CSR Core Literature Review

Applied Business Ethics

The practical application of ethical principles to business decisions in order to reduce harm while allowing businesses to create economic value.

Business Roundtable Commitments

Commitments made by companies to create value for all stakeholders, including customers, employees, suppliers, communities & shareholders.

Capitalism

An economic system that creates economic growth, innovation and prosperity, but today is criticised for inequality, environmental degradation & excessive focus on shareholder profits.

Caux Round Table Principles

7 ethical principles encouraging companies to respect stakeholders, society, the environment and responsible globalization while avoiding corruption and fraud.

Coherent CSR

A systematic and organised CSR approach with a clear purpose. CSR activities are coordinated rather than isolated.

Commitments

Concrete promises and practical actions companies voluntarily make to implement ethical principles.

Ethical Exchange

A business exchange where both sides benefit fairly, without exploitation, while respecting freedom of choice and human dignity.

Ethical Leadership

Leadership that integrates ethical values into business decisions and long-term strategy.

Goodwill

Positive trust & support from communities that help businesses maintain successful long-term relationships.

Greenwashing

Creating the appearance of being environmentally responsible without making meaningful changes.

Instrumental CSR

A CSR approach where responsible business activities are mainly used to improve business performance and profitability.

Patchwork CSR

Fragmented & isolated CSR activities without an overall long-term strategy.

Philanthropic Giving

Voluntary donations, charity work and community projects carried out mainly to create social value.

Principles

General ethical values that explain how businesses should behave & provide long-term guidance.

Respect

Treating stakeholders with dignity & empathy rather than merely as tools for profit.

Shared Value

The idea that companies create both business value & social value at the same time. Rangan et al. argue that this concept is often too idealistic.

Stakeholder

Any individual or group that affects or is affected by a company’s activities. Examples include employees, customers, suppliers, governments and local communities.

Stakeholder Orientation

Managing a company while considering the interest of all stakeholders, not only shareholders.

Strategic CSR

A long-term, systematic approach that integrates CSR into the company’s strategy to create value for both business & society.

Sustainability

Meeting present needs while protecting the environment and ensuring future generations can meet their own needs.

Three Theatres of CSR

A framework by Rangan et al. that classifies CSR into three strategic areas: Improving Current Operations, Transforming the Value Chain, Creating New Business Models

Trust

Confidence that develops when companies consistently treat stakeholders fairly and respectfully. Trust leads to stronger relationships & long-term success.