Corporate Social Responsibility. This report includes 3 parts, review of current academic thinking of CSR, CSR of gambling company and recommendations and conclusion.

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University Degree Business and Administrative studies

Qi Zhang 1157040

Introduction

Corporate Social Responsibility is a significant issue of a multinational company or even a small company. CSR is a key initiative and an essential tool to enlarge company’s business and reputation. Currently, most companies have already recognized that they have to obtain respect and confidence from their customer in order to achieve the company’s goal.

This report includes 3 parts, review of current academic thinking of CSR, CSR of gambling company and recommendations and conclusion.

Review of CSR literature

Kotler and Lee (2005) define corporate social responsibility as ‘corporate social responsibility is a commitment to improve community well-being through discretionary business practices and contributions of corporate resource (p.3).’ Drucker(1989) also outlined 3 things which corporation should to do for society. First social responsibility is to do their job. Then they have duty to take care of their customers, the community as well as society. Final duty is they do thing which is unnecessary for them to do. Corporation should consider own CSR issue of their business. Additionally, Carroll(1999) described four elements of corporate social responsibility: economic element is the basic responsibility for company to maximize  profit and grow; legal element is company should obey the law; ethical element is respect other’s right and meet their obligation; discretionary element include philanthropic activities which improve community well-being.

Milton Friedman introduced the traditional view of the corporate social responsibility. Pava and Krausz (1996) summarized Friedman’s concept that the managers of company have the responsibility to maximize firm value for the shareholders, have no obligation to engage in the socially-responsibility projects which are not able to increase company’s profit. These papers of Anderson and Frankle (1980) as wellas Aupperle, Caroll and Hatfield(1985) find no significant relationship between corporate social responsibility and corporate performance.

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However, McWilliams and Siegel (2000) mentioned that customers, community groups as well as some shareholders encouraged firms to invest in corporate social responsibility. Additionally, some corporations have already considered devoting more company resource to CSR. The study of McGuire,Sundgren and Schneeweis(1988) suggests that some aspects of firm performance may be influenced by social responsibility in different ways. They also pointed out that a corporation with a high degree of corporate social responsibility has relatively low financial risk and has a stable relationship with government and financial community. A paper by Fomburn and Shanley (1990) points out that CSR activity ...

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Corporate Social Responsibility. This report includes 3 parts, review of current academic thinking of CSR, CSR of gambling company and recommendations and conclusion.
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    1511
  • Page Count
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  • Level
    University Degree
  • Subject
    Business and Administrative studies
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