Defining CSR - Undergraduate

Defining CSR Dr Edsel E. Sajor  What, for you, are the values and mores that make up a good organization/corporation?  Do you believe that corporations should behave ethically and be morally accountable to society at large? Elaborate.  “Corporate Social Responsibility ha...

Defining CSR Dr Edsel E. Sajor  What, for you, are the values and mores that make up a good organization/corporation?  Do you believe that corporations should behave ethically and be morally accountable to society at large? Elaborate.  “Corporate Social Responsibility has been gaining attention, popularity and prominence in the last few decades. It is perceived as being important because it offers a remarkable opportunity to discuss the role of business in society following decades (if not centuries) during which busisness was not always acting in the best interests of our global society.  …..  The business sector has delivered essential goods to society and the economy: manufacturing products that are important to people’s quality of lives; providing people with the dignity of a job and a career; paying tazes and contributing to economic growth  On the other hand, businesses are also responsible for vast destruction of the environment and (at least partially) climate change; to slavery, illness, and human suffering; and to animal cruelty. Somewhere between these two extremes, emerges the important role of CSR. As our worl, economy and society rapidly change, CSR can offer a way for business to be responsible and ethical.” (Haski-Leventhal 2022, p. 7-8) Ambiguity in defining CSR At least three reasons why defining CSR is not a simple task: First, CSR is a contested concept that is defined (and simplified) differently by different groups of people. Arguably, this ambiguity is part of the reason why CSR has been so successful; under the label of CSR yet across a variety of (often disagreeing) stakeholders, people have for decades agreed on the importance of debating the role of business in society. Second, CSR overlaps with other conceptions that describe business-society relations (e.g. business ethics, sustainability, accountability). Third, like forms of business organization and governance, CSR is a dynamic phenomenon. What counts as an issue relevant to CSR debate changes over time, as new problems emerge and formerly novel practices become routine. A good working definition of CSR “CSR refers to the integration of an enterprise’s social, environmental, ethical and philanthropic responsibilities towards society into its operations, processes and core business strategy in cooperation with relevant stakeholders” (Rasche, Morsing and Moon 2017). Important notes on the above definition: 1) It stresses that CSR is not entirely philanthropy. 2) The definition does not mention, or explicitly indicate that CSR is a voluntary concept. 3) The term “enterprise” was used. This is to highlight that CSR is not only concept relevant to larger corporations, but to include SMEs as well. 4) CSR is a multidimensional construct. Despite the term ‘corporate social responsibility, CSR includes discussions about firms’ environmental footprint. The internationally agreed view is that CSR encompasses corporate responsibilities in at least four key issue areas: (1) human rights (as agree upon in the Universal Declaration of Human Rights); (2) labor rights (as agreed upon in the International Labor Organization’s Declaration on Fundamental Principles and Rights at work; (3) environmental principles (as fixed in the Rio Declaration on Environment and Development); and, (4) anti-corruption (as stated in the UN Convention Against Corruption). Five Perspectives on CSR Normative Integration Instrumenta Political Emergent perspective Perspective l perspective perspective perspective Definitio CSR as ‘the ‘The social ’CSR can be CSR ‘entails CSR ‘as a n obligations of responsibility of viewed as a those permanent businessmen business form of responsible issue and area to pursue encompasses the investment’ business of debates in those policies, economic, legal, and managers activities that management to make those ethical, and need to turn theory and decisions, or to discretionary ‘determine the corporations practice, rather follow those expectations that appropriate into providers of than a well lines of actions society has of level of CSR public goods in stabilized which are organizations at investment’ cases where construct with a desirable in a given point in (McWilliams public clear and terms of the time.’ (Carroll and Siegel, authorities are constant objectives and 1979) 2001) unable or operationalizati values of our unwilling to fulfil on (Gond and society this role.’ Moon 2013) (Bowen, 1953) (Scherer et al. 2016) Five perspectives on CSR (continued) Normative Integration Instrumental Political Emergent perspective perspective perspective perspective perspective Motivation CSR is an Firms are faced CSR advances Firms turn into CSR to adopt ethical with certain the economic political actors engagement is CSR obligation for a economic, self-interest of and hence have an undisputed firm, often environmental firms. to manage a yet contested driven by and social new set of precondition leaders’ expectations responsibilities. for ongoing personal values from society business and integrity to and have to development. serve society. integrate these expectations into their business. Implication Firms and their Firms and their Firms and their Firms and their Firms and their s for the managers base managers are managers focus managers are managers firm their decisions primarily on how CSR expected to engage and actions on concerned with may increase serve as political proactively in societal well- CSR as a company actors with the ongoing being as the means to profits. political debate on CSR. firm’s ultimate appear responsibilities. goal. legitimate vis- à-vis significant (Rasche,stakeholders. Morsing & Moon, 2017) CSR as a dynamic concept What counts as responsible corporate conduct changes over time. What we consider to reflect responsible behavior not only depends on the relevant business context but also on temporal dynamics (Rivoli and Waddock, 2011). A number of factors influence these dynamics. 1. Broader public expectations shift as novel scientific research, the media and other groups show the relevance of new problems and solutions. 2. Expectations can institutionalize into behavioral norms and thus turn formerly disregarded practices into de fact requirements. 3. Regulators can turn a previously neglected issue into a required one. 4. Companies can innovate around CSR in order to secure competitive advantage and thereby set new standards of CSR.  Public Issue Life Life Cycle Legislation passes or other High resolution occurs Legislative Public interest Awarene Intensified ss concern Trigger Media and event public interest Activist become active Return to Expectation apathy or gap: opinion indifferenc leaders active e Low Early Later Time Thank you.