Corporate Social Responsibility (CSR) denotes a corporation’s dedication to ethical business practices that foster economic growth, environmental stewardship, and social welfare. It transcends mere profit generation, emphasizing the extensive effects of business operations on society and the environment.
Models of Corporate Social Responsibility (CSR) denote the frameworks or methodologies that assist businesses in meeting their ethical, social, and environmental obligations.
Models of Corporate Social Responsibility
Economic Model of CSR
Concept: The foremost duty of a business is to generate profits, which benefits shareholders and stimulates economic development. CSR initiatives are considered supplementary and are undertaken only when they align with profit-oriented objectives.
Example: A manufacturing firm invests in energy-efficient equipment to lower expenses and enhance profitability while also reducing its ecological footprint.
Philanthropic Model of CSR
Concept: CSR is perceived as voluntary charitable actions. Companies participate in activities such as donations or community support initiatives, separate from their primary business functions.
Example: A corporation allocates a portion of its profits to educational or healthcare initiatives without expecting direct business advantages.
Social Web Model of CSR
Concept: Businesses are integral components of a broader social framework and have a responsibility to positively influence societal welfare. This model emphasizes the need to balance the interests of various stakeholders, including employees, customers, suppliers, and communities.
Example: Starbucks prioritizes fair trade practices to assist farmers while catering to consumer demand for ethically sourced products.
Stakeholder Model of CSR
Concept: Companies are responsible to all stakeholders, not solely shareholders. This model entails actively addressing the requirements of diverse stakeholder groups, such as employees, customers, suppliers, and communities.
Example: Patagonia employs sustainable materials and equitable labor practices to fulfill the expectations of environmental advocates, employees, and consumers.
Integrative Model of CSR
Concept: This model incorporates Corporate Social Responsibility (CSR) into the fundamental business strategy, ensuring it is a vital component of the organization’s operations and decision-making framework.
Example: Unilever’s “Sustainable Living Plan” aligns its corporate objectives with sustainability initiatives, emphasizing waste reduction, health promotion, and the creation of social value.
Triple Bottom Line Model
Concept: CSR emphasizes three critical dimensions: Profit (economic value), People (social well-being), and Planet (environmental stewardship). The goal is to achieve comprehensive sustainability.
Example: Tesla merges profitability with the advancement of clean energy (planet) while fostering social development through innovation (people).
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