Defining CSR: Problems & Solutions

Problems of "CSR"

Evolution of "CSR"

Origins of "CSR"

Definitions & key concepts of Corporate Sustainability and CSR

CSR may be defined as behaviour

"If CSR is defined behaviourally simply as corporate philanthropy, then a billion dollar corporation giving a hundred dollars while continuing to contaminate large swathes the environment allows the corporation to claim it is practicing CSR."

CSR may be defined as changed corporate behavior

“…taking the same example further, we may note that the small donation may be a change in corporate practice from a single dollar to giving the one hundred dollars. This change, by a factor of 100, is a marked behavioural change.”

CSR may be defined, as ‘‘sacrificing profits’’ (economic definition)

“…by some economists, corporate law scholars and business ethicists: giving the one hundred dollars is a diversion of investment away from profit making and so qualifies as CSR.”

CSR can be classified or understood as a change in focus and moderation of internal practices of the organisation

a type of internal management system

for instance: a management initiative to improve stakeholder and social relations

CSR may reflect a corporate decision to participate in an explicit standard

ISO 26000, or the UN related Global Reporting Initiative (GRI)

CSR is part of the broader institutional environment

what type of institution CSR may be or to which group of institutions it may belong?

• “CSR may well be classified as belonging to the group of institutions dealing with politics and, as a political institution, be manifested in some form of regulation.”

CSR as regulation in terms of emergent legal norms

‘‘CSR is undeveloped with respect to its precise meaning, content and practice, definitiveness of relationship with the law and clarity of regulatory design and implementation” (Osuji, 2011)

statement echoes Davis’ description of it 50 years ago as ‘‘a nebulous idea’’ (Davis 1960)

The Definition of CSR is complex and complicated

Because of the nature of the problem: Corporate profitability, economic stability, organisation of work and safety or preservation of the ecology

It’s important to understand the Eco- nomic lens on CSR

“…all activity which cannot or is not measured in financial terms is considered valueless, and all investment not dedicated to increasing private profit is considered waste.”

CSR using the theory of the firm

Carroll defined CSR by describing the following four responsibilities: economic, legal, ethical and philan- thropic (Carroll 1979)

CSR as ‘‘beyond compliance’’

“CSR research is often carried out within disciplinary silos”

‘‘What responsibilities to society may businessmen reasonably be expected to assume?’’ (Carroll 2008)

The relationship between CSR, sustainability and sustainable development

sustainable development political science & international development scholars of various disciplines

“Sustainability in the CSR discussion appears to be a concept which has broken loose from its foundations”

“CSR could be understood as a specific application of the broader macro understanding of sustainability”

but: “... the sustainability discussion becomes limited to environmental performance improvements.”

It's an error & a political decision equate the two

“…the term sustainability came to CSR from the disciplines of environmental engineering and environmental science.”

Law has had less to do with CSR except in terms of corporate governance

The reason: the definition of CSR as ‘‘beyond compliance’’

CSR is becoming recognised as a private international law regime

norms drawn from international public soft law

corporate citizen analysis

a dialogue around the legitimacy of private power

CSR is defined by leading institutionalists engaged in the study of CSR as an emergent ‘‘global business norm’’

Definitions of CSR range from philanthropy and simple corporate image concerns developed by marketing departments

‘‘greenwashing’’ by the marketing department

CSR is a: “essentially contested concept. Gallie (1956) states that an essentially contested concept is a concept which cannot be defined because its core is debated.”

it could be described as a socio-political movement which generates private self-regulatory initiatives

CSR is classified as self-regulation because it does not rely on parties external to the regulation itself

Execution and adjudication is dependent upon the regulated parties

• Example: industry members may choose to form an industry association which develops and promulgates CSR standards

CSR as international private business self-regulation is not well explored

“In sum, understanding CSR as international private business self-regulation of harms and public good is a significant step forward.”

Gives the debate a frame to locate the issues

CSR is largely private self-regulation, there are calls for and efforts to change aspects of CSR into other types of regulation such as public regulation

India introduced mandatory CSR in its 2013 company law reform

“CSR is a project which as Selznick predicted nearly 60 years ago would become public law with the result that public resources will be invested.”

international private self-regulation focused on the reduction & mitigation of industrial harms

pro- vision of public good moves beyond the prior definitional efforts

Initiatives by law: UN’s Global Compact & pubich transnational hard law initiatives, EU’s new mandatory CSR

Private international initiatives for CSR: ISO 2600, Global Reporting Initiative, Forest Stewardship Council, Responsible Care & the Kimberley Process

Complex because of distinct agendas

Example: business, focuses on if organizations policies and actions can legitimately claim to be socially responsible

Various academic attempts at definition

The battle between political philosophies (they have society wide agendas about public-private divide, role of government, Etc.)

It is a political contest, that appears under the surface of definitions