Corporate Social Responsibility ( Csr ) - 1636 Words

Corporate Social Responsibility (CSR) has gained a reasonable reorganization in the world of business. Organizations are now voluntarily putting their money in the public cause’s way more than they are required or forced by the law and proud present their doing their annual reports CSR is a form of corporate self-regulation integrated into a business model. CSR policy functions as a built-in, self-regulating mechanism whereby business monitors and ensures its active compliance with the spirit of the law, ethical standards, and international norms and MCWIlliams et al. defines it as Actions that appear to further some social good, beyond the interests of the firm and that which is required by law. ‘The commitment of business to†¦show more content†¦Planet refers to sustainable environmental practices. A triple bottom line company does not produce harmful or destructive products such as weapons, toxic chemicals or batteries containing dangerous heavy metals for example. Profit is the economic value created by the organization after deducting the cost of all inputs, including the cost of the capital tied up. It therefore differs from traditional accounting definitions of profit Main Perspectives and Theories within CSR Field There are three main perspectives on the responsibilities of companies in the literature. The classical, or shareholder perspective- It proposes that fundamental responsibility of business is to maximize the returns for owners and shareholders of the company. This approach is supported by Friedman (1970). According to Nielsen Thomsen (2007), in this approach, not business organizations but government is considered to be responsible for social issues, and companies address CSR only if the implementation creates long-time value for the owners. The stakeholder perspective – It addresses the responsibility of companies towards the owners as well as various stakeholders of the company. Freeman et al (2008) define stakeholders as ‘those groups without whose support, the business would cease to be viable’ (p. 26) – employees, customers, investors, public authorities, suppliers,