Chapter 1 Introduction
According to the European Commission
(EC), CSR is about undertaking voluntary
activity which demonstrate a concern for
stakeholders. But it is here that a firm runs
into problems. The situation is complex and
conflicting.
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Industrial Revolution or the Medieval Guild system
Climate change
The supply chain of business
Companies themselves
Sustainability and sustainable development
The financial crisis of 2008-2010
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Recognition of the rights of all stakeholders
and the duty of a business
The desirability of considering the social
performance of a business has not always
however been accepted and has been the
subject of extensive debate.
Social Contract theory
The Gaia theory states that all organisms
are interdependent and that it is necessary to
recognize the actions of one organism affected
other organisms and hence inevitably affected
itself in ways which are not necessarily
directly related to its actions—in other words,
all actions may well have unintended
consequences.
An increasing population increases the
requirements for good to consume—raising a
question about sustainability. This is particularly
pertinent as far as the need for agricultural production
to supply food in increasing quantities is concerned.
When coupled with climate change and the
consequent expected disruption to agriculture, this
has been a cause for concern for many people,
particularly in the context of sustainability.
The Global Compact is an initiative
developed by the United Nations with the
objective of encouraging business worldwide
to adopt policies regarding sustainable and
socially responsible behavior, and to use a
common framework to report on them.
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The Global Compact asks companies to
embrace, support and enact, within their
sphere of influence, a set of core values in
the areas of human rights, labor standard,
the environment, and anti-corruption.
Economic rationality provides the
theoretical grounding of most models of
growth, with the assumption being that growth
in economic terms also reflects growth in
welfare terms. Increasing shareholder value is
based upon growth of firm and this implies the
necessity for economic growth.
As we have seen, CSR has become central to the
strategic planning of all companies. Today, virtually
every company (and many other organizations) has a
CSR strategy and plans. Moreover, this is a global
phenomenon. In this chapter we have seen some
aspects and have seen the importance of the subject.
This provides a foundation for later chapters.
CSR is a global concept which almost all
organizations—including not-for-profit
organizations—have adopted.
 Companies recognize the commercial
imperative for CSR, although this is a recent
development.
 Organizations have a social purpose which is
described as a social contract.
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There are a number of objectives of a business, and
several of them will be followed at any one time.
These, however, will be prioritized.
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The Gaia theory describes the earth and all living
matter as comprising one complete interdependent
system. This has implications for human behavior.
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The growth in world population is one reason for the
current concern with sustainability and therefore with
CSR.
The Global Compact is an initiative
developed by the United Nations with the
objective of encouraging businesses worldwide
to adopt policies regarding sustainable and
socially responsible behavior, and to use a
common framework to report on them. It
comprises 10 principles.