Corporate Social Responsibility Csr - 1927 Words

Introduction Corporate Social Responsibility (CSR) is a concept that means, when an enterprise generates profits and takes legal obligations to its shareholders and creditors, it should also be socially responsible for other stakeholders, such as employees, customers, community and the environment in which it operates. CSR encourages enterprises not only to pay attention to profits accumulation while operating, but also to make a contribution to consumers, the environment in which it operates as well as the whole of society. There are many theories about CSR, among which the Pyramid of Corporate Social Responsibility is the most widely accepted. This model was put forward by Dr. Archie B. Carroll, a business management professor, in 1979.†¦show more content†¦A company’s ethical responsibility refers to the fact that companies are supposed to act in a fair and just way even though there is no legal requirement. Business decision-making should consider the ethical expectations of different stakeholders. Philanthropy is the highest level of responsibility, which requires the company make entirely voluntary contributions to society, e.g. making donations to the charity or developing advanced technologies to protect the environment. The public do not have specific expectations of such behaviour, so it depends on the company’s choice. Carroll’s CSR model can correspond with the various levels of a company’s development. At the initial stage, economic interests are the most important factors to be considered by a company when making decisions. As the business grows larger, the society may have greater expectations to it, and the company may try to generate long term benefits by building a good corporate image, therefore, other issues will also be considered. In terms of the importance of CSR, it can be broadly divided to three points. Firstly, being socially responsible is a good way for a company to publicise itself. The company which is willing to take CSR must be an honest and reliable company. A good corporate image can help the company not only to win the confidence of existing shareholders, but also to attract potential customers and business partners.