Corporate Social Responsibility Theories Essay Example | Topics and Well Written Essays - 1500 words

Corporate Social Responsibility Theories - Essay Example This theory postulates that companies aim at demonstrating their legitimacy to the society by acting in accordance with the bounds and norms of the community. The bounds and norms consist of all behaviour that the society accepts. Rendtorff (2009, p.145) argues that organizations safeguard the social contract between them and the society by displaying acceptable behaviour. The researcher explains that the social contract between company and the society requires organizations to deliver benefits and desirable ends to the community (Rendtorff, 2009). The failure of conforming to the expectations of the society ruins the society’s view of the company; this view is known as corporate image. Therefore, to avoid conflicts with the society, corporations aim at achieving a balance between their objectives and those of the community. Organizations adopt social and environmental reporting as a technique of maintaining legitimacy and an excellent image to the society. This is because the society expects companies to give back to them and to protect their environment (Gossling, 2011). The public expects organizations to maintain low levels of pollution because high levels threaten the health of individuals. The public also anticipate companies to support them in community projects because the society gives them a chance to conduct business in their environment (Tench, Sun, & Jones, 2012). Companies, therefore, have to report to the society about their environmental and social activities to improve their legitimacy and hence, their image and credibility to the community. Edward Freeman developed stakeholder theory, which argues that organizations aim at providing their stakeholders with value.