Literature Review Csr

LITERATURE REVIEW

The issue of corporate social responsibility (CSR) has been debated since the 1950s. The term "corporate social responsibility" came into common use in the late 1960s. It is a process with the aim to embrace responsibility for the company's actions and encourage a positive impact through its activities on the environment, consumers, employees, communities, stakeholders and all other members of the public sphere who may also be considered as stakeholders. Bowen (1953), the original proponent of corporate social responsibility (CSR), defined it as “the obligations of businessmen to pursue those policies, to make those decisions, or to follow those lines of action which are desirable in terms of the objectives and values of society.” Later, Carroll (1979) redefined CSR as the integration of ethical, legal and philanthropy components into economic activities of business. The classical view of CSR was narrowly limited to philanthropy and then shifted to the emphasis on business-society relations particularly referring to the contribution that a corporation or firm provided for solving social problems. CSR is titled to aid an organization's mission as well as a guide to what the company stands for and will uphold to its consumers.

A more common approach to CSR is corporate philanthropy. This includes monetary donations and aid given to local and non-local nonprofit organizations and communities, including donations in areas such as the arts, education, housing, health, social welfare, and the environment, among others, but excluding political contributions and commercial sponsorship of events. Some organizations do not like a philanthropy-based approach as it might not help build on the skills of local populations, whereas community-based development generally leads to more sustainable development.

Increasingly, corporations are motivated to become more socially responsible because their most important stakeholders expect them to understand and address...