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Table of contents
- Liberia’s Post-War Development: Key Issues and U.S. Assistance
- CSR/U1 Topic 7 A Historical Perspective and emerging theories of CSR – HOME | MANAGEMENT NOTES
In the s, the concept of CSR emerged as the outcome of new forms of stakeholder engagement and social regulation, increased demands of stakeholder and governmental regulation for reporting and CSR. Critics and Scholars improved their analysis to include arguments based on the sustainability, business ethics, corporate social performance, green marketing, stakeholder theory and citizenship theory.
The stakeholder theory of CSR.
Liberia’s Post-War Development: Key Issues and U.S. Assistance
Ethical and pragmatic as it ought to be business success assume vast interests of stakeholders than the shareholders interest alone. The stakeholder theory emphasizes special social rather than any others unrelated to the corporation. Thus CSR is denoted as a company stakeholder responsibility. Business ethics theory of CSR. The business ethics theory is based on wider social obligation and the moral duty that business has towards society Bigg, This theory justifies CSR on 3 varied but interrelated ethical grounds:.
Changing and emerging social responsiveness and social expectations to particular social problems. Eternal or intrinsic ethical values always inspired by Kantian ethics and denoted as some normative and universal principles like social justice, fairness and human rights. Corporate citizenship i. The business ethics theory views CSR more as philanthropic and ethical responsibilities rather than legal and economic responsibilities.
CSR initiates where legal obligation declines. The shareholder value theory of CSR.
The shareholder value theory a perspective denoted by the Nobel Laureate Milton Friedman argues that only social responsibility of business is to develop its profits while following legal norms. Neoclassical economists like Hayek assert that the function of business is doing business that contributes to society and economy and its function must not be confused with other social functions performed by not for profit organizations and governments. Otherwise it is not the most effective way of allocating resources in a free market.
Economists like agency theorists believe that the corporation owners are its managers and stakeholders as agents have fiduciary duty to serve the shareholders interest rather than any others. Although maximizing the profit of shareholder is justified as the most significant or only corporate responsibility, corporate social obligations are regarded often as strategic instrument for corporate competitive benefit and more profit gain.
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CSR/U1 Topic 7 A Historical Perspective and emerging theories of CSR – HOME | MANAGEMENT NOTES
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