Outline and discuss the evolution of CSR, including its history, role Assignment

Outline and discuss the evolution of CSR, including its history, role in the financial crisis and prospects for the future - Assignment Example J. Maurice Clark argued in 1916 that â€Å"if men are responsible for the known results of their actions, business responsibilities must include the known results of business dealings, whether these have been recognized by law or not† (Clark, Abramovitz, & Ginzberg, 2009, p. 83). This paper critically examines the concept of CSR, its implications for both business and communities and the drivers for CSR. Analysing and understanding the concept of CSR is crucial because it focuses on the development of a sustainable future. CSR is important because it affects all facets of businesses and, in turn, businesses are vital because they generate much of the welfare and wealth in society. By itself, CSR is ever more critical to firm value and societal stability. Hence, fundamental to the notion of CSR is determining where businesses belong in the society. By dealing with environmental issues, corporate ethics and governance, and other concerns, society builds a progressive framework w herein companies operate (Nakajima, 2011). Framework is progressive because the perfect combination of business objectives and societal demands is continuously changing. Although businesses are mainly in charge of generating wealth and motivating growth in society, they do not operate single-handedly. Governments are important because they develop and establish the policies and limits through which businesses and society function. Furthermore, nongovernmental or non-profit organisations are tasked to generate social goods without satisfying the obligations of a government agency or pursuing profit. However, in the absence of innovation free enterprise demands, economic and social growth deteriorates (Alexander, 2010). In the absence of the powerful wealth-generating mechanisms of business, the resources necessary to activate non-profit organisations and government agencies wither, eventually diminishing people’s quality of life. Businesses generate numerous societal goods. Ye t, they also bring about serious harm, as economic crunches, industrial mishaps, increasing unemployment rate, and environmental problems reveal. The governments then respond with regulatory policies to limit the worst unethical practices of businesses (Pedamon, 2010). Between the severe damage and general good businesses generate, consequently, resides interest in the legitimate role of businesses in society, particularly as technological advancement and globalisation widen the influence and power of major corporations. Economist Milton Friedman claims that â€Å"Few trends could so thoroughly undermine the very foundations of our free society as the acceptance by corporate officials of a social responsibility other than to make as much money for their stockholders as possible† (Aras & Crowther, 2010, p. 327). Yet, in contrast, companies are more and more pressured to operate with a multiple-stakeholder perspective (Alexander, 2010)—recognising the needs and demands o f various stakeholders, such as customers, shareholders, and employees while fulfilling responsibility for communities and the broader environment wherein they conduct their business. Implication of CSR for Business Although there are various ways to view the advantages of CSR because they are interconnected, they mostly involve the following: first, enhanced reputation; second, more positive and stronger ties with communities; third,