Principles of Corporate Social Responsibility

The organizations have realized their responsibility towards society, stakeholders and the environment. ‘Corporate Sustainability’ is one of the major concerns of the prevailing business organizations. For meeting the objectives of corporate sustainability, organizations resort to corporate social responsibility in its strategic management process. Dyllick and Hockert define corporate sustainability as “meeting the needs of a firm’s direct and indirect stakeholders (such as shareholders, employees, client, pressure groups, communities, etc.), without compromising its ability to meet the needs of future stakeholders as well” (Wankel and Stoner, p.118). Specifically, corporate sustainability can be termed as ‘corporate social responsibility’. Corporate social responsibility helps firms to achieve their corporate sustainability. It has become an important phenomenon in the corporate world.
Increasing awareness regarding corporate sustainability explains the increasing importance given to corporate social responsibility (CSR). CSR has become an integral part of the strategic management process. Modern organizations include primary objectives of CSR in their mission and vision statements. CSR activities strive to enhance the value of a business. The main objective of corporate social responsibility is to take care of factors that are not directly related to the operational and financial process. CSR activity is a voluntary attempt to bring improvement in society. According to Cramer and Bergmans, CSR activity focuses on three Ps i.e. people, profit and planet.
In recent years, firms have become more interested in CSR related activities. There are several factors that are responsible for it. The role of CSR in developing value-based management has made firms realize its importance.