Is Corporate Social Responsibility Mandatory? 1
Is Corporate Social Responsibility Mandatory
Saint Leo University
Is Corporate Social Responsibility Mandatory? 2
Abstract
This literature review explores the benefits from Corporate Social Responsibility (CSR).
Recently CSR has become the priority for corporations, it is no longer used to just
maximize shareholders profit. It is expected for corporations to be integrated
environmental, economic, and social concerns by Society and stakeholders. This paper
briefly analyzes the potential benefits for companies engaged in CSR.
Is Corporate Social Responsibility Mandatory? 3
Is Corporate Social Responsibility Mandatory?
INTRODUCTION
Corporations have a civic duty to unselfishly contribute to charitable foundations.
Not only does this act strengthen the reputation of the corporation but it also strengthens
ties in the community. I once read a quote by Josue Robles, CEO of USAA Bank and he
tweeted “philanthropy with volunteerism equals success,” if it were not for the success of
the companies, will the leaders of the corporation have an Corporate Social
Responsibility (CSR) department? Is CSR part of a Public Relation effort to improve the
companies’ image rather than a genuine transformation of the organizations to try to live
up to the expectations of the ideal media corporation (Gulyas, 2011). If it is not genuine
is CSR used as an essential component of business practice to attract constituencies for
their own benefit (Kang, 2014). The goal of this research paper is, to explain the how
vital CSR is in the business organizations, and learn how different organizations apply
CSR to benefit from them in a number of ways.
HISTORY
Corporate Social Responsibility has been practiced for decades; it first became
popular in the 1960s and 1970s. This was when Milton Friedman who served as
President Ronald Reagan’s economic advisor wrote in The New York Time Magazine,
“the one and only social responsibility of business, is to increase profits for
shareholders.” Now at the 21st century where the term ’stakeholder’ was introduced and
used more and more to describe those impacted by individual businesses (Hack, 2014).
Corporate Social Responsibility (CSR) has evolved into to be one of the top priorities for
business managers and practitioners.
Is Corporate Social Responsibility Mandatory? 4
Definition
Business dictionary defines CSR as “A company’s sense of responsibility towards the
community and environment (both ecological and social) in which it operates. Companies
express this citizenship (1) through their waste and pollution reduction processes, (2) by
contributing educational and social programs and (3) by earning adequate returns on the
employed resources.” Over the two decades we have witness The CSR has been defined
as the obligation of companies to be responsible for the environment and for their
stakeholders in a manner that goes beyond financial goals (John, 2010).
Critics of Corporate Social Responsibility
In the wake of the most recent financial crisis, corporations have been criticized
as being self-interested and unmindful of their relationship to society (Hiller, 2013).
Critics have argued that CSR is being used for the companies to make profit and it brings
questionable motives. Why would corporations give donations to charity where they are
