Conceptualizing The Development Of Corporate Social Responsibility And Business Based Three Circle Model

Businesses are no longer assessed solely on the financial gains achieved for shareholders but also on the contribution they make to stakeholder & society. Society's expectations and pressure from different interested groups & media are gradually changing the role of businesses. Therefore, the challenge for business organization is to maintain and/or increase profit complying with law and respond to the new social demand at the same time. Managing these two issues, which seem to contradict to each other, requires the development and implementation of strategies that will have positive impact for both the corporation and the society. In the light of today's emerging global society, corporate social responsibility (CSR) is looking as a way to contribute societal, environmental & economic goals.Although it accepts many variations, CSR is the sense of organizational obligation to take actions that protects and improves both social welfare & the best business interest. The essential idea of CSR is that business organization of whatever size has an obligation to work for social betterment, and that business activity should accomplish along with the traditional economic gains. Though history says that CSR has been discussing for a long time, businesses from all over the world do not make equal response to this demands. However, CSR is increasingly being recognized by firms as the central to core business activities and some dynamic business organizations considering this as a tool for corporate strategy and strategic marketing.The paper reviews the present development of CSR in terms of evolution, nature, philosophy, principles, theory and models and has uncovered its five components: economic, legal, ethical, strategic philanthropic & humanitarian philanthropic responsibility. The research paper explains a new principle of CSR (Principle of Specification) and based on the principle the researcher has developed his"Business Based Three Circle"model which argues for a new bottom-line (economic- legal) responsibility and focuses on the relationship between firm size and CSR integration into the business/corporate strategy. Hence providing answer to the pervading question: Does firm size matter in assuming CSR? The study also reveals a social responsibility continuum which labels a business organization's response and a well structured CSR planning process with limiting factors of CSR. The research proposes more business & consumer awareness can be a strong agent for CSR initiatives/movement. The paper concludes strategic philanthropy is good for business & society and advises that business should take a lead role in strategic philanthropy & hints for conducting further research in CSR, especially in China.