Corporate Social Responsibility

The doctrine of corporate social responsibility demands that firms behave as "good citizens" as well as pursuing purely commercial goals. Unfortunately. there is no clear-cut definition of what EXACTLY is meant by the 'public good', and there is no consensus on the question of whether the common good is maximized or harmed through the selfish pursuit of personal gain. Corporate Social responsibility recognizes that organizations need to take account of the social and ethical impact of business decisions on the environment in which they compete. It is a commitment by organizations to behave ethically and
contribute to economic development while improving the quality of life of the workforce, the local community and society at large (Henry, 201 1). Legislative and regulatory frameworks set only the minimum operating standards expected of businesses and past corporate failures have shown how these mechanisms still allow space for significant corporate irresponsibility (Bakan,2004). Every business enterprise is an integral part of the society. It uses the scare resources of the society to continue its operations and grow. Hence, it is important that no activity of business is injurious or constitute hazards to the long run interest of the society. However, it is observed that, in practice, there are few socially undesirable aspects of business such as, polluting the environment, non-payment of taxes. manufacturing and selling adulterated products, giving misleading advertisement. etc. this has resulted in the development of the concept of social responsibility of
business whereby the owners and managers of business are made conscious about the responsibilities of their business towards the community and its customers, workers. government, etc.