Corporate Social Responsibility - A Mutual Relation Between Company and Society

A growing number of writers over the last few decades have recognized that the activities of an organization impact upon the external environment and have suggested that such an organization should therefore be accountable to a wider audience than simply its shareholders. Such a suggestion probably first arouse in the 1970s and a concern with a wider view of company performance is taken by some writers who evince concern with the social performance of a business, as a member of society at large. Every business Organization has, mainly two fold objectives- Economic and Social. The economic objective deals with the profits while social objectives refer to its dealing with employees, public and stakeholders. The Company is accountable to its stakeholders not only for its financial, economic and operational activities but also on all issues having social or environmental dimension. Such obligation assumed by business towards society is called Corporate Social Responsibility (CSR). The concept of corporate social responsibility means that organizations have moral, ethical, and philanthropic responsibilities in addition to their responsibilities to earn a fair return for investors and comply with the law. A traditional view of the corporation suggests that its primary, if not sole, responsibility is to its owners, or stockholders. However, CSR requires organizations to adopt a broader view of its responsibilities that includes not only stockholders, but many other constituencies as well, including employees, suppliers, customers, the local community, local, State and Central governments, environmental groups, and other special interest groups.