What is Corporate Social Responsibility?
Corporate Social Responsibility concept has grown significantly in recent time; it is used as conscious attempt by corporate organizations to give back to community. Other than winning consumers heart and loyalty, cooperates are pushed now to demonstrate their ability to serve community through indirect programs.
Corporate social responsibility has also become integral part of marketing as develop consumer relationship; many corporate have started developing dedicated programs in relevant or non-relevant fields of their product and services.
The term “corporate social responsibility” came in to common use in the late 1960s and early 1970s, after many multinational corporations formed. The term stakeholder, meaning those on whom an organization’s activities have an impact, was used to describe corporate owners beyond shareholders as a result of an influential book by R. Edward Freeman, Strategic management: a stakeholder approach in 1984.[2] Proponents argue that corporations make more long term profits by operating with a perspective, while critics argue that CSR distracts from the economic role of businesses. Others argue CSR is merely window-dressing, or an attempt to pre-empt the role of governments as a watchdog over powerful multinational corporations. – Wiki
Within the corporate world, the main “responsibility” for corporations has historically been to make money and increase shareholder value. In other words, corporate financial responsibility has been the sole bottom line driving force. However, in the last few years, a movement has significantly broadened corporate responsibilities within the field of – for healthcare initiatives, for the environment, for local communities, for working conditions, for lifestyle improvements, for cultural sensitiveness, and for ethical practices.
The Corporate Social Responsibility has gathered momentum and taken hold. This new driving is oftentimes also described as the corporate “triple bottom line”–the totality of the corporation’s financial, social, and environmental performance in conducting its business.