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Abstract There have long been conflicting expectations of the nature of companies' responsibilities to society. However, for those businesses that do undertake what might be termed "corporate social responsibility", what is actually socially responsible behaviour as opposed to management of corporate image management or other activity aimed predominantly at business benefits? This article reviews definitions of corporate social responsibility from both practice and the literature and looks at theories to explain why such behaviour takes place. The literature has strong divides between normative or ethical actions and instrumental activities. The article concludes by posing the question of when instrumental activities become business activities rather than largely social responsibility.
Keywords Corporate strategy, Social responsibility, Stakeholders, Social accounting
There is an increasing focus by firms on examining their social responsibilities. For example, Business in the Community published Winning with Integrity in November 2000. This has as part of its objectives "to produce materials and resources on how companies should measure and report their impact on society" (Business Impact, 2000). It lists 20 such initiatives in various areas of furthering corporate social responsibility, not including its own report. Similarly, the World Business Council for Sustainable Development (WBCSD, 1999) seeks to develop a clear understanding of corporate social responsibility, including a matrix of corporate social responsibility indicators.
But what is meant by corporate social responsibility (CSR)? Responsibility for what and to whom and who is calling for firms to be socially responsible? This article examines the broad development of the ideas behind CSR within the literature and some of the current attempts to define the social responsibilities of business. It starts by examining the debate about the nature of corporate social responsibility and current attempts to define CSR. It then looks at some theories to explain how and why business might undertake CSR stakeholder theory, social contracts theory and legitimacy theory. The article concludes by describing ways of assessing corporate social performance - from industry and also from the academic literature.
The need for companies to undertake activity that might be regarded as socially responsible has been discussed in the literature and has been a topic of academic study for decades (Heald, 1957, cited in Ullmann, 1985). Cannon (1992) discusses the development of corporate social responsibility via the...