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Corporate Social Responsibility as an International Strategy pp 19–35Cite as

Why Exactly has CSR Become a Necessity?

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Part of the book series: Contributions to Economics ((CE))

Abstract

One can observe CSR has emerged and been pushed forward throughout the 20th century, especially after socio-economic and socio-legal developments have shifted considerable social power to the private economy in general, and more specifically to (large) corporations.

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References

  1. To name some examples, General Motor’s annual turnover is greater than Denmark’s GDP, Daimler Chrysler’s respective one exceeds the Polish, Indonesian, and South African GDPs. Gazdar and Kirchhoff cited in Wieser (2005).

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  6. The first one especially concerns developing countries, while the latter is also the case within the industrialized world. Cragg (2000), p 209.

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  9. This impression is also particularly prevalent among European populations who see the EU mainly as an “industry lobby”. Crowther (2004), p 232.

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  13. The powerful within societies have always been expected to care about the more disadvantaged and vulnerable, just thinking of “noblesse oblige”. Some scholars state that punishment for an abuse of power and neglecting these duties of the powerful can also be observed throughout history — in the case of the nobility, they were all ultimately forced to hand over power to representatives of their peoples if they didn’t bear (enough) in mind their responsibilities towards society deriving from their privilege, social status and power. Crowther (2004), p 207 ff.

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  16. When arguing for an increased efficiency in the provision of services the managerial model’s customer focus is often stressed. Crowther (2004), p 38. However, the increased private provision of formerly public services has shown some of its dark sides already in energy and water supply, for instance during the California electricity crisis or in Argentina, where clean water is reportedly supplied to “profitable” consumers only after privatisation.

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  41. Some have even earned considerable amounts of money with their “memoirs”, for instance Dennis B. Levine, insider trader — the impression created by the legal system and law enforcement authorities is that white, wealthy, middle or upper class criminals are handled with “kid gloves”, while only the more underprivileged feel the “iron fist” of the law. Balsmaier and Kelly (1996), p 144.

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  42. John O’Sullivan expressed this view in an editorial in 1989. Balsmaier and Kelly (1996), p 144.

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  43. However, “measuring” human pain and injury, as opposed to financial/material damage seems difficult to me. Balsmaier and Kelly (1996), p 144 ff.

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  48. In the emergence of the UK corporate governance initiative “Cadbury Report” a major point of discussion concerning the reform was about “making the system Maxwell-proof”, referring to business mogul Robert Maxell, who embezzled $ 1 billion in employee pension funds. Boyd (1996), p 168.

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© 2008 Physica-Verlag Heidelberg

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(2008). Why Exactly has CSR Become a Necessity?. In: Corporate Social Responsibility as an International Strategy. Contributions to Economics. Physica-Verlag HD. https://doi.org/10.1007/978-3-7908-2024-9_3

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