Chapter 4 Path dependence and corporate social responsibility The previous two chapters have comprehensively reviewed the concept and barriers of CCL. In this chapter, some conceptual frameworks about path dependence and corporate social responsibility (CSR) will be presented to provide some new perspectives to achieve RO4 of this dissertation. 4.1 Path dependence Path-dependence theory was illustrated by Arthur (1994), trying to describe the choices made in the past would determine the choices prevailing in the future. Håkansson and Waluszewski (2002) further argued that the solutions embedded into a structure would obstruct the application of new solutions, which could even though break the existing structure. In path dependence, an …show more content…
For Zhang et al. (2014), CSR implies that companies should be responsible not only for their shareholders, but also for their stakeholders including suppliers, customers, and communities. Carroll (1979) identified four types of responsibilities that might be subsumed under CSR: economic, legal, ethical, and discretionary expectations. Economic responsibility means that companies are obligated to achieve profitability and satisfy customer needs. Legal responsibility indicates that companies must operate within the framework of legal regulations. Ethical responsibility includes some moral requirements. Discretionary expectation equals philanthropic responsibilities that contribute to society’s development and welfare. Wang and Juslin (2009) held that the western CSR concept does not fit the Chinese market and adopted the Chinese harmony approach to define CSR: enterprises should apply harmony to business and operate in a harmonious way between people and nature. The overall purpose of CSR should be cultivating humaneness, righteousness, ritual, wisdom, sincerity, and responsibility, and becoming a superior company. However, this concept is too abstract to conduct and few Chinese people can truly understand it without a deep understanding of Chinese culture. Many companies in China do not view CSR as an effective investment to improve organizational value unless CSR has considerable payoffs. In contrast to these misunderstandings, Stewart (2006) argued that companies and society actually have the same interests because enterprises cannot make profit in a corrupt, weak, poor society; and social progress can provide a healthy environment for company governance. As compared, Carroll’s (1979) definition emphasizes simultaneous achievement of a company’s economic, ethical, legal, and philanthropic responsibilities, which can be applicable to all countries. In this dissertation,
Corporate Social Responsibility (CSR) is the way a corporation achieves a balance between its economic, social, and environmental responsibilities in its operations so as to address shareholder and other stakeholder expectations. In general, when firms hold this wider encouraging role on the public by being engaged with stakeholders, a variety of profit can be produced for both company and the stakeholders. A key inclination is the combination of Corporate Social Responsibility (CSR) into the organization strategy, culture, mission and communications. By incorporating corporate citizenship into the company it is no longer an additional “nice thing to do” or something made to obey laws or regulations. Instead, corporate responsibility has become something business leaders and workforce want to engage in, frequently because executives who believe in the long-term see business profit. The four types of social responsibilities a...
In response to the brief presented case study, Company Q has stores in high crime areas, and has chosen to close these stores citing above average losses because of shrinkage or theft by both customers and employees.
New Balance is privately owned company, which is the second largest footwear manufacture in the United States and the fourth largest footwear manufacture in the world with annual sales in 2008 of $1.61 billion (Veleva, 2010).
“Social responsibility is a business’ obligation to pursue policies, make decisions, and take actions that benefit society” (Williams, 2014, p.78). Not many people are aware of this but one of the leading companies that stand for Corporate Social Responsibility is leading retail store and brand Target. Target Corporation is a retail/food store that was founded February 11, 1902 by Goodfellow Dry Goods and is known today as the second largest discount retailer in the United States. Target’s sole purpose is to fulfill the needs of every single guest that comes in or interacts with Target. Target is a guest friendly retail store that values every single customer, and strives to make sure that every single
An organization’s Corporate Social Responsibility (CSR) drives them to look out for the different interests of society. Most business corporations undertake responsibility for the impact of their organizational pursuits and various activities on their customers, employees, shareholders, communities and the environment. With the high volume of general competition between different companies and organizations in varied fields, CSR has become a morally imperative commitment, more than one enforced by the law. Most organizations in the modern world willingly try to improve the general well-being of not only their employees, but also their families and the society as a whole.
CSR is additionally a wide, argumentative idea. In the broadest term, CSR manages the part of business in the public arena. From numerous points of view CSR can be viewed as a verbal confrontation, and what is generally being referred to be not whether corporate supervisors have a commitment to consider the necessities of society, however the degree to which they ought to consider these requirements.
Nowadays, corporate social responsibility (CSR) becomes an integral part of each company. CSR can be understood as a management concept and a process that links social and environmental issues in business operations to a company’s interactions with it’s stakeholders. CSR not only gives the company a chance to help society but also enhances company’s reputation and investors’ attractiveness. In this paper, we will show a brief description about CSR and effects of CSR on international business, including pros and cons when a company applies the CSR program. Besides that, I give my ideas on conflicts of interest beween shareholders and the company’s managers. And then, advantages and difficulties for companies implementing CSR in Vietnam will be defined. Although CSR was first introduced widely in Vietnam many years, it is still a new concept. Therefore, pioneers in this area are facing lots of challenges in running CSR programs in Vietnam.
Corporate Social Responsibility, some may say it is an organization's duty to behave in an economically and environmentally acceptable manner but there is more to it that just that. A company has a duty to its shareholders, the duty to maximize benefits and avoid trouble, a responsibility to the employees and others who depend on that company for a living , and last but not least they have the duty to create a safe environment for everyone. A Civil Action by Jonathan Harr depicts a civil lawsuit that takes place in the United States. The lawsuit is filed by residents of a small town, Woburn, in Massachusetts, against two powerful corporations, Beatrice Foods and W.R. Grace, for polluting the water in the local river with carcinogen TCE and causing the deaths of many children. A Civil Action by Jonathan Harr demonstrates that the issue of Social Corporate Responsibility is prevalent throughout the piece but because of the adversary system of law there is no place for apology just winning for both parties.
International companies operating in China must adapt to the existing CSR policies that the country promotes. Therefore, Google finds it challenging to adjust and align its CSR policies according to the Chinese laws. The company has to adjust its policies to conform to the Chinese moral and ethical frameworks that guide CSR activities in the country. Google faces challenges doing business in China because its CSR policies are not compatible with the Chinese market. The regulatory conditions and the sociocultural norms, upon which Google’s CRS policies are founded, unfortunately are not applicable in China.
In recent years, companies are becoming socially responsible and now stakeholders almost expect a company to have CSR policies. Therefore, in twentieth century, corporate social responsibility (CSR) became an important development in public life (Barnett, ND).Corporate social responsibility is defined as “the ways in which an organisation exceeds the minimum obligations to stakeholders specified through regulation and corporate governance” (Johnson, Schools and Whittington, N.D cited in March, 2012). Stakeholders can be defined as “those individuals or groups who depend on the organisation to fulfil their own goals and on whom, in turn, the organisation depends” (Johnson, Schools and Whittington, N.D cited in March, 2012). There are many purposes for this essay, the first purpose is to descried the key principles of corporate social responsibility and explain their importance for stakeholders. Secondly, is to show how far this company follows those principles in order to be accountable to at least three of its stakeholders. In this essay, three stakeholders, environment, customers and employees will be evaluated respectively and the key principles of the stakeholders will be examined.
I begin this essay by defining CSR, there are many definitions for this term by various different theorists, and EU says that CSR is "A concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis." On the other hand, Sloman et al. define it as "The concept in which a firm takes into account is the interests and concerns of a community rather than just its shareholder". Davis and Blomstrom (1966), say it "Refers to a person’s obligation to consider the effects of his decisions and actions on the whole social system". These definitions differ from one another in many ways but they agree that CSR involves taking the environment into account and therefore, one must look take social responsibility.
The essay will argue that the Pathways Model is an improved theory of
While the concept of an individual having responsibility is commonly recognized, modern views have lead to the emerging issue of corporate responsibility. Business Directory.com defines corporate social responsibility as, “A company’s sense of responsibility towards the community and environment (both ecological and social) in which it operates. Companies express this citizenship (1) through their waste and pollution reduction processes, (2) by contributing educational and social programs, and (3) by earning adequate returns on the employed resources.” But such a concept has been much disputed since at least the 1970’s.
The classical view of CSR is a prominent ideology which business organizations are seen merely as profit-driven organizations. Simply put, businesses work for the sole purpose of making a profit. Thus, this profit motive is the sufficient and unique social identifier that separates a business organization from other institutions in society. These business organizations have a limited, yet essential role in society. Social concerns are considered important, but businesses, in the classical view, are focused solely on the economic activities and are judged accordingly. By having a limited role in society (i.e.,...
A company has an economic obligation. It must earn a favorable return for its stockholders in the restrictions of the law. But, corporate social responsibility means that organizations have also ethical and societal responsibilities that go past their economic responsibilities. CSR needs organizations to develop their documentations of their responsibilities to include other stakeholders such as workers, customers, suppliers, local societies, state governments, international organizations, etc. Ethics could be seen as a fundamental component of individual and group activities at the heart of organizations’ errands.