Generally, views on CSR are divided into two categories: narrow and broad (Crane and Matten, 2007). Narrow view considers the only objective for business entities to consist of profit maximisation. On the contrary, according to the supporters of the broad view to CSR apart from their primary objective of maximising profits businesses are also responsible towards the society and community in which they operate in terms of addressing possible negative implications of their business practices.
Urip (2010) convincingly argues that the numbers of supporters of narrow view to CSR have sharply declined in recent years due to the increasing level of focus CSR related issues are attracting from various organisational stakeholders. Amao (2011) further expands this point and associates the penalties for neglecting CSR aspect of business practice with damage to brand image and customer goodwill, and consequent threat to company’s long-term growth.
Amao, O. (2011) “Corporate Social Responsibility, Human Rights and the Law: Multinational Corporations in Developing Countries” Taylor & Francis
Crane, A & Matten, D, 2007, “Business Ethics” second edition, Oxford University Press, Oxford, UK
Urip, S. (2010) “CSR Strategies: Corporate Social Responsibility for a Competitive Edge in Emerging Markets” John Wiley & Sons