Theories of CSR
Why is Corporate Social Responsibility Important?
- Introduction to the course on corporate social responsibility (CSR) by Aradhna Malik.
- Discussion on the significance of CSR and various organizational approaches to it.
Approaches to CSR
- Obstructionist Strategy: Organizations ignore societal demands for CSR.
- Defensive Strategy: Compliance with laws only; minimal effort beyond legal requirements.
- Accommodative Strategy: Organizations take steps to please stakeholders while complying with laws.
Organizational Decision-Making in CSR
- Weak stakeholder and institutional pressures lead to an obstructionist approach.
- Intense institutional pressure results in a defensive strategy, focusing solely on legal compliance.
- High stakeholder pressure without strict laws leads organizations to adopt an accommodative strategy.
Antecedents of Corporate Social Responsibility
- Both high stakeholder and institutional pressures encourage proactive strategies in organizations.
- Economic conditions affect CSR; weak financial performance limits willingness to give back.
Stakeholder Pressure and CSR
- Low competition reduces stakeholder pressure, impacting corporate social responsibility (CSR).
- Effective compliance systems are developed collaboratively between organizations and regulatory bodies.
- High penalties for non-compliance encourage socially responsible behavior.
Industry Influence on CSR
- Industry norms push organizations to act responsibly; peer behavior influences actions.
- Monitoring by NGOs, investors, and the press increases accountability in CSR efforts.
- Public scrutiny prompts companies to contribute positively to society.
Education's Role in Promoting CSR
- Business curricula emphasize ethics and social responsibility, shaping future managers' perspectives.
- Students engage in volunteer programs, fostering a sense of societal obligation.
- Institutional recognition of CSR importance drives organizational commitment to ethical practices.
Collective Responsibility through Associations
- Trade associations promote socially responsible behaviors among member organizations.
- Continuous dialogue with stakeholders reinforces the significance of CSR initiatives.
Individual Motives for Social Responsibility
- Three motives drive individual involvement: instrumental, relational, and morality-based.
- Instrumental motives link organizational care for the environment with employee well-being.
Corporate Social Responsibility and Organizational Influence
- Aguilera et al. propose that individual actions can propagate social change within organizations through corporate social responsibility (CSR).
- Internal stakeholders like shareholders, managers, and consumers influence firms to engage in CSR.
- Pressure from management teams encourages organizations to adopt CSR activities.
National Level Antecedents of CSR
- External actors pressurize firms to contribute positively to society through CSR initiatives.
- Relational motives include promoting social cohesion and partnerships with marginalized groups.
- Moral motives emphasize collective responsibility for societal betterment.
Government's Role in Promoting CSR
- Governments incentivize firms engaging in CSR by offering benefits like subsidies and easier permissions.
- A compensatory relationship within government motives strengthens pressure on firms for better CSR practices.
- Multinational corporations leverage their resources to support NGOs and promote social welfare.
Transnational Relationships and Altruism
- Collaborative relationships among intergovernmental organizations arise from shared CSR activities.
- Altruistic motives drive efforts to improve global living conditions through corporate actions.
- NGOs push transnational firms towards greater engagement in social change via CSR initiatives.
Summary of Motives Influencing Firms' Engagement in CSR
- The multiplicative relationship of motives among transnational actors enhances firm pressure for engaging in CSR.
Corporate Social Responsibility Motives
National and Individual Level Motives
- Competitiveness drives corporate interest groups to engage in CSR for power and resource acquisition.
- Individuals feel a sense of belonging by contributing to organizations with good reputations, enhancing their own reputations.
- Organizations aim for stakeholder interests and collective identity, focusing on long-term welfare.
Social Cohesion and Collaboration
- At the national level, CSR promotes social cohesion, ensuring no one is disadvantaged while giving back to society.
- Corporate interest groups collaborate for interest alignment and quasi-regulation, aiming for mutual benefits.
- Altruism motivates organizations at the transnational level to improve global living conditions.
Interactions Between Motives
- Hierarchical interactions vary: individual motives rise upward while organizational directives flow downward.
- Community perception of goodness stabilizes organizations; intergovernmental entities benefit mutually through compensatory actions.