Abstract
Corporate social responsibility (CSR) has been extensively and inconclusively debated in the literature. In this essay, we examine the development of CSR by both reviewing the evolution of the conceptual framework and models of CSR and discussing social responsibility accounting and auditing. We conclude that both business and academic communities worldwide should pay closer attention to CSR and its components of economic, social, and environmental performance. Business organizations worldwide are just starting to recognize the importance of quality as it relates to CSR and the link between profitability and social behavior. Justifications for CSR are fulfilling moral obligations, maintaining a good reputation, ensuring sustainability and licensing to operate, and creating shared value for all corporate stakeholders.
Highlights
We examine the development of Corporate social responsibility (CSR) by both reviewing the evolution of the conceptual framework and models of CSR and discussing social responsibility accounting and auditing
Business organizations worldwide are just starting to recognize the importance of quality as it relates to CSR and the link between profitability and social behavior
Corporate social responsibility (CSR) is an integral component of corporate governance, when there is a conflict between the social goal of benefiting society and the corporate goal of maximizing profits
Summary
Corporate social responsibility (CSR) is an integral component of corporate governance, when there is a conflict between the social goal of benefiting society and the corporate goal of maximizing profits. The Organisation for Economic Co-operation and Development (OECD) defines the purpose of a CSR program as “to encourage the positive contributions that multinational enterprises can make to economics, environmental and social progress and to minimize the difficulties to which their various operations may give rise” (OECD, 2003) This definition focuses on two important aspects of a CSR program, namely the creation of social value through corporate activities (social value-added activities) and the avoidance of conflicts between corporate goals and societal goals (societal consensus). Global investors are currently demanding and regulators are mandating that business organizations disclose both financial and nonfinancial information about their economic, social, and environmental activities (Rezaee, 2015). This move toward the reporting of multiple key performance www.ccsenet.org/jsd. To effectively compete in global financial markets, corporations are paying more attention to CSR and sustainability
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have