Which of the following describes a proactive strategy for corporate social responsibility?

Abstract

Proactive corporate social responsibility (CSR) involves business practices adopted voluntarily by firms that go beyond regulatory requirements in order to actively support sustainable economic, social and environmental development, and thereby contribute broadly and positively to society. This empirical study examines the role of the economic, social and environmental dimensions of proactive CSR on the association between three specific capabilities—shared vision, stakeholder management and strategic proactivity—and financial performance in small and medium enterprises (SMEs). Using quantitative data collected from a sample of 171 Australian SMEs in the machinery and equipment manufacturing sector and employing structural equation modelling, we find that the adoption of practices in each CSR dimension by SMEs is influenced slightly differently by each capability, and affects financial performance differentially. The study also demonstrates the importance of the interaction between the three dimensions of proactive CSR in positively moderating the deployment of each individual CSR dimension to generate financial performance. Paying primary attention to the economic dimension of proactive CSR and selectively focusing on social and environmental elements of proactive CSR that drive and support the economic dimension are of key importance to sustainable long-term financial success for SMEs.

Journal Information

The Journal of Business Ethics publishes original articles from a wide variety of methodological and disciplinary perspectives concerning ethical issues related to business. Since its initiation in 1980, the editors have encouraged the broadest possible scope. The term 'business' is understood in a wide sense to include all systems involved in the exchange of goods and services, while 'ethics' is circumscribed as all human action aimed at securing a good life. Systems of production, consumption, marketing, advertising, social and economic accounting, labour relations, public relations and organisational behaviour are analysed from a moral viewpoint. The style and level of dialogue involve all who are interested in business ethics – the business community, universities, government agencies and consumer groups. Speculative philosophy as well as reports of empirical research are welcomed. In order to promote a dialogue between the various interested groups as much as possible, papers are presented in a style relatively free of specialist jargon.

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Springer is one of the leading international scientific publishing companies, publishing over 1,200 journals and more than 3,000 new books annually, covering a wide range of subjects including biomedicine and the life sciences, clinical medicine, physics, engineering, mathematics, computer sciences, and economics.

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Social responsibility involves taking actions that help advance society. A socially responsible organization attempts to remain ethical, putting morals ahead of profits. There are four approaches that businesses take in order to be more responsible. Some businesses are obstructive or defensive, while others are accommodating or proactive. Companies that take an obstructive approach demonstrate far less social responsibility than those that are more proactive about social responsibility.

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1 Obstructive

A company that takes an obstructive stance toward social responsibility attempts to defend its economic priorities by blocking any attempts to point out the company's lack of social responsibility. An obstructive company does not make social responsibility an effort, instead making profits the most important aspect of its business. Some people view obstructive businesses as immoral since they may exploit their employees, pollute natural lands or deceive customers. When faced with specific social demands, obstructive companies often deny any wrongdoing and may even use obstacles to deliberately delay or divert investigation of their practices.

2 Defensive

In most cases, companies that take a defensive stance towards social responsibility are not particularly responsible. These companies may consider themselves neutral, and they make profits a more important motive than performing actions in a socially responsible way. These companies make a point of following the law to ensure that others cannot take legal action against them. For example, a company may create more waste than necessary, but it will remove the waste in a legal method rather than dumping it illegally.

3 Accommodating

An accommodating stance signifies that a company believes social responsibility is important -- and perhaps as important as making a profit. These companies satisfy all legal requirements and attempt to meet ethical standards. An accommodating company does not attempt to hide its actions and remains open about why it takes specific actions. For example, it may decrease its creation of waste, source products that are not tested on animals and pay its employees a fair wage. The company would keep its records open to the public. Though these companies are often socially responsible, they may change their policies in response to criticism.

4 Proactive

Like an accommodating company, a proactive company makes social responsibility a priority, even if doing so cuts into their profits. Instead of reacting to criticism, a proactive company attempts to remain ahead of the curve when it comes to social responsibility. It may make ethics part of its mission statement and attempt to avoid any harm to the environment or its employees. A proactive company may go out of its way to institute new recycling programs, give all of its employees a living wage and benefits, and donate a portion of its profits to charity.

About the Author

Breann Kanobi has worked as freelance writer since 2010. Kanobi regularly submits content online to Gamer DNA. Kanobi received a Bachelor of Fine Arts in film and television from New York University in 2010.

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