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Sustainable drivers and performance in Corporate Social Responsibility

Written by Stefan de Jong, Peter Svensson

Paper category

Master Thesis


Business Administration>General




Master Thesis: Corporate Social Responsibility Although the CSR concept mentioned in 1.1 is based on the modern CSR era marked by the work of Bowen (1953) by Carroll (1999), traces of social responsibility in the business environment can be found in the early work. Carroll (1999) and Russel (2010). The work of Carroll (1999), reviewing the literature on the concept of CSR, shows that it is a very abstract and difficult to define subject. In the 1950s, the author put forward the concept of businessman responsibility beyond profitability. The 1960s was a market where many attempts to define this concept were made, albeit very abstract. In the 1970s, the author's definition became more specific and began to draw attention to the concept of adjacent and overlapping. In the 1980s, researchers focused on the measurement of CSR rather than its definition. Despite advances in alternative theories that still involve social aspects in the 1990s, the concept of CSR is still very important. At the beginning of the 21st century, the market is increasingly concerned about society's negative impacts on the environment (such as climate change and pollution) (Tench, 2009). In addition, the economic recession that began in 2008 and its effects continue to this day, and this concern has been exacerbated by companies being forced to manage resources in a more efficient manner. Despite these rather abstract and vague definitions (Table 1), it is reasonable and completely clear to show that the responsibility of any company to society and its environment exceeds the basic requirements of survival (such as profitability and law-abiding). In some definitions, responsibility beyond the scope of basic existence must be "voluntary." The author believes that with regard to efficiency, sustainability, and the concept of non-human stakeholders in the recent definition, the requirements for implementing corporate social responsibility on a voluntary basis no longer apply. As resources such as oil are inevitably eliminated, the environment in which any company operates has forced companies to implement corporate social responsibility on a sustainable and strategic level. It can also be regulated by the government, such as focusing on reducing carbon dioxide emissions. The opposite of corporate social responsibility and corporate social responsibility is corporate social responsibility (CSiR). CSR has always been a subject that has been studied a lot, and CSiR is a little-known subject. According to Ormiston & Wong (Ormiston & Wong, 2013, p. 866), many studies have shown that positive “ethical behavior leads to morally problematic behavior on the individual level”. In addition, they concluded that CSR was the predecessor of CSiR. 2.1.2. Sustainability According to the term sustainability used in KPMG’s Corporate Responsibility (CR) report, sustainability accounts for 41% of the 100 largest companies in 41 countries (4.100 companies in total), followed by corporate social responsibility (25 %) (KPMG, 2013). I. de Boer, Global Chairman of KPMG’s Climate Change and Sustainability Services, stated that these reports are often viewed as: “The vehicle for corporate whitewashing is a company that exaggerates its social and environmental qualifications without any real opportunity to change its intentions.” (KPMG Accounting Firm, 2013, p. 10). In addition, he believes that in the 21st century, these types of allegations are out of date, and this type of report should become an "essential business management tool." Or at least “should not be used to “appease potential critics and polish the company’s halo” (KPMG, 2013, p. 10). Nonetheless, areas outside of these reports may have a halo effect that affects the company’s KPMG has discovered several global trends in CR reports. For example, the number of reports in the Asia-Pacific region has increased significantly, and the United States has become the largest region. The fastest growth is India (53%), followed by peppers, Singapore, and Australia. , Taiwan and China. In addition, among the top 100 companies in 41 countries/regions, corporate responsibility reporting has become the mainstream of business practice (71). The GRI guidelines are the most commonly used. An emerging trend has also been detected, namely the company Using Integrated Reporting (IR) (KPMG, 2013) Integrated Reporting KPMG stated that; “Of the 10 companies reporting CR, only one claimed to have issued an integrated report. "(2013, p. 12). Based on the company’s own experience, the IR report will be the next step in the company’s reporting. This means a single report on financial, social, ethical, environmental and sustainability issues to provide A single view of the business formed from these issues in a business strategy. In order for these reports to be credible, they must be externally guaranteed in the same way as financial reports. Making money or making profits within the scope of the law is the basis for the survival of any business Requirements. With this in mind, companies should always strive to achieve sustainable development and “make the world better than discovered” (Hawken, 1993, p. 139). The possible and proven negative effects of human activities, especially The negative impact on the global environment has created the need to reflect on these activities. In response to these negative impacts, people have begun to recognize sustainable development. Sustainability means; the ability to maintain, maintain, and continue something (Hay, Duffy and Whitfield, 2014). Read Less