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Agenda

Agenda. Evolution of Corporate Social Responsibility (CSR). For now what is CSR??????. A concept that’s deals with role of the business in society. History of the construct. Pre-formalisation of CSR construct Formalisation of CSR. Pre-formalisation of CSR construct.

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Agenda

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  1. Agenda Evolution of Corporate Social Responsibility (CSR)

  2. For now what is CSR?????? • A concept that’s deals with role of the business in society

  3. History of the construct • Pre-formalisation of CSR construct • Formalisation of CSR

  4. Pre-formalisation of CSR construct Genealogy of these ideas and practices can be related to • Ancient Mesopotamia • Greek • Roman times.

  5. For instance, King Hammurabi of Ancient Mesopotamia developed a code of conduct for workers (including builders, innkeepers and farmers). At that time workers were put to death if their negligence caused harm to others, or major inconvenience to local communities.

  6. In Ancient Greece, it was expected from better off to help and contribute to the social well being of less fortunate . • Ancient Roman senators were not happy and complained regarding ‘failure of businesses to contribute sufficient taxes to fund their military.

  7. Religious roots • Ancient Hinduism text ‘Vedic and Sutra’ and Buddhism text ‘Jatakas’ address ethical dimensions of charging excessive interest • Islam corporations are considers as group of individuals responsible and answerable to God and their (organisational) resources should be used for social good • The Bible explicitly condemns ‘charging of interest’, and emphasise on ‘sharing of wealth’

  8. Industrial Revolution • At the time of industrial revolution in the Western Europe the concept of corporate philanthropy emerged. • welfare including better working condition, better housing, reduce drunkenness and recreation facilities at work place.

  9. Adam Smith (1776) • If businesses are free to earn profit without any restrictions, they would bring common good to shareholders and society. • Generally, Adam Smith is misread and it is believed that he advocated ethics less economic rationale of morality. • However, with economic rational he also emphasised on the ethics of mutual trust and confidence during production and exchange of goods and services (see for example Sen 2002).

  10. 19th Century • Andrew Carnegie (Charity and stewardship • Ford Motor Company legal case in Michigan (US)

  11. Adolf A. Berle and Harvard professor E. Merrick Dodd presented an interesting series of articles featured in ‘the Harvard Law Review’ on the managerial role. • Nationalisation in the UK • 1953, a shareholder of Standard Oil

  12. Formulisation of CSR • Bowen (1953) ‘the obligations of businessmen to pursue those policies, to make those decisions or to follow those lines of action, which are desirable in terms of the objectives, and values of our society’ (1953, p.6 ‘according to sanctioned rules of conduct’ and emphasised that it is important that managers should follow those principle of morality, which are not covered by law (Bowen 1953, p.13).

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