Corporate Social Responsibility Obligations Research Articles

Do Industries and Corporations of this Generation Align with the Thoughts of Milton Friedman on Corporate Social Responsibility?

This research paper delves into the alignment of modern corporate social responsibility (CSR) practices with Milton Friedman's theory that a corporation's primary responsibility is profit maximization for its shareholders. It examines the pharmaceutical, banking, and food and beverage sectors to assess Friedman's theory's relevance in the current business environment. Contrary to Friedman's 20th-century view that dismissed broader CSR obligations, the 21st century has witnessed a shift towards recognizing corporate duties toward society, the environment, and a broader stakeholder group. The study scrutinizes how these sectors balance profit goals with social responsibility, including sustainable investing, responsible lending, sustainable sourcing, waste management, and nutritional transparency. Employing a mixed-method approach with data from corporate reports and sustainability indices, preliminary findings indicate a spectrum of adherence to Friedman’s profit- centric model versus a comprehensive CSR approach. Results show that while profitability remains central, many corporations have integrated CSR into their business models to varying degrees, influenced by a complex mix of factors. This nuanced exploration provides insights into the evolving nature of CSR, offering a critical perspective on Friedman's relevance today and the degree to which corporations have embraced broader social responsibilities. It lays the groundwork for future research on the interplay between corporate profitability, shareholder value, and social responsibility, contributing valuable information for stakeholders, policymakers, and researchers interested in corporate ethics and sustainability.

Implementation of Corporate Social Responsibility from Multinational Company in Indonesia Based on Perspective of Human Rights

Purpose: The purpose of this research is to identify the obstacles to implementing corporate social responsibility (CSR) based on a human rights perspective, particularly for multinational companies in Indonesia. Theoretical Framework: At its narrowest, it refers to a framework for measuring and reporting company performance against economic, social, and environmental parameters. Method: The research methodology involves a comprehensive analysis of relevant literature and Indonesian regulations pertaining to CSR and human rights. The analysis of Indonesian regulations focuses on understanding the legal framework and its strengths, weaknesses, gaps in relation to CSR and human rights. Results and conclusion: The research recommends addressing these obstacles, such as learning from successful practices in other countries, unifying regulations, socializing new regulations, and establishing a penal and penal system to promote compliance. By setting out these recommendations, the study suggests that Indonesia can strengthen the scope of its CSR, promote responsible business activities and ensure compliance with CSR obligations. Research implications: The findings of this research have implications for policymakers, businesses, and other stakeholders in understanding the challenges and potential solutions for improving CSR implementation in Indonesia. The research highlights the importance of considering human rights principles in CSR practices and emphasizes the need for effective regulations and enforcement mechanisms. Originality/value: This research contributes to the existing literature by focusing on the intersection of CSR and human rights in the Indonesian context. By identifying obstacles and providing recommendations, the research offers insights that can help enhance CSR practices and protect human rights in the country.

Corporate human rights obligations of investors in recent investment agreements: The progressive hardening process of CSR clauses

Since the earlier indirect Corporate Social Responsibility (CSR) provisions failed to hold investors responsible for human rights abuses, the recent hardening process of direct CSR clauses has resulted in incorporating CSR clauses under sections or chapters entitled “investors obligations” and tying CSR obligations to binding human rights and environmental prohibitions, as well as to human rights obligations established by the host state's legislation. This paper provides a non-exhaustive analysis of recent developments in treaty practice based on research primarily sourced from investment agreements concluded between 2012 and 2021, doctrinal input, and normative analysis. As shown in this paper the hardening process has not yet been completed, and reformations are necessary. Specifically, new investment agreements should enshrine investor human rights obligations as legally binding obligations, consider violations of these CSR obligations as part of investment disputes and provide direct remedies to victims. This study contributes to the literature on the international responsibility of TNCs with regard to human rights by examining the process of hardening up the CSR obligations within investment agreements as an approach that could lead to effective human rights protection.

Recent Trends in Investment Arbitration on the Right to Regulate, Environment, Health and Corporate Social Responsibility: Too Much or Too Little?

Abstract The article addresses the recent trends in investment arbitration, focusing on the evolution of international investment agreements from the perspective of the right of the States to regulate in public interest, as well as of the provisions concerning environment, health, and corporate social responsibility. These issues have been chosen because they highlight areas where the tension between sovereign and private interests is evident, as well as where States often face resistance in implementing public policy. Furthermore, the discussion is opportune as the mandate entrusted to the UNCITRAL Working Group III concerned with investor-State dispute settlement reform is limited to procedural aspects of such reform, leaving to the discretion of the States, as treaty-makers, the regulation of the substantive issues concerning foreign investments. The analysis of the international investment agreements concluded between January 2018 and December 2020 demonstrates that treaty language is constantly evolving to protect and expand the scope of States’ regulatory autonomy. The article concludes that investor-State dispute settlement remains the framework in which environmental, human rights and corporate social responsibility obligations can be smoothly integrated within the international investment law, allowing both States and investors to take advantage of and be held accountable for their respective obligations.

Principles Of Corporate Social Responsibility in A Moral and Legal Perspective: the Effect of Equity

This article discusses about the principles of Corporate Social Responsibility (CSR) from a moral and legal perspective. The principles of CSR are stated in Article 74 paragraph (2) of Law Number 40 of 2009 concerning Limited Liability Companies, CSR must be implemented by companies in Indonesia with the aim of building harmonious, balanced and appropriate relationships with the environment, values, norms and culture of the local community (wisdom and wisdom). local). The discussion in this article is to analyze the nature of the implementation of the CSR concept in Indonesia and why CSR is a moral and legal obligation for companies in Indonesia. The approach method used is normative juridical. Normative juridical research is research on positive legal principles and legal principles which is carried out by evaluating relevant legal rules (laws and regulations) covering all norms, values ​​and principles related to the nature of the implementation of the CSR concept in Indonesia. The results of the analysis are the essence of the realization of CSR in development by the company based on the changing needs and expectations of society, limited natural resources, better social environment, balance of responsibility and power, business has useful resources, long term benefits . CSR obligations are based on statutory orders that aim to provide justice and prosperity for the community. Social responsibility is in the moral realm, so its position is not the same as the law. Moral in social responsibility is more directed at outward actions that are based entirely on an inner attitude, this attitude is known as "morality" namely attitudes and good deeds that are truly selfless. Meanwhile, legal responsibility emphasizes the conformity of the outward attitude with the rules, even though the action is objectively not wrong, perhaps good and in accordance with the moral, legal, and cultural values ​​of the community. However, suitability alone cannot be used as a basis for drawing conclusions because they do not know the underlying motivation or intent. Keywords: CSR Principles, Morals, Law DOI : 10.7176/JLPG/121-09 Publication date :June 30th 2022

The Dilemma of Corporate Social Responsibility (CSR); Case Study of PT. Inco

Since the CSR discourse has been widely discussed, the debate about the concept of CSR as an expression of moral responsibility and sensitivity to the social and environmental world has received resistance from some circles. The reason is that some people are trying to avoid CSR obligations. This paper talks about how the discourse and thinking about CSR struggles. Is CSR a voluntary activity for the company or is it an obligation (mandatory)? Then the authors describe the Indonesian context of CSR. And before the conclusion, the author tries to describe a case example of a CSR program run by a company in Indonesia and tries to analyze it from a human security perspective. As a result, from a human security perspective, the concept of CSR in Indonesia is still a problem. The cause, scholars are still trapped in efforts to formulate a detailed definition of CSR. As a result, practically the CSR program has not been seen as a humanitarian program. And it is still limited to a technical matter of fulfilling the company's procedural obligations.

The Dilemma of Corporate Social Responsibility (CSR); Case Study of PT. Inco

Since the CSR discourse has been widely discussed, the debate about the concept of CSR as an expression of moral responsibility and sensitivity to the social and environmental world has received resistance from some circles. The reason is that some people are trying to avoid CSR obligations. This paper talks about how the discourse and thinking about CSR struggles. Is CSR a voluntary activity for the company or is it an obligation (mandatory)? Then the authors describe the Indonesian context of CSR. And before the conclusion, the author tries to describe a case example of a CSR program run by a company in Indonesia and tries to analyze it from a human security perspective. As a result, from a human security perspective, the concept of CSR in Indonesia is still a problem. The cause, scholars are still trapped in efforts to formulate a detailed definition of CSR. As a result, practically the CSR program has not been seen as a humanitarian program. And it is still limited to a technical matter of fulfilling the company's procedural obligations.

Corporation's Criminal Liability in Indonesia: A Response to the Weak Enforcement of Corporate Social Responsibility

Corporate Social Responsibility (CSR) is a corporate commitment to contribute to sustainable economic development by focusing on the balance between attention to economic, social, and environmental aspects. This paper argues that corporations are subject to criminal law, which can be subject to criminal liability if they do not carry out CSR obligations. This study aims to find out the linkage of sanctions arrangements and the urgency of regulations on criminal liability if the corporation does not carry out CSR obligations. In practice, CSR is only based on corporate awareness and commitment. In the meantime, CSR enforcement's most basic weakness is the absence of strict sanctions for corporations that deny CSR, especially in terms of criminal sanctions. Instead, the sanction is limited to administrative as set out in Act No. 25/2007 on Investment, with a lack of legislation governing criminal sanctions against CSR prevention. In so doing, there is a need to introduce sanctions against corporations that deny CSR, by taking into account adverse impacts to the environment and community.
 KEYWORDS: Corporate Social Responsibility, Criminal Liability, Corporations.

‘Social Responsibility’ in the Governance of Chinese State-Owned Enterprises

This paper sheds new light on the mechanisms used to monitor Chinese MCNs compliance with their corporate social responsibility (CSR) obligations. China’s state-owned MNCs play a pivotal role in the implementation of the Belt and Road Initiative, and continue to account for roughly 30 cent of domestic GDP. SOEs’ position within China’s governance system, and the ideological features of China’s governance model make CSR obligations a binding duty of state-owned MNCs, and of their domestic and foreign subsidiaries. In Western legal systems, CSR and its more recent evolution of business and human rights are understood as a form of regulation public and private enterprises may adopt on an entirely voluntary basis, and integrate within their business model. China’s case is obviously different. The first part of this paper places the notion of CSR (gongsi shehui zeren) against the backdrop of non-state based compliance and monitoring mechanisms specific to state-owned MNCs. Next, the paper describes the major CSR norms and mechanisms grounded within the system of regulations of the Chinese Communist Party. In its concluding section, the paper presents some reflections on the main features of CSR in China and their relevance to the Belt and Road Initiative.

PENERAPAN CORPORATE SOCIAL RESPONSIBILITY PERUSAHAAN DITINJAU DARI TEORI KESEJAHTERAAN SOSIAL DAN UNDANG-UNDANG NOMOR 40 TAHUN 2007 TENTANG PERSEROAN TERBATAS

Corporate Social Responsibility is the commitment and effort of a business entity to play a role in the implementation of social welfare. As one of the company's obligations, CSR can certainly help local governments to alleviate poverty problems in an area where a company is founded. The problem is that the Company's Corporate Social Responsibility obligations in terms of Social Welfare Theory and Law Number 40 of 2007 concerning Companies and the Implementation of Corporate Social Responsibility in the Company are linked to Social Welfare theory. The research method used by the author is by using a normative juridical approach where the main data used is secondary data, namely reference books, laws and regulations, articles, papers, etc. The results of this study are that in terms of corporate responsibility it cannot be fully carried out due to the regulations related to the implementation of the CSR program there are still legal voids and the sanctions imposed are unclear, so this affects the implementation of CSR (Corporate Social Responsibility) companies that are appropriate with what is regulated in Law Number 40 of 2007 concerning Limited Liability Companies but in terms of its implementation, it cannot be said that it has not been maximal for all companies in Karawang Regency in implementing the Corporate Social Responsibility program.Keywords: Corporate Social Responsibility; Company; Social Welfare.

Towards Strategic Corporate Social Responsibility Approach in International Projects—Review of South-South Cooperation: A Case Study of Chinese Projects in Angola

This paper offers a modified theoretical approach towards corporate social responsibility (CSR), adjusted to the specifics of South-South cooperation (SSC). Developing economies are becoming important actors and the number of their companies willing to implement projects in other developing nations is rising. This entrance of developing countries into international projects poses a question whether their companies adhere to basic CSR obligations and their CSR approaches are strategically oriented or if they present an umbrella, covering up their activities. Though the issue of CSR in SSC projects attracts attention, the number of studies on this topic is limited. This paper presents an attempt to work out a theoretical basis to a CSR approach in SSC projects by adjusting a widely accepted CSR model of Carroll (1979, 1991) to the specific conditions of developing economies. For the purpose of this paper, the authors analyzed CSR activities of Chinese companies in Angola. The results lead to the conclusion that governments of countries, participating in SSC projects need a more active approach towards making basic CSR responsibilities (economic, ethical, legal) legally binding. This will allow such international projects to be more beneficial not only for directly interested parties (companies, governments), but also for the local community.

A comparative literature review survey of employee HIV and AIDS-related corporate social responsibility (CSR) practices in small, micro and medium enterprises (SMMEs) in Zimbabwe and South Africa

This article reviews employee HIV and AIDS-related corporate social responsibility (CSR) practices by small business in Zimbabwe and South Africa. The article aims to present a comparative snapshot of how SMMEs are responding to the epidemic as a basis for developing a CSR framework that could be implemented by SMMEs in both countries. The article applies an exploratory literature review methodology to extract data from secondary sources. Research findings show that HIV and AIDS-related CSR in Zimbabwe appear disengaged from the direct influence of corporate business, the opposite of what South African SMMEs experience. In South Africa, SMME CSR practices experience pressure from large firms. However, differences in economic status between the two countries show no effect on the CSR behaviors of SMMEs in both countries when compared with each other. In both countries, findings reveal that SMMEs hardly establish HIV and AIDS policies and therefore rely on informal CSR practices to assist employees to deal with the pandemic in the workplace. Thus, the article submits that while HIV and AIDS practices are not formalized in both countries, SMMEs fulfil their epidemic-related CSR obligations towards employees’ corresponding with their smallness. In conclusion, the study recommends an empirical examination of the research question to establish a grounded recommendation for the development of a SMMEs CSR framework that could be implemented by SMMEs in both countries.

The Influence of CSRSCPAs and the Quality of Financial Statements

This study examines the corporate social responsibility (CSR) performance of listed companies in Taiwan by looking at how companies meet their CSR obligations and by exploring how employing supply-chain certified public accountants (CSRSCPAs) affects the quality of their earnings. However, despite the benefits stemming from enhanced information corroboration and expertise spillover, CSRSCPAs face the challenge of potential information collusion. Hence, this study looks at supply-chain CPAs in the context of the company’s CSR performance to find out the impact of the company’s financial statements. It finds that the CSRSCPA has a negative effect on discretionary accruals.The inclusion of different supply chain streams reveal that upstream CSRSCPA are more likely than mid-stream and downstream CSRSCPAs to receive favorable reactions from market participants. This response is an indication that market participants are impressed by the specific expertise and knowledge of these professionals.

Corporate Social Responsibility and "Contemporary Community Expectations"

This article examines recent developments in company law surrounding corporate social responsibility (CSR). The focus is on the recognition of stakeholder interests and the role of contemporary community expectations in director decision making. The author provides judicial evidence regarding the recognition of the legitimate interests of shareholders and other stakeholders in company decision making, but acknowledges that the case law does not establish these interests as “rights”. There is discussion of the role of a company as a “good corporate citizen” and contemporary community expectations concerning responsible corporate behaviour and sustainable growth that does not harm the environment or society. The author subsequently argues that contemporary community expectations form a policy basis for judges to interpret the law to reflect CSR. The unique legislative approaches to CSR adopted in the United Kingdom, Canada, India and the European Union are analysed, with consideration of the legislative elements that serve to promote CSR, and those that merely allow corporations to carry on with profit maximisation in a “business as usual” manner. The article concludes that CSR obligations should be reviewed in Australia, with a view to potential law reform in this area considering recent international developments.

The Relationship between Supply Chain CPAs, CSR and Discretionary Accruals

<p>This research explores the corporate social responsibility (CSR) performance of listed companies in Taiwan by looking at how companies meet their CSR obligations and by exploring how employing supply chain certified public accountants (CSRSCPAs) affects the quality of their earnings. However, despite the benefits stemming from enhanced information corroboration and expertise spillover, CSRSCPAs face the challenge of potential information collusion. It finds that the CSRSCPA has a negative effect on discretionary accruals. Hence, this study looks at supply chain CPAs in the context of the company’s CSR performance to find out the impact of the company’s financial statements. In addition, the results of this study indicate that both a positive earnings quality and a positive public response ensue when the Big 4 audit firms audit CSR companies. Our results show that market participants highly value Big 4 supply chain CPAs with industry experience and that these impressions extend to their evaluation of clients. The inclusion of different supply chain streams reveal that upstream CSRSCPA are more likely than middlestream and downstream CSRSCPA to receive favorable reactions from market participants. This is an indication that market participants are impressed by the specific expertise and knowledge of these professionals.</p>

The specific social responsibility of big television companies and risk conten

This paper analyses the strategy of private nationally broadcasted television companies that use Corporate Social Responsibility (CSR) compliance reports to gain reputation exhibiting them as socially responsible. The reports released regarding to sustainability initiatives delivered by television companies are confusing as the concept of CSR is not adapted to the specific social purpose of broadcast programming. Under the recent General Law on Audiovisual Communication (LGCA by its initials in Spanish) the authors propose to distinguish between common CSR obligations, such as environmental responsibilities and specific responsibilities of CSR, concerned for their own company. To measure them it is essential to analyze the risk contents of TV programs. The research project developed a protocol of risk content categories. The main TV content rules, legal texts, style guides, self-regulatory codes, broadcasting authorities studies and association viewers studies have been inquired and reviewed to develop this protocol. The ten RC categories obtained by this procedure used in a more comprehensive survey conducted three years ago are now applied in a new project on a 2014 selection of programs to analyze if the TV content continues having a disregard of the television networks and determine whether there have been any significant changes in programming.

Tyco International Ltd. Case Study: The Implications of Unethical Behavior

The following analysis of the Tyco International Ltd. (Tyco) case will discuss an historical summary of Tyco, including a backdrop on its former CEO, Dennis Kozlowski and Tyco’s culture at the time. The case will also define the role of ethical leadership’s contribution to the organizational success and the unethical and illegal conduct of Tyco’s leaders including the costs to its internal and external stakeholders, such as gross misappropriation of company funds on personal expenditures and duplicitous stock sales. Additionally, the case study will describe the importance of corporate social responsibility (CSR) to the organization, specifically, how Tyco failed to meet its CSR obligations. It also depicts the consequences to stakeholders with regard to cultural, environmental, and legal implications of CSR failures. Further, an examination is made of the outcome and punishment of events including the fairness of those punishments. Finally, the study will propose recommendations for ethical behavior with regard to corporate actions and organizational sustainability.

Promoting Local Acceptability of International Oil Companies (IOCS) Through Corporate Social Responsibility (CSR): The Case of Tullow Oil in Ghana

Ghana discovered oil in commercial quantities in 2007 following intense exploration works by Tullow Oil Plc and Kosmos Energy. Ghanaians are expecting more benefits from government and the International Oil Companies (IOCs) in particular. This study is aimed at assessing the global integration and local responsiveness strategies of IOCs in Ghana and how that impacts on the acceptability of the operations of these IOCs by locals presenting Tullow as a case study. Main research questions refer to how these local expectations can be properly managed, how IOCs can design and properly implement their CSR obligations and the extent to which the pursuit of CSR activities by IOCs can help promote their local acceptability in Ghana. An empirical study with a qualitative analysis approach was applied to obtain primary information from Tullow Oil Plc, government agencies, Civil Society Organisations (CSOs), and local communities. The study established a positive relationship between good CSR practice and local acceptability. Even though some of the local people acknowledged the benefits of Tullow‟s CSR activities, others do not, but express a continuous desire for IOCs and Tullow in particular to do more.

A case study of supplier selection in developing economies: a perspective on institutional theory and corporate social responsibility

PurposeThe purpose of this paper is to present the findings of supplier selection activities in a service sector organisation in Nigeria. It aims to examine the role of normative forces within the context of Institutional Theory.Design/methodology/approachA single case study approach was used. Action research utilising participant observation was used in data collection. Descriptive and inferential statistical analysis was carried out using SPSS.FindingsCriteria relating to corporate social responsibility (CSR) proved to be a significant weakness for Nigerian suppliers, as most of the bidding organisations were unable to show evidence of, for example, payment of taxes and insurance for their employees. However, suppliers of services, in general, performed better than suppliers of products.Practical implicationsSuppliers of products and services in Nigeria need to improve their performance with respect to CSR in particular. As most of these organisations are small businesses, they had previously tended to avoid the costs related to CSR implementation. Furthermore, large customer organisations can utilise their buying power and influence to encourage their suppliers to change their corporate strategies and practices.Originality/valueThe selection of suppliers within the study context has previously not been examined. There has been little understanding of the capabilities of suppliers of minor products and services, particularly in relation to fulfilling CSR obligations.

Is Islamic Banking Capable of Meeting Corporate Social Responsibility?

This paper provides an overview of the Islamic banking system and its product ranges, and examines their ability to meet Corporate Social Responsibility obligations while maintaining efficiency and managing risk. The growing literature on Islamic banking products, including their derivatives indicates that Islamic banking is popular worldwide and has global attention. Similarly, the diversity of banking options is growing in Middle Eastern countries with some banks offering separate windows for conventional and Islamic banking options to customers. Due to the unique nature of Islamic banking, which is constrained not only by the standard operating regulations of the respective countries, but also by Islamic law, the Sharī’ah, there are significant differences in the philosophy behind its finance transactions, the nature of transactions, goals and the obligations between the two types of institutions. Whether these differences lead to changes in risk preferences, lending decision-making processes, and the ultimate efficiency of operations are some of the key empirical questions yet to be fully answered. The paper introduces a theory based on classical utility theory, and then extends it to show its relevance to Islamic banking. In particular this paper shows that Islamic banking may not only improve operating performance, but also increase profitability for all parties concerned.