How much do you know about CSR - Corporate Social Responsibility?

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

Drivers:

• Stakeholders Priorities

• Supply chain demand

• Competitive advantage

• The environment

• Globalization trend

• Government & regulations

Moral drivers:

• Help others find meaning

• Positive changes to society

• Personally rewarding

Business benefits:

• Enhanced customer loyalty

• Access to new markets

• Stronger reputation & corporate image

• Better recruitment, motivation, retention

• Increase innovation

• Gained efficiencies

• Thorough risk management

• Strategic partnership opportunities.

Reference

1. Corporate Social Responsibility (CSR) Implementation: A Review and a Research Agenda Towards an Integrative Framework, Tahniyath Fatima & Said Elbanna, n.a

2. Corporate Social Responsibility Research in the Journal of Management Studies: A Shift from a Business-Centric to a Society-Centric Focus, Christopher Wickert, 2021