EVOLUTION OF THE CORPORATE SOCIAL RESPONSIBILITY PARADIGM
DOI:
https://doi.org/10.29038/2786-4618-2024-04-6-23Keywords:
corporate social responsibility (CSR), evolution, concept, behaviour, definition.Abstract
The processes of globalization motivate Ukraine, despite the military actions, to transition to sustainable economic development. The European integration ambitions of our country require the implementation of modern interaction practices between state and business, as well as between business and society, which would strengthen the mutual responsibility of all participants in business processes and public life, considering the environmental impact.
Today, the concept of ‘corporate social responsibility’ (CSR) in its various meanings, dimensions and aspects has become widespread in the global community. Along with the CSR concept, other concepts and approaches have also been developed, sometimes moving in parallel, complementing or stemming from each other, such as sustainable development, circular economy, industry 5.0, compliance, and the concept of environmental, social, and governance (ESG).
To better understand the modern expressions and forms of practical reflection of the CSR concept in economic processes, it is necessary to analyze its genesis and evolution. After all, different time periods and realities had their impact on the formation and modification of the essence and objectives of this concept, as well as its transformation from customs and rules of behaviour in society to a formalized, clearly structured, concept and philosophy of doing business.
This research is aimed to analyze the evolution of the concept of corporate social responsibility, its adaptation to a changing external environment and to the challenges of a particular historical period. A special focus is also made on the phrasing of the definition of corporate social responsibility.
In the course of the research, the authors used the method of analysis, in particular, such varieties as historical (retrospective) and comparative analysis.
The origins of the social component in corporate behaviour are quite deep and can be traced back to ancient Roman law, English law in the Middle Ages, and Christian religious philosophy in the 18th and 19th centuries. In general, it can be stated that the concept of CSR itself emerged in the United States at the end of the XIX century, but due to World War II, it was not of great interest to society until 1950-1960. From ‘business responsibility’ to the complex concept of ‘Corporate Social Responsibility’ (in various relations with many other concepts), as it is understood today, the development of CSR has passed through various time stages.
With all the definitions of the CSR concept in mind, as well as related and similar or complementary concepts, it is really difficult to formulate a single, universal and comprehensive definition. In our opinion, CSR can be defined as a philosophy and a comprehensive approach to doing business to make a profit, taking into consideration the interests of all stakeholders (internal and external), with a clear focus on the economic, social and environmental aspects of doing business in the long term perspective and using a system of preventive measures and balances.
References
1. Suprun, N. A. (2009). Korporatyvna sotsialna vidpovidalnist yak chynnyk staloho rozvytku [Corporate Social Responsibility as a Factor of Sustainable Development]. Ekonomika i prohnozuvannia - Economics and Forecasting, 3, 61–74 [in Ukrainian].
2. Chaffee, E. C. (2017). The Origins of Corporate Social Responsibility. University of Cincinnati Law Review, 85. Retrieved from https://ssrn.com/abstract=2957820
3. Harrison, B. (1966). Philanthropy and the Victorians. Victorian Studies, 9(4), 353–374.
4. Carroll, A. B. (2008). A history of corporate social responsibility: concepts and practices. In A. M. Andrew Crane, D. Matten, J. Moon, & D. Siegel (Eds.). The Oxford Handbook of corporate social responsibility. New York: Oxford University Press, 19–46.
5. Heald, M. (1970). The social responsibilities of business: company and community, 1900–1960. Press of Case Western Reserve University.
6. Schoff, C. (2024). The Evolution of Corporate Social Responsibility. ECOLYTICS, January 29. Retrieved from https://www.ecolytics.io/blog/evolution-of-csr
7. Latapí Agudelo, M.A., Jóhannsdóttir, L. & Davídsdóttir, B. (2019). A literature review of the history and evolution of corporate social responsibility. International Journal of Corporate Social Responsibility, 4(1). DOI: https://doi.org/10.1186/s40991-018-0039-y
8. Redkin O. S. (Ed.) (2011). Korporatyvna sotsialna vidpovidalnist: modeli ta upravlinska praktyka [Corporate Social Responsibility: Models and Management Practices]. Kyiv: Vyd-vo «Farbovanyi lyst» [in Ukrainian].
9. Tareq, Md & Hossain, Bin & Siwar et. al. (2014). Historical Development of Corporate Social Responsibility – A Review on Early Studies. Historical Research Letter, 15. Retrieved from http://surl.li/ftmzgm
10. Carroll, A. B. (2015). Corporate social responsibility: The centerpiece of competing and complementary frameworks. Organizational Dynamics, 44(2), 87–96. DOI: https://doi.org/10.1016/j.orgdyn.2015.02.002
11. Blagov, Y. E. (2004). Kontseptsyia korporatyvnoi sotsyalnoi otvetstvennosty y stratehycheskoe upravlenye [The concept of corporate social responsibility and strategic management]. Vestnik Sankt-peterburgskogo universiteta. Sir. "Management" – Bulletin of Sankt-Petersburg University. Management series, 3, 17-34 [in Russian].
12. Gail, T., Nowak, M. (2006). Corporate Social Responsibility: A definition. Working Paper Series, Curtin University of Technology, 62. Retrieved from http://surl.li/lmqyar
13. Wallich, H. C., McGowan, J. J. (1970). Stockholder interest and the corporation’s role in social policy. A New Rationale for Corporate Social Policy / Ed. Baumol W.J. New York: Committee for Economic Development. Retrieved from https://www.ced.org/pdf/A-New-Rationale-for-Corporate-Social-Policy.pdf
14. Kamyshnikova, E. V. (2020). Rozvytok kontseptsii korporatyvnoi sotsialnoi vidpovidalnosti: evoliutsiia ta suchasni tendentsii [Development of the Concept of Corporate Social Responsibility: Evolution and Current Trends]. Efektyvna ekonomika – Efficient economy, 3. DOI: 10.32702/2307-2105-2020.3.59 [in Ukrainian].
15. Davis, K. (1973). The case for and against business assumption of social responsibilities. Academy of Management Journal, 16(2), 312–322.
16. Friedman, M. (1970). The Social Responsibility of Business is to increase its Profit. The New York Times Magazine, September, 13, 122–126.
17. Carroll, A. B. (1979). A Three-Dimensional Conceptual Model of Corporate Social Performance. Academy of Management Review, 4(4), 497–505.
18. Kholyavka, V.Z., Husar, U.E., Leshko, H.S. (2021). Istorychni aspekty stanovlennia i rozvytku korporatyvnoi sotsialnoi vidpovidalnosti v Ukraini ta sviti [Historical aspects of the formation and development of corporate social responsibility in Ukraine and the world]. Ekonomika ta upravlinnia pidpryiemstvamy - Economics and Management of Enterprises, 56, 90–96. DOI: https://doi.org/10.32843/infrastruct56-15 [in Ukrainian].
19. Pasko, O. Poniattia ta evoliutsiia rozvytku korporatyvnoi sotsialnoi vidpovidalnosti: hlobalna retrospektyva [Concept and evolution of corporate social responsibility development: global retrospective] / Project materials 101094100-EECORE-ERASMUS-JMO-2022-HEI-TCH-RSCH-UA-IBA. Retrieved from https://eecore.snau.edu.ua/wp-content/uploads/2023/06/eecore-csr-rbc-se-lesson-2.pdf [in Ukrainian].
20. Jones, T. M. (1980). Corporate Social Responsibility Revisited, Redefined. California Management Review, 22(3), 59–67. Retrieved from https://journals.sagepub.com/doi/10.2307/41164877
21. Freeman, R. E. (1984). Strategic management: A stakeholder approach. Boston: Pitman.
22. Wood, D.J. (1991). Corporate Social Performance Revisited. The Academy of Management Review, 16(4), 691–718. Retrieved from https://journals.aom.org/doi/10.5465/amr.1991.4279616
23. Bekhouche, Imed. (2018). Corporate Social Responsibility in Algeria, the Society Awareness. International Affairs and Global Strategy, 60, 11–21. Retrieved from http://surl.li/fgiqyn
24. Hrytsyna, L.A. (2007). Evoliutsiia ta formuvannia kontseptsii korporatyvnoi sotsialnoi vidpovidalnosti pidpryiemstva [Evolution and Formation of the Concept of Corporate Social Responsibility of the Enterprise] / Materialy II Mizhnarodnoi naukovo-praktychnoi konferentsii «Nauka ta tekhnolohii: krok v maibutnie – 2007 [Proceedings of the II International Scientific and Practical Conference "Science and Technology: Step into the Future – 2007]. Dnipropetrovsk: Nauka ta osvita. Volume 2, 30–36. Retrieved from https://elar.khmnu.edu.ua/bitstreams/2d8f2fc0-f7df-4197-9666-c0f29836c1a2/download [in Ukrainian].
25. Kolot, A. M. (2013). Korporatyvna sotsialna vidpovidalnist: evoliutsiia ta rozvytok teoretychnykh pohliadiv. [Corporate Social Responsibility: Evolution and Development of Theoretical Views]. Ekonomichna teoriia – Economic Theory, 4, 5–26. Retrieved from http://nbuv.gov.ua/UJRN/ecte_2013_4_2 [in Ukrainian].
26. Elkington J. (1997). Cannibals with forks. The triple bottom line of 21st century. New York: John Wiley & Sons.
27. Freeman, R. E., and Velamuri S. R. (2008). A new approach to CSR: Company stakeholder responsibility. SSRN Electronic Journal, July 29. DOI: http://dx.doi.org/10.2139/ssrn.1186223
28. Menghwar, P. S. & Daood, A. (2021). Creating shared value: A systematic review, synthesis and integrative perspective. International Journal of Management Reviews, 23(4), 466–485. Retrieved from https://onlinelibrary.wiley.com/doi/10.1111/ijmr.12252
29. Porter, M. E. & Kramer, M. R. (2011). Creating shared value. Harvard Business Review, January-February. Retrieved from http://surl.li/pmbzby
30. ISO 26000. (2018). Guidance on social responsibility. Retrieved from https://www.iso.org/files/live/sites/isoorg/files/store/en/PUB100258.pdf
31. Green Paper (2001). Promoting a European framework for Corporate Social Responsibility. Brussels, 18 July. DOC/01/9. Retrieved from http://surl.li/lywvtv