Exploring Approaches to Corporate Social Responsibility

2.7 The nature and approaches of Corporate Social Responsibility

As the environment is damaged due to operations of corporations, more attention should be given to the environment as there is a nexus between environment and development. Environment is where we live; and the development is what we all do in attempting to improve our lot within the abode. The two are inseparable, For example; many companies in the apparel industry have outsourced their manufacturing to developing countries like China, India, Bangladesh and Pakistan, to increase their competitiveness by lower manufacturing costs (Pretious and Love, 2006). To control the conditions for the employees in those factories is often a difficult task for the apparel companies. Poor conditions

As to why Cooperate Social Responsibility gets started, some authors argue that Cooperate Social Responsibility can be seen as either an integral part of the business strategy and corporate identity, or it can be used as a defensive policy, with the latter being used more often by companies targeted by activists. The rationale for Cooperate Social Responsibility can be based on a moral argument, a rational argument, or an economic argument (Werther & Chandler, 2006). Campbell (2007) is representative of a group of studies that create testable propositions related to the conditions under which organizations will move towards Cooperate Social Responsibility. He sees corporations’ level of social responsibility as being influenced by factors such as financial conditions of the firm, health of the economy, and well-enforced state

Cooperate Social Responsibilities are the “societal expectations of corporate behavior; a behavior that is alleged by a stakeholder to be expected by society or morally required and is therefore justifiably demanded of business” (Whetten et al., 2002). Hayek (1939) also considered much higher rate of profit would be obtainable on money spent on labour than on money invested in