Coporate Social Responsibility

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The Corporate Social Responsibility:
A Review of Literature

Yassin H. Yassin
UNDP, Riyadh, Saudi Arabia
November 2005


Business organisations strive to survive by the efficient use of the factors of production and other facilities of the society. This process puts organizations in an interdependent relation with the government, the community at large and the environment. Such interdependence gives rise to a series of broader responsibilities to society in general (Mullins, 2005). Mullins further illustrates that the social responsibilities are both internal and external to the organisations.

Presently, there is an increasing concern with the social responsibilities of organisations. This is reflected in part by the extent of government action and legislation on such matters as, for instance, employment protection, equal opportunities, company’s acts, consumer law, product liability and safeguarding the environment (Mullins, 2005). Based on this the social responsibilities of organisations have turned into a legal requirement.

Business Stakeholders

Palmer and Hartley (2002) argue that business organisations should act in a socially responsible manner for two self-evident reasons: one philosophic and the other pragmatic. Philosophically, models of a responsible society require organisations to do their part along with the family and other social institutions (the schools, the religious institutions, etc.). Pragmatically, organisations have to take account of the society’s values, otherwise they will be isolated and therefore their long-term survival will be jeopardised.

Against this backdrop, business organisations have to think of their overall stakeholders, which include:

1. Customers: The most immediate, influential and targeted stakeholder for any organisation is the customer or the consumer of its goods…...

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