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Corporate Social Responsibility: Historical Development

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Corporate Social Responsibility: Historical Development, Concepts and Practices
Historical Development of CSR

Carroll (2008, pp. 19-46) relates that despite the provision of schemes prior to the 1950’s to improve workers’ conditons, it is difficult to conclude that the development of social programs by organzations for their workforce was solely as a result of the altruistic nature of the company. The establishment of these social welfare schemes served the dual purpose of reducing social ills which in turn increased efficiency in the workplace.

Wren (2005), management hitosrian, cites two cases which depict debates sparked by the question of limted charter powers and the concept of management as a trustee of the stockholders’ property working together to create the 19th century legal basis for corporate philanthropy. In the first case, the company wanted to compensate employees due to job loss. Based on court rulings which would not be aligned with the concepts of CSR, the directors of the company should be more concerned with spending the company’s money solely for the purposes of business and that it should not be used for charity. In the second case however, the court’s decision would be more in line with CSR’s concept of social good where the purchase of land for a school, church and other social institutions would benefit the community in general. These cases highlight the ambiguity that is inherent in CSR’s definition in an attempt to distinguish between social good and protecting the interests of the company in relation to their employees.

Business and Social Responsibility

Based on observations made by Eberstadt (1973, cited by Carroll, 2008, pp. 19-46) the late 1800’s saw charters showing favoritism only to businesses that were socially useful. However, by the end of the Civil War charters were available under any business pretext, to

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