Corporate Social Responsibility - an Evolutionary Outline from an Economic Perspective

Abstract

Globalisation has brought about tremendous changes to the nature and structure of the market. In addition to pursuing attainment of economic gain, market participants both on the demand and supply side directly or indirectly affect and contribute to society. One aspect of such contribution is through Corporate Social Responsibility (CSR). Business ethics and CSR are getting increased attention in corporate decisions and consumer choice. CSR emerges through a social discourse that focuses attention on the fact that business enterprises besides making profits for their investors, have commitments and responsibilities to society. It has come to the forefront of public discussion only after the Second World War especially since the decades of the 1950s and 1960s and has seen significant progress since then. The concept and practice of CSR has moved ahead from mere philanthropy to strategic social responsibility. It is more than a knee-jerk reaction to open market business today i.e. to laissez faire. This transition opens the opportunity and the need to trace the evolution of the concept as well as the practice of CSR by corporates. There is now not only a wide spectrum of CSR system based on civil regulation, but also a rising trend of counter arguments regarding the principles and performance in relation to firms. Hence the main theme of this essay is to trace an evolutionary outline of the phenomenon of CSR and through this chronicle foreground the various nuances of the concept. We attempt to link business environment (including corporate culture, and strategies) with actors, agenda and actions focusing on moral conduct that drive choice behaviour of participants.