Corporate Social Responsibility Essay Example | Topics and Well Written Essays - 7000 words

Corporate Social Responsibility - Essay Example Moreover, to date there still is no research that supports whether the criteria used (if used) by corporate executives, as agents of corporations, is in agreement with the various criteria used by theorists and organizational observers to evaluate and measure corporate performance in the area of social responsibility. This body of research aims at presenting CSR in a new light and will examine its possible correlation with the underlying profitability of a company. For an increasing number of global and multinational corporations, corporate social responsibility (CSR) has become an important aspect of conducting business (Aquilera et al, 2005; Hummels, 2004; Mackey et al, 2005; Peloza, 2005). Despite the continuing debate about its meaning and despite the ongoing criticism of CSR as being enacted purely for self-interest 2005). Some theorists speculate that the recent surge in interest is due to corporations seeking to increase market competitiveness (Mackey, 2005; McWilliams & Seigel, 2001). On the other hand, some theorists recommend that firms adopt CSR because doing so can mitigate risk and can actually improve profitability (Godfrey, 2004). Other theorists advise corporations to engage in "profit-maximizing ethics" (Windsor, 2001). In a 2004 review of CSR for the Journal of C... Because of the impetus to compete profitably, and because firms desire to ease the negative affects of recent corporate scandals, such as ENRON and WorldCom, leaders are trying to understand how to satisfy both shareholders and stakeholders. Background of the Study Corporate Social Responsibility is not a new concept; in fact, it has a relatively long history. The North American culture has seen several waves of interest in CSR over the past 50 years. In each wave of interest, there appears to have been a continuation of both the interest in its value (to society and to business) and in CSR's inherent problems (Hummels, 2004). Over the years, organizational observers have noted the problems with CSR and describe them as conceptual vagueness, lack of understanding about which operational mechanisms to use, cost benefit, and the lack of an agreed upon moral foundation (Frederick, 1986, 1994; Hummels, 2004; Porter, 2003). There are several debates raging currently concerning corporate social responsibility. One concerns the issue of, what is referred to as, the "one-size-fits-all" problem. Several writers have stated that it is impractical to assume that one definition and one set of CSR operating principles could satisfy all needs across industries, nations, cultures, and organizations (Banerjee, 2001; Gobbels 2002). Another fundamental debate concerns business priorities; from this perspective, we have the debate about the fundamental purpose of business and to whom any corporation should serve the highest allegiance: the shareholder or the various stakeholders (van Marrewijk, 2003). In the past five years, there has been an intriguing appearance of actual research conducted concerning CSR in use. The attempt to move beyond the