Engagement of Companies in CSR Essay Example | Topics and Well Written Essays - 4750 words

Engagement of Companies in CSR - Essay Example This however does not deter companies from adopting CSR. This research has used Hart’s sustainability framework to analyze the steps that has been taken by Toyota to improve its sustainability standard. This has allowed the organization to improve its social accountability. There is a considerable debate among researchers regarding the reason for which companies engage in CSR activities. Some cite that profit may be one of the reasons for which companies engage in CSR and others argue that they use this to improve their social image in the public. The passage of time had witnessed the transformation of CSR as an integral part of the business strategy. The introduction of stakeholders in the CSR became important with major contribution from Peter Drucker. This idea was completely opposite to that introduced by a famous economist, Friedman, who held the notion that the sole emphasis of a business is on ways to improve the level of its profits. It is nowadays argued that CSR is a multi-dimensional concept that encompasses philanthropy, environmental sustainability, transparency and innovation (Kaptein and Tulder, 2003). Researchers have found that majority of the global giants are incorporating CSR based on multiple facets in order to improve organisation al profitability. This increased awareness among companies to incorporate CSR in their management.