Corporate social responsibility

Corporate social responsibility (CSR) is today awidely adopted business practice in developed
countries. Modern business systems are now called up on to exercise more than what they are
required by the owners. They must comply with the demands placed upon them by society. Philip
Kotler in his book “Corporate Social responsibility”, states that the global idea of corporate social
responsibility grew into a worldwide movement. However, society and the business world have
gonea long way to the establishment and general acceptance of these new social and managerial
paradigms. In thebroadestsense ofthe definition, corporate social responsibility means that the
company takes responsibility for its actions in a social context, and is driven not only by their own
profits but also by its influence on the environment, community, employees, human rights, supply
chain and market in general. (Meštrovi?, 2009, 46) It is averybroad concept whose precise
understanding and definition often depends on the particular context. Krka? (Krka?, 2007,224)
pointed out that sometimes the terms “business ethics” and “social responsibility” are used
synonymously, and sometimes radically different. In other case business ethics relates to the
decisions of individuals or working groups whose decisions are assessed as being morally correct or
incorrect, while the social responsibility refers to the broader context, within which the totality of
business in relation to the totality of society is being assessed as morally correct or not. The analysis
of different definitions leads to the following constituent elements that reflect the social
responsibility of business: (1) continuous and voluntary commitment of a company, (2) business
practices beyond the legal and ethical norms, and (3) the company’s efforts to balance the effects of
business activities and interests of different stakeholder groups of society in three dimensions,
economic, environmental and social. (Ivankovi?, 2010, 26) Whether the concept of corporate social
responsibility is observed in practice or in theory, we can conclude that it is an interdisciplinary
field, which is within the economic entity cared by experts of various kinds, as well as being the
point of interest for researchers from different scientific disciplines.