Pdf stakeholder relationships, social responsibility. The conflict has been subject to research by the author since the early 2000s and is the impetus for developing a model for corporate social responsibility csr. Pdf this article summarizes the major features and different schools of thought surrounding concepts such as corporate governance, corporate social. Corporate social responsibility csr and stakeholder approach.
Corporate social responsibility csr emphasizes the important role of corporate communication in establishing and maintaining transparent and open dialogues with diverse stakeholders to foster ethical and socially responsible courses of action for various issues golob and bartlett, 2007, kirat, 2015. This is all the more remarkable in the light of recent corporate social responsibility scandals in which these mechanisms seem to have been at work. The trend is that corporate globalization and informaticization have continued to strengthen, yet there has emerged an increasingly strong demand for corporations to put into practise a stakeholders and corporate social responsibility csr management system, in which equal weight is accorded to the economic, environmental, and social aspects. A stakeholder model for implementing social responsibility. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Corporate social responsibility and stakeholder theory. This is not just semantics, but a new interpretation of the very purpose of csr. Corporate social responsibility csr and the notion of a stakeholder approach are pivotal concepts when examining the role of business in society, but their relationship has been studied and much. The social responsibility of business is to increase profits, new york times magazine, september, 1970, pp. The charitable responsibilities model of corporate social. An overview of corporate social responsibility 4 what is the business case for csr. Business researcher elizabeth redman proposed the three models of.
Corporate responsibility or sustainability is therefore a prominent feature of the business and society literature, addressing topics of business ethics, corporate social performance, global corporate citizenship, and stakeholder management. Stakeholders and corporate social responsibility csr. Former hewlett packard vp debra dunn talks about the technology companys dna for csr, and how the firm engages with stakeholders to be good citizens and help improve communities around the world. Corporate social responsibility in the context of the stakeholder theory 3 within the stakeholder theory, there is a theory of stakeholder salience, which points the corporation management to particular actions of particular stakeholders which should be monitored. Corporate social responsibility, often abbreviated csr, is a corporations initiatives to assess and take responsibility for the companys effects on environmental and social wellbeing. The opposite theory is the broader model of corporate social responsibility. The local society or the environment are not able to make this choice and must therefore be considered to be involuntary stakeholders. Noticeably, there has been little consideration of the motivations and processes used by businesses to avoid or neglect stakeholder power and pressures.
Corporate health is conditioned by, and dependent on, the. The article concludes by describing ways of assessing corporate. A stakeholder approach to corporate social responsibility provides a comprehensive collection of cuttingedge theories and research that can lead to a more multifaceted understanding of corporate social responsibility in its various forms, the pressures and conflicts that result from these different understandings, and some potential solutions. Pdf corporate social responsibility and stakeholder. Corporations responsible for a triple bottom line seek sustainability in the economic, social, and environmental realms. Pdf a stakeholder approach to corporate social responsibility.
Corporate social responsibility csr business ethics. This paper sets forth a new model of corporate social responsibility. We examine the relationships between businesses and various stakeholder groups and examine how a stakeholder framework can help us understand. Positioning stakeholder theory within the debate on corporate.
Csr and stakeholders corporate social responsibility has been described as a paradigm that is in a state of emergence crane et al. Extrapolating from carrolls four domains of corporate social responsibility 1979 and pyramid of csr 1991, an alternative aps proach to conceptualizing corporate social responsibility csr is proposed. An outline of the two perspectives related to corporate social responsibility. The model emphasises engaging impacted stakeholders in dialogue with powerful stakeholders to achieve social justice. She also added that corporate responsibility cr has become so critical to the wellbeing of humans and. The economic model of corporate social responsibility also contends that promoting the interest of the greater community is the duty of the government, as well as nonprofit organizations and other social institutions. The crmodel can be tested in companies and executed through corporate strategic and operational management. In recent years, many organizations have embraced corporate social responsibility csr, a philosophy introduced in why ethics matter, in which the companys expected actions include not only producing a reliable product, charging a fair price with fair profit margins, and paying a fair wage to employees, but also caring for the environment and. Chapter 2 is about stakeholder relationships, stakeholder influences in social responsibility, and corporate governance. Carrolls 1991 pyramid of corporate social responsibility.
A stakeholder approach to corporate social responsibility. To provide a comprehensive managerial framework to understand and provide a well balanced and integrated stakeholder orientation for implementing corporate social responsibility in marketing. Defining corporate social responsibility csr analyses economic, legal, moral, social and physical aspects of environment. Depending to what extent and in what way they influence the corporation business. Corporate social responsibility is the commitment a company has to the community outside of its shareholders and employees. Summary in this chapter, first we identify stakeholders different roles in business ethics. In this paper, we propose to replace corporate social responsibility with company stakeholder responsibility.
Model design and testing green paper, corporate social responsibility is a concept whereby compa nies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis. This essay first presents an overview of the concepts of the corporate responsibility and stakeholder theory, discussing the link between the two. In accounting for the recent ascendancy of stakeholder theory, this article presents an overview of two traditional conceptualizations of corporate social responsibility csr carroll. It then looks at some theories to explain how and why business might undertake csr stakeholder theory, social contracts theory and legitimacy theory. Business stakeholders in corporate social responsibility. Line theory for csr, and the third represents the stakeholder theory. The discussion also includes support for each perspective, including. Implementing corporate social responsibility 18 task 1. Managing corporate social responsibility offers a strategic, communicationcentred approach to integrating csr into organizations. Stakeholder theory has gained currency in the business and society literature in recent years in light of its practicality from the perspective of managers and scholars. This paper explores the relationship between two major concepts in business ethics stakeholder theory and corporate social responsibility csr. Society began to expect companies to accept additional social responsibilities outside of the fundamental business functions. Corporate social responsibility as a specific theory affirms that corporations are entities with economic, legal, ethical, and philanthropic obligations.
Corporate ethics built on stakeholder theory seek to involve all those. Ensuring the corporation fulfills its proper role in society corporate governance systems vary in how they achieve these goals, but by focusing on one group in this case employees we can further develop the notion of how a stakeholder group can strengthen the corporate governance system. We add to corporate social responsibility studies by providing a more nuanced understanding of csr suspension. Stakeholder management and csr is always connected. Three of the main csr theories and models have been represented. Debate the debate over the shareholder model of corporate. It is not fair for investors or shareholders to channel their assets to activities that would not generate profits. Whats certain is that stakeholder theory obligates corporate directors to appeal to all sides and balance everyones interests and welfare in the name of maximizing benefits across the spectrum of those whose lives are touched by the business. Pdf stakeholders theory and corporate social responsibility in. Drawing on institutional theory and a relational governance perspective, we posit that rather than adopting a canonical holistic csr stakeholder model as typically observed in western countries, these firms adopt a preferential stakeholder model using government. Corporate social responsibility and stakeholder governance around the world hoje jo, moon h. Analyzing corporate social responsibility measurement.
Stakeholder theory, which has been described by edward freeman and others, is the mirror image of corporate social responsibility. Theories of corporate social responsibility profolus. The stakeholder model posted on december 9, 2010 by projectcsr this is the second post in a four part series on models of csr. An alternative to the shareholder model is the stakeholder model of corporate governance. The business case for sustainability is a notion often referenced in the corporate sustainability and corporate social responsibility literature.
Corporate social responsibility and stakeholder governance. Consider the role concept of social responsibility had on starbucks as you watch this video. Stakeholders and corporate social responsibility history sparked by the labor movement, the concept of corporate social responsibility csr has only been in existence since the 1950s. Corporate social responsibility and sustainable business. This article utilizes existing knowledge on this topic to support a. Managers that adopt a stakeholder model of corporate governance recognize that they must answer to other stakeholders, including. Pdf stakeholder theory has gained currency in the business and society literature in recent years in light of its practicality from the perspective. The three models of corporate social responsibility. The subject isnt without controversy, with some claiming corporations have no role in social responsibility and others asserting that they cant escape it.
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