Nowadays,the competition among companies is extremely fierce due to the rapid developmentof the markets. It is believed that boosting net profits and shareownerinterest are the main basic tasks of corporations (Beck et al., 2014).
However,companies’ duties require more than that which can result in improving theirimage and reputation in the market to have competitive advantage over thecompetitors. The concept of Corporate Social Responsibility (CSR) was establishedin order to move beyond the economic purpose which can be given viacontributions to the social welfare and moral behaviour (McWilliam 2015).Thus, this essay will attempt to provide some fundamental knowledge aboutCorporate Social Responsibility (CSR) and its benefits to business. First, thedefinition of CSR from different aspects will be briefly provided. Then the sixbasic characteristics that is needed in both theory and practice of any CSR’sdefinition are presented. After that, the CSR’s benefits to business aremeasured. Corporate SocialResponsibility (CSR) is a theory by which is volunteer activities that combinethe enterprises’ anxiety to the society and the surrounding environment in theircommercial progress and dealing with their consumers,suppliers or employees (CEC, cited in Beck et al. 2014).
Moreover, theCommission of European Communities (cited in Beck et al. 2014) declares that companies’duties to the community are not only to comply with the law, but also to reachoutside the range of adherence and to contribute more to human resources, thesurrounding environment and the relationship with their stakeholders. Inaddition, the Confederation of British Industry (cited in Crane et al. 2008,p.
6) defines that Corporate Social Responsibility is the companies’ recognitionto perform a further action to the environment and society rather thanfinancial purposes. While the social responsibility of corporations, accordingto World Business Council on Sustainable Development (cited in Beck et al.2014), is the contribution of business undertake to the constant evolution ofthe commercial process by developing the living standard of society. Due tothese differences in the meaning of Corporate Social Responsibility, the AustralianCorporations and Markets Advisory Committee (cited in Beck et al.
2014) reportsthat the quotation of Corporate Social Responsibility “does not have a preciseor fixed meaning”. As a result, Corporate Social Responsibility has been acontroversial issue for its correct and exact definition worldwide. In allapplications, companies can engage in numerous activities through CSR to havepositive societal and environmental impacts.