What historical trends have affected the social responsibilities of business?

Companies are increasingly ramping up their focus on social responsibility, whether they are championing women’s rights, protecting the environment, or attempting to obliterate poverty, on local, national, or global levels. From an optics perspective, socially responsible companies project more attractive images to both consumers and shareholders alike, which serves to positively affect their bottom lines.

Key Takeaways

• Social responsibility empowers employees to leverage the corporate resources at their disposal to do good.
• Being a socially responsible company can bolster a company's image and build its brand.
• Social responsibility programs can boost employee morale in the workplace and lead to greater productivity, which has an impact on how profitable the company can be.
• Businesses that implement social responsibility initiatives can increase customer retention and loyalty.
• Socially responsible companies cultivate positive brand recognition, increase customer loyalty, and attract top-tier employees. These elements are among the keys to achieving increased profitability and long-term financial success.

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  For decades, companies have been using corporate social responsibility (CSR) to give back to society while bolstering brand reputation. This management concept as we know it today is mainly a product of the twentieth century, taking shape in the early 1950s.

  However, the history of corporate social responsibility is one that actually spans over two centuries.  

  The 1800s and the Birth of Responsible Organizations

  While there has been a recent spike in the popularity of CSR, evidence of businesses’ concern for society can be traced back to practices originating from the Industrial Revolution. In the mid-to-late 1800s, there was growing concern about worker wellbeing and productivity among industrialists. 

  Growing criticisms of the emerging factory system, working conditions, and the employment of women and children were being brought to light, especially in the United States. The consensus among reformers was that current employment practices were contributing to social problems, including poverty and labor unrest. However, industrial betterment and welfare movements at the time were viewed as a combination of humanitarianism and business acumen.

  Also making an appearance in the late 1800s was the rise of philanthropy. Industrialist Andrew Carnegie, who made most of his fortune in the steel industry, was known for donating large portions of his wealth to causes related to education and scientific research. 

  Following in the footsteps of Carnegie, oil industry business magnate John D. Rockefeller also donated more than half a billion dollars to religious, educational, and scientific causes. 

  The Catalyst for Modern Corporate Social Responsibility

  Although responsible companies had already existed for more than a century before, the term Corporate Social Responsibility was officially coined in 1953 by American economist Howard Bowen in his publication Social Responsibilities of the Businessman. As such, Bowen is often referred to as the father of CSR.

  However, it wasn’t until the 1970s that CSR truly began to take flight in the United States. In 1971, the concept of the ‘social contract’ between businesses and society was introduced by the Committee for Economic Development. This contract brought forward the idea that companies function and exist because of public consent and, therefore, there is an obligation to contribute to the needs of society.

  By the 1980s, early CSR continued to evolve as more organizations began incorporating social interests in their business practices while becoming more responsive to stakeholders. 

  Universal Acceptance of Corporate Social Responsibility

  The 1990s marked the beginning of widespread approval of CSR. In 1991, University of Pittsburgh professor Donna J. Wood published Corporate Social Performance Revisited, which expanded and improved on early CSR models by providing a framework for assessing the impacts and outcomes of CSR programs. 

  In the same year, business management author and professor at the University of Georgia Archie B. Carroll published his article The Pyramid of Corporate Social Responsibility. In his paper, Carroll expanded on areas he believed were crucial when implementing CSR in an organization. 

  By the early 2000s, CSR had become an essential strategy for many organizations, with multi-million dollar companies, such as Wells Fargo, Coca-Cola, Walt Disney, and Pfizer incorporating this concept into their businesses processes. 

  What historical trends have impacted the social responsibilities of business?

  Answer and Explanation: The historical trends that have affected businesses' social responsibilities include contemporary management theories and administrative theory. The contemporary management theories advocated for a strong management process that affected the social responsibility of businesses.

  What are the factors affecting social responsibility of business?

  The external factors include socio-economic, legal or ethical, political and technological. Socio- economic factors relate to the values, attitudes and concerns of your target customers and their economic abilities to afford your products.

  What is corporate social responsibility from a historical perspective?

  In 1953, academic Howard Bowen described corporate social responsibility as “the obligations of businessmen to pursue those policies, to make those decisions, or to follow those lines of action which are desirable in terms of the objectives and values of our society.” Bowen's systematization of corporate social ...

  What are the social impacts of social responsibility?

  Social responsibility benefits society and the environment while lessening negative impacts on them. Companies engaging in social responsibility can do so in a number of ways, including making changes that benefit the environment, engaging in ethical labor practices, promoting volunteering, and philanthropy.