Corporate Social Responsibility (CSR) and its Role in Sustainable Development : Case Studies and Lessons Learned

CSR is a multidisciplinary concept that defines the new responsibilities of businesses in societies. It is the manifestation of the implicit contract between businesses and societies that entails that there is a mutual benefit between them. The debate on the responsibilities of businesses towards societies has existed since businesses existed. However, it gained momentum in the 20th century with the emergence of large businesses with unsuitable practices towards the people and the environment. Hence, several civil movements appeared to face those businesses and demand the rights for the people and the society, meanwhile, scholars started to develop a formal conceptualization of CSR. Although the responsibilities of the firm are still debatable and unspecified, there is a general consensus that those responsibilities encompass that businesses achieve profits while obeying the law. CSR demands more, as it looks beyond the economic and legal responsibilities towards the ethical and discretionary responsibilities of businesses; it questions how businesses impact their stakeholders both internal and external while giving back to the society. According to the sustainable development approach in explaining CSR, CSR is a tool for achieving sustainable development; different schools explain how governments as regulators and facilitators, the civil society as a watcher and helper can help businesses partake in fulfilling societies’ needs. Businesses themselves have an interest in participating in development. Accordingly, the role of governments, civil society, and businesses in promoting CSR as a tool for development is inevitable. Businesses especially MNCs are aware that they need social acceptance in order to operate, large MNCs spend years to build their brands and market it all over the world, this brand image and reputation are vulnerable, and hence, businesses cannot afford to jeopardize them by practices that societies deem as irresponsible. This realization by businesses led them to start factoring in society’s views and opinions as an important factor in their decision making process. Nowadays, businesses know that consumers are aware of everything related to their products from production to retail and when they take a decision to consume; this decision contains an ethical part that will not accept any irresponsible act by the company. Hence, businesses are trying to behave in a social responsible manner in all aspects of its operation. Thus, CSR serve as a key to gaining social acceptance for businesses while fulfilling society’s demands. It serves both parties by assuring that they both get what they want