Long Answer
15. Analysis how CSR can be implemented by different forms of political
ideology
Various definitions, forms, and theories related to Corporate Social Responsibilities
(CSR) are presented in this article. Nowadays most corporations follow different
methodologies to implement CSR approach.
But in most cases corporation follow CSR methodology that reflects only its
shareholders’ interest neglecting its community interest. Critical analysis and comparison for
the main CSR theories are presented also, followed by a conclusion about a comprehensive
form of CSR that targets both shareholders and community interest.
Three of the main CSR theories and models have been represented and analysed in
this article: The Carroll Theory, The Triple Bottom Line Theory, and The Stakeholder
Theories. Since any business corporation has to adopt one of these theories, this study
reveals the strength and challenges of every theory.
There is no doubt that every theory has been well analysed by its founder or scholar,
but an advanced understand for every theory will make it possible for a corporation’s
managers and decision makers to implement long term social and environmental strategies
with more accurate achievements.
This article is divided into four main sections, the first section presents Carroll’s model
for CSR, followed by the second which is about the Triple Bottom Line theory for CSR, and
the third represents the Stakeholder theory.
The fourth section analyses three CSR theories and sheds light on the core
responsibility of every theory. Comprehensive analysis for the three recognized CSR models
were represented in a table to help readers to locate and clarify systemic differences and
common features between the three theories.
The last section of the article reveals three main outcomes, the first outcome
represents a recommendation for the implementation process of adopting any of the three
theories, and which is divided into an internal and external level.
The second outcome reveals the importance of addressing a specialized committee for
CSR by a company, followed by the third outcome that discusses some of the implications of
this analysis for future CSR research and studies.
1. The first group is the instrumental theories group, in which a
corporation is seen as the only instrument for wealth creation, and
company’s social activity is to achieve its economic results.
2. The second group is the political theories group, where a
corporation is responsible to use its power in political life. Supporting
associations that aim to spread the culture of human rights, labour rights,
women’s rights and fight corruption in society lead to enhance the role
political theories and provides transparency for true values of CSR.
3. The third group is the integrative theories group, in which a
corporation is focused on satisfaction of social and ethical demands. Social
development consists from supporting charities and welfare institutions
such as orphanages, elderly centres, or funding youth and sports centres.
4. The fourth group is the ethical theories group, based on the ethical
responsibilities of corporations to society. Ethical responsibility entails corporate
commitment to respect the ethics of its society. For example, companies should
consider transparency and credibility with its stakeholders.
Short Note:
15. Corporate sustainability reporting frameworks
Sustainability reporting enables organizations to consider their impacts of wide range of
sustainability issues, enabling them to be more transparent about the risks and
opportunities they face.
Sustainability reporting can help organizations to measure, understand and
communicate their economic, environmental, and social and governance performance, and
then set goals, and manage change more effectively. A sustainability report is the key
platform for communicating sustainability performance and impacts – whether positive or
negative.
A sustainability report is a report published by a company or organization about the
economic, environmental and social impacts caused by its everyday activities. A
sustainability report also presents the organization's values and governance model, and
demonstrates the link between its strategy and its commitment to a sustainable global
economy.
The value of the sustainability reporting process is that it ensures organizations consider
their impacts on these sustainability issues, and enables them to be transparent about the
risks and opportunities they face. Stakeholders also play a crucial role in identifying these
risks and opportunities for organizations, particularly those that are non-financial. This
increased transparency leads to better decision making, which helps build and maintain
trust in businesses and government.
By
Devika Borhade (MBA Finance)
Urja Darde (MBA Finance)
