Describe the various approaches to corporate social responsibility.

 There are different approaches to CSR. The concept of CSR can be voluntary as well as mandatory for the corporates. They can adopt a mixed approach too, making CSR mandatory for some departments within corporates and optional for some. Each approach has its own values and limitations. A research study has identified the four strategic approaches used to manage CSR. These are obstructionist, defensive, accommodative, and proactive strategies:

1. Firstly, corporates (companies) that are taking an obstructionist strategy will completely ignore any forms of social or ethical responsibility that are beyond their economic interests. Therefore, companies that are running on an obstructionist strategy will try to contribute the least possible to their CSR activities.

2. Secondly, companies that have to take up the defensive strategy do not do much in their CSR efforts. However, these firms will do only what is required and they will protect their self-interest by passively following the legal requirements, and contributing just the right amount in their CSR efforts (Carroll & Buchholtz, 2000; Fisher, 2004).

3. Thirdly, companies which are running an accommodative strategy will accept some social responsibility, mainly towards their stakeholders. These firms will fulfill the requirements of the regulations and at the same time pay attention to the voices of various stakeholders. However, they will take the most passive and minimalist approaches to the demands of the stakeholders. Most of these firms contribute more to CSR under the pressure of their stakeholders and they rarely take their own initiatives to make further contributions.

4. And fourthly, companies which are to take up the proactive strategy are very different from the rest. These firms are fully recognized for their social responsibility and they actively participate in their efforts to minimize the negative impacts they create, at the same time, improving the welfare of their stakeholders. These are the firms who usually go beyond the requirements of the regulations (Carroll & Buchholtz, 2000; Fisher, 2004).

Economic research has shown that the weak involvement of stakeholders and the institutional firms will result in little motivation to contribute to the public good and social responsibilities. This will then lead the company to pursue the obstructionist strategy, which is a disadvantage to the company (Baumol, & Oates, 1988). If the corporate firm’s institutional pressure is strong, but stakeholders pressure is weak, the firm will pursue the defensive strategy. When a firm has strong pressure from stakeholders but weak institutional forces, the firm will pursue an accommodative strategy. The firm will positively react to the demands of stakeholders and fulfill them but will be more laid back in responding to the demands of the firm. Lastly, a firm will pursue the proactive strategy when the pressure of institutions and stakeholders are at high levels. When there is pressure from both the micro and macro-levels, the firm will reconsider and pursue strategies that are proactive.

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