Abstract Corporate Social Responsibility (CSR) is an integral part of corporations in the current period. Numerous cases that are committed against stakeholders by firms that are considered to be socially responsible have raised doubts regarding the congruence and coherence between CSR theories and its actuality…
To further clarify this question, three sub-questions are also addressed by this research. First, what is the nature of CSR?. Second, how does CSR shape or influence corporate behaviour?. Third, what is the relationship between CSR and Corporate Financial Performance (CFP)? In addition, the research aims to analyse corporate social responsibility. It seeks to understand the current perception of some scholars regarding the importance of CSR and to know whether there is still meaning for CSR in the contemporary period. These are just some of the aims of the study. Moreover, to answer the questions and achieve the aims of the research, a documentary analysis has been adopted in the conduct of the entire research. Table of Contents Table of Contents 1 Figure 1 pg. 10 3 Section 1: Introduction 4 1.1. Background of the Study 4 1.2 Research Problem 6 1.3 Aims and Objectives of the Research 7 1.4 Significance of the Research 7 1.5 Assumptions of the Research 8 1.6 Structure of the Dissertation 8 Section 2: Literature Review 9 2.1Corporate Social Responsibility: A Variety of Definition 10 2.2 CSR: Its Theoretical Foundation 13 2.2.1 Shareholder’s Theory 13 2.2.2 Stakeholders Theory 14 2.2.3 Social Contract Theory 15 2.3 CSR and Corporate Financial Performance (CFP) 17 2.3.1 CSR and CFP: Positively Correlated 18 18 2.3.2 CSR and CFP: Negatively Correlated 18 2.3.3 CSR and CFP: NO Correlation 19 2.4 CSR: Its Relevance 20 2.4.1 Benefits 20 2.4.2 The Contradictory Experience 24 2.5. Some Gaps 25 2.6 Summary 26 Section 3: Research Methodology 27 3.0 Introduction 27 3.1 Research Design 27 3.2 Research Methodology 27 3.3 Method of Data Collection 28 3.3.1 Collection of Data 28 3.4 Justification for the Choice of Methodology 32 3.5 Analysis of the Data 33 3.6 Ethical Issues and Constraints 34 3.7 Summary 34 Section 4: Research Hypotheses 35 4.0 Introduction 35 4.1 Relevance of CSR in the Current Business Environment 35 In order to gain a better of corporate social responsibility (CSR) and thus, elucidate the possibility of attaining a clearer perception of CSR as a concept, the researcher intends to determine the relevance of CSR by clarifying the definition of CSR. This is undertaken because the researcher holds that the variegated definitions that are proffered by scholars, although it offers clarifications, it also contributes to the a continued ambiguity of CSR (Dahlsrud, 2008). 35 4.2. The CSR and Corporate Financial Performance (CFP) 39 4.3. Compliance to CSR and Ethical Companies 41 4.4 Study Model 42 CSR = ?0 + ?1 Relevance + ?2 Financial Performance + ?3 Company Ethics + ? 42 Section 5: Work Undertaken to Date 43 Section 6: Resources and Facilities to be used 45 References 45 Figure 1 pg. 10 Figure 2 pg.36 Section 1: Introduction 1.1. Background of the Study The financial market turmoil of 2007 and 2008 creates a global economic crisis that surpasses the Great Depression in severity and repercussions (Brunnermeier 2009). The global economic meltdown has affected not only the economy, but it has also fostered the impression that “business does not serve social interest but rather harms social good” (Lin-Hi 2010). Social distrust and skepticism towards organisations, profits and business in general have reached new heights (Yandle 2010). ...
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Business ethics posses wide explanatory dimensions. As a business practice and as a matter of professional interest, the area is mainly normative. Academics try to comprehend the ethical business behavior by the application of descriptive means. The variety and magnitude of business ethical issues replicate the communication of profit-maximizing behavior with non-economic apprehension.
This is because the people working in the business depend on it for their livelihood. Suppliers, the local community and customers, are affected by the actions that the business takes. The way the business produces the products and the impact of the product on the environment affect the environment either positively or negatively (Besser, 2002).
Top business schools teach that maximizing profits and shareholders wealth is the primary measure of managerial competence. Corporate compensation policies including pay-for-performance schemes and stock options have also tended to perpetuate this narrow definition.
Abercrombie & Fitch maintains a business model that attempts to utilise marketing as a means of creating an exclusive brand, one that is aspirational and caters only to attractive and youthful consumers. The CEO Mike Jeffries once indicated that he “did not want his core customers to witness people who are not as hot wearing Abercrombie branded clothing” (Devon 2013, p.2).
Ethical codes are considered by organizations to help members in understanding the right and wrong decisions that are taken by them. GlaxoSmithKline (GSK) a pharmaceutical giant operating all over the world has their own code of ethics which make them unique in the pharmaceutical industry.
The study will also highlight the importance of CSR in the contemporary corporate practices. The author of the study has conducted research on the CSR practices by Australian corporate organisations and compared it with the sustainable practices performed by organisations of the developing nations.
CSR, regardless of a company's primary objectives, is an important subject of debate in business ethics study since it is commonly believed that if a firm earns from the community, it must return the favor by giving back to the community. The idea makes sense and the argument can be backed by various ethical and moral theories.
The process is not as simple as it seems as it not only depends on the evidences present but on the circumstances or situation of the patient. There is no standardized procedure that could be applied to all patients, but it needs to be flexed as per the attendant’s requirements.
Even they need to collaborate and engage with the stakeholders and shareholders to deal with potential risks and to build trust and creditability in society in a more effective manner (NCB, 2009).
Depending on the present scenario it can be