Outline and discuss the evolution of CSR, including its history, role Essay - 1

Outline and discuss the evolution of CSR, including its history, role in the financial crisis and prospects for the future. Supp - Essay Example The topic of social responsibility is a highly debated one, as several theorists think that â€Å"business is obligated only to make profits.†2 On the other hand, many believe that all business entities have a social obligation it is bound to fulfill. However, there is no denial of the fact that while operating to make profits, a business organization has to ensure that they keep the interest of the society and environment in mind because basically the revenues they make have to primarily derive from the same society and environment. Definition: Corporate Social Responsibility can be defined as the â€Å"relationship between global corporations, governments of countries and individuals citizens.†3 CSR is also encompasses the relationship between corporations and their stakeholders. The EU Commission further defines CSR as a concept where â€Å"companies integrate social and environmental concerns in their business operations†4 as well as during their interactions with stakeholders on a â€Å"voluntary basis.†5 Thus, in simple terms it is the responsibility corporate organizations have towards the society they work and operate in. Furthermore, this responsibility is not limited to the present generation in a particular society, but also extends to coming generations, that is the â€Å"future members of the society.†6 CSR is greatly related with â€Å"corporate citizenship, business responsibility, business reputation, ethical corporation, sustainable business†7 etc but is different from them. The CSR approach believes that stakeholders such as â€Å"consumers, employees, the community at large, government, and the natural environment†8 are supposed to be given a stronger focus. Social responsibility of the firms basically stems from the fact that they are using the natural resources available in the area where they function. Thus, they are bound to give something back to the society. In the present day, the wellbe ing of society has become increasingly important, and community is given the main priority in all spheres. In such a community centered world system, the question of who is responsible to safeguard the interests of the people cannot simply be answered by government. While government has a key role, the growing private sector companies including corporate entities need to focus not only on making profits, but also consider the impact of their operations within the society. History and Evolution of Corporate Social Responsibility: The basic idea of CSR has its roots in the era before the birth of Jesus Christ and is first seen when in â€Å"1700 BC†9 the ancient Mesopotamian ruler brought into practice a code that imposes punishment on â€Å"builders, innkeepers or farmers†10 by death if as a result of â€Å"their negligence†11 any inconvenience is caused to local citizens. The people engaged in any trade related activities have to abide by this code, not merely b ecause they feared â€Å"legal consequences†12 but because of their strong sense of â€Å"moral conviction.†13 On the other hand, ancient Roman senators were upset with the fact that businesses were unable to provide adequate taxes in order to â€Å"fund military campaigns,†14 therefore unsuccessful to â€Å"contribute to the war programme.†