Corporate Social Responsibility Description
The most widely heard question about corporate social responsibility is what it is? There have been many different definitions of CSR for the last 60 years (Madrakhimova, 2013). To some extent, from Jamali’s (2008) and Hopkins’s (2007) point of view, CSR is defined as the corporate commitments to sustainable development, ethic and responsible treatment to stakeholders, and society welfare improvement.
From the 50s until present, CSR has been applied widely as the world becomes one due to the globalization. The areas that CSR covers are not only the company shareholders but also whoever involves in its business- other stakeholders. Besides, the natural environment and general social welfare are two areas related to corporate social responsibility (Griffin & Pustay, 2013). Firstly, talking about organizational stakeholders, including customers, employees, and investors, CSR aims to take responsibility of protecting their benefits. For example, CSR practices to treat employees fairly, strive for gender equity, provide qualified products to customers, and offer appropriate information to shareholders. Nextly, natural environment has always been an issue for promising long-term operation and CSR also covers this area. Nowadays, many laws enact to prohibit the wasted materials, pollution, when companies themselves are responsible for economically packaging and environment conservation (Griffin & Pustay, 2013). In Vietnam, the case of Vedan polluted Thi Vai river in the southern Dong Nai province in 2008 was an alarming bell for companies those don’t take CSR as a serious foundation. Finally, companies provide a part of CSR budget on enhancing society conditions. Williams (2011) stated that CSR today is a component of the philanthropy: charity, education and healthcare accosting, social justice, and job supporting.
CSR has got a developed path since it first implemented, and several CSR models are brought into practices. Carroll’s “pyramid of corporate social responsibility” in 1991 was first tested with four responsibilities rising from economic, legal to ethical and then discretionary responsibilities. However, the model faced many crisis from the discretionary aspect and its inability in explaining complicated relationships among society, business, and environment. Therefore, another model was conducted by merging ethical and discretionary responsibilities into one while economic responsibility still maintained basic (Luu, 2012).
The Effects of CSR on International Business
Since the era of globalization, the development of international business has risen so rapidly as the world becomes one. Ethics in general as well as corporate social responsibility in particular senses gradually prove their important in doing business internationally: good ethics can create good business; CSR itself does not mean success, but without CSR the corporation will not be successful. For instance, the elevated financial...