Corporate Social Responsibility Literature review

Corporate Social Responsibility - Literature review Example This is what is now termed at Corporate Social Responsibility – an organization’s sense of responsibility to society, whether ecological, economical or social. (Schermerhorn 2010) The term ‘Corporate Social Responsibility’ was coined way back in 1953 by Howard R Bowen in his book ‘Social Responsibilities of the Businessman’. He may as well be considered the Father of Corporate Social Responsibility. (Mhatre 2010) According to the Financial Times Lexicon, Corporate Social Responsibility is a business approach that delivers benefits in threefold – economic, social and environmental, to all the stakeholders and as a result leads to sustainable development. (lexicon.ft.com) Corporate Social Responsibility covers a gamut of activities ranging from human rights and working conditions to environmental health and development of the economy. While Corporate Social Responsibility was initially just considered a fancy term for generosity, times hav e now changed. Globalization and the ensuing awareness about the deteriorating environment and other social and economic issues around the world have ensured that there is a space for more responsibility that rests with every organization. Whether it is social and economic issues such as poverty and lack of education for children in certain areas of the world or environmental issues such as global warming and the increased carbon footprint, every organization today is now expected to focus on a certain cause and give back to the community. It is not just about generosity or being charitable. It is about a more united world – one wherein organizations are making returns. So why not support those that do not have access to so many privileges? And why not take care of the environment we live in? This is the role that CSR plays today in the daily functioning of an organization. Spreading awareness and the word that there is a need for organizations with power and resources to hel p those who need it, and the environment we live in, for the benefit of one and all. Hay, Stavens and Vietor (2005) summarise the meaning of Corporate Social Responsibility in their book Environmental Protection and the Social Responsibility of Firms. According to them, CSR is â€Å"a consistent pattern in which private firms do more than they are required to, based on laws and regulations governing the environment, worker safety and health and financial contributions in the communities in which they operate.† (Hay, Stavens and Vietor 2005) This definition is perhaps the most comprehensive, expressing not only the variety of functions of Corporate Social Responsibility but also stressing on the fact that the organizations do more than they are just required to. Lord Holme and Richard Watts further adds to this perspective by stating, â€Å"Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large† (qtd. in Baker 2005). CSR has become a very integral part of every organization large or small, private or public. Schilling and Steensma (2001) is of the opinion that it shows to the public that the organizations are not just ruthless entities that function to make a fatter bottom line, but that they are also humans at the end of the day who care about others and the environmen

Financial accounting Essay Example | Topics and Well Written Essays - 4000 words

Financial accounting - Essay Example Liquidity Analysis 12 Investment Analysis 13 Part B 15 Findings 15 Recent Developments 16 Recommendations 17 Part C 17 About IASB & FASB 17 Transitional Reliefs 18 Conclusion 19 References 20 Appendices 24 Introduction This project is divided into three parts. The first part includes the comparative analysis of the two UK-based companies- J Sainsbury Plc and Tesco Plc, based on the financial statements and other relevant information provided in the companies’ 2011 annual reports. This includes the ratio analysis and share price movements along with the FTSE 100 movements for the past four weeks. The second part includes the findings based on the financial analysis from the first part and the recommendations which follow from the findings as to which company has potential for better long-term investment. The third part of the project has the brief history of International Accounting Standards Board (IASB) and Financial Accounting Standards Board (FASB) and a list of transitional reliefs granted by the two boards for the retrospective application of a new revenue standard to ensure the comparability of revenues across all reporting periods. Objectives of the Project The objectives of this project are: †¢ To make a comparative analysis of Sainsbury and Tesco with the help of ratio analysis, share movements and related industry news †¢ To recommend which company would be better for long-term investment.... The analysis and interpretation is also helped by studying the business news related to the retailers’ industry. The four transitional reliefs related to the revenue recognition standard the IASB and FASB have granted in June 2011, are discussed. Part A Background of Sainsbury & Tesco John James Sainsbury and his wife founded Sainsbury in 1869 with only one retail store in London. Since then it has grown the largest retailer in UK with 934 stores consisting 377 convenience stores and 557 supermarkets. It has a joint ownership in Sainsbury Bank along with Lloyds Banking Group. The company also has 2 property joint ventures with The British Land Company Plc and Land Securities Group Plc. In the year 2010/11 Sainsbury grew by average growth rate of 8.5% in terms of space. It was the first retailer to open a bank in UK and the bank provides loans, credit cards, insurances and savings (J Sainsbury Plc, 2011). Sainsbury operates in 5 strategic areas driven 5 key values: Great food, general and merchandise clothing, complementary services and channels, new business development, and creating property value and growing space (J Sainsbury Plc-a, 2011). Tesco was founded by Jack Cohen in 1919 in London. The company has a vision to be highly valued by the community, customers, staff and shareholders and to become a modern innovative and growth company applying skills globally (Tesco Plc, 2011). The company has a seven part strategy to expand its business with sustainable long-term growth: Grow the core business in UK, be an outstanding online and store international retailer, become strong in other businesses besides food, grow retail services in all