social responsibility.docx - Question Explain the merits...

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Question: Explain the merits and demerits of Corporate Social Responsibility (CSR) with examples. Answer Every organization has framed different definitions of Corporate Social Responsibility (CSR). Although they share a basic concept of CSR that, it is a voluntary process of an organization, which it carries out for the welfare of its employees, society, and environment as an obligation towards all three. In simpler terms, for using community’s resources to make revenues and profits out of them the company pays back to it by different means. Corporate Social Responsibility: There is vagueness and a lot of argument associated to what is owing of CSR in an organization (Horrigan, 2010). Through CSR, organizations create a constructive and affirmative image in the society (Baker, 2004). Emergence of CSR Year Emergence 1930 CSR first came into existence in the year 1930. It was after the Great Depression in 1929, when two professors of Harvard University, Prof. A.A. Berle, and Prof. C.G. Means realized that corporations must come forward and take the responsibility. They also claimed that such a condition would not have taken place if the corporations had acted responsibly. 1960s & 70s In account of changing the perspective of society towards business in regard to civil rights movement, consumerism, and environmentalism. Many instances related to CSR were put forth in the business world. Convention and guidelines of Organization for Economic Co-Operation and Development (OECD) were formulated in the year 1960 with the intention of advocating the policies that can ensure the economic growth, better employment, and improved living standards amongst in nations that are its members during maintaining the financial conditions. 1980s &90s International Union for Conversation of Nature (IUCN), in 1980 published the World Conversation Strategy. As per this, aim was to make more consistent world economy, enhancing world growth, world equalities and alleviate poverty and its impacts. While in 1992, a summit named the UN Earth Summit was convened in Rio De Janeiro, in which ‘triple bottom line’ model for business was formulated, with the basic idea of having sustainable development with the company’s competitive benefit.
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Since then many other important and noteworthy incidents have happened that played a significant role in establishing the concept with even more strength and convinced the business establishments to enforce it with conviction. Types of CSR Four Types of CSR based on its beneficiaries: 1. Environment-Based Corporate Social Responsibility (CSR) Through this, a company’s attention is on reducing the harmful effects caused on environment due to its various operations. The company invents such processes at their production level so that they can minimize the production of such by- products that are causing damage to the environment. It also takes preventive measures to avoid caused damage by burning fossil fuels to its environment by encouraging the use of non-renewable energy.
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  • Fall '18
  • PINTO
  • Corporate social responsibility, CSR activities

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