With some models, a firm’s implementation of CSR goes beyond compliance and statutory requirements, which engages in “actions that appear to further some social good, beyond the interests of the firm and that which is required by law”. The binary choice between ‘complying’ with the law and ‘going beyond’ the law must be qualified with some nuance. In many areas such as environmental or labor regulations, employers can choose to comply with the law, to go beyond the law, but they can also corporate governance in india pdf to not comply with the law, such as when they deliberately ignore gender equality or the mandate to hire disabled workers.
There must be a recognition that many so-called ‘hard’ laws are also ‘weak’ laws, weak in the sense that they are poorly enforced, with no or little control or no or few sanctions in case of non-compliance. The aim is to increase long-term profits and shareholder trust through positive public relations and high ethical standards to reduce business and legal risk by taking responsibility for corporate actions. CSR perspective, while critics argue that CSR distracts from businesses’ economic role. CSR has a neutral impact on financial outcomes. CSR is titled to aid an organization’s mission as well as serve as a guide to what the company represents for its consumers. It is widely accepted that CSR adheres to similar principles, but with no formal act of legislation.
Corporate social responsibility has been defined differently by different writers based on what they perceive about the concept. Having learnt from the devastating effects of corporate social irresponsibility, companies are focusing on the impacts of their operations not only on profits but the society and environment at large. Therefore, corporate social responsibility refers to “the ethical principle that an organization should be responsible for how its behaviour might affect society and the environment”. From 1960, “corporate social responsibility” has remained a term used indiscriminately by many to cover legal and moral responsibility more narrowly construed. In response to the rising concerns on ethical issues in businesses, Carroll 1991 extended corporate social responsibility from the traditional economic and legal responsibility to ethical and philanthropic responsibility.
Carroll demonstrates that corporate social responsibility is made up of four responsibilities that are interrelated and argues that corporate social responsibility can not be achieved without meeting the four responsibilities sequentially namely economic, legal, ethical and philanthropic responsibilities. Most consumers agree that while achieving business targets, companies should do CSR at the same time. Most consumers believe companies doing charity work will receive a positive response. Somerville also found that consumers are loyal and willing to spend more on retailers that support charity. Consumers also believe that retailers selling local products will gain loyalty. However, environmental efforts are receiving negative views given the belief that this would affect customer service. CSR activities are attractive to consumers.
They recommended that retailers focus on one activity. South Africa it makes a positive contribution to social needs such as health care and education. And even within Europe the discussion about CSR is very heterogeneous. This includes monetary donations and aid given to nonprofit organizations and communities. Donations are made in areas such as the arts, education, housing, health, social welfare and the environment, among others, but excluding political contributions and commercial event sponsorship. Another approach to CSR is to incorporate the CSR strategy directly into operations. CSV is based on the idea that corporate success and social welfare are interdependent.