What are the 4 main theories of corporate social responsibility?
AbstractVarious definitions, forms, and theories related to Corporate Social Responsibilities (CSR) are presented in this article. Nowadays most corporations follow different methodologies to implement CSR approach. But in most cases corporation follow CSR methodology that reflects only its shareholders' interest neglecting its community interest. Critical analysis and comparison for the main CSR theories are presented also, followed by a conclusion about a comprehensive form of CSR that targets both shareholders and community interest. Three of the main CSR theories and models have been represented and analyzed in this article: The Carroll Theory, The Triple Bottom Line Theory, and The Stakeholder Theories. Since any business corporation has to adopt one of these theories, this study reveals the strength and challenges of every theory. There is no doubt that every theory has been well analyzed by its founder or scholar, but an advanced understanding for every theory will make it possible for a corporation's managers and decision makers to implement long term social and environmental strategies with more accurate achievements. This article is divided into four main sections, the first section presents Carroll's model for CSR, followed by the second, which is about the Triple Bottom Line theory for CSR, and the third represents the Stakeholder theory. The fourth section analyzes three CSR theories and sheds light on the core responsibility of every theory. Comprehensive analysis for the three recognized CSR models was represented in a table to help readers to locate and clarify systemic differences and common features between the three theories. The last section of the article reveals three main outcomes, the first outcome represents a recommendation for the implementation process of adopting any of the three theories, and which is divided into an internal and external level. The second outcome reveals the importance of addressing a specialized committee for CSR by a company, followed by the third outcome that discusses some of the implications of this analysis for future CSR research and studies. Show The present practice of corporate social responsibility (CSR) has been depicted and informed by three CSR theories:
The stakeholder theory of CSRSince the 1990s’ the stakeholder theory has become famous as a direct alternative and challenge to the shareholder value theory (Freeman 1984). It argues that the number of stakeholder pressure groups has developed widely since the 1960s’ and the stakeholder forces impact on business must not be underestimated. Ethical and pragmatic as it ought to be business success assume vast interests of stakeholders than the shareholder’s 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 CSRThe business ethics theory is based on wider social obligation and the moral duty that business has towards society (Bigg, 2004). This theory justifies CSR on 3 varied but interrelated ethical grounds:
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 CSRThe shareholder value theory a perspective denoted by the Nobel Laureate Milton Friedman (1970) 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 a fiduciary duty to serve the shareholders interest rather than any others. Use 5E707E4BC22F0 to save 6000 on 10001 - 15000 words emergency order of research paper service. Although maximizing the profit of shareholder is justified as the most significant or only corporate responsibility, corporate social obligations are regarded often as a strategic instrument for a corporate competitive benefit and more profit gain. References
What are the major theories of corporate social responsibility?Three of the main CSR theories and models have been represented and analyzed in this article: The Carroll Theory, The Triple Bottom Line Theory, and The Stakeholder Theories. Since any business corporation has to adopt one of these theories, this study reveals the strength and challenges of every theory.
What are the 4 main reasons to support corporate social responsibility?4 benefits of corporate social responsibility.. Increased employee satisfaction. The way a company treats its community says a lot about how a company treats its employees. ... . Improved public image. ... . Increased customer loyalty. ... . Increased creativity.. Who organized the 4 levels of corporate social responsibility?Archie Carroll split corporate social responsibility into four levels, and he used a pyramid to represent them visually. His CSR pyramid makes it easier for people to grasp the way that the different elements of CSR coexist.
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