Question

Corporations are the dominant social institution of our day. It is an institution created by the ideology of the classical model of Corporation Social Responsibility (CSR). Provide your own critique of the classical/economic model of Corporation Social Responsibility (CSR). Be sure to include reference to the ethical frameworks such as strategic sustainability model and economic model.

Answer 1

Classical Model of CSR

James Brummer was the founder of CSR theorey. we can understand the CSR functions of specific corporation more elaborately by the explaination of this Model.

• According to this model, our society is benifitted by variety of institutions,and each and every institution has a particular function. The main function of corporation must be economic rather than social. So according to this model, the main target of the corporation should be earning a high amount of profit. Not only that this model also stated that, managers need to keep the advantages for shareholders without breaking any laws.(Osuji, 2011. )
• The another main Component of this theorey is ''Methodological Individualism''.According to this model the individual person is the main center of a system. As we all know everybody wants their own satisfaction .So according to this theorey, the effort of individual can bring more profits and economical earning for the institution.
• According to this theorey, it can becames more appropiate when individuals working together in mutually satisfaction exchanges. But corporating also need to keep an eye on individual's activity. They should break any laws. Otherwise this can leads to increased expences and reduce earning profits.

Benefits according to CSR Model

Shareholders

According to this Model, Corporation needs to pay attention on the benefits of Shareholders.As they gives a good return in their Investments so organizationa also need to give a good profit to the Shareholders. If a organization spends a large amount of money to the socail purpose, then it can reduce a high amount profits of shareholder.So dissatisfaction of the shareholders can leads to economical lose for the company.

Customers Benefit

Customers benefit is another cause of low price. Because customers are not interested to buy an expensive products all the time.This kind of consideration is very important for the further growth.

Workers Benefit

Workers are also benefitted for the economical growth of the organization. As we all know a good amount of salary helps to increase job satisfaction and Job motivation. So We can say that economical profit is benefitial for the workers also.

Society or Government

Government also benefitted by the economical growth of Corporations. As all the business organization are paying a high amount of tax to the govenment and also helping in reducing Unemployment of the Society.So we can say that it is highly beneficial for the Society also.(Dartey and Amponsah. 2011)

So according to business analysts, this classical CSR model helps to analys how to earn profits. Here are two similar kind of models which helps to identify the Business strategies.

Strategic Sustainability Model

This model helps to analys the business strategy .This model basically based on open systems theorey. According to this theorey, Corporation should identify some certain keys to develop the economical funds. As we all know many workers are associated with a corporation so a corporation must pay an attention to the Organizational capacities, Group works and Individual's capabilities. So according to this model, Corporation needs to be careful about oraganizationak capability to improve the economical condition of the Organization.

Economical Model

The main aim of this theorey is maximizing the profits and reducing the negative effects of Global Warming. According to this mode, A organization must need to reduce the Global warming effect on a product. As everybody wants a environment friendly product, so reducing the External risk factors of global Warming can helps to earn more profits.Not only that this model helps to understand the Philanthropic efforts also. This concept helps to bring technology to the Organization. According to this theorey, Improving the technology helps to earn more profits for the organization.(Claydon, 2011.)

References

Claydon, J., 2011. A new direction for CSR: the shortcomings of previous CSR models and the rationale for a new model. Social Responsibility Journal, 7(3), pp.405-420.

Dartey-Baah, K. and Amponsah-Tawiah, K., 2011. Exploring the limits of Western corporate social responsibility theories in Africa. International Journal of Business and Social Science, 2(18).

Kemper, A. and Martin, R.L., 2010. After the fall: The global financial crisis as a test of corporate social responsibility theories. European Management Review, 7(4), pp.229-239.

Osuji, O., 2011. Fluidity of regulation-CSR nexus: The multinational corporate corruption example. Journal of Business Ethics, 103(1), pp.31-57.

Capaldi, N., Zu, L. and Gupta, A.D. eds., 2013. Encyclopedia of corporate social responsibility (Vol. 21). New York: Springer.