Social Responsibility of Companies in Contemporary Business
Keywords:
social responsibility, economic model, socio-economic model, Europe 2020Abstract
The definition of social responsibility has often changed over the time. Differences in the economies of the United States of America (USA) and Europe have a strong impact on the social responsibility and stakeholders’ expectations from socially responsible business (SRB). The economic sector of the USA makes a significant contribution to addressing social and development initiatives in the local community, while in European countries there is an expectation that the state will meet such needs. The globalization processes transfer American corporate culture all around the world, as well as the engagement in solving social problems in the communities in which they operate. The economic model of social responsibility puts the profit motivation into the first place and emphasizes that it is the most effective tool for solving the world problems. The new circumstances in which businesses operate and the fact that information are available always and everywhere have a strong influence on the evolution of the social responsibility model from the economic to the socio-economic model. The role of business is not just to make profit, but also to cooperate between companies and society, and a balanced benefit for all stakeholders. This work consists of three parts. The introduction describes a traditional and new approach to social responsibility and benefits for companies that operate under the principles of social responsibility. The second chapter outlines European Union (EU) guidelines on SRB while concluding remarks synthesize the benefits of social responsibility in modern business as well as the critiques of the model.
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
References
Aguinis, H. (2011), “Organizational responsibility: Doing good and doing well”, in Zedeck, S. (Ed.), APA handbook of industrial and organizational psychology, Vol. 3 Maintaining, expanding, and contracting the organization, American Psychological Association, Washington, DC, US, pp. 855-879.
Baron, D. P. (2001), “Private politics, corporate social responsibility, and integrated strategy”, Journal of Economics & Management Strategy, Vol. 10, No. 1, pp. 7-45.
Becker-Olsen, K. L., Cudmore, B. A., Hill, R. P. (2006), “The impact of perceived corporate social responsibility on consumer behavior”, Journal of business research, Vol. 59, No. 1, pp. 46-53.
Bestvina Bukvić, I., Mihaljević, M., Tokić, I. (2016), “Financing the theatre: The role of management and the state”, Ekonomski vjesnik: Review of Contemporary Entrepreneurship, Business, and Economic Issues, Vol. 29, No. 1, pp. 125-142.
Bežovan, G. (2002), “Socijalna odgovornost gospodarstva i iskustva u Hrvatskoj” (Social responsibility of economy and experience in Croatia), Revija za sociologiju, Vol. 33, No. 1/2, pp. 17-32.
Bondy, K., Starkey, K. (2014), “The dilemmas of internationalization: corporate social responsibility in the multinational corporation”, British journal of management, Vol. 25, No. 1, pp. 4–22.
Bowen, H. R. (1953), Social responsibility of the businessman, Harpers and Brothers, New York.
Camilleri, M. A. (2017), “Responsible Supply Chain Management and Stakeholder Engagement for Corporate Reputation”, in Camilleri, M. A (Ed.), Corporate Sustainability, Social Responsibility and Environmental Management, Springer, Cham, pp. 79-95.
Clarkson, M. E. (1995), “A stakeholder framework for analyzing and evaluating corporate social performance”, Academy of management review, Vol. 20, No. 1, pp. 92-117.
De Bakker, F. G. A., Groenewegen, P., Den Hond, F. (2005), “A bibliometric analysis of 30 years of research and theory on corporate social responsibility and corporate social performance”, Business and society, Vol. 44, No. 3, pp. 283-317.
Doane, D., Abasta-Vilaplana, N. (2005), “The myth of CSR”, Stanford social innovation review, Vol. 3, No. 3, pp. 22-29.
Donnelly, J. H., Gibson, J. L., Ivancevich, J. M. (1998), Fundamentals of management (10th edition). Irwin, New York, NY, US.
Edwards, M. (2008), Just another emperor?: the myths and realities of philanthrocapitalism, Demos, London.
European Commission (2001), GREEN PAPER: promoting a European framework for corporate social responsibility, European Commission, Brussels.
European Commission (2010), “Europe 2020”, available at: http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2010:2020:FIN:EN:PDF
Freeman, R. E. (1984), Strategic management: A stakeholder perspective, Pitman, Boston.
Glavočević, A., Radman Peša, A. (2013), “Društveno odgovorno poslovanje i CRM kao način integriranja društvene odgovornosti u marketinške aktivnosti” (Corporate Social Responsibility and CRM as a way of integrating corporate social responsibility into marketing activities), Oeconomica Jadertina, Vol. 3, No. 2, pp. 28-49.
Gupta, S., Pirsch, J. (2006), “A taxonomy of cause-related marketing research: current findings and future research directions”, Journal of nonprofit and public sector marketing, Vol. 15, No. 1/2, pp. 25-43.
Hopkins, M. (2012), Corporate social responsibility and international development: is business the solution?, Routledge, London.
Kotler, P., Lee, N. (2008), Corporate social responsibility: doing the most good for your company and your cause, J. Wiley & Sons, New Jersey.
Kotler, P., Lee, N. (2009), Društveno odgovorno poslovanje (Socially responsible business), MEP Consult, Zagreb.
Marcoux, A. (2008), ”Business ethics”, in Zalta, E. N. (Ed.), The Stanford encyclopedia of philosophy”, Stanford: Center for the Study of Language and Information Stanford University, available at: http://plato.stanford.edu/archives/fall2008/entries/ethics-business/ (30 April 2018).
Mihailović, B., Kopilović, R., Radosavljevic, D. (2011), “Leadership in modern organizations”, International journal of economics and law, Vol. 1, No. 3, pp. 60-69.
Piercy, N. F., Lane, N. (2009), “Corporate social responsibility: impacts on strategic marketing and customer value”, The marketing review, Vol. 9, No. 4, pp. 335-360.
Rupp, D. E. (2011), “An employee-centered model of organizational justice and social responsibility”, Organizational Psychology Review, Vol. 1, No. 1, pp. 72-94.
Selvi, Y., Wagner, E., Türel, A. (2010), “Corporate social responsibility in the time of financial crisis: evidence from Turkey”, Annales Universitatis Apulensis series oeconomica, Vol. 12, No. 1, pp. 281-290.
Shahrokhi, M. (2011), “The global financial crises of 2007–2010 and the future of capitalism”, Global finance journal, Vol. 22, No. 3, pp. 193-210.
Short, K. (2016), “Understanding the impact of recognition on employees, their work, and feelings toward managers”, Doctoral dissertation, Benedictine University.
Sila, I., Ceka, K. (2018), “The Impact of Environmental, Social and Governance Dimensions of Corporate Social Responsibility on Economic Performance: Australian Evidence”, in proceedings of the 9th International Conference on Theory and Application of Soft Computing, Computing with Words and Perception, 24-25 August 2017, Budapest Hungary, Elsevier, pp. 797-804.
Smith, C. (1994), “The new corporate philanthropy”, Harvard business review, Vol. 72, No. 3, pp. 105-116.
Vrdoljak Raguž, I., Hazdovac, K. (2014), “Društveno odgovorno poslovanje i hrvatska gospodarska praksa”, Oeconomica jadertina, Vol. 4, No. 1, pp. 40-58.
Williams, C. (2010), Principi menadžmenta (Principles of Management), Datastatus. Beograd.
Zadek, S. (2006), “Responsible competitiveness: reshaping global markets through responsible business practices”, Corporate governance: the international journal of business in society, Vol. 6, No. 4, pp. 334-348.
