...Research Methodology Assignment THE IMPACT OF CORPORATE SOCIAL RESPONSIBILITY (CSR) TO COMPANY’S VALUE IN PROPERTY AND REAL ESTATE COMPANY LISTED IN INDONESIA STOCK EXCHANGE Angga Arifiawan Sudibyo 041211332113 Accounting Department Faculty of Economic and Business Airlangga University Surabaya 2014 PART 1 INTRODUCTION 1.1 Research Background In recent years, the demand of property is increasing significantly, especially in big cities like Jakarta and Surabaya. This massive amount of demand is a chance for companies in real estate industry to earn big profit. Some big players in these industries are already listed in Indonesia Stock Exchange, they compete each other, develop and expand their business insanely to be going concern...
Words: 1998 - Pages: 8
...of corporate social responsibility, for employees, management, organisation, society and the environment? An organisation have the leading and progressively essential role in our daily life, for example, the growing of most of the large firm and increase globalisation that refer to the organisation operating their businesses competing with the corporation in the world. One of an idea that has been the concern of the people in the recent years is the social responsibility. Social responsibility is one of the main problems in the business world. There has a link in between society, business and the government. In the past decade, the economic result of the decisions made by them is a major concern. “Currently, the organisations must also think about the authorization, honourable, ethical along with developmental outcomes with their selections.” (Anderson 15). This essay will discuss “ what the dangers and the benefits of corporate social responsibility, for employees, management, organisation, society and the environment. It will argue about the importance for an organisation to have corporate social responsibilities, which bring the advantages and the disadvantages to the society, cooperation and the government. Corporate social responsibility (CSR) is not explain that how much profit that the firm may earn and then donate to some charity organisation, but it is the connection with several actions that bring the benefits to the society. Corporate social responsibility becomes...
Words: 2298 - Pages: 10
...regard to the impact of corporate actions on society and the environment has expanded notable in the past two decades, global feasible development now requires many prominent leaders in society and support sustainable economic growth. Corporate Social Responsibility Corporate social responsibility is or has previously by many been defined in terms such as: business ethics and corporate citizenship in the working environment, whether it is private companies or government entities and society. There is still ongoing debate on the proper mutual definition of corporate social responsibility. A very basic definition could be stated as “a commitment made by organizations to contribute to a better standard of living for its staff members, their families and society at large towards continuous economic growth” (Lockwood, 2004). The concept was first brought forward in the late 50’s: nevertheless it was during the late 70’s that scholarly research started to take off. “The centre of responsible business (CRB) explains CRS as being an extensive set of action, administration, procedure and practice that are at the very core of corporate culture, and the decision forming practice throughout an organization. This is all inclusive of the actions taken in the past and also the significance of the actions that will be taken in the near future. Corporate social responsibility is over and above charity and calls for organizations to take full responsibility for the effect of its actions...
Words: 2845 - Pages: 12
...------------------------------------------------- Essay on “Corporate Social Responsibility and Ethics” Social responsibility is an idea that has been of concern to mankind for many years. Over the last two decades, however, it has become of increasing concern to the business world. This has resulted in growing interaction between governments, businesses and society as a whole. In the past, businesses primarily concerned themselves with the economic results of their decisions. “Today, however, businesses must also reflect on the legal, ethical, moral and social consequences of their decisions” (Anderson 15). This paper will discuss the concept of corporate social responsibility. It will give the definition of the phrase, and identify some of the global factors that necessitate corporate social responsibility. It will discuss the importance of corporations setting up corporate social responsibility projects, and the impact these have on society. Social corporate responsibility and the maintenance of high ethical standards is not an option but an obligation for all business. Corporate social responsibility is no longer defined by how much money a company contributes to charity, but by its overall involvement in activities that improve the quality of people’s lives. Corporate Responsibility has come up as a significant subject matter in the international business community and is progressively becoming a mainstream activity. There is mounting recognition of the momentous effect...
Words: 2129 - Pages: 9
...Corporate Social Responsibility Anisha Panjwani Western International University Ethical Leadership Corp Social LDR-620-2126 McDaniel, Jon June 23, 2011 Corporate social responsibility is becoming an increasingly important activity to business nationally and internationally. But “What is corporate social responsibility?” Corporate social responsibility is about how companies manage the business processes to produce an overall positive impact on society. According to Lord Holme and Richard Watts “Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large" (“Corporate social responsibility,”n.d). There two opposite views of corporate social responsibility are the classical view and the socioeconomic view. Classical View According to Milton Friedman, an American economist “The social responsibility of business is to increase its profits”. He believes that manager’s foremost objective is to make as much money as possible while following the basic legal and ethical rules of the society (Friedman, 1970).The managers has the ethical responsibility towards its shareholders as the money company is using is of shareholders and so to think of their benefit is the prime responsibility of a company. Only people can have social responsibility. A corporation is an artificial person...
Words: 827 - Pages: 4
...Demetria Brown Social Responsibility Is any corporation doing their part? Abstract In today’s society of accountability and sustainability, corporate reputation and corporate responsibility are intertwined. Corporations in particular now have to deal with rapidly growing pressures and expectations from diverse and demanding stakeholders (the people of the public) pressures that they cannot escape and expectations that they must address. Corporate Social Responsibility has begun to move from the sideline to the mainstream, from its established positions in socially responsible and environmental investment movements, to the center of media attention and on to the public agendas of multinational corporations. Much good can be credited to ethical public relations practice as is relates to corporate social responsibility. (Broom, 2009, p.133) The term "Corporate Social Responsibility" demonstrates the new expectations that are emerging for multinational corporations. Public relations and corporate responsibility worlds would do well to share an interest in aligning corporate reputation with a post-CSR agenda that is increasingly focused on accountability and sustainability -- and increasingly integrated with corporate strategy. Most corporate managements and communications professionals understand the basics of the corporate responsibility agenda and its potential impact, on the reputations of their companies and clients. Not all corporations are comfortable with integrating...
Words: 1939 - Pages: 8
...Ethical Perspectives on Social Responsibility Submitted to Northcentral University DEFINING THE CONCEPT OF SOCIAL RESPONSIBILITY Depending on whom you ask, the concept of social responsibility may mean different things. However, within an organizational culture, social responsibility refers to ethical practices that benefit the greater society and simultaneously benefits the health of the organization. The concept of social responsibility is an ideology of ethical behavior that upholds that people and stakeholders should act in the interest of the greater collective good. Typically, social responsibility addresses the ethical obligations of organizations to sustain the law, while complying with environmental and social regulations that are sustainable for economic development. Stated simply, social responsibility is management’s interest in the welfare of the society in which it conducts business. It is a concept whose inception can be traced by to Peter Drucker, known as “The Father of Modern Management.” His realization that workers should be treated as a resource was ground breaking in the corporate world. Drucker defended the concept of proper corporate social responsibility to the point of turning a social problem into economic opportunity and productivity, while creating well paid jobs performed by competent people. William A. Cohen, a Drucker graduate and author of the article What Drucker Taught Us About Social Responsibility (2009), stated, “Few could...
Words: 1747 - Pages: 7
...Introduction: Social Responsibility of Business or Corporate Social Responsibility (CSR) refers to management decisions & actions taken for reasons at least partially beyond the organizations’ direct economic or technical interest. The Concept of Corporate Social Responsibility is merely in growing stage towards social effectiveness of business. It is the philosophy which justifies business involvement in its social community. The simple fact is that business is a major social institution, and as such it is importantly involved in social value. In the operation of pluralism many groups influence business and in turn business influences them. Definition of Corporate Social Responsibility given by Scholars: According to Davis Keith, (“Can Business afford to Ignore Social Responsibilities?”- 1960) Social Responsibility is defined as, “Management decisions and action taken for reasons partially beyond the organization’s direct economic or technical interest.” According to Griffin R W, (“Management”- 1997) “Social Responsibility is a set of obligations an organization has to protect and enhance the society in which it functions.” According to Davis K & Blomstrom R L, Business and Society: Environment and Responsibility”- 1975) [i] Social Responsibility is defined as, “The Relationship of Business with the Social System outside its own formal organization.” [ii] Social Responsibility is that, (Business) Decision Makers are obliged to take Actions which protect and improve the...
Words: 1182 - Pages: 5
...Essay: Why are ‘Corporate Social Responsibility’ strategies important for enterprises? Prof. Dr. Jose M. Magone LV 400591.01 Work, Business & Society Berlin, 2011 Abstract Nowadays, the importance of social responsibility activities is growing awareness for companies.It is directly related to your business and if you want to have long term business success, you have to create value for the society.People are aware of the social and environmental problems of society.In this technology time, it is so easy to reach the information whatever they want They always follow the daily news from the world and care about them.Due to the fact that paying for the strategies of CSR increases attention to the corporation.Companies’ understanding of social responsibility should always be the part of their investment strategy.They should regard the “Corporate Social Responsibility” as a business management philosophy not as a social activity.It definitely provides sustainability to the business.The purpose of this essay is to explain why “Corporate Social Responsibility” strategies are so important for enterprises.Firstly I will explain the theoretical information about criterias and framework of CSR and then I will support the facts by giving examples from the international companies to clarify the reasons of importance well. Index of Abbreviations The abbreviation used throughout on this essay is presented below; CSR – Corporate Social Responsibility ...
Words: 3409 - Pages: 14
...all necessitated the re-evaluation of the business-society relationship and facilitated the emergence of innovative business social responsibility-practices. In view of the expanding and dynamic nature of contemporary business organizations, awareness of the impact of these institutions is reflecting on the environment in which they operate. This awareness has led to a definite conclusion on the roles of business organizations in the society and the growing demand for corporate social reward in terms of better social performance. For instance, the conflict in the Niger Delta area was aggravated by intense oil exploration activities in the area without adequate compensation from either the government or the oil multinational companies that reap profit from the area. The apparent neglect and marginalization of the people of the Niger-Delta has led to the call for compensation for their exploited wealth, the physical development of their environment and access to political power which made communal clashes, ethnic nationalism and movement for self determination to be prominent in the region and the phenomenon of oil pollution has only added to the already tense atmosphere in the Niger-Delta area. Today, business organizations are enjoined to pay attention to social issues and problems which are far removed from their central economic pursuit. The re-invigoration of the idea that business organization has social responsibility that goes beyond profit making to include helping to...
Words: 1467 - Pages: 6
...Business & Society http://bas.sagepub.com Corporate Social Responsibility: Evolution of a Definitional Construct Archie B. Carroll Business Society 1999; 38; 268 DOI: 10.1177/000765039903800303 The online version of this article can be found at: http://bas.sagepub.com/cgi/content/abstract/38/3/268 Published by: http://www.sagepublications.com On behalf of: International Association for Business and Society Additional services and information for Business & Society can be found at: Email Alerts: http://bas.sagepub.com/cgi/alerts Subscriptions: http://bas.sagepub.com/subscriptions Reprints: http://www.sagepub.com/journalsReprints.nav Permissions: http://www.sagepub.com/journalsPermissions.nav Citations http://bas.sagepub.com/cgi/content/refs/38/3/268 Downloaded from http://bas.sagepub.com at Biblioteca di Ateneo - Trento on April 28, 2010 Carroll / CORPORATE SOCIAL RESPONSIBILITY BUSINESS & SOCIETY / September 1999 Corporate Social Responsibility Evolution of a Definitional Construct ARCHIE B. CARROLL University of Georgia There is an impressive history associated with the evolution of the concept and definition of corporate social responsibility (CSR). In this article, the author traces the evolution of the CSR construct beginning in the 1950s, which marks the modern era of CSR. Definitions expanded during the 1960s and proliferated during the 1970s. In the 1980s, there were fewer new definitions, more empirical research, and alternative themes...
Words: 12021 - Pages: 49
...Social Responsibility Corporate social responsibility (CSR) can be defined as the way businesses integrate social, environmental and economic concerns into their corporate values, culture, decision making, strategy and operations in a transparent and accountable manner. The result of this approach is that these businesses often establish better practices within their operation, create wealth and improve society (Nickels, 2009). In the past, businesses principally concerned themselves with winning in the marketplace and little else as they believed this was their sole role. Economists had been quoted as declaring that the only responsibility of any business is to make money and please its shareholders. Economists may view companies who practice in CSR as wasting resources and money that should be used in making more profits for their shareholders CSR is no longer defined by how much money a company contributes to charity, but by its overall involvement in activities that improve the quality of people’s lives. Corporate responsibility has come up as an important subject matter in the international business community and is increasingly becoming a conventional activity. There is mounting recognition of the significant effect the activities of the private sector have on numerous stakeholders like; their workforce and clientele, the society, the environment, competitors, business associates, investors, shareholders, governments and others. It is also becoming increasingly clear...
Words: 996 - Pages: 4
...2, No. 1 Corporate Social Responsibility of Private Banks in Bangladesh: Expectations, Achievements and Challenges Md. Fouad Hossain Sarker Lecturer Faculty of Science & Information Technology Daffodil International University Dhaka-1207, Bangladesh Tel: +88 01554336014 Received: February 27, 2012 E-mail: fouadsarker@yahoo.com Accepted: April 16, 2012 DOI: 10.5296/jpag.v2i1.1583 Abstract This paper examines people‟s understanding, expectations and assessment of the corporate social responsibility (CSR) of private banks, especially Dutch-Bangla Bank Ltd. (DBBL), one of the largest private banks in Bangladesh. This study has been conducted among the stakeholders and beneficiaries of the Dutch Bangla Bank Limited. Surveys have been conducted using structured questionnaires to critically examine the subjective perceptions of the meaning, reasons and various aspects of CSR tasks of DBBL in Bangladesh. It has been found out that common people either do not have clear understanding about CSR activities or are not really concerned about the social responsibilities of the corporate organizations. The expected outcome of CSR activities, as has been stated in the memorandum and commitments of the corporate houses, has yet to be achieved. This study suggests that a more comprehensive and humane involvement of the common people in the CSR activities is required, which would not only fulfill the intended goals and objectives of the corporate organizations...
Words: 4406 - Pages: 18
...Research Paper DOES CORPORATE RESPONSIBILITY TO STAKEHOLDERS MAXIMIZE FIRM’S VALUE? DOES CORPORATE RESPONSIBILITY TO STAKEHOLDERS MAXIMIZE FIRM’S VALUE? Topic: This paper seeks to explore the economic mechanisms behind corporate responsibility based on a microeconomic perspective of the firm. The ultimate objective is to ruminate on the effects of corporate responsibility of firms to stakeholders. That is how corporate responsibility to stakeholders can help maximize or minimize the firm’s value. In this research paper, I am going to explain the principle of stakeholder and the corporate social Responsibility that corporation owes to its stakeholders. The fact that corporations are entitled to its stakeholders and the environment within its scope of business has been a controversial issue. At the beginning, I will give a clear understanding of what Corporate Responsibility by firms to its stakeholders is. Later, I will make an argument in favor and against Corporate Responsibility by the firm to its stakeholders. Lastly, I will come to a conclusion on how firm’s value is maximized. That is what corporation should do for its stakeholder. According to rigorous research, each person has his or her personal responsibility that needs to be performed in order to maintain a good image in the society. Just as humans are faced with responsibilities, so as Corporations, since they are seen as a group of individuals working together to accomplish a goal, that goal being making...
Words: 1817 - Pages: 8
...Corporate Governance, 2001, Volume:1 Issue:2 Page:16 - 22 WHAT DO WE MEAN BY CORPORATE SOCIAL RESPONSIBILITY? Lance Moir Cranfield School of Management Lance Moir Cranfield School of Management Cranfield University Cranfield Bedford England MK43 0AL Tel: +44 (0) 1234 754374 Fax: +44 (0) 1234 752554 E-mail: l.moir@cranfield.ac.uk WHAT DO WE MEAN BY CORPORATE SOCIAL RESPONSIBILITY? There is an increasing focus by firms on examining their social responsibilities. For example, Business in the Community published ‘Winning with Integrity’ in November 2000. This has as part of its objectives ‘to produce materials and resources on how companies should measure and report their impact on society’ (Business Impact, 2000). It lists twenty such initiatives in various areas of furthering corporate social responsibility, not including its own report. Similarly, the World Business Council for Sustainable Development (WBCSD, 1999) seeks to develop a clear understanding of corporate social responsibility, including a matrix of corporate social responsibility indicators. But what is meant by Corporate Social Responsibility (‘CSR’)? Responsibility for what and to whom and who is calling for firms to be socially responsible? This article examines the broad development of the ideas behind CSR within the literature and some of the current attempts to define the social responsibilities of business. It starts by examining the debate about the nature of corporate social responsibility...
Words: 4913 - Pages: 20
