CORPORATE SOCIAL RESPONSIBILTY
Corporate Social Responsibility
The voluntary compliance of social and ecological responsibility of companies is called Corporate Social Responsibility (CSR). Corporate social responsibility is basically a concept whereby companies decide voluntarily to contribute to a better society and a cleaner environment. Corporate social responsibility is represented by the contributions undertaken by companies to society through its business activities and its social investment.
Over the last years an increasing number of companies worldwide started promoting their Corporate Social Responsibility strategies because the customers, the public and the investors expect them to act sustainable as well as responsible. In most cases CSR is a result of a variety of social, environmental and economic pressures. CSR can not only refer to the compliance of human right standards, labour and social security arrangements, but also to the fight against climate change, sustainable management of natural resources and consumer protection.
The concept of Corporate Social Responsibility was first mentioned 1953 in the publication ‘Social Responsibilities of the Businessman’ by William J. Bowen. However, the term CSR became popular only in the 1990s, when the German Beta pharm, a generic pharmaceutical company decided to implement CSR. In July 2001, the European Commission decided to launch a consultative paper on Corporate Social Responsibility with the title, “Promoting a European Framework for Corporate Social Responsibility”. This paper aimed to launch a debate on how the European Union could promote Corporate Social Responsibility at both the European and international level. The paper further aimed to promote CSR practices, to ensure the credibility of CSR claims as well as to provide coherence in public policy on CSR.
How a company perceives its societal responsibility depends on various factors such as the markets in which it...