The idea that great power has greater responsibility.
The nature and scope of corporate social
responsibility has changed over time. The concept of CSR is a relatively new
one—the phrase has only been in wide use since the 1960s. As the economic,
legal, ethical, and philanthropic expectations of organizations expected by the
society have changed, it is entirely true to say that organizations tend to act
responsibly at all points.
Major events in the 1960s and 1970s affected
society’s expectations of business. The civil rights movement, consumerism and
environmentalism have changed the general idea that great power has greater
responsibility. The concept of doing business proactively emerged from the
horizon which entailed certain limitations in ceasing to cause problems
affecting society and starting participating vigorously in resolving those
fatal societal issues.
In order to do that many legal instructions
were placed on business related to employees safety, product safety, equal
employment opportunity and environment. This created a huge awareness among
society to expect business to participate in social responsibility voluntarily,
regardless of the fact they explicitly involved in causing that problem or not.
Things heat up at the corporate level as they started going beyond economic and
legal responsibilities and performing social responsibilities for the
betterment of society.
Now the Corporate Social
Responsibility became an essential part of business reporting. Every
Corporation which is socially and morally responsible has set its own
procedures and policies regarding CSR activities. Corporations invest billions
annually on social activities and make them public through mentioning in annual
reports. Studies have been shown that there is a direct relationship between
corporate social responsibility and corporate financial performance. Companies
those are financially sound and stable spends more on voluntary activities
which on only create good name for them but also leads them to higher profits
and greater shareholders value.