Importance of Corporate Social Responsibility in Management

1347 words (5 pages) Business Assignment

24th Sep 2020 Business Assignment Reference this

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Introduction

The current study note focused on the process of developing a critical literature review on a common management topic Corporate Social Responsibility. It is very much difficult to determine the correct definition of Corporate Social Responsibility (Dimaggio & Powell, 1983). Nevertheless, the basic concept of CSR associated with the business activities defines the action that appears to contribute some future social activities, beyond the interests of the firm (Crane, Matten D & Spence, 2014). Obeying the basic rules and regulations is one of the terms associated with the core findings of the CSR Module (McWilliams & Siegel, 2001). Therefore, along with the basic concept of the CSR Module, there are some additional points such as CSR, Voluntary, Managing externalities; multiple stakeholder orientation and social and economic alignment are some of the fundamental areas of discursions in the current study. All these points are discussed reflectively with the view towards developing a proper research outline for the current topic.

Critical Analysis of the Study (Reflection)

From my readings, I find that the concept of CSR contributes as one of the most essential aspects of different kinds of business situations. Different business irrespective of its nature and objectives defines the concept of CSR in different ways, which defines the versatility of its applicability. I feel that the nation of CSR refers to the strategic formation of certain regulations associated with the business proceedings, which defined its core effectiveness in a way that is social, ethical, and beneficial to community measured in terms of its development. Some of the additional factors, which I feel proved to be very much effective customers, employees, investors and other communities associated in the business surroundings. I feel that it is very much significant to define the fundamental concepts of CSR in such a manner, which proved the way on how the overall business is conducted.

Measured in terms of legal aspects, I feel that companies based on the nature of the trade must ensure that their business practices are legal (Freeman, 2008). From my readings, I conclude that obeying the regulations of the business practice allows the companies to protect the customers. These customers make themselves aware of the products and services of the business (Mitchell, Agle & Wood, 1997). Along with the legal terms, it is equally important that all the companies irrespective with its trades and activities to be economically truthful (Matten & Moon, 2008). There are several terms associated with the fundamental framework of the CSR Module defined the economical aspects (Suchman, 1995). Being profitable, providing return on investment to its owners and stakeholders along with creating jobs in their communities to contribute useful products, as well as services to the society, are some of the specific economic areas of different CSR Module (Mitchell, Agle & Wood, 1997). Finally, what I feel is Ethics combined the overall core activities in a proper CSR Module where there are some ethical responsibilities followed by the companies in the society. Beyond enduring by different lawful activities, some of the basic ethical responsibilities, which I feel proved to be essential, defined as managing waste, recycling and consumption (Mitchell, Agle & Wood, 1997). The combination of legal, economic and ethical are the three fundamental activities, which allowed me to combine all these activities to define what CSR is all about along with its roles and responsibilities.

The second point of the discussion described what not CSR is. Therefore, the overall concept of the CSR, what I feel from my readings promotes a vision of business accountability with a wide range of stakeholders along with different investors. Therefore, the key area of concern includes different business objectives, which is not a part of the overall CSR Module (Dimaggio & Powell, 1983). Environmental protection and the wellbeing of employees, communities and civil society are some of the connection points, which combined the areas of business beyond CSR. Sometimes, what I feel from my learning’s there are several things, which different organizations based on its trades and activities need to perform certain additional things, which is not considered as a part of the CSR Module. Sometimes CSR becomes an obligation to its stakeholders, which is very much challenging and acts as one of the major barriers to perform the duties based on the CSR module (Freeman, 2008).

There are several points, which described the process about why companies invest in CSR and develop their business activities in such a manner to manage their risk, recruit employees, and boost their brand names and many more (Dimaggio & Powell, 1983). Therefore, innovation, cost savings, brand differentiation and long-term thinking, customer engagement, and employee engagement are some of the additional areas, which I feel are some of the core areas about the reason why majorities of the companies engage their business activities in certain CSR Module. To be clear, companies often involved themselves in CSR for different reasons and made it very much essential in the proceedings of the organizational operations. CSR certainly moves the needle towards an economy, which I feel is much closer to conduct certain business activities (Crane, Matten D & Spence, 2014). Therefore, the overall discursion proved that why majorities of the companies try to involve their business activities in CSR module and what I feel the overall discussions proved to the best towards meeting the outcome of the topics.          

Conclusion

The concluding part of the study analyzed the importance of CSR in different business management. There are three classifications of the study, which highlighted the overall discursion points, about what is corporate responsibility, challenges of the corporate responsibilities and most importantly why different companies engaged their business module in certain CSR modules. Obeying the basic rules and regulations is one of the terms associated with the core findings of the CSR Module. The overall discursions are made in a reflective manner, which developed the findings by analyzing with real examples. Therefore, CSR is one of the integrated parts of business management, which companies cannot avoid in the business module.     

Reference List

  • Crane, A, Matten D & Spence, L (2014) Corporate Social Responsibility: Readings and Cases in a Global Context (2nd Edition), Routledge, New York, USA)
  • Dimaggio, PJ & Powell, WW 1983, ‘The Iron Cage Revisited: Institutional Isomorphism and Collective Rationality in Organizational Fields’ (Links to an external site.), American Sociological Review, Vol. 48, No. 2, pp. 147-160.
  • Freeman, ER 2008, 'Managing for stakeholders' (Links to an external site.), in T Donaldson & P Werhane (eds), Ethical issues for Business, Pearson Prentice Hall, Upper Saddle River, pp. 39-53.
  • Matten, D & Moon, J 2008,’ ‘Implicit and explicit’ CSR: A conceptual framework for a comparative understanding of corporate social responsibility’ (Links to an external site.), Academy of Management Review, 33(2), 404-424.
  • McWilliams, A., & Siegel, D. (2001). Corporate social responsibility: A theory of the firm perspective. Academy of management review, 26(1), 117-127.
  • Mitchell, RK, Agle, BR & Wood, DJ 1997, ‘Toward a Theory of Stakeholder Identification and Salience: Defining the Principle of Who and What Really Counts’ (Links to an external site.), Academy of Management Review, 22: 853-886.
  • Suchman, MC 1995, ‘Managing legitimacy: Strategic and institutional approaches’, (Links to an external site.) Academy of Management Review, 20(3), 571-610.

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