Corporate Social Responsibility
Over the years, there have been theories of Corporate Social Responsibility that have flourished. These theories have help corporations to understand the importance of Corporate Social Responsibility. Other theories have provided an explanation of beneficial or damaging effects. Most importantly, each theory provides a different perspective on applying corporate social responsibility. Overall, corporations need to understand how both theories, Systems Theory and The Triple Bottom Line theory, relate to Corporate Social Responsibility within their corporation. Systems Theory is one example of the theories of Corporate Social Responsibility. According to Haddox (2011), “ Systems Theory indicates that an organization is only one component in much larger economic, political, social, and environmental systems” (p. 2). In the business world, this theory provides the structure of internal and external environmental factors allowing the operation of many subsystems. With intertwining relations, one simple change within the system could have a domino effect within the whole organization. Corporations must consider their actions and/or decisions will affect both every component and department involved. Another Corporate Social Responsibility theory is The Triple Bottom Line theory. Hall and Slaper (n.d.) defines The Triple Bottom Line theory as, “an accounting framework that incorporates three dimensions of performance: social, environmental and financial” (The Triple Bottom Line Defined, para.1). Most importantly, measuring the success within the organization and society. The goal of sustainability for any corporation, “the “triple” in Triple Bottom Line refers to profits, people, and planet. The bottom line, “Corporate social responsibility modifies that both financial data and company’s effect on the people and the natural environment are also important measures of its performance ” (Argosy University, 2012, p. 2). Understanding how Systems theory and Triple
References: Argosy University. (2012). Theories of Corporate Social Responsibility / B7432 A01. Modules 1 – 8. Retrieved October 18, 2012 – December 8, 2012 from Trodick, S. (2012). Does Triple Bottom Line and Systems Theory Support Each Other? Retrieved from http://www.examiner.com/article/does-triple-bottom-line-and-