CORPORATE SOCIAL RESPONSIBILITY

Corporate Social Responsibility

Corporate Social Responsibility

Introduction

The motive behind the paper is to give the readers a broad idea about the Corporate Social Responsibility and its importance in the modern world. Therefore, to give a proper understanding of the concept, the author selected three different companies; however, the domain of all the three companies is the same. First company is the Avis, second is Europcar and the last one is Sixt. The similarity between all these three companies is that all of them are providing cars on rent. In the discussion phase, the author provided a brief introduction of all the companies and after that highlighted the significant work of all the companies regarding CSR and also the differences that actually differentiate these companies.

“Social responsibility [is the] responsibility of an organization for the impacts of its decisions and activities on society and the environment through transparent and ethical behavior that is consistent with sustainable development and the welfare of society; takes into account the expectations of stakeholders; is in compliance with applicable law and consistent with international norms of behavior; and is integrated throughout the organization.”—Working definition, ISO 26000 Working Group on Social Responsibility, Sydney, February 2007.

Milton Friedman argued their case in his 1970 New York Times Magazine article, “The Social Responsibility of Business Is to Increase Its Profits.” In Friedman's Libertarian point of view, a business, since it was not a person, had no responsibility other than to fulfill the purpose for which it was created, that is, to maximize the return on shareholder investment (Aras & Crowther, 2009, pp. 125-33). He said that executives and employees owed allegiance to the firms for which they worked and must keep the profit-maximization goal firmly in mind. He equated efforts to improve society through the conduct of business with “pure and unadulterated socialism.”

Although there are still those who hold Friedman's view, most business executives, including many who self-identify as Libertarians, now acknowledge that companies do indeed have a social responsibility.

CSR as a Business Strategy

Taken at face value, when a company establishes a CSR policy, it is simply making a social contract with its stakeholders, however they are defined. Typically, a CSR policy will restate the company's commitment to abide by accepted corporate governance practices, ethical standards, and the laws governing the places where it operates. It may include statements on community involvement, and investment and intentions regarding corporate philanthropy and employee volunteering. It may also establish the accountability, transparency, and reporting standards to which it will adhere. Frequently, a CSR policy will voice support for human rights and respect for diverse cultures and disadvantaged peoples.

Companies frequently have other motives for investing in a CSR policy. The action is often taken primarily in response to concerns of existing stakeholders. But even in the absence of these, businesses often see the move as a way to attract new investors or customers. If their business is the first in its industry or region to adopt and publicize their CSR policy, it can distinguish ...