POSITIVE AFFECTS OF CORPORATE SOCIAL RESPONSIBILITY

Positive Affects of Corporate Social Responsibility



Abstract

Purpose and Scope

The purpose of this study is to show the human side of Corporate Social Responsibility (CSR) and make the connection to what type of affect it has on society. To see through the eyes of the community and not just the benefits of the companies that are involved.

Method

The research will be conducted on 500 employees, 100 management and executives and 10 companies known for corporate social responsibility. The employees will provide insight through personal interview with the primary researcher. The executive will be sent a short survey to provide valuable information and perspective. The companies will be analyzed through independent research by the project team.

Implications

The implications for this study include the connection between the community and the companies that are acting socially responsible, the positive effect on employees that participate in social objectives and the change in the communities of companies who adopt social awareness.

Resources

The team for this research project consists of a primary research, analyst and administrative support. All work will be done at team member's own accommodation. The budget for the project is estimated at $22,295.00



Human Subjects

All participants will be volunteers and their interview or survey results will remain anonymous. Each participant will be given a full explanation and vision for the purpose of the project and research findings.

Table of Content

Introduction5

Problem Statement6

Research Objective7

Statement Contribution8

Literature Review9

Corporate Social Responsibility Seen as Mainstream9

Return on Investment10

Customer Loyalty10

Impact on Society11

Components of CSR12

Economic Responsibilities12

Legal Responsibilities13

Ethical Responsibilities13

Discretionary Responsibilities14

The Development of CSR Models14

Stakeholder Theory14

Pyramid of CSR16

Model of Sustainable Development17

CSR 2.017

A New Model: Consumer-Driven Corporate Responsibility (CDCR)18

Model and Hypothesis Development21

Corporate Social Responsibility and Competitiveness26

Market Place27

Environment, Health and Safety27

Responsible Sourcing28

Philanthropy and Community Involvement28

Business Need for Marketing CSR28

Methodology31

Data Analysis32

Limitations32

Conclusion33

References34

Appendix40

CHAPTER-1

Introduction

Schwartz et al. (2003) examined the definitions of corporate social responsibility, and concluded that it is a social contract between corporations and society, based on long-term social demands and expectations. Harrison et al. (1999) defined CSR image as the consumers' associations arising from corporate activities related to public affairs, literature and arts, social welfare, and so on. CSR is, therefore, differentiated from fulfillment of a firm's core profit-making responsibility and the social responsibilities of a government (Reinhardt 1999: 150).

Asmus (2005) proposed three general principles of corporate social responsibility: stakeholder driven, performance driven and motivation driven. These broader concepts can be reinterpreted as: a) consumer-behavior driven: treating all consumers equally, doing no harm to and being honest with stakeholders; b) corporate-strategy driven: establishment by an enterprise of a system that values a culture of ethics and support, internalizing the external demands into employee qualities; fulfilling missions within the enterprise, and acting as a societal model externally; c) public-policy driven: using resources authorized by societies efficiently, and creating additional value for societies (Asmus 2005: 23).

Corporate social responsibility (CSR) is a broad concept thus; there is a lack of consensuses on the definition of CSR. According to the definition of The European Commission, CSR is seen as “a concept whereby companies decide to contribute ...