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

Author:Thomas, Lara
 
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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.

CORPORATE SOCIAL RESPONSIBILITY

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 is becoming a mainstream practice (Junior, Best, & Cotter, 2013). Historically, businesses distributed annual reports to shareholders or board of directors. What occurs within corporate boardrooms has been a long-standing concern for consumers and corporations are now responding.

More businesses are providing consumer access to their annual and sustainability reports (Earnest and Young Global Limited, 2014). While this appears to be bridging communication gaps, it also appears to be cultivating companies to participate in corporate...

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