Specifically, accounting theories and CSR theories have been analyzed.
Corporate social responsibility reflects the responsibilities that firm have towards stakeholders and society. Corporations are often encountered with business choices that create a dilemma between their objective of maximizing profits and ethics. There are a few theories of CSR that provide the foundation to the CSR model for the implementation of the process.
According to this theory of CSR, corporations have power in society at the same time, they are responsible to use this power in the arena of politics. This theory emphasizes on connection and interaction between society and corporation as well as the power it holds. This theory can be utilized by corporations for enhancing their reputation in a positive manner. If corporations are powerful enough, then they must utilize their power in the interest of general public as well. Manipulating financial statements and hiding environmental information that might harm their profits is not ethical by any means.
This theory states that corporations are instruments for the creation of wealth. In this theory, the objective of firms is to maximize the value of shareholders investment. Corporations also formulate strategies for achieving competitive advantage in this theory. This is theory upon which corporations nowadays are implementing. Their prime purpose is to seek wealth increment by whatever means possible.
This theory relies on the demands of society for its growth and continuity of existence. It means the society connects with corporations and allows them certain prestige and legitimacy to operate within the premises of society. However, in corporate world, community is always secondary. The prime goal is to generate profits as much as possible. For doing so, companies involve in CSR activities which is essence, is other