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Corporate Social Responsibility Defining Corporate Social Responsibility Friedman M (1970); The social responsibility of business is to increase its profits; New York Times 13 September Hetherington J A C (1973); Corporate Social Responsibility Audit: A Management Tool for Survival; London; The Foundation for Business Responsibilities 1.7 Further reading Mintzberg H (1983); The case for corporate social responsibility; Journal of Business Strategy 4(2), S. 3-15. Friedman M (1970); The social responsibility of business is to increase its profits; New York Times 13 September Davis K (1973); The Case for and against Business Assumption of Social Responsibilities; Academy of Management Journal, 16, 312-322 1.8 Self-test Questions 1. What are the principles of CSR? 2. Should CSR be a voluntary activity? 3. What is the relationship between CSR and profit? 4. What is the approach of the European Community to CSR? 18 Download free ebooks at bookboon.com
Corporate Social Responsibility The principles of CSR 2. The principles of CSR The principles of CSR Accountability Transparency Sustainability 2.1 Introduction In the last chapter we outlined the three main principles upon which CSR is based. As we explained, this gives a basis for the measurement and evaluation of performance while also giving flexibility for an organisation to consider its own socially and environmentally significant factors and plan accordingly without being compared favourably or unfavourable with organisations with different priorities. In this chapter therefore we are going to look at these principles in more detail. 2.2 The prominence of CSR It is quite noticeable how much more prominent corporate social responsibility (CSR) has become – not just in the academic world and in the business world but also is everyday life. We can highlight a lot of factors which have led to this interest – such things as: Poor business behaviour towards customers Treating employees unfairly Ignoring the environment and the consequences of organisational action. Since then other things have also featured prominently in popular consciousness. One of these which has become more pronounced is the issue of climate change and this has affected concern about CSR through a concern with the emission of greenhouse gases and particularly carbon dioxide. Nowadays it is quite common for people to know and discuss the size of their carbon footprint whereas even three years ago people in general did not even know what a carbon footprint was. Another thing which has become prominent is a concern with the supply chain of a business; in other words with what is happening in other companies which that company does business with – their suppliers and the suppliers of their suppliers. In particular people are concerned with the exploitation of people in developing countries, especially the question of child labour but also such things as sweat shops. 19 Download free ebooks at bookboon.com
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