The past half century has shaped what executives find relevant about corporate social responsibility today. In the 1950s social responsibility grew because business grew. Corporate social responsibility has been used to better understand the relationship between business and society (Carroll, 2015). Corporate social responsibility is the actions that managers and organizations take to not only improve the wellbeing of the business but also of the community in which they operate in. Organizations need to have positive benefits for society in order to increase the benefits (Carroll, 2015).
Demand for corporate social responsibility has increase because of recent market failures (Benabou, & Tirole, 2010). Corporate social responsibility is about forgoing profits in the social awareness. There are three considerations of corporate social responsibility. One being the adoption of a long-term corporate responsibility strategy. The second is organizations exercising generosity on behalf of investors. The third by making sure that generosity is promoted from within the organization (Benabou, & Tirole, 2010).
Society and lawmakers are demanding individual and corporate responsibility as an alternative to market failures. Society has always called for people to monetarily contribute to good causes. Even though society has always called for people to be socially responsibility it is now gaining more momentum (Benabou, & Tirole, 2010). Business leaders are now emphasizing the concept of corporate social responsibility. Firms need to go beyond their legal obligations. Firms need to make sure that they are environmentally friendly, employee friendly, stake holder friendly, and respectful of the community in which they operate in (Benabou, & Tirole, 2010). Sometimes firms must also support local university and community good causes.
There a lot of people that give to their local charities, use green products, or volunteer their time. There are those people who are genuinely driven to give and be socially responsible. There are those who are socially responsible because of they receive material incentives. There are those who give because of people of social concerns and to feel better about themselves. People are judged based on what they do, so they want to make sure they look good in the eyes of others (Benabou, & Tirole, 2010).