Theoretical Foundations of Corporate Social Responsibility
The article’s objective is to reveal theoretical foundations of corporate social responsibility. It is argued that the financial crisis and its implications for the global economy have demonstrated once and again that stability of the global market is conditional on the responsible behavior, models of balanced business operation, active management, impact of business (companies) on the social life, and regulatory framework. The global corporate social responsibility depends on problems associated with change in the global climate and deepened social inequality. The demand for social policy is tremendous at global and sectoral level.
Business needs to be engaged in social issues because a new global social contract between business, government and society is required to ensure long-term stabilization and reproduction of wealth. It has become even more obvious at corporate level.
It is shown that the notion of “social” has many meanings, but in the legal context it means the need to account, apart from the literary meaning of this norm, for the social context in which this norm operates. The notion “social” is synonymous to society, referring to not only business operation target but also to the responsibility of a businessman.
It is demonstrated that the corporate social responsibility will work effectively and help achieve the organizations’ objectives if it has the parameters of an open system interacting with the environment. At the same time, it should be remembered that in keeping with the system characteristic of modern management theories addressing a company as a homogenous and target-oriented system all the internal processes occurring in one component of this system will have effects for its other components.
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