Report on Corporate Social Responsibility Research Paper

Report on Corporate Social Responsibility - Research Paper Example In the case of larger organizations like corporations, it also means providing adequate returns to a large number of shareholders. But as businesses grew (due to aspects like better infrastructure), and the more modern concepts like globalization and free trade, profit alone ceased to be the sole criteria due to the impact of business organizations on other stakeholders. There was a growing demand that business organizations should be more responsible to both its direct and indirect stakeholders. It was out of this need that the concept of corporate social responsibility or CSR was born. This paper reviews the concept of CSR and its various aspects and parameters. It will then move on to apply the theory to a practical context though analysis of the CSR policies of Bombardier Inc, one of the most respected multinational corporations with its headquarters in Montreal, Canada. Corporate social responsibility: The term ‘responsibility’ indicates that organizations should lo ok beyond laws and statutes in their quest for profitability (Esposito, 189). According to the author, the concept of CSR has its modern origin in a publication by Howard Bowen in 1953 which specifically state that organizations have a larger obligation to the society at large that should take into consideration its objectives and values. In other words, the management of business organizations now needs to look at balancing profitability and sustainability through this important concept called CSR. The World Business Council for Sustainable Development provides a broad definition of the concept – â€Å"the continuing commitment of business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large† (Mullerat, 15). A review of literature shows that there is no proper or specific definition as to what constitutes CSR. But the generally accepted principles that are taken into consideration is given in the next section. Components of CSR: The above definition indicates three aspects namely profitability, ethics and social obligations. Esposito, referring to works by Sethi and Carroll provides the following components which provide an overall view the concept of CSR. The first and the most important one is the economic responsibility to shareholders and other direct stakeholders like employees, creditors, and tax obligations. The second related responsibility is to ensure that all legal and statutory regulations are complied with. The third tier is to ensure that the business is done in an ethical manner that does not harm the environment and the society at large. The final stage of CSR is philanthropic in nature whereby organizations can go beyond their call of duty and engage in helping impoverished sections of the society. This could include charitable activities, helping to protect the environment, etc. So, CSR can includ e a broad range of parameters which is primarily dependent on the long term policy of the management of an organization. The above observation is in tune with the observation of CSR by the ‘Industry Canada’ website publication which states that â€Å"Corporate social responsibility is about the integration of social, environmental, and economic considerations into the