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Defining CSR: Problems & Solutions (Definitions & key concepts of…
Defining CSR: Problems & Solutions
Problems of "CSR"
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
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’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 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
‘‘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.”
CSR as international private business self-regulation is not well explored
It is a political contest, that appears under the surface of definitions
Evolution of "CSR"
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
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
“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
India introduced mandatory CSR in its 2013 company law reform
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
Origins of "CSR"
“…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 a project which as Selznick predicted nearly 60 years ago would become public law with the result that public resources will be invested.”
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)
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 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
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
international private self-regulation focused on the reduction & mitigation of industrial harms
pro- vision of public good moves beyond the prior definitional efforts