Corporate Social Responsibility

Corporate Social Responsibility

Introduction / Background

Different pressures such as political, legal, economic, and environment and various benchmarking in the local, national. And international cause enhances competition intensity. These parameters, in turn, create a crucial atmosphere and conditions in the modern commercial era. Therefore, companies and their managers must play an active role in the welfare of society so that gain an acceptable image in order to achieve high performance. As well as these conditions not only implement by public sector but application also by private sector.

Today's corporate social responsibility (CSR) has become a new tool for organizations and their managers in the modern commercial era. The concept of CSR is based on the mutual dependence between a corporate and society as well as the indicators that affect this relationship. There are some interactions plays in this relationship: corporate and stakeholders, corporate and governments, corporate and environment, corporate and ethical, and corporate and sustainable competitive advantage (Bowen 2003; Stanwick and Stanwick 1998; Maignan and Ralston 2002; Aguilera, Rupp et al. 2004, p76).

The SCR consisting of four kinds of responsibilities: economic, legal, ethical, and philanthropy (Carroll 1999). Full disclosure, equal positions for employees, philanthropy, environmental actions, and quality of products and services are variables to measure four types of SCR (Maignan, Ferrell et al. 1999; Aras, Aybars et al. 2010, p229).

Four kinds of responsibilities through SCR's aspects create value for both internal (organization or corporate) environment and external environment including society or country. Corporate social responsibility is a broader mechanism and new approach for enhancing accountability about society and country by top management. As well as help corporate and their managers so that use from various opportunities and reducing costs. Therefore, CSR is a modern approach whereby organizations shift excellence corporate citizenship (Normann and Ramirez 2003, p65).

Organizational performance divide into two subcategories including financial performance variables such as stock price change, price per share change, ROI, ROE, and ROA (Hackston and Milne 1996). Non-financial variables including reputation, attract more talented, committed employees, customer satisfaction, capital market response, shareholder quietly, joint venture, and new acquisitions (Maignan, Ferrell et al. 1999; McWilliams, Siegel et al. 2006, p603).Using from some of organization dimensions such as size, culture, environment, and technology as control variables can be effected in this project (Daft and Lewin 2003, p45).

Therefore, the CSR is important and elemental to the sustainable operations of companies; on the other hand organizational performance (OP) is doubtless basically to the ongoing operation for any company. This paper aims to investigate the claims that CSR and OP are linked and can test or measure it.

A key message of this study present a new framework to mangers is that how SCR cause improvement OP. consequently mangers learn that use from SCR as new tool to improve excellent image in the their organizations and society. As well as design new opportunities to enhance their corporate to create value for stakeholders and transfer threats to opportunities according to obtained positive image and reputation.

Research objectives

The general objective of this paper is ...