Abstract:Extrapolating from Carroll’s four domains of corporate social responsibility (1979) and Pyramid of CSR (1991), an alternative approach to conceptualizing corporate social responsibility (CSR) is proposed. A three-domain approach is presented in which the three core domains of economic, legal, and ethical responsibilities are depicted in a Venn model framework. The Venn framework yields seven CSR categories resulting from the overlap of the three core domains. Corporate examples are suggested and classified according to the new model, followed by a discussion (...) of limitations and teaching and research implications. (shrink)

Over the last decade, Corporate Social Responsibility (CSR) has been defined first as a concept whereby companies decide voluntarily to contribute to a better society and cleaner environment and, second, as a process by which companies manage their relationship␣with stakeholders (European Commission, 2001. Nowadays, CSR has become a priority issue on governments’ agendas. This has changed governments’ capacity to act and impact on social and environmental issues in their relationship with companies, but has also affected the framework in which CSR (...) public policies are designed: governments are incorporating multi-stakeholder strategies. This article analyzes the CSR public policies in European advanced democracies, and more specifically the EU-15 countries, and provides explanatory keys on how governments have understood, designed and implemented their CSR public policies. The analysis has entailed the classification of CSR public policies taking into consideration the actor to which the governments’ policies were addressed. This approach to the analysis of CSR public policies in the EU-15 countries leads us to observe coinciding lines of action among the different countries analyzed, which has enabled us to propose a ‹four ideal’ typology model for governmental action on CSR in Europe: Partnership, Business in the Community, Sustainability, and Citizenship, and Agora. The main contribution of this article is to propose an analytical framework to analyze CSR public policies, which provide a perspective on the relationships between governments, businesses, and civil society stakeholders, and enable us to incorporate the analysis of CSR public policies into a broader approach focused on social governance. (shrink)

Corporate Social Responsibility (CSR) has existed in name for over 70 years. It is practiced in many countries and it is studied in academia around the world. However, CSR is not a universally adopted concept as it is understood differentially despite increasing pressures for its incorporation into business practices. This lack of a clear definition is complicated by the use of ambiguous terms in the proffered definitions and disputes as to where corporate governance is best addressed by many of the (...) national bodies legislating, mandating, or recommending CSR. This article explores the definitions of CSR as published on the Internet by governments in four countries (United Kingdom (UK), France, the United States, and Canada). We look for a consensus of understanding in an attempt to propose a more universal framework to enhance international adoption and practice of CSR using the triple bottom line. Our results concur with the findings of both national and international bodies and suggest that both within and among the countries in our study there exists no clear definition of the concept of CSR. While there are some similarities, there are substantial differences that must be addressed. We present a number of proposals for a more universal framework to define CSR. (shrink)

Should CSR be approached only on a voluntary basis or should it be complemented with a compulsory regulatory framework? What type of government intervention is more effective in fostering CSR among companies? This paper is an attempt to answer these questions, reviewing the debate between proponents of the voluntary case and the obligatory case for CSR, and critically analysing current international government-led initiatives to foster CSR among companies, and national government-led initiatives in the EU area. Finally, the paper focuses on (...) the Spanish case, as an example of the failure of an exclusively voluntary approach. Despite the rapid uprise of CSR, Spain is still far behind late in CSR promotion strategies. Most action has been undertaken by companies themselves with no common guidelines, governmental support, or independent verification. The lack of a regulatory framework for CSR or ethical investment issues and the virtual absence of other indirect incentives, explains the misbalance between private, public and Third Sector initiatives. Based on the Spanish context which is quite similar to other non-OECD countries, the authors call for a more proactive government position in CSR related issues. The conclusions of the paper detail the features of this regulatory framework and other policies to promote CSR in Spain as well as in other OECD countries. (shrink)

This paper provides an overview of the contemporary debate on the concepts and definitions of Corporate Social Responsibility (CSR) and Corporate Sustainability (CS). The conclusions, based on historical perspectives, philosophical analyses, impact of changing contexts and situations and practical considerations, show that "one solution fits all"-definition for CS(R) should be abandoned, accepting various and more specific definitions matching the development, awareness and ambition levels of organizations.

The Corporate Social Responsibility (CSR) field presents not only a landscape of theories but also a proliferation of approaches, which are controversial, complex and unclear. This article tries to clarify the situation, mapping the territory by classifying the main CSR theories and related approaches in four groups: (1) instrumental theories, in which the corporation is seen as only an instrument for wealth creation, and its social activities are only a means to achieve economic results; (2) political theories, which concern themselves (...) with the power of corporations in society and a responsible use of this power in the political arena; (3) integrative theories, in which the corporation is focused on the satisfaction of social demands; and (4) ethical theories, based on ethical responsibilities of corporations to society. In practice, each CSR theory presents four dimensions related to profits, political performance, social demands and ethical values. The findings suggest the necessity to develop a new theory on the business and society relationship, which should integrate these four dimensions. (shrink)

The logic of gift and gratuitousness in business activity raised by the encyclical Caritas in Veritate stresses a deeper critical evaluation of the category of relation. The logic of gift in business includes two aspects. The first is considering the logic of gift as a new conceptual lens in order to view business relationship beyond contractual logic. In this view, it is crucial to see the circulation of goods as instrumental for the development of relationships. The second aspect is to (...) qualify the relationships established through the gift, and to think about the motivation in gift-giving, which has an ethical content. We give because we have received, and through gift-giving we develop relationships that have a high ‘bonding value’. Analysing the logic of gift in business management may permit us to gain an understanding of the ambiguity of gift-giving in organizations. Looking at the relationships between organizations and employees, and organizations and customers, we can discover why the logic of gift is often misunderstood or abused in its application, and how it should be applied to be more consistent with the message of Caritas in Veritate. (shrink)

The concept of corporate social responsibility (CSR) emerged in the official discourse of the EU in 2000. This article explains how, while CSR may have been initially an idea about the scope of the responsibility of companies towards their environment, it has now become a process in which the representatives of the business community have come to occupy the main role, and whose purpose is to promote learning among business organizations, rather than to identify the components of a regulatory framework (...) for CSR. The central question now, therefore, is whether the so-called business case for CSR is strong enough, so that we may hope that the forces of market will suffice to encourage companies to behave responsibly, over and above their obligation to comply with their legal obligations. The article shows, however, that this case rests on certain presuppositions about markets and the business environment, which cannot be simply assumed, but should be affirmatively created by a regulatory framework for CSR. Following the introduction, it proceeds in four stages. First, it examines the development of CSR in the EU. Second, it offers a critical examination of the so-called business case for CSR, taking into account the growing diversity within the enlarged EU. It then discusses, as an alternative, what a regulatory framework for CSR could resemble, highlighting a number of initiatives which have been taken in this regard by the EU. The article finally concludes that, since the failure of the European Multi-Stakeholder Forum on CSR in 2004, the debate has made a turn in the wrong direction, both because of the mistaken view that the establishment of a regulatory framework for CSR would threaten the competitiveness of European companies, and because of the naive (and contradictory) view that reliance on market mechanisms will suffice to ensure that corporations will seek to minimize the negative social and environmental impacts of their activities, even in circumstances where they are not legally obliged to do so. (shrink)

One major theme in Pope Benedict XVI’s encyclical Caritas in Veritate is the “Principle of Gratuitousness.” The point of this essay is to begin a reflection on what it actually means and its possible relevance. By comparing the “Principle of Gratuitousness” and its normative assumptions about “the logic of gift” with anthropological studies focused on the same phenomenon, I hope to show, not only the relevance of the encyclical’s normative vision but also where and how it needs further clarification. The (...) findings of empirical anthropology provide qualified support for the encyclical’s focus on generating and replenishing “social capital” in order to sustain both markets and politics in an effort to “civilize the economy.” In order to put the “Principle of Gratuitousness” into more effective practice, the encyclical highlights the creative role of “civil society” and calls for the creation social enterprises whose goals are broader and deeper than maximizing profits. Assessing the realism of Benedict’s proposal will require further research and reflection on innovative entrepreneurial ventures designed to address social problems on a commercial basis, for example, Muhammad Yunus’ concept of a “social business” and its development in a series of joint business ventures involving the Grameen Bank and related organizations. (shrink)

Caritas in Veritate emphasizes authentic development as growth in virtue and love for each other and for God. Civil society, especially religion and the family, set upon a foundation of truth about man and what is good for him, is critical. In the last century, debates about the economic and political mix were driven by theories which, because they overemphasized the impact of economic factors on individuals and society, often saw religion and civil society asirrelevant. The failure of the alternative (...) economic arrangements demonstrates the error of those theories and testifies to the importance of truth, religion, and civil society to authentic human flourishing. Excessive criticism of capitalism hinders learning this lesson by keeping the focus on economic factors rather than moving to the more central issues of truth and civil society. (shrink)

The most remarkable characteristic of Pope Benedict XVI’s encyclical Caritas in Veritate is its theologically robust mode of discourse: a pervasive and unapologetically Trinitarian and Christological, substantive argument, based in a robust theological anthropology of person and society as gift, and a peculiarly Platonic and Augustinian rhetorical mode of discourse. Caritas reveals the implicit, hidden, and faulty theological and philosophical commitments of secular reason—which, when used as a medium for the Gospel, can too easily taint the true doctrine the Church (...) attempts to convey with it—proclaiming instead a radically orthodox diagnosis of and prescription for a disenchanted, love-and-truth starved—yet Enlightenment-weary—postmodern world. (shrink)

Starting from MacIntyre’s virtue ethics, we investigate several codes of conduct of banks to identify the type of virtues that are needed to realize their mission. Based on this analysis, we define three core virtues: honesty, due care, and accuracy. We compare and contrast these codes of conduct with the actual behavior of banks that led to the credit crisis and find that in some cases banks did not behave according to the moral standards they set themselves. However, although banks (...) and the professionals working in them can be blamed for what they did, one should also acknowledge that the institutional context of the free market economy in which they operated made it difficult to live up to the core values lying at the basis of the codes of conduct. Given the neo-liberal free market system, innovative and risky strategies to enhance profits are considered desirable for the sake of shareholder’s interests. A return to the core virtues in the financial sector will therefore only succeed if a renewed sense of responsibility in the sector is supported by institutional changes that allow banks to put their mission into practice. (shrink)

Starting from MacIntyre’s virtue ethics, we investigate several codes of conduct of banks to identify the type of virtues that are needed to realize their mission. Based on this analysis, we define three core virtues: honesty, due care, and accuracy. We compare and contrast these codes of conduct with the actual behavior of banks that led to the credit crisis and find that in some cases banks did not behave according to the moral standards they set themselves. However, although banks (...) and the professionals working in them can be blamed for what they did, one should also acknowledge that the institutional context of the free market economy in which they operated made it difficult to live up to the core values lying at the basis of the codes of conduct. Given the neo-liberal free market system, innovative and risky strategies to enhance profits are considered desirable for the sake of shareholder’s interests. A return to the core virtues in the financial sector will therefore only succeed if a renewed sense of responsibility in the sector is supported by institutional changes that allow banks to put their mission into practice. (shrink)

Benedict XVI in Caritas in Veritate advances a positive view of businesses that are hybrids between several traditional categories. He expects that the “logic of gift” that animates civil society infuses the market and the State with relations typical for it—reciprocity, gratuitousness, and solidarity. His theological rationale offers an answer to two questions that have largely remained open in the literature—why hybridization of business occurs and why it is desirable. A rational reconstruction of hybrid enterprise that goes beyond a simple (...) taxonomy of types benefits from the Pope’s call for an intrinsic integration of institutions and processes traditionally attributed to disparate spheres. The relational model of the Trinity defines the unity in diversity that accounts for the benefits of truly hybrid businesses, and the “logic of gift” serves as the agent of integration. (shrink)

If we read the central message of Caritas in Veritate (CV) through the lens of contemporary business ethics—and the encyclical does seem to invite such a reading (CV 40–41, and 45–47)—there is first of all a diagnosis of a crisis. Then, we are offered a response to the diagnosis: charity in truth , “the principle around which the Church’s social doctrine turns, a principle that takes on practical form in the criteria that govern moral action .” (CV 6) In business (...) ethics, the norms of personal and (especially) corporate responsibility are the natural correlates to “the criteria that govern moral action.” Using this as a point of departure, I propose to relate some recent scholarship in business ethics to the message of CV — with the suggestion that there is significant convergence. I argue, further, that the encyclical breaks new ground with its suggestion that, at the center of our moral thinking in business ethics lies a logic of contribution or gift. I discuss Benedict’s understanding of the crisis, and his exhortation to reach beyond conventional interpretations of corporate responsibility, under the following four headings: Diagnosing a Crisis , Institutionalizing Conscience , A Tripartite View of Corporate Responsibility, and Comprehensive Moral Thinking. (shrink)

Fortis, the leading Benelux financial group, had been a success story of successive mergers of bank and insurance companies, with leadership in corporate social responsibility (CSR). One year after the acquisition of the major Dutch financial conglomerate ABN AMRO, the global financial crisis caused the collapse of the Fortis group. The purpose of this article is to use the case study of Fortis’s recent fall as a basis for reflective considerations on the financial crisis, from stakeholder and ethical perspectives. A (...) selected number of key events of the history of the dramatic crisis at Fortis will be analysed from different ethical frameworks. Special consideration will be given to fairness of communication, shareholder activism and conflicts of interests of CEO’s mergers opportunities. A confrontation between the CSR policy and the reality raises the fundamental questions why the powerful CSR guidelines and ethical principles did not help in the assessment of the risks. (shrink)

Recent discussion on Corporate Social Responsibility (CSR) mainly focuses on two aspects of CSR: from a technical perspective, CSR aims to improve ethical standards in the organizational decision-making process, and should guarantee that management practices are in accordance with commonly accepted standards of behavior. From a political perspective, CSR describes corporate engagement with ecological and social issues that extend beyond the firm's economic activities. The latter perspective in particular leaves unclear whether such corporate contributions to solve environmental and societal problems (...) should be seen as voluntary additional services or whether corporations bear specific duties in this field.Based on the tenet of subsidiarity derived from Catholic thought, this article emphasizes that the common interpretation of CSR should be extended by a third perspective that addresses corporations as intermediate actors bearing specific subsidiary co-responsibilities in society. (shrink)

The United States Government does not mandate that US based firms follow US social and environmental law in foreign markets. However, because many developing countries do not have strong human rights, labor, and environmental laws, many multinationals have adopted voluntary corporate responsibility initiatives to self-regulate their overseas social and environmental practices. This article argues that voluntary actions, while important, are insufficient to address the magnitude of problems companies confront as they operate in developing countries where governance is often inadequate. The (...) United States can do more to ensure that its multinationals act responsibly everywhere they operate. First, policymakers should define the social and environmental responsibilities of global companies. They must consistently make their expectations for global business clear – and underscore that this objective can often be accomplished without mandates. Second, the US should closely examine the policies that undermine global Corporate Social Responsibility (CSR) and address the many conflicting signals sent by policymakers. Third, the President should make the US government a CSR model by examining how to use its purchasing power to promote human rights. Finally, the US government should require pension funds to report on the social and environmental consequences of their investments. In these ways, Americans can mind our business – and thus make sure that US based firms do not undermine social and environmental progress when they operate in the developing world. (shrink)

This article examines the signals that US public policy sends to global market actors regarding their social and environmental practices. The United States Government does not mandate that US based firms follow US social and environmental law in foreign markets. However, because many developing countries do not have strong human rights, labor, and environmental laws, many multinationals have adopted voluntary corporate responsibility initiatives to self-regulate their overseas social and environmental practices. This article argues that voluntary actions, while important, are insufficient (...) to address the magnitude of problems companies confront as they operate in developing countries where governance is often inadequate. The United States can do more to ensure that its multinationals act responsibly everywhere they operate. First, policymakers should define the social and environmental responsibilities of global companies. They must consistently make their expectations for global business clear - and underscore that this objective can often be accomplished without mandates. Second, the US should closely examine the policies that undermine global Corporate Social Responsibility (CSR) and address the many conflicting signals sent by policymakers. Third, the President should make the US government a CSR model by examining how to use its purchasing power to promote human rights. Finally, the US government should require pension funds to report on the social and environmental consequences of their investments. In these ways, Americans can mind our business - and thus make sure that US based firms do not undermine social and environmental progress when they operate in the developing world. (shrink)

Caritas in veritate (Charity in Truth) is the ''social'' encyclical of Pope Benedict XVI, one of many papal encyclicals over the last 120 years that address economic life. This volume, based on discussions at a symposium co-sponsored by the Institute for Advanced Catholic Studies and the Pontifical Council for Justice and Peace, analyzes the situation of the Church and the theological basis for Benedict's thinking about the person, community, and the globalized economy.