Outline and discuss the evolution of CSR Essay Example | Topics and Well Written Essays - 2500 words

Outline and discuss the evolution of CSR - Essay Example This paper explores the concept of Corporate Social Responsibility, tracing its evolution and how businesses implement it as well as how it affects them. II. Definitions of CSR Corporate Social Responsibility (CSR) may be perceived in a variety of ways depending on one’s perspective. One commonly accepted definition is as follows: â€Å"The continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of local community and society at large.† - World Business Council for Sustainable Development, 2005 Another definition created by the European Commission (2003) is: â€Å"Responsible business practices that support the three principles of sustainable development: economic growth and prosperity, social cohesion and equity and environmental integrity and protection.† (p.5) III. Principles of CSR The United Nations is the main promoter of CSR. On December 31, 1999, then Secretary General Kofi Annan declared its principles at the World Economic Forum in Davos (Madrakhimova, 2013): 1. Human Rights – Commercial organizations should maintain support and respect for internationally recognized human rights in the creation of their standards of work. The rights to bargain collectively of workers must be upheld. Forced labour and child labour should be eliminated along with any form of discrimination in the workplace. 2. Ecology – Corporations should be conscious of the prevention of environmental problems and diligent in carrying out a more responsible attitude towards the care of the environment. They need to promote technologies and know-how in the reduction of negative impacts of some systems on the environment. 3. Anti-corruption – Corruption in all forms which include extortion, bribery and red tape must be prevented. 4. Legal responsibility – Legal frameworks bound in the territories where the businesses st and must be enforced. 5. Global responsibility – Compliance with international standards of social responsibility 6. Environmental Responsibility – collaboration of businesses and society in the rational use of natural resources, effective management of the environment and public health from the production of environmentally-friendly products. 7. Cultural and ethical responsibility – Compliance with relevant territorial cultural and ethical customs and traditions as well as moral norms followed by employees and other stakeholders. 8. Philantropic responsibility – support and development of the society and of individual marginal groups through voluntary participation in social programs and social and financial investment. IV. Benefits of CSR In a study of Lithuanian development of CSR practices, Spukiene & Urbonien (2011) report the following internal benefits in adopting CSR practices have been recognized: business sustainability; competitive advantage; e asier compliance with legislation; employee loyalty; attraction and retention of qualified employees; increase in productivity, quality and sales; financial improvement and access to capital; and reduction of costs. External benefits from adopting CSR practices were acknowledged as well: improved image and reputation; preservation of the environment; intangible benefits; contribution to Lithuania?s sustainable development; increased visibility; promotion of solidarity in the community; clients? loyalty; and