Our interconnected planet, increasing in population, dwindling in resources, faces stark challenges to become sustainable and strive for well-being for all human kind. Past paradigms for doing business, assumptions about economies, such as market being commanded by an invisible hand, and the belief of human acting rational have come into question. Capitalist philosophies that saw a correlation between global well-being and economic growth failed to account for the present environment and ideological crisis; watersheds that are becoming more and more strict by affecting a large number of people. impact assessment
Corporate Social Responsibility in its fundamental elements is nothing new; one could find predecessors in the 1st century BC when Cicero began advocating for controlling the greed of landlords of the Roman Empire. Hence, in its beginning CSR was mainly considered with the social dimension of doing business. Mainly in the 19th century an ethical dimension was added as people boycotted crops that were produced by slave labor, to induce a moral vision of entrepreneurship. Nowadays, CSR as a term depends on the context it is considered in, i.e. the entity it is subjected to and its culture as well as social scale. Though the term emerged within the Anglo-Saxon philosophy of capitalism, has mostly been associated with profit maximization, globalization has changed the field to become one of more international concern. Scope and expectation of companies place in society started to include debates about a firm’s duty to support development efforts in regards to human rights.
Increasing social ills, violations of human rights and conflicts that appear to have become ubiquitous. In an inter connected world, inevitable influenced businesses around the globe as those as well have become more influential than governments, in comparison. Yet it largely remains a voluntary effort and definitions are vague. However, debates usually centered on three different responsibilities that sometimes more, sometimes less, are assumed to be inevitable component for ethical and sustainable business behavior: first, a company shall be responsible in mitigating the negative impact that have had on environment and society; second, to be at least aware of the reciprocal relationship between own and stakeholders behavior or even be accountable for their wrongdoings; third, proactively contribute to the greater good and add value to overall society through business operations, products, services and ethical leadership. market research company in india
At first corporate social responsibility (CSR) could be understood as subsidizing business dollars for social causes. If we were to assume perfect market conditions this would provide a competitive advantages for the ones not investing in such initiatives, making CSR a much debated function. We may ask ourself if social commitment drives a firm’s profitability, or does profitability allow the firm to invest in Social initiatives. For quite a decades customer satisfaction survey has been harshly criticized to be just another school of capitalism, but a bad one.
There is one and only one social responsibility of business- to use its resources and engage in activities designed to increase its profits so long as it stays within the rule of the game, which is to say, engages in open and free competition without deception of fraud.