Corporate Social Responsibility: A Socio-Economic Theory, Framework, and Model

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EXECUTIVE SUMMARY

Corporate social responsibility is a growing trend amongst national and transnational corporations. The approach of corporate social responsibility is independent, with self-guiding methodology, and reporting. Those who operate ethical companies reap economic benefits (Fifka, 2011). This paper proposes a new theory and model that fosters corporate societal and environmental responsibility, transparent business practices, and accountability that leads to gaining the competitive advantage.

Keywords: Corporate Social Responsibility, CSR, Ethical Business Practices, Transparent Communication, CSR Theories

PURPOSE

The purpose of this paper is to analyze the competitive advancement opportunities corporate social responsibility offers. The study examined current prevalent theories, the meaning of corporate social responsibility, and the framework corporations incorporate in their business model. I will attempt to refine the meaning of corporate social responsibility for communities, corporations, and consumers by identifying an alternative theory, framework, and model that improves social good and increases corporate revenue. I propose a variety of insights that assist consumers, professionals, policy makers, and educators with understanding the challenges and successes related to corporate social responsibility.

INTRODUCTION

Global communities value corporate social responsibility. Corporate social responsibility (CSR) is defined as a company's sense of responsibility towards the community and environment (both ecological and social) in which it operates (Business Dictionary, 2016). CSR is greatly impacted by the ethics and values of the corporate culture and its relative community. Corporations that rollout CSR initiatives which are built using human ethics as a foundation, provide sustainable solutions to sound business practices which may result in higher revenue and risk management loss reduction. Successful companies governed by professionals with ethically rooted principles raise the standard of CSR and business policies (Kolk & van Tudler, 2010).

While corporations have personhood status, members of the senior management team, shareholders, or board of directors govern the firm. Identifying who are best equipped, corporate personhoods or corporate members, to uphold ethical business decision-making, CSR, and accountability could align the corporate environment with its value statements. Competitiveness is key to success and CSR is proving to be a valuable component in the overall strategic plan.

Consumer Access to Corporate Reports

Many senior management professionals are creating integrated reports consisting of an annual and sustainability, another term used for social responsibility, report. Sustainability reporting is relatively new but...