Although the concept of CSR has been developing since the early 1970s, there is no single, commonly accepted definition of CSR. Below we provide some examples of CSR definitions.
“CSR is defined as operating a business in a manner that meets or exceeds the ethical, legal, commercial and public expectations that society has of business. CSR is seen by leadership companies as more than a collection of discrete practices or occasional gestures, or initiatives motivated by marketing, public relations or other business benefits. Rather, it is viewed as a comprehensive set of policies, practices and programs that are integrated throughout business operations, and decision-making processes that are supported and rewarded by top management.” Source: BSR
“CSR is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large. (The above definition was developed in 1998 for the first WBCSD CSR dialogue in The Netherlands.)”
“CSR is a public movement, which has gained more momentum as citizens demand corporations to be accountable for their impacts. Consumers, investors and employees alike are recognizing the power held by corporations and efforts are being made on several levels to create global change with the hope that earth will become a better place.” Source: CSR Wire
“CSR is the concept that an enterprise is accountable for its impact on all relevant stakeholders. It is the continuing commitment by business to behave fairly and responsibly and contribute to economic development while improving the quality of life of the work force and their families as well as of the local community and society at large.” Source: European Union
• “CSR is a term describing a company’s obligation to be accountable to all of its stakeholders in all its operations and activities. Socially responsible companies consider the full scope of their impact on communities and the environment when making decisions, balancing the needs of stakeholders with their need to make a profit.”
“CSR is concerned with treating the stakeholders of the firm ethically or in a socially responsible manner. Stakeholders exist both within a firm and outside. Consequently, behaving socially responsibly will increase the human development of stakeholders both within and outside the corporation.” Source: Michael Hopkins: A Planetary Bargain: CSR Comes of Age (Macmillan, UK, 1998)
CSR generally refers to:
1. A collection of policies and practices linked to relationship with key stakeholders, values, compliance with legal requirements, and respect for people, communities and the environment; and
2. The commitment of business to contribute to sustainable development, commonly understood as sustainable development is the ability of the current generation to meet its needs without compromising the ability of future generations to meet theirs.
Why Corporate Social Responsibility occurs:
- for economic, social, and environmental bottom lines
- to get ISO 14000 which reviews environmental impact
- community pressure to do so
- to enhance reputation
- as a branding exercise
- to improve community relations and public image
- to enable employees to enjoy new levels of responsibility and leadership skills
- to improve employee satisfaction, morale and loyalty
- to get a sense of fulfillment as a result of contributing to the community
Here is an excerpt from an interesting article on central criticisms of corporate social responsibility in the Harvard Business School Working Knowledge:
http://hbswk.hbs.edu/item/4129.html
History shows there have always been critics who argue that making money is the sole objective of the corporation.
Four central criticisms of corporate social responsibility.
Recognizing the significance of concerns on both sides of the debate is central for understanding how to weigh and integrate those concerns. At the risk of oversimplifying, we discern four central criticisms of corporate social responsibility.
When companies engage in socially responsible practices, the first concern is that managers will misappropriate corporate resources by diverting them from their rightful claimants, whether those are the firm’s owners or, sometimes, employees.
A second concern is misallocation or inefficiency. Engaging in activities deemed “socially responsible,” critics argue, entails diverting resources best used for economic purposes to advance purposes for which those resources are poorly suited. From this perspective, managers’ social initiatives are akin to using a dishwasher to wash clothes. Corporations can contribute best to society if they do what they do best: employ a workforce to provide goods and services to the marketplace and, in so doing, fulfill people’s needs and create wealth. Engaging in socially responsible activities is not what companies do best and, according to critics, is thus a poor allocation of corporate resources.
The third criticism has to do with due process and democratic institutions. Even laudable and noble actions taken by companies on behalf of society need to be taken in accord with procedures that respect rights and afford subsequent accountability. Some critics fear that socially responsible corporate activity encroaches upon the role of government and usurps authority reserved for elected officials and bodies answerable to the public.
Finally, critics worry about the psychological implications of asking managers to focus on dual objectives. Having to advance economic performance and be socially responsible, some argue, destines managers to do neither. Some fear it is a recipe for distraction, frustrating managers’ efforts to advance either objective and, worse yet, providing managers with a convenient excuse when they fail to achieve economic objectives. Mismanagement can be attributed to efforts to be “socially responsible.”
Searching for ways that organizations can deliver value to society along multiple dimensions is the challenge before researchers and business leaders.
I think we, SCG, provide the perfect solution for these major concerns…… that’s some more reasons for us to strive harder to make this work
Source: http://www.worldbank.org/wbi/governance/CSR/Topic%201/3whatiscrsabout.htm
Management