Corporate Social Responsibility

Table of Contents

Corporate Social Responsibility 1

Profit Maximization 1

CSR and Human Rights 2

Social Cost and Innovation 3

Defining proper measures 4

Innovation Measure 5

A new way to do business 5

Role of management 6

Conclusion 7

Reference 8

Corporate Social Responsibility

Corporate Social Responsibility (CSR) is based on the idea that enterprises have responsibility beyond that of creating economic value. To a bigger extent now than before are they expected to respond to challenges of non-financial nature? These challenges includes concepts such as: companies' impacts on the natural environment, health of employees, working environment and safety, corruption and business ethics, reduction of pollution, interaction with local communities and voluntary organizations, human rights, and socio-economic wealth creation(Tirole, J.,2008). Considering these non-financial issues are what in general referred to as taking social and environmental responsibilities?

Profit Maximization

The concept of CSR touches all the stakeholders of a company. An organization exists in order to make profits. The way the company makes profit, is the concern of CSR practitioners. Some view that the CSR practices are anti-capitalist since it questions the way in which profits are made (Tirole, J.,2008). The company which has a long term strategy has always considered the CSR practices as well as their social responsibilities. No CEO would deny the fact that the major goal of any company is to run a profitable business. However, a heightened awareness about the social and environmental challenges that the world today is facing has led to a demand that the activities of the business community must be accompanied by certain ethical standards. The concept of Corporate Social Responsibility (CSR) aims at putting these ethical standards into a system. There are various definitions of CSR that differ slightly from each other. The European approach to CSR...