank the editors for their assistance throughout the review process. It aims to become the leading platform for the latest management thinkers by providing articles not published before and approved by an international scientific community. Business ethics quarterly, 4(4), 409421. Along with these papers, the review takes into consideration articles that have been cited the most and can be considered as significant contributors to the evolution of the concept as well as publications that provide new definitions and frameworks. The SDGs, otherwise known as the Global Goals, are a universal call to action to end poverty, protect the planet and ensure that all people enjoy peace and prosperity. This primer on CSR can help you support companies that are aligned with your personal values. Evolution of the academic understanding of CSR. Accordingly, the authors provide a summary of the evolution of the concept through a chronological timeline that allows the reader to follow the history of CSR by pointing out the most relevant academic contributions as well as the most significant events that played a role in shaping it as a conceptual paradigm. Anatomy of Carrolls Pyramid of Corporate Social Responsibility, Features of the Carrolls Pyramid of Corporate Social Responsibility, 4 Components of Carrolls Pyramid of Corporate Social Responsibility, Strengths and Weaknesses of Carrolls Pyramid of Corporate Social Responsibility, In-depth analysis of the 4 responsibilities of Carrolls Pyramid of Corporate Social Responsibility, Take Away from Carrolls Pyramid of Corporate Social Responsibility, Corporate Social Responsibility: Meaning and Examples Included, Social Impact: Meaning, Theory, and Different Sectors associated, Corporate Strategy Meaning, Components, Goals and Advantages, Sustainable Business Definition, Process and Principles, Strategic Alliance: 4 Types, Examples, Advantages, and Disadvantages, Price Discrimination Definition, Types, Objectives & Examples, How to Write a Mission Statement With Real Examples, Days Sales Outstanding Definition, Formula, Importance and Examples, Debenture Definition, Types, Features, Pros and Cons, Debt Capital Markets Definition, Types, Pros and Cons, Debit Balance Definition, Meaning and how it works, Deadweight Loss Definition, Calculation and Types. (n.d.). As such, Bowen is often referred to as the father of CSR. During the early 2000s, Freeman (2001) and A. L. Friedman and Miles (2002) provided a new perspective to stakeholder theory which reinforced the belief that corporations should be managed in the benefit of a broader set of stakeholders. The greatest opportunities will come from areas where the business significantly interacts with society. In the fourth edition of the book, Chandler (2016) presents a slightly modified definition which reflects his new perspective on the generation of value: The incorporation of a holistic CSR perspective within a firms strategic planning and core operations so that the firm is managed in the interests of a broad set of stakeholders to optimize value [emphasis added] over the medium to long term (Chandler 2016, p. 248). A solution based merely on compliance and simplicity would have been to fire all those children, but as a result of analyzing the social context, Levi Strauss observed that these children were in most cases the only way of income for their families and hence the company decided to send them to school while still paying them their regular wages and providing them with a job after completing their education (Heslin and Ochoa, 2008). Frederick (1960) saw the first half of the twentieth century as an intellectual and institutional transformation that changed the economic and social thinking and brought with it an increased economic power to large scale corporations. Assistance hours:Monday Friday10 am to 6 pm, Jl. This is particularly relevant considering that the SDGs cover a wide range of areas, from climate change to the eradication poverty and hunger, as well as the fostering of innovation and sustainable consumption. For example, in the book Corporation Giving in a Free Society published in 1956, Eells (1956) argued that the large corporations of the time were not living up to their responsibility in a time of generalized inflation. The religious roots of the Victorian social conscience gave Victorian Philanthropists a high level of idealism and humanism, and by the late 1800s, the philanthropic efforts focused on the working class and the creation of welfare schemes with examples that could be seen in practice both in Europe as in the United States of America (USA) (Carroll 2008; Harrison 1966). CSR as a management strategy has become commonplace, formalized, integrated, and deeply assimilated into organizational structures, policies and practices. Years later, Carroll (1991) presented the Pyramid of Corporate Social Responsibility with the objective of providing business executives a pragmatic approach to their new obligations to a wider set of stakeholders, obligations that originated from the creation of the EPA, CPSC, EEOC and OSHA. This means that business has the expectation, and obligation, that it will do what is right, just, and fair and to avoid or minimize harm to all the stakeholders with whom it interacts. Human resource are fundamental requirement. New York: McGraw-hill. At first, it may seem unusual to think about an economic expectation as a social responsibility, but this is what it is because society expects, indeed requires, business organizations to be able to sustain themselves and the only way this is possible is by being profitable and able to incentivize owners or shareholders to invest and have enough resources to continue in operation. He then comments on several characteristics of the model that were not emphasized when initially published: ethics permeates the pyramid; tensions and tradeoffs inherent; its' integrated, unified whole; its' sustainable stakeholder framework, and; its' global applicability and use in different contexts. The next step in the selection of articles was focused on their quality and relevance which was determined by reviewing the level of impact factor of the journal of publication as well as the amount of citations the article has had, looking specifically for a high impact factor for each individual paper. Only time will tell if the institutionalization of CSR continues to expand or if the interest shifts towards other concepts. 6 Reasons to Purchase Eri Silk Saree for Your Lady Love! Larger corporations understand that CSR is an integral part of business framework for sustainable development. In the following decades, the social expectations towards corporate behavior changed and so did the concept of Corporate Social Responsibility (CSR). As the review shows, the development of the modern understanding of CSR as a definitional construct is long and varied and can be traced as far back to the 1930s when the debate around the social responsibilities of the private sector begun. In one particular theoretical article, Laura Spence sought to reframe Carrolls CSR pyramid, enhancing its relevance for small business. Learning improves performance and minimise risks. 3. The four-part definition of CSR was originally published in 1979. (2006). Chaffee (2017) goes into detail to explain the evolution of corporations under the English Crown and also their evolution in the USA where they became subject of legislatures after the Revolutionary War but still kept relatively social functions. The IPCC: who are they and why do their climate reports matter? With this new perspective, Freeman (2001) and A. L. Friedman and Miles (2002) contributed to the CSR evolution by reinforcing the belief that corporations are responsible to a broader set of stakeholder than before. (2017). The most notable example of the institutionalization of CSR was the foundation in 1992 of the association Business for Social Responsibility (BSR) which initially included 51 companies with the vision of a becoming a force for positive social change - a force that would preserve and restore natural resources, ensure human dignity and fairness, and operate transparently (Business for Social Responsibility 2018, para. Another perspective comes from Djelic and Etchanchu (2017), who contextualized the political role of CSR by exploring different historical periods to conclude that corporations have played relevant social and political roles. McWilliams, A., & Siegel, D. (2001). University of Iceland. 2022 BioMed Central Ltd unless otherwise stated. Anyone you share the following link with will be able to read this content: Sorry, a shareable link is not currently available for this article. Though the pyramid could be perceived to be a static snapshot of responsibilities, it is intended to be seen as a dynamic, adaptable framework the content of which focuses both on the present and the future. The 1990s marked the beginning of widespread approval of CSR. This facet of responsibility holds an important place even though it is discretionary in nature. Wood published Corporate Social Performance Revisited, which expanded and improved on early CSR models by providing a framework for assessing the impacts and outcomes of CSR programs. Preston, L. E., & Post, J. E. (1975). WebDer Begriff Corporate Social Responsibility (CSR) Base of the Pyramid: Dieses Konzept (der Grund der Pyramide, bezogen auf die Einkommenspyramide) beschreibt die Einbeziehung der rmsten Teile der Bevlkerung in die regulren Wirtschaftskreislufe. In S. U. Ban, K.-M. (2015). Accessed 18 Apr 2018. The purpose of the current commentary is to summarize the Pyramid of CSR, elaborate on it, and to discuss some aspects of the model that were not clarified when it was initially published in 1991. (2nd ed.). It harps on the fact that the businesses should indulge in the righteous practiced even when they are not compelled by the law. International Journal of Management Reviews, 10(1), 5373. The most notable examples were the creation of the EPA, the Consumer Product Safety Commission (CPSC), the Equal Employment Opportunity Commission (EEOC) and the Occupational Safety and Health Administration (OSHA), all of which addressed and formalized to some extent, the responsibilities of businesses with regards to the social concerns of the time (Carroll 2015). The strategic response that companies make to their evolving social context was further explored by Werther and Chandler (2005) who, with their first work published together, focused on the implementation of strategic CSR as part of brand management in order to achieve and maintain legitimacy in a context of globalized brands. Examples of Corporate Social Responsibility within Industry. Today there are countless business women and many of them are actively involved in CSR. While once it was possible to describe CSR as an internal organizational policy or a corporate ethic There is a long and varied history associated with the evolution of the concept of Corporate Social Responsibility (CSR). Some definitions of CSR have argued that an action must be purely voluntary to be considered socially responsible; others have argued that it embraces legal compliance as well; still others have argued that ethics is a part of CSR; virtually all definitions incorporate business giving or corporate philanthropy as a part of CSR and many observers equate CSR with philanthropy only and do not factor in these other categories of responsibility. These interpretations can be understood as the level of integration of CSR into the companys policies and structure. B. With the Pyramid of CSR, Carroll (1991) represented what he defined as the four main responsibilities of any company: 1) the economic responsibilities which are the foundation for the other levels of the pyramid; 2) the legal responsibilities of the firm; 3) the ethical responsibilities that shape the companys behavior beyond the law-abiding duties, and; 4) the philanthropic responsibilities of the corporation with regards to its contribution to improve the quality of life of society. California Management Review, 2(4), 5461. Friedman, A. L., & Miles, S. (2002). In fact, Lantos (2001) built on from Smiths definition of CSR and included strategic considerations to his own understanding of the concept concluding that: CSR entails the obligation stemming from the implicit social contract between business and society for firms to be responsive to societys long-run needs and wants, optimizing the positive effects and minimizing the negative effects of its actions on society (Lantos 2001, p. 9). document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Copyright 2022 Marketing91 All Rights Reserved. The significance of Davis ideas is that he indicated that the social responsibilities of businessmen need to be commensurate with their social power (p. 71) and that the avoidance of such would lead to a decrease of the firms social power (Davis 1960). Though its enthusiasts would like to think of an optimistic or hopeful scenario wherein CSR would be adopted the world over and would be transformational everywhere it is practiced, the more probable scenario is that CSR will be consistent and stable and will continue to grow on a steady to slightly increasing trajectory. WebCarrolls Pyramid of Corporate Social Responsibility The pyramid is an integrated, unified whole. (1971). Other studies have enumerated the reasons for business to embrace CSR to include innovation, brand differentiation, employee engagement, and customer engagement. Figure1 presents a graphical depiction of Carrolls Pyramid of CSR. CSR Europe report 2016. (2011). Even when the MDGs and the debate around them was not directly linked to CSR, the United Nations Development Program (UNDP) pointed it out as a framework for the UN private sector cooperation with the aim of achieving its goals (Murata n.d.) and as a result the global recognition of the concept became stronger. WebRecherche: Recherche par Mots-cls: Vous pouvez utiliser AND, OR ou NOT pour dfinir les mots qui doivent tre dans les rsultats. Chuang, S.-P., & Huang, S.-J. United States of America: SAGE Publications. See Many of the early definitions of CSR were rather general. If one looks at CSR in developing countries, for example, whether a legal and regulatory framework exists or not significantly affects whether multinationals invest there or not because such a legal infrastructure is imperative to provide a foundation for legitimate business growth. How corporate social responsibility is defined: An analysis of 37 definitions. Levitt argued that long-run profit maximization is the one dominant objective of business, in practice as well as theory (Levitt 1958, p. 49). Journal of Cleaner Production, 149, 218226. Corporate Social Responsibility (CSR) and Millennium Development Goals (MDGs). Right from facing the competition, brand enhancement, marketing and promotional techniques to overcoming other business and market dynamics; the main responsibility of the company is to generate the maximum amount of profit by making sensible strategic business decisions. 2022 BioMed Central Ltd unless otherwise stated. European Commission Retrieved from http://europa.eu/rapid/press-release_MEMO-11-730_en.htm. Spence, L. (2016). (1999). During the 1940s, 50s and 60s, business executives and corporate managers were commonly referred to as businessmen (see Carroll 1999). 1). To do so, Reagans main economic goals focused on reducing the regulations on the private sector complemented with tax reductions (Feldstein 2013). An empirical examination of the relationships between corporate social responsibility and profitability. California Management Review, 17(3), 5864. From this review it is possible to see ties between some of the events of the sustainable development agenda and the evolution of CSR. Oxford: OUP. Industrialist Andrew Carnegie, who made most of his fortune in the steel industry, was known for donating large portions of his wealth to causes related to education and scientific research. The Difference Between Direct Selling and Pyramid Schemes. The case for and against business assumption of social responsibilities. CEOs, managers, and entrepreneurs will attest to the vital foundational importance of profitability and return on investment as motivators for business success. In summary, the four part CSR definition forms a conceptual framework that includes the economic, legal, ethical, and philanthropic or discretionary expectations that society places on businesses at a given point in time. In fact, Porter and Kramer (2006) argued that if CSR is used without a holistic approach and only focused on certain objectives (e.g. Jones, T. M. (1980). Further, the factor analysis conducted concluded that there are four empirically interrelated, but conceptually independent components of corporate social responsibility. By the Business- value is also being created through Corporate Social Responsibility (CSR) interventions across different operating facilities with appropriate linkages to local communities in which businesses operate and Beyond Business- value is being created through interventions for the societies in diverse geographies across India through creation of demand and services. Bowens work proceeded from the belief that the several hundred largest businesses in the United States were vital centers of power and decision making and that the actions of these firms touched the lives of citizens in many ways. Cookies policy. Journal of Business Ethics, 19, 1719. The social responsibilities of business: company and community 19001960. Accordingly, in 2005 the EC launched the European Roadmap for Businesses Towards a Competitive and Sustainable Enterprise that outlined the European objectives with regards to CSR for the following years (CSR Europe n.d.). (1999). The 2014 consultation showed that 83% of the respondents believed that the EC should continue engaging in CSR policy and 80% thought that CSR played an important role for the sustainability of the EU economy (European Commission 2014a). Though these other terminologies will sometimes be preferred by different supporters, CSR will continue to be the centerpiece of these competing and complimentary frameworks (Carroll 2015a). The 1970s saw the creation of some of todays most renowned companies with respect to social responsibility. In 1991, University of Pittsburgh professor Donna J. After having done an exhaustive literature review on CSR and its evolution it has been a challenge to select which contributions should be left out of this paper. Some early examples of the debate of the social responsibilities of corporations can be found in The Functions of the Executive by Barnard (1938) and the Social Control of Business by Clark (1939). Marrewijk (2003) explained this new societal approach to CSR as a strategic response to the new corporate challenges which, as he explained, are an outcome of the evolution of the roles and responsibilities of each sector of society [emphasis added]. Ethical responsibilities frequently engage with the customers and employees, but they impact the other stakeholders of the firm. 1, the social responsibilities placed upon corporations have evolved from being merely acknowledged in the early publications to being explicitly defined. Carrolls pyramid of CSR: taking another look, https://doi.org/10.1186/s40991-016-0004-6, International Journal of Corporate Social Responsibility, http://www.journals.elsevier.com/business-horizons/most-downloaded-articles/, https://www.google.com/search?site=&tbm=isch&source=hp&biw=1920&bih=955&q=Pyramid+of+CSR&oq=Pyramid+of+CSR&gs_l=img.12..0l2j0i24l4.13711.18241.0.23864.14.10.0.4.4.0.88.578.10.10.0.01ac.1.64.img..0.14.598.58IAXeqmf6Y, https://scholar.google.com/scholar?cites=13669080523806449819&as_sdt=80005&sciodt=0,11&hl=en, http://creativecommons.org/licenses/by/4.0/. We understand that creators can excel further. This set of responsibilities stand at the top of the pyramid and it harps on the fact that it is imperative to be a good corporate citizen and should provide impetus in improving the quality of life of the society and its people. Provided by the Springer Nature SharedIt content-sharing initiative. Perhaps Chandler and Werthers (2006; 2010; 2013) most valuable contribution comes from their particular perspective on the implementation of Strategic CSR, which in the fourth edition of the bookwritten by Chandler (2016) builds from the previous publications to encompass five major components instead of the four proposed in previous editions: first, the complete incorporation of the CSR perspective into the companys strategic planning process and their corporate culture; second, the understanding that all the companys actions are directly related to the core operations; third, the belief that companies seek to understand and be responsive to their stakeholders needs, which means that the incorporation of a stakeholder perspective is a strategic necessity; fourth, the company passes from a short term perspective to a mid and long term planning and management process of the firms resources which is inclusive of its key stakeholders, and; fifth (the new component), firms aim to optimize the value created (Chandler 2016; Chandler and Werther 2013). However, a historical review is missing in the academic literature that portrays the evolution of the academic understanding of the concept alongside with the public and international events that influenced the social expectations Other influential contributors of the time were Frederick (1960), McGuire (1963) and Walton (1967). B. Thus, ethical responsibilities embrace those activities, standards, policies, and practices that are expected or prohibited by society even though they are not codified into law. Elkington, J. The concept of creating shared value was further developed by Porter and Kramer (2011) who explained it as a necessary step in the evolution of business and defined it as: policies and operating practices that enhance the competitiveness of a company while simultaneously advancing the economic and social conditions in the communities in which it operates. Accountability of the public representative in India a call of exigency and enforcement! The findings show that there is a link between social expectations of corporate behavior and the way in which CSR is understood and implemented and opens room for future research. Corporate social responsibility is the notion that corporations have an obli- gation to constituent groups in society other than stockholders and beyond that prescribed by law and union contract. An image of a cartoon face with an open mouth grin. United Nations Global Compact. Bloomington: Indiana University Press. Although there is sometimes an altruistic motivation for business giving, most companies engage in philanthropy as a practical way to demonstrate their good citizenship. The Pyramid of CSR is intended to be seen from a stakeholder perspective wherein the focus is on the whole not the different parts. Some publications with regards to CSR had to be excluded from this review because they did not contribute directly to the evolution of the concept but we believe they are of interest in the CSR literature and thus they are listed in Appendix. Research in Corporate Social Policy and Performance. In this review article, the author takes another look at the well-known Carroll's Pyramid of Corporate Social Responsibility (CSR). In addition to issues being raised about the applicability of CSR and, therefore, the CSR pyramid in different localities, the same may be said for its applicability in different organizational contexts. http://globalcompact15.org/report/part-i/un-history-a-giant-opens-up. The findings suggest that CSR continues to be relevant within the academic literature and can be expected to remain part of the business vocabulary at least in the short term and as a result, the authors present a plausible future for CSR that takes into consideration its historical evolution. Long Range Planning, 40(6), 594610. A. (n.d.-b). It is important to notice that the figures are based on this literature review and do not attempt to represent all the contributions to the evolution of the academic understanding of CSR but only to provide a visual synthesis. WebMembers of the The San Diego Union-Tribune Editorial Board and some local writers share their thoughts on 2022. Accessed 6 Jan 2016. Clarkson, M. B. E. (1995). B. Thomas uses cookies to ensure that we give you the best experience on our website. A working group led by Brazil and Sweden collaborated with stakeholders and National Standards Bodies for a period of 5 years (20052010) and came up with the approved ISO 26000 Social Responsibility in September 2010 (ISO n.d.-a). A different perception came from Sethi (1975), for whom social responsibility entails that corporate behavior should be coherent with the social norms, values and expectations, and as a result it should be prescriptive. The review begins with the historical roots of social responsibility and then explores the early stages of the formal and academic writing about the social responsibilities of corporations and goes through its evolution to the latest understanding of CSR. Copyright 2022 - India CSR | All Rights Reserved. The report became of relevance for the international community because it brought the attention towards the impact of population growth, resource depletion and pollution, and pointed out the need of responsible business practices and new regulatory frameworks. http://www.journals.elsevier.com/business-horizons/most-downloaded-articles/. It might be observed that these are not completely incompatible with Carrolls categories. Strategy & Society. Perspectives in Business Ethics Sie, 3, 144. Thomas Regional are part of Thomasnet.com. How companies decide to balance these various responsibilities goes a long way towards defining their CSR orientation and reputation. Latap, M. A. Even when this might seem similar to the philanthropic responsibilities of companies, defined as the fourth level of the Pyramid of CSR proposed by Carroll (1991), it is in fact rooted on a different understanding of the roles of corporations within their social context. Corporation giving in a free society. In A. M. Andrew Crane, D. Matten, J. At FAS, we invest in creators that matters. In 1971, the concept of the social contract between businesses and society was introduced by the Committee for Economic Development. Corporate social responsibilities. The year 2015 can be considered as the most relevant in the decade because the 15 years to follow after it will be marked by the Paris Agreement, the launch of the 2030 Agenda for Sustainable Development, and the adoption of seventeen Sustainable Development Goals (SDGs) which represent a shared vision of humanity and a social contract between the worlds leaders and the people (Ban 2015, para. The CSR pyramid holds that firms should engage in decisions, actions, policies and practices that simultaneously fulfill the four component parts. Businesses in India have been sensitive towards the concerns of society and is committed to operating its core business in a socially responsible way by taking into consideration the wider interests of the community and the environment. Furthermore, Burke and Logsdon (1996) argued that the implementation of strategic CSR through these five dimensions would translate into strategic outcome in the form of value creation that can be identifiable and measurable, but limited to economic benefits for the firm. Visser, W. (2011). Accordingly, Marrewijk (2003) gave five interpretations to his concept of Corporate Sustainability, which he recognized as the contemporary understanding of CSR. Among her occupations, BD is the book review editor for the journal Ecological Economics, Director of the University of Iceland Arctic Initiative and sits on the boards of several foundations, institutes and private companies. With this in mind, we would like to bring the attention of the reader towards the following publications: The Functions of the Executive by Barnard (1938) along with The Functions of the Executive at 75: An Invitation to Reconsider a Timeless Classic by Mahoney and Godfrey (2014); the Social Control of Business by Clark (1939); the Social responsibilities of business corporations published by the Committee for Economic Development (1971); the Green Paper: Promoting a European framework for Corporate Social Responsibility published by the Commission of the European Communities (2001) which was the first step towards the European Strategy for CSR; Corporate Social Responsibility: A Theory of the Firm Perspective by McWilliams and Siegel (2001); the search for a definition of CSR by Dahlsrud (2008) with How corporate social responsibility is defined: an analysis of 37 definitions; then The Oxford Handbook of Corporate Social Responsibility by Crane (2008) which provides a summary of CSR history and points out relevant contributions to the concept; the literature review and analysis of the institutional, organizational, and individual levels of CSR provided by Aguinis and Glavas (2012) with What We Know and Dont Know About Corporate Social Responsibility: A Review and Research Agenda; the case study of reporting initiatives from a CSR perspective presented by Avram and Avasilcai (2014) through their Business Performance Measurement in Relation to Corporate Social Responsibility: A conceptual Model Development; the internal and external drivers behind SCSR rationale for the maritime transportation sector presented by Latap (2017) in his unpublished master thesis; and, Capturing advances in CSR: Developed versus developing country perspectives by Jamali and Carroll (2017). This is how theory and practice develops. Since that time, several writers have proposed that the pyramid needs to be reordered to meet the conditions of other countries or smaller businesses. 2008). While thinking about its economic responsibilities, businesses employ many business concepts that are directed towards financial effectiveness attention to revenues, cost-effectiveness, investments, marketing, strategies, operations, and a host of professional concepts focused on augmenting the long-term financial success of the organization. Pyramid of Corporate Social Responsibility is a simple framework that argues on the aspect that why organizations should meet their corporate social responsibilities. 2956). Kurucz, E., Colbert, B., & Wheeler, D. (2008). Blomstrom. As per the CSR Law, the CSR Committee of organisation shall institute a transparent monitoring mechanism for implementation of the CSR projects or programs or activities undertaken by the company. Trapp, N. L. (2012). Doubtless other researchers will continue to explore the applicability of the Pyramid of CSR to different global, situational, and organizational contexts. ), The Oxford handbook of corporate social responsibility (pp. The first selection was limited to the titles of the publications and was followed by a review of the keywords and abstracts of the preferred articles. All Rights Reserved. The age of responsibility: CSR 2.0 and the new DNA of business. The traditional thought is that resources spent for legal, ethical and philanthropic purposes might necessarily detract from profitability. As an overlay to all that has been said about ethical responsibilities, it also should be clearly stated that in addition to societys expectations regarding ethical performance, there are also the great, universal principles of moral philosophy such as rights, justice, and utilitarianism that also should inform and guide company decisions and practices. WebPepsico-Corporate Social Responsibility. Much of the early emphasis on developing the CSR concept began in scholarly or academic circles. Hence, a bigger circle represents a higher level of influence. In short, the tensions and tradeoffs will continue to be important decision points, but they are not in complete opposition to one another as is often perceived. Google Scholar. It is important to highlight that Husted and Allen (2007) left out the concept of voluntarism proposed by Burke and Logsdon (1996) from their definition of strategic CSR but pointed out its relevance as a key dimension in CSR for the creation of value. Business and Society, 55(1), 2355. Open Access This article is distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license, and indicate if changes were made. In summary, ethical motivations and issues cut through and permeate all four of the CSR categories and thus assume a vital role in the totality of CSR. Springer Nature. The European Commission (EC) also played a relevant role in encouraging the implementation of CSR and begun promoting it as early as 1995 when 20 business leaders adopted the European Business Declaration against Social Exclusion in response to the ECs call to combat social exclusion and unemployment (CSR Europe n.d.). An Empirical Measure of Corporate Social Orientation. Notably, the Green Paper presented a European approach to CSR that aimed to reflect and be integrated in the broader context of international initiatives such as the UNGC (Commission of the European Communities 2001). WebWhat Is Corporate Social Responsibility? The global recognition of CSR has also been influenced by international certifications designed to address social responsibility. The decade of the 2000s is divided in two sections due to the amount of relevant events around CSR. This contract brought forward the idea that companies function and exist because of public consent and, therefore, there is an obligation to contribute to the needs of society. (2013). WebAmazon Corporate Social Responsibility (CSR) Policy From a growth and profit perspective, Amazons unparalleled trajectory has indeed been exemplary. With this in mind, Bowen defined the social responsibilities of business executives as the obligations of businessmen to pursue those policies, to make those decisions, or to follow those lines of action which are desirable in terms of the objectives and values of our society (Bowen 1953, p. 6). California Do Not Track Notice. This meant that the scope of social responsibility (from a business perspective) was now inclusive to a broader set of stakeholders and a new definition was set forward: Corporate social responsibility (CSR) refers to the obligations of the firm to its stakeholders people affected by corporate policies and practices. Friedman, M. (1962). European Commission. B. United States of America: McGraw-Hill. Friedman would further explore this notion in the article The Social Responsibility of Business is to Increase its Profits published in (Friedman 1970) in which he sees CSR activities as an inappropriate use of companys resources that would result in the unjustifiable spending of money for the general social interest. Although responsible companies had already existed for more than a century before, the term Corporate Social Responsibility was officially coined in 1953 by American economist Howard Bowen in his publication Social Responsibilities of the Businessman. Social responsibilities of business corporations. (2018). Most of the businesses consider community as one of its apex stakeholders and believes in inclusive growth. Harvard Business Review, December, 116. Lynda M. Applegate; Friedman, M. (1962). The original Social Security Act was enacted in 1935, and the current version of the Act, as amended, encompasses several social welfare and https://doi.org/10.1186/s40991-016-0004-6, DOI: https://doi.org/10.1186/s40991-016-0004-6. CSR has had a robust past and present. Profits are necessary both to reward investor/owners and also for business growth when profits are reinvested back into the business. During the 1960s, the academic literature brought forward a new understanding of the concept in which it acknowledged the relevance of the relationship between corporations and society (see: Davis 1960; Frederick 1960; Walton 1967), yet, this perspective remained limited to concerns of employee satisfaction, management and the social welfare of the community and focused mainly on the generation of economic profit. Between some of the sustainable development agenda and the evolution of corporate social responsibility: from the internet paper... To as the level of influence of resources consider community as one of its apex stakeholders and believes in growth! Organisation ( NGOs ) and Agencies and not-for-profit organisations firms should engage in decisions, actions, policies and.... The author takes another look at the well-known Carroll 's Pyramid of CSR webcarrolls Pyramid of CSR workforce and them... D. Matten, J gave way to the societies of businesses making.. 'S Pyramid of CSR workforce and re-skilling them are always relevant and are key to CSR performance business. & Wheeler, D. ( 2001 ) customers and employees, but independent. Carrolls Pyramid of corporate social responsibilities the traditional thought is that resources spent for legal, and... There are four empirically interrelated, but they impact the other stakeholders of the history and evolution CSR. It must be acknowledged that some writers early on have been critical the., business executives and corporate managers were commonly referred to as the of... 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What is the economic model of corporate social responsibility?

What are the two ethical justifications for the economic model of corporate social responsibility?

Which of the following statements is true of the stakeholder model of corporate social responsibility?

Is following a model of corporate social responsibility required?