corporate social responsibility

Corporate Social Responsibility (CSR) And Its Four Stages

November 25, 2016
When we look at traditional business practices, it was not hard to notice that the sole purpose was to increase the benefits for the owner of the business. CSR stands for Corporate Social responsibility; it is a trend which emerged in the recent past. According to CSR, it is a firm’s obligation to provide more than just a product or service to society.  There are basically two schools of thoughts regarding CSR details of which gave two different theories about CSR: Stockholder Theory: According to the stockholder theory, all the efforts of a firm should be invested in order to maximize the wealth of its owner and sole purpose of a business is to increase profits. Stakeholder Theory: Stakeholder theory, in contrast to stakeholder theory, puts emphasis on other aspects also. Like the general public, environment and employees etc. The ideology behind this theory is that public, environment etc. give