Skip to main content

Principles of CSR

Because of the uncertainty surrounding the nature of CSR activity, it is difficult to define CSR and to be certain about any such activity. There are three basic principles which together comprise all CSR activity.

1.Sustainability:

If the resources are utilized in the present, then they are no longer available for use in the future. This is particularly pertaining to those resources which are finite in nature. Measures of sustainability would consider the rate at which resources are consumed by the organization in relation to the rate at which the resources could be generated.

2.Accountability:

Accountability is concerned with the organizations realization that its action affects the external environment therefore assuming responsibility for the effects of its actions. It implies that the organization is a part of wider societal network and has responsibilities to the entire network rather than just to the owners of the organization.




3. Transparency


It means that the external impact of the actions of the organization can be ascertained from the organizations reporting and pertinent facts are not disguised within that reporting. Transparency can be seen as a part of process of recognition of responsibility on the part of the organization for the external effects of its actions and equally part of process of transferring power to the stakeholders.

Comments

Popular posts from this blog

HR: A Strategic Asset

Strategic assets are “the set of difficult to trade and imitate, scarce, appropriable, and specialized resources and capabilities that bestow the firm’s competitive advantage”. It is easy to understand why organizations talk about people as an asset, but tend to manage them largely as a cost to be minimized. Aside from accounting principles that encourage this perspective, HR costs are easy to observe, while HR value creation is not. Largely because of the traditional perspective on HR, organizations have no way to measure HR’s strategic performance. Nevertheless, we know that intangibles in the aggregate are an increasingly important source of firm value, and that human capital ought to be a part of that asset value. HR is a strategic asset as it can play a critical role in both strategy implementation and management systems. Namely, the ability to execute strategy well is a source of competitive advantage, and “people” are the lynchpin of effective strategy execution. We think i...

Fourth Industrial Revolution and Protection of Personal Information

  “We seem to increasingly trade privacy for convenience with many of the devices we routinely use” -           Michael Sandel (Harvard Professor) Have you given a thought on the information that is freely available about you without your knowledge? Have you ever experienced?   When you are searching for a holiday accommodation on any website, and you leave the booking incomplete…have you noticed the same hotel advertisement catching your eye as you browse through social sites be it Facebook, Instagram or any other online site? When you buy any specific items from any online site…have you noticed related  products being advertised to you? e.g. buying maternity clothes from website, you suddenly start noticing advertisements about other  maternity products, children clothes, toys? It all happens because of your information and preferences been tracked and monitored through a small cookie (its not the one we get in...