Key Term and Why You Are Interested in It
The concept of corporate social responsibility is gaining attention on business platforms. However, its meaning and identification is complex within the business and governance platforms. The emergence, development and significance of corporate social responsibility are key topics in modern business platforms and academic curriculums as a way of an organization gaining a competitive advantage. There has also been a lot of study and exploration of the concept by scholars and business analyst providing more defined explanations and increasing its scope in the market. Therefore, further research on the idea is out of academic curiosity and need to explore the meaning and significance of the corporate social responsibility to the people, the organization and the economy as a whole.
Explanation of the Key Term
Concepts of business ethics are about the moral guidelines, governance and codes of conduct for an organization. Corporate social responsibility is an ethical business concept and some actions within the ethicality of an organization. Corporate social responsibility refers to the role of a business organization in ensuring sustainability and development of the community as a whole and makes its accountable to all its stakeholders and the public in general. CSR defines that the business is obliged to be considerate of all stakeholders including customers, the community and the nation as a whole (Goel & Ramanathan, 2014). Ultimately, CSR demonstrates a business’s accountability to the society within which it thrives and to the overall economic, social and environmental aspects of the society.
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Major Article Summary(300 words minimum)
Article: Corporate social responsibility and international business: A conceptual overview
The article describes the conceptual and theoretical perspectives of corporate social responsibility through a literature review. The article aims to reinforce the understanding of corporate social responsibility by looking at CSR as a concept and identifying its role is evading the adverse effects of globalization. The article then explores the emergence and development of the CSR concept since the 20 th century and after that explores CSR through the ethics theories. Finally, the report describes CSR from the perspective of political theories and provides a business case for CSR.
Different actors in society have a role to play in society especially those related to economic processes. Corporate social responsibility is the share of roles that is due to businesses as economic entities. Two principles contribute to the perception of the concept of CSR. The first principle is charity which develops from a biblical point of view on wealth distribution that those with wealth should give to those who lack. The second principle is stewardship which provides that businesses have a responsibility to ensure the actions of the company advance public interests. Ideally, firms implement CSR on the assumptions that consumers and shareholder regard social responsibility.
The concept of CSR has advanced through three main phases. The first phase was the profit maximisation phase which provided that the only objective for businesses is profit maximisation and that every agent of the economy is individualistic and self-centred. The second phase was the trustee management phase which provided that managers are accountable to all the groups with a stake in the organisation. The third phase Quality of Life management that is currently dominance propels the two principles of CSR where organisations have to go the extra mile in meeting the needs of the society.
Furthermore, CSR enhances the financial position of the organisation. Ethical theories reflect CSR as an element of wealth accumulation and the morally correct position for organisations.CSR advances the aspects of transparency, governance and real public relations which are instrumental to wealth creation hence competitive advantage. On the other hand, political theories provide that CSR can emerge from the bottom up where the business initiates responsibility or from top to bottom where the government starts actions. In that sense, social responsibilities expand to encompass humanitarian acts, international labour standards, the environment and the society and a personal level (Gonzalez-Perez, 2017). Ultimately, the concept of CSR is described and adequately explained to enhance the comprehension of the idea and provide its significance in different levels of business especially the international level.
Discussion
The main article builds a case for CSR and its implication for organisations by portraying it as a competitive advantage and a way of promoting the organisation in the market. Goel and Ramanathan confirm that businesses are morally compelled to cater to the needs of the larger society. The article in an attempt to explain CSR and a business concept provides that the idea of CSR has developed from globalisation and international trade in enhancing transparency and corporate citizenship (Goel & Ramanathan, 2014). In Choudhary and Singh research article (2012) corporate social responsibility is identified as the dedication by organisations to act ethically towards economic development while making the lives of those within their vicinity better. From the study of whether CSR was a competitive advantage or social concern, Choudhary and Singh concluded that CSR is not a humanitarian act, but a strategy towards long-term success of the business (Choudhary & Singh, 2012).Al-Najjar in another study provided that corporate social responsibility is associated with customer value for an organisation and that CSR maximises wealth and contributes significantly to an organisation achieving its goals( Al-najjar, 2016). Silveira & Petrini provide for the sustainable development role of competitive advantage illustrating the significance in CSR any organisation in the society. In that regard, CSR ensures that the needs of the current population are met without negatively influencing the needs of the coming generations. The address of social and environmental factor by CSR seeks to provide for the next generation adequately by sufficiently meeting the universal needs of the present modern populations (Silveira & Petrini, 2018).
References
Al- Najjar, J. F (2016). Social responsibility and its impacts on competitive advantage: an applied study on Jordanian telecommunication companies. International Journal of business and social sciences, 7 (2), 114-125.
Choudhary, N & Singh, N.K (2012). corporate social responsibility- Competitive advantage or social concern. Research Gate. Retrieved on 24 October 2018 from https://www.researchgate.net/publication/235258774_Corporate_Social_responsibility_-_Competitive_Advantage_or_Social_Concern
Goel, M., & Ramanathan, M. P. E. (2014). Business ethics and corporate social responsibility–is there a dividing line? Procedia Economics and Finance , 11 , 49-59.
Gonzalez-perez, M. A. (2017). Corporate social responsibility and international business: A conceptual overview. Research Gate. Retrieved on 24 October 2018 from https://www.researchgate.net/publication/318182129_Corporate_social_responsibility_and_international_business_examining_the_nexus_and_gaps_from_a_developing_economy_perspective
Silveira, L. M. D., & Petrini, M. (2018). Sustainable Development and Corporate Social Responsibility: a bibliometric analysis of International Scientific Production. Gestão & Produção , 25 (1), 56-67.
