Definition to Corporate Social Responsibility
Jamali
(2015) explains that CSR is the obligation for business organisations to impact
the society in which they operate beyond the singular motive of pure profit
maximization and further she emphasise the role of HRM in the development of
internal CSR initiatives by claiming that the nature of the organisation’s CSR
objectives has impact on the role of HRM in developing these objectives.
Sahlin-Anderson (2006), considers CSR as a global trend incorporating business
corporations, states, international organizations and civil society
organizations.
Video
1: What is CSR
Human
Resource is a strategic partner in an organisation and as such, can help drive
the formulation of the CSR strategy. This is the case especially in companies
where CSR is positioned in HR department and thus the HR manager has a key role
when it comes to CSR strategy development (Strandberg, 2009). According to Cohen
(2010), HR can leverage CSR strategies to deliver greater benefits for the
business, for employees, for society, for the environment and ultimately, for
HR professionals themselves.
Carroll’s Pyramid of Corporate Social Responsibility
Economic
responsibility:
Companies have a responsibility of an economic nature, since they have a
responsibility to produce goods and services that society wants and sell them
in a profitable way. The basis for the functioning of a company is producing
and selling goods for profit.
Legal
liability:
The company expects companies to undertake their economic mission within the
legal requirements established by the legal system of society. It is expected
that the company complies with laws and regulations or that the products and
services offered by companies have security standards and comply with existing
environmental regulations.
Ethical
responsibility:
Represents ethical behaviors that are expected that companies have. This has
become more important, because the tolerance of society against unethical
behavior is dwindling. The decision should consider the consequences of their
actions, honoring the rights of others, fulfilling obligations and avoiding
harming others.
Philanthropic
responsibility:
Represents discretionary actions taken by the company in response to social
expectations. They respect the activities undertaken by companies assuming a
social role that goes beyond the legal and ethical obligation, assuming an
increasingly strategic importance. Examples: charitable contributions, employee
training, extension of benefits to employees' families.
The Benefits of Corporate Social Responsibility
A successful CSR initiative takes
organisation beyond compliance with legislation and leads them to honour
ethical values and respect people, communities and the natural environment. CSR
is sustainable - involving activities that organisation can maintain without
adversely affecting your business goals (Geethamani, 2017).
( Figure 2: benefits of CSR )
Researcher
Geethamani (2017) express Advantages and Disadvantages of CSR,
Advantages of CSR
- Companies would know
what is expected of them, thereby promoting a level playing field.
- Many aspects of CSR
behaviour are good for business (such as reputation, human resources, branding
and making it easier to locate in new communities) and legislation
- It could help to
improve profitability, growth and sustainability.
- Some areas, such as
downsizing, could help to redress the balance between companies and their
employees.
- Rogue companies would
find it more difficult to compete through lower standards.
- The
wider community would benefit as companies reach out to the key issue of
underdevelopment around the world.
Disadvantages of CSR
- Additional bureaucracy, with rising costs for observance.
- Costs of operation could rise above those required for continued profitability and sustainability.
- Critics already argue that the CSR of companies is simply to make a profit, and legislation would increase the vocalisation of these concerns.
- Reporting criteria vary so much by company, sector and country, and they are in constant evolution.
References
- Carroll, A. B. (1979) ‘A three dimensional conceptual model of corporate social performance’, Academy of Management Review, Vol. 4(4), pp. 497-505.
- Cohen, E. (2010) ‘CSR for HR: A necessary partnership for advancing responsible business practices’, Sheffield: Greenleaf Publishing Limited.
- Geethamani, S. (2017) ‘International Journal of Applied Research’, Vol. 3(3), pp. 372-374. [Online] Available at: http://www.allresearchjournal.com/archives/2017/vol3issue3/PartF/3-3-11-827.pdf [Accessed on: 02 October 2018].
- Jamali, D. R., El-Dirani, A. M. and Harwood, I. A. (2015) ‘Exploring human resource management roles in corporate social responsibility: the CSR-HRM co-creation model. Business Ethics’, A European Review, Vol. 24(2), pp. 125-143.
- Sahlin-Anderson, K. (2006) ‘Corporate social responsibility: A trend and a movement, but of what and for what?’ Corporate Governance, Vol. 6(5), pp. 595-608.
- Strandberg, C. (2009) ‘The role of human resource management in corporate social responsibility’, Burnaby: Industry Canada.
- Figure 1: PIDGETHINK (2018) Carroll’s Pyramid of Corporate Social Responsibility, [Online] Available at: https://pidgethink.net/the-beginning-of-my-journey-in-exploring-business-ethics [Accessed on: 02 October 2018].
- Figure 2: Benefits of CSR : [Online] Available at: https://www.quora.com/What-are-the-benefits-of-corporate-social-responsibility-to-companies [Accessed on: 02 October 2018].
- Video 1: What is CSR. [Online] Available at: https://www.youtube.com/watch?v=cSNUyKV1ybo [Accessed 02 on: October 2018].