Sustainable Business: Corporate Social Responsibility Approach

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Category: Business and Industry

Date Submitted: 06/22/2013 04:17 PM

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Sustainable Business: Grounds and Consequences of Taking Over the Corporate Social Responsibility Approach.

The success of business in the twenty-first century goes far beyond a solid strategy that guarantees profitability. The adverse effects of climate change on environment require participation of corporations for effective mitigation. Climate change can be seen as a new strategic reality to confront. Numerous businesses have arrived to the conclusion that their purpose is higher than simply profit. Firms which aim to succeed are the ones that implement sustainable business practices into their operations, systems and organizational processes in the form of corporate social responsibility. In this research essay I am going to explore what is the corporate social responsibility, what drives companies to adopt it, and what possible consequences can they face.

The Essence of Corporate Social Responsibility.

In current economic and social circumstances businesses can no longer operate as isolated economic entities. This phenomenon is explained by the idea of Corporate Social Responsibility (CSR) whereby companies are accountable for their actions and consequences of those actions,to its shareholders, stakeholders, investors and other people involved in business, and directly or indirectly influenced by it. Generally, social responsibility is the willingness of companies to implement both environmental and social considerations into decision-making processes, and to be responsible for the possible implications of their actions. The most broad definition of corporate social responsibility which can be found in academic literature is offered by Freeman and Hasnaoui:

CSR includes voluntariness, broad range of stakeholders, economic, legal, ethical, philanthropic, address and correct social problems, adapt to needs of society, optimize the economic well being of organizations, optimize the economic wellbeing of stockholders, optimize the economic wellbeing of...