o Evaluating the performance of private sector corporations is no longer judged solely by profitability, nor is the financial position be considered a base to put up the corporate reputation.
o Alternatively, innovative concepts have emerged recently to help create a working environment that is capable to deal with the rapid developments administratively, technologically and economically worldwide.
o One of these leading concepts is “Corporate Social Responsibility (CSR)”.
whereby the role of private sector’s corporations has become a key factor in the development process - a fact that clearly reflects the successes that have been achieved by advanced economies in this regard. Hence, private enterprises have recognized that they are no longer isolated from the society, turned to be much aware to integrate additional factors, other than production activities, such as environmental and societal concerns, and tend to consider the tri-dimensional responsibility as identified by the World Business Council for Sustainable Development (WBCSD) i.e: economic development, social well-being, and environment protection
Definitions of CSR
o Different definitions have been framed to identify CSR based on different points of view towards the limit and scope of such responsibility.
- Certain circles view CSR in the context of reminding corporations with their responsibilities and duties towards the society that such corporations belong to.
- Others view such responsibility as merely an optional initiative taken willingly and solely by the concerned corporations towards the society.
- While others view it as how companies strike a balance to manage the business processes to produce an overall positive impact on society.
o Although the above definitions slightly vary, there is considerable common ground between them. Nevertheless, WBCSD identified it as follows:
"CSR is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large"
