Corporate Social Responsibility (CSR) is “a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis” (ECCJ 2006).
This paper aims at providing an overview of the theoretical and conceptual developments in relation to the increased emphasis on social accountability of those who are responsible for managing businesses and Corporate Social Responsibility, which in turn assists the businesses to establish corporate policies and practices which are meant to pose a positive impact on the social environment. In the modern business world of today, each industry and business plays the role of bringing stability by satisfying the needs of the customers. As the businesses all around the world are growing and developing, every interested individual or organization, whether he is a consumer or investor is asking corporations to conduct their operations in a more efficient and accountable way, which conforms to the ethical requirements. This emerging demand from the elements within the society has forced the organizations to adopt a modern concept named CSR. This paper generally focuses on the theoretical framework related to CSR and developments related to CSR in the world so as to analyze the businesses and their operations on these identified parameters.
What is Corporate Social Responsibility
Additionally, the organization should also strive for improving the community and the surrounding environment (Malena, Forster and Singh 2004). The idea of Corporate social responsibility suggests that businesses are committed to protecting and improving the environment in which they are operating and also the interests of individuals who are directly or indirectly affected by their business activities. It underlines the approach that companies must adapt to ensure that the living standards of the individuals and their wellbeing are protected. It also entails considerations for the use of the resources where businesses are located to ensure that these resources do not deplete and the products that are produced by the companies are actually made as per the safety standards to have minimum negative impact on the environment. To achieve all aspects of the broader dynamics of corporate responsibility it is important for businesses to establish and promote a corporate culture within in their organizations that understands the importance of corporate impact on environment and its members play an active role in fulfilling organization’s corporate social responsibilities. Thus, it can be stated that the concept of corporate social responsibility is related to safer business operations, which have minimum effects on the environment in which the business is placed (Kotler and Lee 2005). It has been noted that in the past few years, major business entities have received negative reviews and criticisms for not giving back enough to the society in which they are active. Particularly, their lack of consideration for the protection of environment has been