Examining corporate responsibility and ethics in practice

Below you will find an evaluation of 3 prominent CSR models and theoretical frameworks.

In the contemporary business landscape, corporate social responsibility (CSR) is an essential strategy that many businesses are selecting to adopt as part of their social practices. In understanding this strategy, there have been a number of theories and models that have been proposed to explain why companies need to act responsibly and suggest some approaches they can use to include corporate responsibility and sustainability into their activities. One of the most effective and commonly recognised frameworks in CSR is Caroll's pyramid design, which conceptualises responsible practices into 4 key elements. At the foundation, financial responsibility suggests that financial sustainability is the structure of all standard responsibilities. Next, legal responsibility ensures that businesses follow the guidelines of society. This is proceeded by ethical responsibility, which stresses fairness, justice and regard for stakeholders. Finally, at the top of the pyramid is humanitarian obligation which includes all contributions to community wellbeing. Jason Zibarras would understand that this model highlights that while profitability is necessary, there are various types of corporate social responsibility which require to be taken care of in different approaches.

Corporate social responsibility (CSR) theories have been asserted by business and economics experts to offer a few various point of views and frameworks that describe precisely how businesses can demonstrate accountable considerations for society. Amongst theories which are commonly used in business today, Freeman's stakeholder theory is most recognisable for moving attentions from investors to the wider . set of stakeholders that are impacted by business decision-making processes. This can include the interests of staff members, clients, providers and investors. According to this theory, it is believed that the role of management is to stabilize completing stakeholder interests, so that all parties can take advantage of the benefits of corporate social responsibility. Jeffrey W. Martin would appreciate that compared to other theories of CSR, which view social responsibility as secondary to profits, this theory asserts that CSR is essential to business success, highlighting the basic interdependency of businesses and society.

For businesses that are wanting to improve and maximise the effectiveness of their corporate responsibility policy, there are a couple of reputable theoretical structures which are identified by business leaders and stakeholders for fundamentally dealing with environmental and social causes. In business theory, a popular design for CSR acknowledged by many economists is Elkington's triple bottom line theory. This framework extends the standard measure of success from profitability across 3 classifications, particularly people, planet and profit. The idea here is that businesses need to consider social and ecological performance together with their financial accomplishments. The focus on people covers the social dimension of CSR, consisting of the integration of reasonable labour practices. Meanwhile, considerations for the world will require all aspects of ecological stewardship. Raymond Donegan would acknowledge that in this model, these aspects are viewed to be just as important as success.