Analyzing The Concept of Corporate Social Responsibility: with the monetary and ethical approach

This paper is focusing on the responsibility corporations have toward society and what role stakeholders play in this responsibility. By providing a historical background of how corporations have used their responsibility toward society, it is clear that corporations have been responsible. Before, this responsibility was focused toward the shareholders of the corporation but with time it changed to include more actors within the society. By focusing on what kind of responsibility the corporation has towards the society it is active in, this paper will explain the notion of a corporation that has a social responsibility in terms of being morally responsibility for its actions. This is why the concentration of the this paper will be on the concept of corporate social responsibility (CSR). The notion of CSR has became more significant with time. In today's society corporations are expected to take more responsibility. A reason for this increased expectations from society on corporations could have to do with the fact that stakeholders have gained greater transparency through technological development, mainly the development of information technology. The aim of this paper will be to show what role CSR plays for a corporation in today’s society and why a corporation should work more with its different stakeholders and not as before with almost solely its shareholders. To be able to conduct this aim, the notion of CSR will be described and put into perspective by the two main theories behind the concept of CSR: the monetary and ethical theories. This is done by first describing the development of CSR abroad and in Sweden, with a focus on “Den Svenska Modellen”. Second to show the different perspectives of the monetary and ethical approach in connection to the concept of CSR. Thereafter, the theories will be analyzed and discussed solely, in connection to each other and the development of CSR through time. The analysis and discussion about the concept of CSR indicates that the monetary and ethical theories can not be considered to have the only impact on the concept of CSR but they have affected each other. Another conclusion is that the corporation's actions can lead to a responsible behavior that would benefit the whole society which the corporation is active in.