CORPORATE SOCIAL RESPONSIBILITY AND ITS ROLE IN COMMUNITY DEVELOPMENT: AN INTERNATIONAL PERSPECTIVE
Corporate Social Responsibility (CSR), refers to the strategy of companies and organizations that promote their business in a manner that is ethical, social community and socially beneficial for social development. In this paper, the various meanings of CSR, or corporate social responsibility, will be examined from the perspectives and opinions in the literature. It seems that the three utilitarian, managerial, and relational theories in CSR, which have been supported by other researchers in this area, can be used to illustrate the nature of CSR, which is a kind of global nature due to globalization. There is no boundary between them and it is actually turned into a dilemma or social concern. Of course, the concept of CSR is still evolving both semantically and operationally. This article then discusses the role of CSR in social development, because the logic of CSR is meaningful in terms of its social, environmental, and economic implications for society. In addition, the skills required by CSR-managers are also important for a better understanding of the practical aspects of CSR and will be analyzed for this reason. Finally, the results and findings will be discussed.
Key Words: Corporate social responsibility, community development, competencies of CSR managers, multinational corporations, corporate-society relations.
The issue of CSR (Corporate Social Responsibility) has been discussed since the early 1950s. The latest research by Secchi (2007) and Lee (2008) reported that the definition of CSR is both semantically and operationally has been changing. The traditional and classic corporate social responsibility or CSR perspective was limited to humanitarianism or philanthropy and then changed the meaning of the emphasis on social business relationships with the company or organization’s contribution to solving social problems.
In the early 20 century, social function was linked to the performance of the corporate market. The pioneer of this view was Oliver Sheldon (1923, cited in Bichta, 2003), he in any case encourages company management to take the initiative to raise ethical standards and social justice through resource savings, Save on the use of transferable resources and use.
By doing so, businesses really help create social wealth in society and help improve living standards. CSR also currently covers corporate responsibility, corporate citizenship, responsible business and social business opportunities.
In fact, CSR is a concept by which business organizations take responsibility for their activities to customers, suppliers, employees, stakeholders, communities, and people and other communities in the environment and the social environment.
This commitment demonstrates that organizations and companies must follow the rules and pursue vigorously and voluntarily actions and initiatives to improve the welfare of their employees and their families, as well as the local community and their social community.
The CSR refers solely to the strategy of companies and organizations that conduct their business and business in a manner that is ethical and environmentally friendly. CSR can include activities such as collaborating with local communities, investing in socially sensitive needs, building relationships with employees, customers and their families, and doing activities to maintain and improve the environment and sustainability.
This article aims to examine three CSR theories or corporate social responsibility, meaning utilitarian, managerial and relational in terms of semantic and operational. Examined teams have been selected to cover the interdisciplinary aspects of the economic system, the management aspects of the economic system, and the management aspects of companies and their benefits.
Then in this article, the role of CSR in community development based on international perspectives will be highlights, due to the inconsistency of the concept and operation of CSR in different countries of the world due to different perceptions and operations in these countries.
- The organization of the paper is as follows:
- First, CSR theories will be analyzed in order to examine semantic concepts, their views and their approaches.
- Secondly, the role of CSR is specifically addressed in community development, because CSR logic is important in terms of its role and its community socially, environmental, and economic impact.
- Third, the competencies required by CSR managers will be discussed and analysis in order to better understand the practical aspects of CSR.
- Finally, the conclusions and research implications of future societies will be explained.
Theories of CSR
Since there is a great dissonance and heterogeneity between theories and approaches in the CSR, the discussion in this paper is based on the comprehensive analysis of Secchi (2007) and then compared with the analysis of Garriga and Mele (2004).
In fact, Secchi determines the role of these theories in companies and organizations, using a number of theories and based on a certain criterion. These theories are:
- utilitarian theory
- managerial theory
On the other hand, Grica and Mela (2004) categorize the role of CSR in several different categories, which are:
- Instrumental Theories
- Political Theories
- Integrative Theories
- Ethical Theories
In Table II, we also discuss theories and approaches of this category.
There is no doubt that there are similarities in both CSR conceptualizations in both groups, but our discussion will be based on the constant emphasis and perspectives of these two categories.
Table 1: CSR Utilitarian, managerial, and relational Theories
|Relational Theory||Managerial Theory||Utilitarian Theory|
|– socity and Business Mutual Approach
– Citizen Global Corporation
– The theory of social contract
|– Corporate Social Function
– Social Responsibility, Auditing and Reporting (SAAR)
– Social responsibility for multinational corporations
|– Social Cost Theories
Source: Secchi (2007: 350).
Table 2: Corporate Social Responsibility Theories and Related Approaches
|description||Approaches||Types of theory|
|maximization of value in long-term
– Social investment in a competitive environment
– A view of participation in natural resources and its dynamic capabilities
– Altruistic activities is known as a marketing tool
|– Maximizing the value of the shareholders
– Creating Strategies for Competitive Advantage
– marketing related causes
(Focus on achieving economic goals by social activities)
|– The social responsibility of businesses shows the social power of companies
– It is assumed that there is a social contract between business and society
– The company is known as a citizen with a special partnership in the community
|– Corporate legitimacy
– Integrated social contract
– Citizenship of the company
(attention to responsible use of business power in the political arena)
|– Corporate Responsibility to Social and Political Issues
– The existing laws and regulations in the country that are accepted as a reference to the social functions of the company
– Balance the interests of the shareholders of the company
– Search for social legitimacy and appropriate processes for responding to social issues
|– Management problems
– public liability
– Stakeholder Management
– Corporate Social Function
|– The company has trustee responsibilities to its shareholders. It requires some moral theories that are based on human rights, labor rights and respect for the environment.
– The goal is to achieve human development
– Activities should be based on the attention of future generations
– Activities should also take into account the common interests of the community.
|– The theory of stakeholder norms
– Universal rights
– Sustainable Development
– Have a good common
(Focusing properly on a good society)
Source: Garriga and Mele (2004: 63-64).
In useful theories, the company acts as part of the economic system, which is part of the company’s activity as a mechanical activity and so on, and is typically recognized as the maximization of profits or the accumulation of profits.
CSR ideas emerge from the fact that society needs a responsible or accountable economy that is embedded in the business ethics of a company.
Hence, the old idea of a business, called non-intervention in a business or laissez faire, creates conditions for determinism, individualism in general control and individual responsibility in social responsibility. Earning goodness can also be used synonymously with Utilitarian theory (Garriga and Mele, 2004; Jensen, 2002), in which companies are only known as wealth creation tools and their social activities are only A means to achieve economic results.
Instrumental theories or Utilitarian theories, also known as engineering theories, are based on the basic idea of investing in a local community, in which Friedman (1970) strongly believed and believed that long-term investment could be a resource And provide amenities for people’s livelihoods in a community.
The utilitarian theories or Useful theories are related to competitive advantage strategies. The advocates of these theories, Porter and Cramer (2002) and Litz (1996), described these theories as the basis for developing strategies for the dynamic use of corporate resources for competitive advantage, and have been investigated. These strategies include humanitarian activities that are known as marketing tools.
Sechi (2007) later turned the utilitarian theory into two parts, the first of which was the company’s social costs, and the other the company’s operational ideas.
The theory of company social costs is the basis for CSR, in which the socio-economic system in society is affected by non-economic forces. It is also known as instrumental or engineering theory (Grega and Mela 2004), because this fact has been recognized and acknowledged that CSR merely means an end to the fact that the corporate social power Specific only with the view of the company’s political relationship with the society is realized situation.
As a result, the utilitarian theory reflects the fact that the company needs to accept and have social rights to participate in social partnerships.
Inside this theory, functional theory can be observed in particular in which the company is seen as part of an economic system in the community and one of its goals is profitability.
In fact, this company should be considered as an investment that should be beneficial for investors and stakeholders. According to the company’s internal vision, CSR is designed as a defense tactic of the industrial system against foreign attacks, because it is essential to balance the profit and social goals in order to balance the economic system.
Secchi’s Analysis (2007) is more emphasis on managerial theory, and it is often emphasized on the management of companies in which CSR companies emphasize and approached the cooperation and internal participation of companies in the community.
This point indicates that everything outside the organization or company should be considered for organizational decision making. This is the biggest difference between managerial theories and utilitarian theories.
Managerial theories are divided into three sub-groups:
- Corporate Social performance or Functioning (CSP)
- Social Accountability, Audit and Reporting (SAAR)
- Social responsibility of multinational corporations
The main purpose of the CSP, or the company’s social function, is to measure the contribution of social variables to the company’s economic performance. Therefore, the biggest challenge for companies at this stage is that company management should plan and operate according to social and economic factors. This is based on the assumption that trade depends on livestock and social factors for growth and sustainability.
The CSPs are divided into five sub-categories in each company to provide detailed information about the availability of CSP-based processes and functions in the company’s business chain:
- Centrality: Defines the methods defined for CSR or corporate social performance with the mission and main objectives defined by the company.
- Assess the benefits and achievements or benefits of implementing SCR policies for the company.
- Measure professional and performed activities of the company with external demands.
- Investigating the role of the company’s will in terms of the tools and missions that the company has taken to implement the CSR
- Examining the responsible way that the company understands and implements to its stakeholders.
As a conclusion, it can be argued that managerial theory brings benefits, meaning that CSR policies take social and economic variables to measure socio-economic performance of companies, as well as the ideological linkage of corporate social responsibility with strategy Business and corporate affairs.
Sechi (2005) later explains that SAAR’s corporate accountability, audit and reporting are closely linked to corporate social partnerships by closely monitoring these activities and then reporting to the community. In fact, SAAR means company accounting for corporate social participation.
By doing so, companies in their routine activities are not even subject to control and auditing for their core business activities, and only the company is required to submit audits and reports on their social activities that are relevant It becomes a society and, in fact, corporate social responsibility.
These three activities are separate management activities that are related to process principles and are in fact interconnected with each other. All of this contributes to the responsible corporate social behavior, and ultimately measures the activities and actions of companies and organizations that have social impacts.
Companies and organizations participate in SAAR activities for communication needs, resulting in better stakeholder participation and less disclosure of CSR concerns for multinational corporations (MNCs), resulting in global competition and challenges that face it growing up.
This aspect of managerial theory, as a result of the responsibility of managers, requires establishing and identifying useful tools for CSR policies for multinational corporations that can prepare a company to survive in other countries.
Donaldson (1989, cited in Secchi, 2007: 359), describes multinational corporations or MNCs as ‘moral agents’ or ethical agencies that managers should consider when manager Macke decision in the firm basis as moral or ethical values. And analyze that these activities are in a way beyond achieving maximum profit.
The CSR logic for multinational corporations also adheres to the fact that many of the cultural conflicts faced by MNCs in fact, employers are faced with protests, demonstrations, sanctions, boycotts, strikes, and other negative action There are negative measures against employers in that community.
Answering this kind of cultural action requires the establishment of guidelines and methods that by formulating these collisions to consider ways to deal with it and to consider that this should be considered in the priorities of any multinational corporation or MNCs.
However, the success of these types of strategies and planning depends on customer expectations, company reputation, and the level of trust, acceptance and cooperation derived from the community of stakeholders and the workers community.
Management theories are heavily dependent on political theories on the concept of Garriga and Mele (2004), endorsed by Wood and Ledson (2002) as well as Detomasi (2008).
They emphasize that the social responsibility of businesses derives from the creation of social power created in a company, and that the company is considered as a citizen with a particular partnership in society, and that they must be responsible and Identify and do your activities in society.
The origin of the political power of CSR was initially created and proposed with the idea of Davis (1960), and he believed that business were an activity and a social approach, and that it should be used with corporate responsibility in society. He also believes that corporate power is a key factor in corporate power both inside and outside the company.
Later, Detomasi (2008) claimed that the strategies that companies take to make their decisions to coordinate and comply with CSR policies are part of the internal organization’s internal structures that are in the domestic community or community the activities of the company are carried out and the internal impact on the environment of the domestic community.
Political theories then show that the relationship between the pressures of globalization of the economy, the feelings and demands of companies, the internal political structures of the countries in which the companies are located and the CSR policies are interlinked.
Management theories are also covered by the integrative Theories of Garriga and Mele (2004), which means that the integration policies of both have also been well seen and covered by public responsibilities and corporate social functions.
Public responsibilities are governed by the laws, regulations, and political demands of a country, all of which are considered as the main reference for the activities of the company in society, while social functions a company is determined to seek social advocacy related to the issue of social rights in a society. The purpose is to have a legitimate and acceptable activity by the community.
The theory or relational theory is rooted in the complex corporate environment. As the term and meaning of this kind of communication are known, the relationship between the company and the environment needs to focus on the study and analysis of CSR or social activities of the company.
As shown in Table 1, relational theory is divided into four subgroups of theory:
- business and society
- stakeholder approach
- corporate citizenship
- Social contract
There is a clear meaning between business and society, or trade and society, and it means doing business in the community, in which CSR represents the interaction between the two institutions.
One of the indicators of CSR is the development of economic values in a community. Another is the individuals themselves whose influence on their decisions and actions affects the overall social control. The social responsibility of businessmen is expressed in the form of a general relationship, which needs to reflect and show the extent of their social power.
Stakeholder approach is recognized as one of the strategies used to improve the management of developed companies and is also defined as a way to understand reality in order to be responsible for managing a responsible social behavior in a company.
The stakeholder approach further also considers the company as a network of different interests, in which the self-awareness and the creation of mutual communities are defined and understood and important, and individuals actually behave in the specified way.
According to Garriga and Mele’s (2004) analysis, there is an employee participation approach both in integrative theories and in ethical theories, where they emphasize the integration of social demands from the company, and secondly, the purpose of the work is in fact A goal is just to achieve a desirable society.
These issues are also endorsed and supported by Mitchell, Agle and Wood (1997), and in fact they also emphasize stakeholder engagement. Freeman and Phillips (2002) also emphasize this fact, and describe tasks as lending obligations that shareholders in a company must carry out and be trustee.
The category of corporate citizenship in communication or relational theory depends entirely on the type of society in which the company is active. In fact, this is a path that the company can deal with and respond responsibly along the way.
In fact, this essentially interprets the relationship of the company with its stakeholders and identifies the type of relationship with the stakeholders in the development path, so the company should constantly seek ways to engagement and commitment with the other party.
According to Garriga and Mele (2004), firm or corporate citizenship is an approach that is based on integrated and political theories and has been accepted by individuals such as Swanson (1995) and Wood and Lodgson (2002).
Finally, the theory of social contract in the relational group refers to the fundamental issue of justifying the ethics and morality of the company’s economic activities, and in fact the theory of social contract as a theoretical basis for analyzing the company’s social relations with society.
Therefore, the CSR is derived from the corporate moral legitimacy of the company, and to understand the CSR of a company and should analyze the social activities of a company and how it participates and behaves in society.
In the analysis and analysis of Garriga and Mele (2004), social contract theory is grouped under the category of ethical theories that some of its approaches can be considered universal (UN Global Compact, 1999) and sustainable development (WCED, 1987; Korhonen, 2003).
Both CSR practices are based on three principles of human rights, labor rights and respect for the environment.
Therefore, a brief conclusion of the three groups of CSR theories can be as follows:
- Utilitarian Theory:
This theory has simplified individual views with the company’s mechanism, from a managerial point of view, is very easy to organize and measure, and it covers value-based relationships and, of course, company-to-business affiliation. The allocation of responsibility is in the order of the theories, the economic system, the company and the type of communication or relationship.
This conclusion can be further explained and reinforced by a different concept, which is not a far-reaching concept of CSR, in which theories are grouped into an organizational, political and integrated tool and values.
- Instrumental theory
The theory or the theory of instrumentality emphasizes the achievement of economic goals by focusing on social activities, in fact the political focus on the responsible use of business power in the political arena, integration into the focus on the integration and concentration of management issues, responsibility General and stakeholder management and corporate performance in society.
- Ethical theory or moral theory
And also moral or ethical theory emphasizes the strategy of achieving a good and acceptable society
In the following section, we will discuss the importance of community development and the role of CSR in community development based on different backgrounds around the world. The role of the CSR is essentially determined to understand what the community gains from different CSR programs.
The role of CSR in community development
Means of community development
First of all, society must be defined as a group of people who share a common goal as a whole, depending on the fulfillment of specific needs, they are living in an environment close to each other and organized on a regular basis Both interact.
In this society, there are common expectations from all members of the community, and each one has responsibilities to the community that these responsibilities derive from the same expectations.
In this group, each person in the community is respected and other people in the community are identified as a single person. In this community, there is a whole sense of society that is defined as a sense of co-operation, commitment to the welfare of the group, a willingness to communicate clearly and responsibility towards other members of the group, as well as responsibility towards oneself.
Most importantly, community leaders are responsible for the success of any social event and must act on the needs of the community and individual emotions. Community leaders are people who are trying to influence other people in society so that people are prepared to take responsibility for their actions, their achievements, and social welfare.
Development of society, defined as community development (CD), refers to group-community initiatives, in partnership with international and external organizations, to strengthen individuals and groups of people by doing activities such as developing the skills required to change society in these groups.
Means of community development
These skills often focus on the use of local resources and the creation of political power through the formation of large social groups, all of which have a common agenda. Community developers, or managers and officials, should recognize and understand all the criteria needed and how they work with people and how they can influence the situations of communities in the context of large social institutions.
CD is the development of active and sustainable societies based on social justice and mutual respect. It also emphasizes the impact on the power structures of a society to remove and manage existing barriers, which often hinder people’s participation in matters of their own lives.
Workers in a community facilitate people’s participation in the recovery process. They prepare communication between communities or relationship along with the development of broader policies and programs that are planned or not.
In fact, the CD explains the values of justice, equality, accountability, opportunity, choice, fairness, participation, dualism, interpersonal effects, and continuous learning. In the core and center of the CD, emphasis should be placed on the subjects of education, empowering and enabling (Federation of Community Development Learning, 2009).
CD or social or community development is a combination of processes, programs, strategies and activities that bring society in proportion to and relative to economic development, which is a type of marketing appropriate to growth potential, followed by local efforts to create opportunities, is more stable.
The entire set of social development operations approaches may be defined and considered as a specialized structure and form for addressing, coordinating and creating social infrastructure for a location.
A CD may be a challenging process for inconsistent and unacceptable conditions and infrastructures that recognize the quality of life in the place of life of people and people’s work, which may have a negative impact on them. But for communities and places where all classes of society and citizens are integrated in a coherent way, social development can be best done (Community Glossary, 2009).
The broad concept of social development (CD), as defined by the United Nations (United Nations, 1971), can be presented. It organizes CD as an organized effort by all individuals in a community to solve community problems without the slightest help or with the smallest help from foreign organizations.
Foreign organizations include government and non-governmental organizations, and even companies of various types, such as small and medium-sized enterprises (SMEs) and even multinational organizations (MNCs).
As a result, the United Nations defines a CD or a community development focus on creativity and self-confidence in society to obtain short-term and long-term goals, but not as a CSR role that encompasses all types of business firms.
In terms of people, the definition of CD basically involves educational and organizational processes. Another term related to CD is work in society, work in society is, in fact, the participation of the people of that society Focuses on some matters affecting their lives and the relationship between individuals and groups that shape their everyday experience.
Meaning of social development
In essence, this process is an evolutionary process that involves all collective and individual experiences. In this sense, we should see equal cooperation among all those involved in a community in order to share skills, awareness, knowledge and experience in order to make change.
It can be taken into consideration in both phases and in each type of society whenever people of a community work together to identify what is relevant to them and their lives, and to express a common concern about different issues. It can be said that society is moving towards social development.
The key goal of this approach is that societies that are vulnerable to weakness can work together and in a collective way to identify their needs and rights, identify their goals, and take the necessary steps in a democratic and Respecting the needs and rights of others to achieve the desired desirability.
The community work also recognizes the needs of celebrations, diversity and appreciation of the ethnic and social differences of the community, and there is no racism and ethnicity in it, and all celebrations and ceremonies of different ethnicities are recognized.
The CSR’s shared goals in social or community development are undeniable from the point of view of CSR, and in principle CSR relates to many concepts in society as well as CD-related concepts.
According to Towers Perrin (2009), CSR is the third most important factor in employee engagement in general. For example, in the United States, the status of the organization in the community is recognized as the second element of employee interaction, and the reputation of the company for social responsibility is also among the top ten leading factors for employee engagement.
The role of the CSR on the CD The purpose of this paper is to capture any direct and indirect interests of the community as a result of corporate social commitments to society and the social system.
The major roles of the CSR on CDs (Community Development) can be described as follow:
- To share negative consequences as a result of industrialization.
This requires an increase in the focus of conscientiousness in work environments that can be achieved with a greater focus on business ethical processes. For example, with more fines for larger vehicles with extra loads damaging the roads, there is a reduction in the load on cars and smaller vehicles (Wikipedia, 2009).
By doing so, smaller vehicle owners, by reducing their share of taxes and burdens, will make the money redirected to a more productive and effective use of the financial cycle of society.
Closer relations between companies and society
Through the CSR, the need for companies in the social system will be beyond the reach of the point that they are only for the purpose of hiring and producing goods and services.
In fact, by building closer relationships between companies and the community, these two can create better relationships and keep companies and society together. It is a social capital that is very important in the development of society
The major roles of the CSR on CDs (Community Development) can be described as follow:
- Assist in talent
Organizations and companies that have a good reputation in CSR can benefit from their desirable status and enhance their recruitment requests as an attractive employer and fulfill their obligations as part of their valuable offerings. Provide the right conditions with the potential and enjoy a higher chance.
It is also noted that when employees observe their organization’s commitment to more responsible social behavior, they tend to have a more positive and better attitude in different social fields and, in this regard, have a much more favorable performance.
They will believe that their organizations recognize and reward top-class customer service, act quickly to address their customers’ concerns and resolve their concerns, and through individuals who, as a senior management of a company, behave and act in the best of the customer and lead the company.
In this context, the trust in the top management of the company will also increase in other areas, and in this case, corporate employees are superior to their higher social responsibility.
For example, if a number of employees understand that senior management supports new ideas and practices, they will gain a better understanding of their organization and will show confidence and loyalty and even better participation in the organization.
As a result, the relation between the company’s success in the market can be often characterized by the capacity of innovation and the understanding of employees about the organization and the position of the organization and, of course, the activities of the organization. This is a factor in attracting and retaining talent.
In relation to the CD, it can be explained in this way that having a good understanding of the employees about their company will make this perception develop in the community and that participation in society will be considered as a very valuable economic asset.
- The role of technology transfer or transfer of technology (TOT)
The closer relationship between technology transfer or TOT between MNCs and companies in a community helps to lessen concerns about CSR and society in host countries. MNC is a company that has facilities and assets in at least one country other than its original country.
Such companies also have offices or factories in other countries, and usually have a central office that in these Office doing the Global Management for their companies. Extremely large multinationals usually have budgets that are some times larger than many small countries.
Barton (2007) focuses on three mechanisms of international technology transfer: human resources flow, public sector technology flow and private technology flow from MNCs to develop the country.
He argues for economic mobility to invest in public sector research in developed countries in order to further global mobility and globalization of world scientific organizations.
Through TOT and also with the CSR, the target community will reach different aspects of product development and marketing, such as lower prices and higher quality, and reduce concerns for people’s health.
5- CSR helps protect the environment.
For example, some of the world’s largest companies have made significant CSR commitments and have taken measures aimed at reducing environmental impacts.
These companies believe that financial and environmental performance can work together to gain company growth and social reputation together. This kind of attitude can increase the organizational values for employees and their greater interest in the company’s activities in moving towards a green environment (Towers Perrin, 2009).
The motto “We green the earth” was created by some MNCs in Malaysia, which are sponsoring green areas by building huge golf courses adjacent to their residential areas, and this is another CSR initiative. It is essential to protect the environment. Many non-profit organizations have entered the CSR approach to learning and environmental protection, according to the United Nations, and are taking action on this path.
For example, one of these companies can be “Friends of the Earth”, which highlights the environmental impacts of some MNC companies or some of the campaigns to protect the environment.
Another company that operates in this area is the “Green Peace Mission”, another example of CSR-driven initiatives that will enable the community and companies to maintain their second right, which is to have a healthy environment. (Wikipedia, 2009).
The “Green peace Mission” is an independent global campaign that deals with changing attitudes and behaviors, maintaining and protecting the environment and promoting peace through many ways, one of which is the struggle for sustainable agriculture and their environment by encouraging socially and ecologically responsible farming practices and holding some training courses for them. The “Green peace Company” has direct operations to lobbying and research for various purposes in its business process.
The non-governmental organization has widespread influence in 42 different countries in the world, with national and regional offices primarily operating in the context of joint global campaign strategies within the local community.
6- CSR is for adherence to human rights of companies.
The United Nations has launched a Global Compact or Global Factor initiative, which is actually an initiative to persuade international companies to embrace global human rights principles (UN Global Compact, 2009).
In essence, this UN Worldwide Factor is the largest corporate license of the world and a strategic business policy that urges companies to coordinate their operations and strategies in the field of human rights for work and the environment.
By doing so, the business itself can even ensure, as a prime factor, for the prosperity of globalization the progress of global markets, trade and technology and financial dimensions, thereby helping to boost the economy and society around the world.
Never before had such goals been for the international community and the business world. Common goals such as the construction market, the fight against corruption, environmental protection and social security, which have led to unprecedented participation, as well as the openness of the door between businesses, government, civil society and work, and of course, the World Organization, such as the United Nations But there was no common goal for the participation of companies in protecting the environment and human rights.
This growing perception reflects the growth of the globalization agreement, which today is considered to be the largest initiative of citizenship and corporate stewardship in the world. Today, there are more than 4,700 companies and shareholders from 130 countries around the world.
7- Independency between companies and society
the close relationship between company and community is another aspect of CSR’s role on CDs. Because in the long run it can create supportable development. For example, this process can be seen at Shell Company and its participation in the Flower Valley in South Africa, and Marks and Spencer in Africa.
The CSR project helps local organizations and poor communities make this definitely a sustainable development for the community (Wikipedia: 2009)
8- The CSR program can help alleviate poverty in the community
For example, Malaysian reality program Bersamamu of TV3, launched by SFSB or Syarikat Faiza Sendirian Berhad, a local investment company, at the request of the government to help reducing poor and improve their livelihoods (SFSB, 2009). The company originally supports TV3’s local media to promote and support its audiences.
This TV show highlights and focuses on reality of the lives of the poor people and the misery that misfortune to continue to live. Each purchase of Faiza products is assigned a percentage of this purchase to the Bersamamu TV3 Fund Dialog.
As a result, through these types of partnerships, other companies may help other nations reduce poverty and, subsequently, develop the community.
9- The CSR program helps in collecting data to better serve other public organizations.
For example, in the United States, Intel and IBM (examples of very large ICT companies) help police departments handle police cameras, gathering information or install camera or with video processing capabilities in areas where crime rates are high. Then police Collect and process necessary information and use them.
Intel also provides initiatives to educate local communities about how to use technology to prevent crime or at least use these technologies to identify the offender (CSR @ Intel, 2009). These are just two examples of IT companies that follow CSR policies that both benefit the community and support business goals.
10- Help sustain the goals of the organization
In Europe and many other countries other than the United States, many companies have taken on their social roles for many years, and this is often a sign of the sustainability of companies. The European Union has also developed an organizational framework, creating a progressive set of economic, social and environmental goals for companies to achieve, and companies are being encouraged in this direction.
For example, Towers Perrin (2009) has adopted a methodology that identifies and develops employee perspectives on sustainable business practices (SBP). These practices represent the firm’s commitment to corporate ethical behavior to assist economic development, while improving the quality of life of the workforce and its family members, along with the improvement of the local community and the larger community.
The Towers Perrin sustainable business practices (SBP) specifically cover five areas:
- Knowledge and importance of understanding issues among employees
- Employees’ stable behaviors
- Social and communication function of employees
- Employee environmental performance
- Ethical and legal performance of employees.
Skills Required by CSR Managers in Community Development
The success of the CSR depends on both internal factors and external factors and is determined by the two, The economic and cultural considerations of the company, including the culture of the manager and the employees and the moral effects, can be considered as a group of internal factors. While external factors is determined in accordance with the legal requirements and technological effects and even the national culture of a country (Bichta, 2003).
The skills that CSR managers obtain are mainly within the internal factors or internal elements, but these factors play a crucial role in the success of these managers, especially in helping the community.
Because CSR specialization and profession is known as a very new specialty, it needs skills and knowledge of other related specialties to transfer to this type of management, such as environmental management, business ethics, community development and human resource development.
Determining specific skills for CSR managers is difficult due to the diverse roles and range of related disciplines. However, based on the experience gained in the United Kingdom (UK) in the area of CSR management (Career Service, 2009), three key areas for CSR managers are needed.
CSR managers need business skills, human resource skills, and technical skills.
Business skills include creating insight, communication skills, decision making, business awareness, information technology, innovation, strategic consciousness, leadership and problem solving.
Individual or human skills contribute to people’s empathy and cover it, develops people’s skills at the community level, learns from the impact of a society without exponential power, integration, political awareness, altruism, volunteering And learning, etc., are also such skills.
Ultimately, technical skills include technical expertise, understanding of evaluation and effects, dialogue with stakeholders, respect for human rights and understanding of sustainability in society.
Based on the skills grouping above, CSR managers should have six core skills. They must understand and develop the society, develop the capacities of the organization, direct business to trends other than profit making, have good relations with the stakeholders, and ultimately strategic partnerships, social partnership, and operation understand the diversity of the community.
CSR managers therefore require a range of professional options such as marketing, human resources, safety and health, environmental management, ethical investment, public relations, ethics, social resource development, and social research.
Conclusions and research implications
During this research, we came to the conclusion that the CSR is about business, government and civil society cooperation with a view to achieving a win-win situation in which all three institutions gain their benefits. From the social point of view, CSR should benefit society, because the community has a very complex structure, and it consists of individuals with different levels and perspectives and requires the control of resources physically and indirectly.
The analysis of these theories addresses the understanding of CSR, which goes far beyond traditional meanings, so the CSR requires a multifaceted approach to its outlook and performance.
Because the current concept of CSR is complex, knowing the theories allows scholars to better understand corporate relationships with the community, in which CSR theories and practices are influenced by many economic and noneconomic dimensions as well as many Internal and external standards are attainable.
The role of CSR in CD is perceived by the stakeholder’s community in a responsible manner and emphasizes its type and impact. Studies show that CSR plays a very important role in this and has implications for society, including:
It brings about closer relationships and interdependencies between companies and the community, sharing the costs society must pay for environmental degradation, transferring technology from international companies to countries and developing countries, triggering Efforts to protect the environment from companies and communities will help reduce poverty in societies, protect human rights and help collect information by ICT companies to facilitate the activities of public organizations.
For many corporate leaders in recognizing that they must begin or end their related activities in connection with community infrastructure, the creation of economic opportunities and access to basic services such as health, education and poverty reduction, Encountered.
Experience has proven that comprehensive, sustainable CSR solutions at the community, state, and even national level are based on collaborations between the government, the community and the various commercial companies.
In addition, the conclusions indicate that the skills required by CSR managers are different because they are involved in various disciplines and specializations and vary widely due to the complexity of their roles and responsibilities.
It seems that no specific conditions for this field can be drawn. Since this new field requires the transfer of skills and knowledge of various related specializations, such as environmental management, business ethics, technology transfer, human resource management and community development, and many other specialties.
In summary, we can say that the skills required by CSR managers are business skills, individual skills or human resources, and technical skills. Of course, some special skills are also required, which are further defined by the missions and eye sizes of the companies and the organizations that serve CSR managers.
CSR organizations in many on the path of development countries, including Malaysia, include domestic or local companies as well as international companies.
Similarly, this study suggests that comparative studies should focus on the difference between the strategies adopted by the two companies in terms of emphasizing and orienting CSR goals and the specific role of CSR programs in a community or region, and even in general in one A specific type of business with people with specific cultures and attitudes, and in the future, should be determined according to the technical skills of CSR managers.
It is also suggested that studies be conducted on how companies manage CSR during current economic crises. However, it must be taken into account that it is a fact that moving toward achieving corporate goals without regard to social goals can endanger the company’s life.