The Development of Corporate Social Responsibility (CSR) Concept
 

Along with the diminishing public sector role in economic and social development, the private sector has acquired a significant role in the diligent involvement in prompting development, contrary to former beliefs on the unviable role of private sector enterprises in taking part in societal development. As such, social responsibility has become one of the most essential developmental principles which many are currently calling for.
 

At the global level, and in major industrial and trading countries, a goal has been set to realize a balanced cooperation between the state, the private sector, and the society, to achieve development without entirely depending on one entity, and totally releasing an entity from its obligations towards any other entity. In major countries, social responsibility has exceeded concepts of random, unsystematic, and unguided giving; large enterprises have been assigned a basic developmental role, while contribution to development has become an integral part of their activities.
 

Various global initiatives, like the United Nations Global Compact, have contributed to promoting both the social and environmental dimensions of enterprises. The United Nations Global Compact is a voluntary initiative aiming at reinforcing corporate citizenship. The initiative defines social responsibility as the act of linking business decision making with ethical values, compliance with legal stipulations, and respect for individuals, local communities and the environment.
 

The United Nations Global Compact comprises the following ten principles:

 

Human Rights

• Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights; and
• Principle 2: make sure that they are not complicit in human rights abuses.
 

Labor Standards
 

• Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;
• Principle 4: the elimination of all forms of forced and compulsory labor;
• Principle 5: the effective abolition of child labor; and • Principle 6: the elimination of discrimination with respect to employment and occupation.

 

Environment

• Principle 7: businesses should support a preservation approach to environmental challenges;
• Principle 8: undertake initiatives to promote greater environmental responsibility.
• Principle 9: encourage the development and diffusion of environmentally friendly technologies.
• Principle 10: Anti-corruption: businesses should work against corruption in all its forms, including extortion and bribery.

On the other hand, and in October 2004, the International Organization for Standardization (ISO) has launched a work group to prepare an international standard that provides guidance on social responsibility. The standard has been called ISO SR 26000, and is expected to take effect as of September 2010.

The ISO Draft Definition of Social Responsibility is, “the actions of an organization to take responsibility for the impacts of its activities on society and the environment, where these actions are consistent with the interests of society and sustainable development; are based on ethical behaviour, compliance with applicable law and inter-governmental instruments; and are integrated into the ongoing activities of the organization.”

According to the World Bank, Social Responsibility “is the commitment of businesses to contribute to sustainable economic development by working with employees, their families, the local community and society at large to improve their lives in ways that are good for business and for development.”

The International Chamber of Commerce defines social responsibility as “all the attempts that contribute to the volunteering of co-operations to achieve development for ethical and social reasons”.

According to the World Business Council for Sustainable Development, Social Responsibility means “the continuing commitment by business to contribute to economic development while improving the quality of life of the workforce and their families as well as of the community and society at large".
 

In view of the above definitions, it can be said that until now, the concept of CSR has not been defined specifically, in a manner that is legally binding. Such responsibility, in its core, is still moral, and it derives its power, acceptance, and publicity from its voluntary and selective nature. Stemming from this, initiatives and actions have varied according to their surrounding environment, and to the businesses’ financial and human capabilities. The Social Responsibility is characterized as dynamic, and is known for its continual development, so as to rapidly adapt pursuant to its interests, and according to economic and social changes.
 

The previous definitions agree on the following common characteristics:
 

• Recognition of the voluntary nature of Corporate Social Responsibility principle (non binding ness).
• Integration of social, environmental, and economic policies in the daily corporate administrative work.
• Acceptance of Corporate Social Responsibility as being one of the basic, deep-rooted activities of corporate administrative and strategic activities.
• A cooperative process undertaken by enterprises to maximize developmental cooperative capability.

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