In modern society, although there is no general common sense of what constitutes of Corporate Society Responsibility (CSR) and how much of it requires to firms, it is quite necessary for managers to have a better understanding of CSR and carry it out. Similarity, stakeholders also need to know it well. In early research on CSR, it was referred that the firm paid more attention to social responsibility (SR) than CSR (Carroll ,1979). The reason can be that the firm’s dominance in the business has not been noted in that time. Thus, we can find notions of CSR in early age are broad, diverse than current situation. On the other hand, concepts of CSR in current situation are more normative, multi-level and narrow (Daniel, 2007). So we can conclude that the definition of CSR in modern society is the combination of economic effectiveness and social contribution. In fact, different corporations have different notion of CSR, no matter what size it was, so there was no absolute defamation about CSR. At the same time, transparency is quite important for a company which is quite significant for stakeholders as it opens up all its function of the organization for them. If the company focus more attention of transparency, the stakeholder engagement will also improve. Moreover, companies need to disclose the environment reporting to the public, moreover, the company should use the classical model and stakeholder model to explore the economic issue and stakeholder issue, at the same time, analysis challenges that the company may face.
Interpretation of CSR
Different companies have different interpretation of CSR. In other words, big companies and small companies have different understanding of CSR. Silberhorn and Warren (2007) present that CSR as a “comprehensive business strategy”. And firms paying more attention of how CSR interact with stakeholders, meanwhile, focus on how business activities affect the society. For stakeholders, the goal of the corporate is to obtain the maximisation profit for shareholders. So as long as the corporate expense of philanthropic responsibilities, it can attract large numbers of shareholders to invest in your business activities. Then shareholders can obtain the maximisation wealth. For example, corporations now paying more attention of transparency than before, they present their annual report to the public, while through those reports, shareholders will choose their favourite companies to invest. There is no doubt, it is good for both side. Furthermore, according to Dwyer (2003), corporates need to underpin the acceptance of social obligations. At the same time, Lindgreen and Swaen (2010) presents that corporations need to emphasize the role of CSR during their business and apply social morality to their businesses. Firstly, the companies need to responsibility for customers. When products or service were provided for customers by companies, firms should pay more attention on are those products and service met the customers’ needs and preference or not. And corporations need to obey the law. According to the definition from Silberhorn and Warren (2007), “quality of life” issue is becoming more and more important. So we can find that during the operation companies’ business through implementing CSR, companies can not only obtain maximizing wealth, but also underpin their social responsibility. In modern life, large numbers of companies’ have awareness of the importance of CSR and have already succeed in implementing it.
Transparency and disclosure
According to Remley (2008) that transparency is a good thing because consumers are the best judge of what's really true in a report. When consumers apply a credit card, creditors will give them a credit report to help them make a accurate credit decision on the basis of customer’s background. So we can find that transparency has a positive impact on economy and consumers. As the free flow of information can makes risk decisions more...
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