Theories And Frameworks Of Csr - 1315 Words

1.2 – Models and Frameworks There are various theories and frameworks of CSR that helps organisations to attain a positive position in society. These are as follow: 1.2(a) - Pyramid of Corporate Social Responsibility The modern definition of CSR is rooted in Carroll’s Pyramid of Corporate Social Responsibility. This model outlined the four different elements of CSR which include economic responsibility, legal responsibility, ethical responsibility and philanthropic responsibility. (Carroll, 1979). The pyramid is widely used by businesses because it explains the key areas that firms are responsible to their stakeholders. According the Carroll’s Pyramid a corporate have four types of responsibilities. The model has economic†¦show more content†¦After satisfying the top responsibility, attention turns to the second and so on. 1.2 (b)- Stakeholder Shareholder Theory Today world’s largest firms claim to have CSR at the centre of their corporate strategy. Those corporations usually fail to put their words into action which exploit CSR as a good means of PR to improve their brand image and reputation. Therefore, Edward Freeman (1984), proposed stakeholder theory and recognised it as an important element of Corporate Social Responsibility (CSR). This theory states that an organisation owes a responsibility to a wider group of stakeholders, other than just shareholders. In order to succeed and be sustainable over time, executives must keep the interests of employees, customers, suppliers, communities and shareholders aligned and going in the same direction. (Freeman, E. R., 1984) Stakeholder theory is revolutionary because it gives a completely different perception of firms. The three key points of the theory includes instrumental power, descriptive accuracy and normative validity (Freeman, E. R., 1984). The first aspect of the theory creates a structure for checking the connections between the practice of stakeholder management and the success of an organisation performance whereas second aspect of the theoryShow MoreRelatedKey Tips For A Generous Financial Donations1495 Words   |  6 Pagesperformance (Hanson, 1995). The Spiller’s (2000) CSR model provide a tool that the corporation can diagnose their performance. And it can combine various management technologies to develop the performance of the corporations. On the other hand, it offered a tool to exam employee satisfaction (Spiller, 2000). There are four main principles in Spiller’s CSR model: Honesty, Fairness, Caring, and Courage. First principle is honesty, which lying in the heart place of CSR model. The wise decision of the companiesRead MoreCorporate Social Responsibility : Csr1680 Words   |  7 PagesCorporate social responsibility, or CSR, is becoming increasingly important in the framework of modern businesses. Many companies do not place an emphasis on CSR because they are unaware of the range of benefits it can bring. Throughout this essay I will discuss the importance of corporate social responsibility by assessing the rewards that certain avenues of CSR conduct can bring to companies and how lacklustre attempts to do so can reflect poorly on the CSR field as a whole, resorting to questioningRead MoreReview Of Corporate Responsibility Research1102 Words   |  5 Pagesadvances from psychology to link CR strategy to human motivation and the notion of balance in organizations and society. 2. The Economic Times (11 Jan.2013), news highlighted about the company Dell‟s strategy of motivating its employees in initializing CSR. The news discussed that company‟s employees are the power that forced the company to do more for the society. Company with its employees has engaged in social responsibility activities in the areas of education, environment and employee welfare. 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