MN7181 People and Organizations – Blog 10 , Corporate Social Responsibility .





Introduction to the Corporate Social Responsibility

The role of corporations in society is very high and growing public interest in the impact of corporations on contemporary life.
The concept of CSR is a management idea which has risen throughout the global community during the recent decades. Not only large organizations, but also smaller ones feature CSR reports, managers, departments, projects, and increasing its interest as a core area of management, next to finance and marketing. Increasing number of newsletters, websites and social media not only contribute to promoting CSR but also they help to build a worldwide network of CSR associations and activists.
As a result of governmental regulation, media pressure, major disasters, human rights violations, polluting the environment, and misinforming and deliberately harming their customers are few examples, which force to organizations to increase their interest in CSR.

Definitions to Corporate Social Responsibility

In according to Keith Davis (1973) CSR is ‘the firm’s consideration of, and responses to, issues beyond the narrow economic, legal and technical requirements of the firm.

Matten and Moon (2008) explained that CSR ‘consists of clearly communicated procedures,  and practices of organizations that show corporate responsibility towards wider societal good.

In according to Freeman & Hasnaoui (2011) the meaning of CSR not only differs from sector to sector but it also differs quite substantially from country to another country to put CSR ‘in a global context’ it is essential to understand the specific regional and national contexts in which companies practice CSR.

CSR in developed countries

American organizations have fairly unregulated markets for capital and for labour, less amount of state-provided welfare facilities, and highly consider individual freedom and responsibility. Social issues, such as education, healthcare, have traditionally been in the core of CSR.
Europe has a strong trend to address social issues through governmental policies, procedures and actions.US and Europe difference in the CSR is the way of the address to the CSR issues, such as global warming, pollution, the provisions to provide medicine to developing countries, use of organisms in food production and etc...

Globalization represents as a booster of CSR. Global businesses rapidly rise and they link their investment decisions under ‘socially responsible investment’ criteria, the growth of NGO activism relate to corporate behaviour, and intensified exposure of business by the media have all boosted the attention to CSR in Europe and elsewhere (Matten & Moon, 2008)


CSR in Developing Countries

Developing countries characterized by different features that offer considerable scope for the exercise of CSR. These include low standards of working conditions, weak in environmental protection, high corruptions, and oppressive regimes with less attention to human rights, poor provision for health care and education and low levels of foreign direct investments. Under these circumstances, MNCs from the developed world have to face difficulties when they conducting their business in a socially responsible manner.

The main CSR activities in developing countries include contributions to develop the infrastructure of education, health and transport, and create good governance. Development of the microfinance sector is an important contribution in this respect to encouraging small enterprise and the empowerment of women and other marginalized groups.

And also it’s important to recognize that a growing number of domestic companies in developing countries have gradually developed their interest in CSR activities.

References:

Davis, K. (1973) ‘The case for and against the business assumption of social responsibility’, Academy of Management Journal, 16: 312–322.

Doh,  J., Guay, T. (2006) ‘Corporate social responsibility, public policy, and NGO activism in Europe and the United States: an institutional-stakeholder perspective’, Journal of Management Studies, 43(1): 47–73.

Freeman, I. & Hasnaoui, A. (2011) ‘The meaning of corporate social responsibility: the vision of four nations’, Journal of Business Ethics, 100: 419–443.

Matten, D. & Moon, J. (2008) ‘“Implicit” and “Explicit” CSR: a conceptual framework for a comparative understanding of CSR’, Academy of Management Review, 33(2): 404–424.


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