what are two approaches to corporate social responsibility? course hero

What is corporate social responsibility?

The two approaches of corporate social responsibility Nowadays, Corporate Social Responsibility (CSR) is a mega trend that is changing the business world modus operandi, since it is acquiring considerable importance amount stakeholders. Companies should consider CSR as part of their strategic planning, mainly taking two approaches.

What are the best books on corporate social responsibility?

[26] D. Brennan and B. Brennan, Corporate Social Responsibility: The Corporate Governance of the 21st Century, 2nd edition, Alphen aan den Rijn, Wolters Kluwer, 2011, p. 175. [27] Brennan and Brennan, p.175. [28] J. Bakan, ‘The Invisible Hand of the Law: Private Regulation and the Rule of Law’, p. 299.

What are the weaknesses of mandatory corporate social responsibility?

This example demonstrates the weakness of mandatory CSR, where companies comply with the law and yet their behaviour is manifestly contrary to the objective of a provision at stake. The last approach is CSR as a combination of voluntary and compulsory approaches. CSR is a strong incentive for conformity and behaviour beyond compliance.

Why do companies engage in CSR activities?

By Being responsive companies try to avoid any future external pressure caused by irresponsible activities. Therefore, all these CSR activities merely represent temporary advantages, as time goes by, the companies will need to adjust their practices to new general standards.

What are the two basic approaches towards corporate social responsibility?

Caring for company staff and their families: This is the most widespread perception of CSR which includes two approaches – the paternalistic approach and the innovative approach; the former sees the 'the employer as benefactor' and the latter focuses on qualification and training, as well as social investment ( ...

What are the approaches to corporate social responsibility?

These four approaches are obstructive, defensive, accommodating, and proactive.

What are the two 2 benefits of CSR to society?

The companies benefit through lower operating costs, increased sales and customer loyalty, greater productivity, gaining the ability to attract and keep skilled employees, getting access to more capital through more willing investors, etc. CSR is a thoughtful and practical way to give back to society.

What are the 3 corporate social responsibility?

For a comprehensive CSR strategy, businesses should make multiple commitments that address all branches of corporate social responsibility: environmental, social, and supply chain/sourcing.

What are the three approaches in order that organizations commonly follow to meet social responsibility?

1 Obstructive. A company that takes an obstructive stance toward social responsibility attempts to defend its economic priorities by blocking any attempts to point out the company's lack of social responsibility. ... 2 Defensive. ... 3 Accommodating. ... 4 Proactive.

What is proactive approach to social responsibility?

Proactive corporate social responsibility (CSR) involves business strategies and practices adopted voluntarily by firms that go beyond regulatory requirements in order to manage their social responsibilities, and thereby contribute broadly and positively to society.

What are the types of social responsibility?

Corporate social responsibility is traditionally broken into four categories: environmental, philanthropic, ethical, and economic responsibility.Environmental Responsibility. ... Ethical Responsibility. ... Philanthropic Responsibility. ... Economic Responsibility.

What is corporate social responsibility and its benefits?

Benefits of corporate social investment for businesses positive business reputation. increased sales and customer loyalty. operational costs savings. better financial performance. greater ability to attract talent and retain staff.

What are 5 benefits of corporate social responsibility?

What are the benefits of CSR?CSR increases employee engagement.CSR improves bottom-line financials.CSR supports local and global communities.Contributes to the United Nations' 17 Sustainable Development Goals.Increases investment opportunities.Presents press opportunities.Increases customer retention and loyalty.More items...•

Why is mandatory CSR important?

Mandatory CSR seems useful when the underlying assumption is that corporations act purely in self-interest and not for the society. In this case corporations would know exactly what is expected of them and those who do not adhere to the rules would be penalised. Mandatory CSR, which was illustrated in the example of India, has a positive impact on the local society. However, the notion of creative compliance should not go unnoticed. Its aim is to bypass the intended impact of the law. It complies with the letter of the law, ignoring the spirit of the law. In this way the underlying goal of legislation is deprived of its meaning. This is a great challenge for mandatory CSR.

What is the role of corporations in society?

“The role of corporations in society is clearly high on the agenda . Hardly a day goes by without media reports on corporate misbehaviour and scandals or, more positively, on contributions from business to wider society.” [1] Companies did realize that human rights abuses, polluting, or misinforming and consciously harming their clients, were actions that needed to be reconsidered if they wanted to remain and do well. [2] The prominence of Corporate Social Responsibility (hereinafter: CSR) is growing and so does the amount of articles and reports on CSR.

What is CSR in law?

CSR can be also seen as a mix of voluntary and mandatory approaches . In this case different types of regulations are adopted depending on particular time and place. This can vary from hard law to self-regulation and social norms. The regulatory mix creates the impression of a good balance – as it incorporates the responsiveness and dynamism of self-regulation as well as binding force and authoritativeness of hard-law.

What is CSR in the world?

The last approach is CSR as a combination of voluntary and compulsory approaches. CSR is a strong incentive for conformity and behaviour beyond compliance. This is especially crucial in regard to developing countries, which might be in possession of well-drafted legislation, however might have limited possibilities to enforce it. [35]

What is the initiative for human rights?

The initiative entails human rights, labour, environment and anti-corruption. The principles are minimal standards, based on documents recognised by most states and are already present in national jurisdictions. Moreover, there are no sanctions or other controlling measures.

What is self regulation?

The notion of self-regulation can be defined as “an umbrella term that can encompass a variety of factors. In its broadest sense, self-regulation involves planning and policy making regarding issues and activities not covered by public regulation”. [11] .

Which state made CSR mandatory?

The first state that made CSR mandatory is India. [29] . The law obliges (on a ‘comply-or-explain’ basis) companies that have a certain size or profit must spend minimum 2% of the average profit over the last 3 years on CSR activities.