CSR: Organizational Levels of Responsibility, a Look at Competing Theories – Shareholder CSR


 


According to Fonteneau, (2003), corporate responsibility is supported by the concepts of multidimensional definitions and social marketing. In the multidimensional definitions concept, the focus is on the major responsibilities expected from companies. These major responsibilities include economic, legal, ethical and philanthropic dimensions (Noon, 2008). These responsibilities must be performed in order to benefit not only the company operators but also their employees, customers, the community and the general public. Noon, (2008) notes that the social marketing concept of corporate responsibility stresses that companies should operate in a way that maintains or enhances the well-being of its customers as well as its society.


Petkus & Woodruff (1992) supported this concept further by stating that CSR is the avoidance of harm and the provision of good services. The definition given by the authors on corporate social responsibility may vary to a certain degree. However, the meanings of these definitions emphasize on one matter, and that is, a socially responsible organization must have priorities other that short-term profitability (Perigot, 2003). A study has been conducted with regards to the significance of corporate social responsibility to profitability (Perigot, 2003). Although, further studies are still necessary in order to analyze the correlation of these factors, the findings of (Perigot, 2003) showed that social responsibility plays a significant role in consumer appeal. The perceptions of consumers however, tends to vary with regards to this aspect. Nonetheless, this stresses the importance of corporate responsibility not only on benefiting the stakeholders but also in achieving the goals of the companies towards growth and profitability. 


As for the shareholder CSR, shareholder Corporate Social Responsibility (CSR) is recognized as an essential element of present and future social policies.  CSR is considered as a strategy that aims to develop the multinational economic and financial groups that is needed in global market economy or firms that going through serious of internal crisis. For over the years, the shareholder Corporate Social Responsibility (CSR) is adopted by various shareholders as a replacement for many socially and ethically irresponsible practices and can aid to avoid or lessen the possibilities of bankruptcies, fraudulent actions, and to emphasize the importance of the professional codes and basic working values. The shareholder Corporate Social Responsibility (CSR) accommodates a wide variety of achievements and initiatives that covers the moral and ethical concerns such as the code of conduct and good governance and it aims to deliver the positive impact on society through a socially responsible conduct. Most of the high lightened program that includes in the integration of the organization with the shareholder Corporate Social Responsibility (CSR) is to provide social and environmental concerns through establishing a strong relationship with stakeholders (Fonteneau, 2003). Organizations increase their contribution to society and to sustainable development by using the shareholder Corporate Social Responsibility (CSR) in covering the immediate operations and legal obligations, such as safety in the workplace, employment policies and environmental protection (Noon, 2008). A business can recognize the role of the shareholder Corporate Social Responsibility (CSR) in pushing initiatives that might contribute to the development of the communities in which the business operates (Perigot, 2003). A good and sound decision by the corporate leaders can be also incorporated through the CSR because it promotes the business ethics that draw interest in business society (Sims, 2003). With the ability of the organizations to face the issues and problems pose by the economic uncertainties and other financial crunches, the essence of CSR may reflect in the organization’s core values and overall principles (Fry, 2005). The idea of CSR is not necessary to give the businesses their own set of strategies but to help the leaders remember that the society receives the various influences or impacts coming from their operation. The heart of CSR lies in the idea of being responsible towards the improvement and effectiveness of both firm and the society.


Shareholder Corporate Social Responsibility (CSR) does not exist in isolation from the society in which companies operate. It is another way to response the needs in different societies with different expectations. The corporate social responsibility and fair trade are not only obliged to the business strategy, partnered the willingness of management to deliver it, but also people who are prepared to accept the kind of responsibility in their personal career and action. The corporate social responsibility is more effective with the communication and readiness to learn more and using their skills efficiently.


It is for the company to freely decide about the best strategy for their business. The numbers of corporate social responsibility that are available for the company are flexible in the business actions and circumstances. The extent of corporate social responsibility for the company has practical limits that influencing the different functions and operations. However, many companies see solutions and value the good practices and promotion of their own values and key initiatives. The corporate social responsibility can contribute in developing the competitive marketplace where there is a presence of fair trade.


 


References:


Fonteneau, G. (2003). Corporate Social Responsibility: Envisioning its Social Implications. The Jus Semper Global Alliance, Living Wages North and South. [Online] Available at: http://www.jussemper.org/Resources/CSRsocialimplications.pdf. [Accessed 7 Jan 2011].


Fry. L. (2005). “Toward A Theory of Ethical and Spiritual Well-Being, and Corporate Social Responsibility through Spiritual Leadership”, IA249-Giacalone Book, Accessed 7 Jan 2011, from http://www.tarleton.edu/~fry/SLTEthics.pdf.


Noon, P. (2008). Corporate Social Responsibility. Negotiator’s Guide. [Online] Available at: http://www.world-psi.org/TemplateEn.cfm?Section=Home&Template=/ContentManagement/ContentDisplay.cfm&ContentFileID=23044. [Accessed 7 Jan 2011].


Perigot, F. (Pres.). (2003). Corporate Social Responsibility. An International Organization of Employers Approach: Adopted by the Management Board. [Online] Available at: http://www.ioe-emp.org/fileadmin/user_upload/documents_pdf/papers/position_papers/english/pos_2003march_csr.pdf. [Accessed 7 Jan 2011].


Sims, R. (2003). “Ethics and Corporate Social Responsibility: Why Giants Fall”, Westport, Praeger, p. 4-6


 


 



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