Corporate social responsibility (CSR) is defined as the social responsibility of an organization towards the community in which it operates. It refers to the social accountability of a firm, which is reflected in its overall operational activities. CSR is based on the principle of “giving back to the society” which has played a significant role in supporting the growth and sustenance of the company.
In order to successfully operate in a market, an organization the social and natural resources. A firm cannot operate without its customers and its employees, and it also cannot sustain without steady supply of resources from the environment. Therefore, according to CSR principle, the organization should also take care of the society and the environment, just like they are supporting the business venture. In this article, the most commonly used theories of CSR and its applications have been discussed, to help you with your assignment papers.
Triple Bottom Line Theory:
The triple bottom line theory is the most popular CSR theories, that you can apply in your assignments. As highlighted by an expert paper writer, the triple bottom line framework identifies three key areas responsibility that an organization must pay equal attention to. These three areas are people, profit and planet. The people aspect refers to the social responsibilities of an organization, where it is expected to take care of the people in the society, including its employees and other stakeholders like suppliers and distributors. Organizations often invest in social welfare causes and projects which aim at uplifting the society. It can also include paying close attention to the wellbeing of the employees and their workplace safety. Thus, the people aspect of the triple bottom line model encompasses the social elements of the corporate responsibility.
Secondly, the profit aspect refers to meeting the financial goals and maximizing shareholder’s returns. This covers the financial aspect of the organizational responsibly, where the company adopts innovative marketing strategies to generate higher profits, which is essential for the growth and sustenance of the firm. It should be noted that the financial responsibility of a firm is to achieve economic stability and fulfil its responsibilities towards the shareholders and investors. Therefore, the firm needs to take decisions which is best suited for the long-term growth.
Finally, the planet aspect refers to the environmental responsibility of the organization. A firm is largely dependent on the natural resources procured from the environment. Moreover, its presence and operational activities can also have a significant impact on the environment, thus making it the responsibility of the organization to take care of the environment. The environmental responsibilities allow a firm to design its operational activities in such a manner so that it can have minimum possible impact on the environment.
Organizations are often more focused on the financial aspect, while disregarding other responsibilities. This as a result leads to poor sustainability in the organization and can hinder long term growth.
The Stakeholder Theory:
The stakeholder theory is another commonly used CSR theories. According to this theory, every entity, individual or group which is affected by or can affect the operational activities of an organization, is considered as a stakeholder of the company. The stakeholder theory suggests that an organization has the fundamental responsibility to take care of the interest of the stakeholders. As I was looking for good quality affordable paper, I found that the stakeholders of a company can include customers, employees, suppliers, distributors, governmental bodies, ecosystem, and even competitors. An organization should design its activities and strategies in such a manner that it can take care of the interests of all of these stakeholders. This theory is based on the principle that the people or entities who are influenced by the business operations of an organization has the right to direct it. This theory can be beneficial in governing the organizational activities in an ethical manner. It allows the firm to identify its stakeholders and drives it to take care of their interests.
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Corporate citizenship theory is based on the principle that an organization can be considered as a citizen in the society and just like any other citizen it has the responsibility towards the community. An expert research paper writer has stated that an organization and the society are mutually beneficial to one another. Neither of them can sustain without one another. The organization provides employment and commodities to the society, simultaneously the society offers customers and employees, which are extremely crucial for the sustainable functioning of the firm. A successful firm ensures that it can fulfil all of its responsibilities towards the society, while taking care of its financial goals and meeting shareholders’ interest.
These CSR theories can be applied in any situation or case studies that you may find. It should be noted that each of these theories offer various perspectives to social responsibility but all of them showcases the case goal.