How much do you know about CSR - Corporate Social Responsibility?
Updated: Sep 25, 2022
The birth of CSR
An American economist Howard Bowen - “the father of CSR,” introduced the CSR concept for the first time in 1953 in his book “Social responsibilities of the Businessman”.
However, the link of CSR could be traced back to the first Industrial Revolution era 1800s. At this time, the concerns about working conditions and the well-being of workers were raised, but it was viewed as the act of business doing humanitarian work.
This wave was getting bigger and stronger after World War II spread the idea of companies being socially responsible beyond maximizing profit only.
The 1970s in the United States saw a significant boost in CSR theory as, for the first time, the concept of “Social contract” between businesses and society was known by the Committee for Economic Development.
The concept continued to make its way through the 1980s. Finally, in 1991 it became well-known thanks to Archie B Carroll's famous “The Pyramid of Corporate Social Responsibility” which describes the responsibilities every business should carry on. Since then, CSR has become an essential strategy for doing business.
Came to the 21st century, CSR has adopted a new approach - sustainability, especially staying close to the UN 2030 Sustainable Development Goals.
CSR is primarily spun on the social responsibility of companies. Since time changed, CSR has evolved as a crucial management concept to integrate social and environmental factors into business strategy, shaping how businesses operate and interact with stakeholders. CSR nowadays is built on the balance of the Triple - Bottom Line Approach.
The Drivers and Benefits of practicing CSR
Supply chain demand
Government & regulations
Help others find meaning
Positive changes to society
Enhanced customer loyalty
Access to new markets
Stronger reputation & corporate image
Better recruitment, motivation, retention
Thorough risk management
Strategic partnership opportunities.
Corporate Social Responsibility (CSR) Implementation: A Review and a Research Agenda Towards an Integrative Framework, Tahniyath Fatima & Said Elbanna, n.a
Corporate Social Responsibility Research in the Journal of Management Studies: A Shift from a Business-Centric to a Society-Centric Focus, Christopher Wickert, 2021