Monthly Archives: January 2015

What is Corporate Social Responsibility, abbreviated commonly to CSR?

CSR is business way to show to Society that it recognizes their interdependence and that it cares for Society’s welfare by giving over and above its usual contribution through its products & services and its other operational factors.

This giving may be seen as the result of a company’s own way of assuming its responsibility to the community local or global and can find expressions in many and various forms as it happens to us as individuals that we understand differently our responsibilities and obligations and express them in different forms as convenient.

One way for example could be when a company donates to Charity acting as a good citizen.

However this though important and praise worthy, does not constitute Strategic CSR.

What is Strategic CSR?

The diagram below exhibits a possible conception:

From this it may follow that Strategic CSR are those acts that firms do to increase Society’s welfare that have also the effect of enabling Society in return to contribute to the growth of the firm in a way that creates shared value. That is, both the firm and society grow in a mutually reinforcing give-and-take way that constantly increases company prosperity and society wealth by what is known as a multiplier effect.

A second diagram that does justice to the mutual interdependence of business and society is the Circular Flow Diagram which shows in no uncertain terms even in the normal way of doing business, the prevailing interconnection of Business and Society through the link of goods (products) and services and through the link of factors of production.

On this diagram CSR is introduced by two new additional links that connect business and society in even more direct ways, arrows [...]