Definitions of Corporate Social Responsibility

This chapter introduces the history of Corporate Social Responsibility (CSR) starting from early debates about the relative legal obligations of corporate managers towards shareholders and the community, to modern concepts such as corporate sustainability. During this period, many different conceptual models of CSR have been developed, and the subject has grown to encompass ideas such as stakeholdership, business ethics, and social contract theory. The development and relationships between these ideas are outlined, together with references to the relevant literature. In the nearly 90 years since the Berle-Dodd debate first introduced the notion of what became Corporate Social Responsibility into the public realm, the subject has changed significantly in many ways. Although the basic idea of CSR still goes back to the question of the extent to which businesses can and should concern themselves in areas outside the strictly limited area of shareholder profitability, the field has grown to include a broader range of areas in which CSR is seen to have a role. These are the government sector, the not-for-profit sector, charities, and nongovernmental organizations. In terms of how CSR is understood, many different terms have been used to define it, and it has gone under different names including stakeholder theory, social contract theory, business ethics. There has been much speculation on the future of CSR – it may cease to be regarded as a separate “add-on” to business operations and become fully integrated into all aspects of a company’s work. Recent trends suggest that there will be increasing partnerships between businesses, NGOs, and other NFP organizations – implemented globally.