BUSINESS AND SOCIAL RESPONSIBILITY – DISCOURSE
DOI:
https://doi.org/10.61841/cibg.v31i3.2896Keywords:
CSR, Strategic CSR, Sustainability, Stakeholders Theory, profit maximization, Compliance with the law, Round table declaration, Triple bottom lineAbstract
Corporate Social Responsibility (CSR) refers to a company's commitment to operating in a manner that benefits society and the environment. This involves activities such as making charitable donations, engaging with the community, providing fair treatment to employees, and protecting the environment. Companies have legal obligations related to CSR, and neglecting these can result in legal penalties for their leaders. Managers must consider the ethical implications of their decisions and actions. Past scandals, such as the Enron case, underscore the importance of effective management in preventing unethical conduct.
This study thoroughly examines Corporate Social Responsibility by analyzing diverse perspectives from 30 primary and secondary literary sources written by various scholars and practitioners. The goal is to develop an integrated and comprehensive framework that addresses five key questions currently debated among professionals in the field. This method aims to synthesize existing knowledge and clarify contentious CSR issues, thereby contributing to both academic discussions and practical applications.
The discussion about the link between corporate social responsibility (CSR) and financial performance continues. Supporters of CSR claim that ethical actions can enhance a company’s reputation, foster customer loyalty, attract talented employees, and increase profits, creating a positive cycle. On the other hand, critics argue that CSR may incur costs that could erode profit margins. Recent trends indicate that companies implementing CSR efforts often see better financial results, encouraging sustainable growth and offering a competitive edge. Ultimately, the impact of CSR on profitability varies by industry, depending on the specific initiatives and their alignment with organizational goals.
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