CSR

CSR



CSR

Introduction

If one were to have uttered the phrase "corporate social responsibility" at a gathering of business leaders in the early 20th century (Waits & Hicks, 2009, 87-95), one would most likely have been met with blank stares and confused expressions. Since the latter half of that century, however, corporate social responsibility--which is commonly referred to by its initials (Shank, Manullang & Hill, 2005, 248-262), CSR--has become well-known to all corporate leaders in the U.S. Nearly all major corporations today espouse a commitment to socially responsible policies and programs (Robinson, 2001, 29-41).

But what do those companies mean when they say they are "socially responsible"? Companies that adhere to the philosophy, which is also sometimes referred to as "corporate citizenship," must conduct their business in a way that benefits the world around them (Preston, 2005, 434-453); they act as good citizens in their respective communities. That does not mean that a company can get away with simply making charitable donations every few months, but how it manages its money and makes efforts for fiscal transparency, and prove that corporate values are more than pretty words on a framed plaque (Parket & Eilbirt, 2005, 5-10).

Although the term had not yet been coined, "corporate social responsibility" first became an important issue during the "Gilded Age," a period spanning the late 19th century to the early 20th century. That period was notable for unscrupulous business leaders who routinely trampled on workers' rights in order to make higher profits. A rising U.S. labor movement pressured the era's corporate leaders to pay workers a fair wage and improve their working conditions. Ensuring that workers were treated humanely and ethically became one of the bedrocks upon which the CSR movement was built (Preston, 2005, 434-453).

As the movement became more organized, CSR advocates broadened their definition of what it means for a corporation to be "socially responsible." Today, for a company to be deemed "socially responsible" by the corporate watchdog groups that have cropped up in recent decades, it must demonstrate that it actively supports its local community, conducts business in a fair and ethical manner and, perhaps most importantly, does not unduly harm the environment.

Should companies strictly adhere to the idea of "social responsibility" when making business decisions? Or is CSR simply an example of political correctness infiltrating the business world--with potentially harmful effects (Jones, 2008, 59-67)?

Discussion

CSR's supporters say that corporations are not exempt from basic standards of morality just because their main goal is trying to make a profit. Like individuals, corporations must function in a way that is socially and ethically responsible, advocates maintain. Corporations can earn huge profits by ignoring their social responsibilities, backers insist, which is exactly why the CSR movement is so necessary. Additionally, supporters argue that CSR can be good for a company's bottom line. Consumers will respond more positively to brands that they perceive to be products of socially responsible corporations, advocates maintain (Schwartzand & Carroll, 2003, 503-530).

Opponents, however, argue that the most "socially responsible" goal that a corporation ...