External and internal sources of corporate social responsibility
Sources of CSR - those forces that dictate to corporations and managers the corresponding responsibilities of responsible behavior are shown in Fig. 6.2.>
Internal sources of CSR are the responsibility caused by the existing real power of the businessman.
Developing the ideas of social responsibility of business, different economists give different interpretations of sources of CSR, dictating the responsibilities of responsible behavior:
Fig. 6.2. External and internal sources of corporate social responsibility
1) market forces;
2) political processes;
3) complex - external (dictates the business institute) and internal (dictates the real social power of a businessman).
The first interpretation is given by neoclassical economists T. Levitt (Harvard Business School) and M. Friedman. For the first time, market forces in discussing the topic of social responsibility of business were mentioned by Levitt. He wrote that one (main) responsibility of business is the pursuit of material benefit, and the other is the following of the elementary canons of everyday civilized communication, such as honesty, conscientiousness, etc. At the same time, Levitt criticized the growing attention to the development of schools, hospitals and social services as a concept, the wide application of which leads to the death of capitalism. Nobel laureate Friedman developed this same view and said that in a free society there is one and only one social responsibility of business; use their resources to participate in activities aimed at increasing their profits, to the extent that it meets the rules of the game, ensuring open and free competition without deception and fraud. These authors did not give their CSR definitions and considered the responsibility of business as a synonym of duty.
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The second interpretation of political processes as sources of CSR is given by institutional economists, in particular J. Galbraith. Society, the state should influence the corporation through state regulation tools, so that the interests of the "anonymous technostructure" did not dominate the interests of society. Galbraith stressed that it is necessary to create a rigid framework that can bring corporate power in line with public goals. The definition of CSR Galbraith did not give, but indirectly interpreted the social responsibility of corporations as the duty to follow external regulation.
The third interpretation consists in an integrated approach to the analysis of CSR sources. Author K. Davis (professor of the University of Arizona), examines CSR both at the system level and at the firm level - in a management context. Specific managerial decisions are made by a businessman, and the corresponding business institution determines only cultural frameworks, activities and specific interests. The social responsibility of businessmen directly follows from that real social power, which they possess, and must correspond to it. At the same time, Davis formulated the "iron law of responsibility": "Those who do not take responsibility adequate to their power, as a result will lose this power." Davis gave his definition of CSR, different from previous interpretations.
CSR is awareness by the firm of problems that go beyond narrow economic, technical and legal requirements, and reaction to these problems & quot ;. The firm will not be socially responsible if it only correlates its activities with the minimum requirements of the law, since it is inherent in any good citizen.
The definition of Davis can be called "narrow", since it limits the specific measures that can be understood as CSR.
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