Page 53 - Rižnar, Igor, and Klemen Kavčič (ed.). 2017. Connecting Higher Education Institutions with Small and Medium-Sized Enterprises. Koper: University of Primorska Press
P. 53
Corporate Social Responsibility Disclosures in the Republic of Slovenia
• market actions;
• externally mandated actions;
• voluntary actions.
Market actions are a response to the competition on the market. They
are predominant, because an organisation fulfils its main and the most
important corporate responsibility, i.e. normal operation on the mar-
ket, by responding to market change. The second element encompasses
actions that an organisation is obliged to implement owing to govern-
ment regulations or agreements with stakeholders, e.g. collective agree-
ments. Voluntary actions do not need additional explanation. An or-
ganisation opts for them voluntarily, free from legal and other pressures
(Steiner and Steiner 2003, 145–7).
Schwartz and Carroll (2003) propose two broad groups of corporate
social responsibility. In the first group, operation should only focus on
profit maximisation within the legal limits and with minimal ethical
constraints. The second group follows the broader duties of organisa-
tions towards society, i.e. by helping solve social and environmental is-
sues on their markets.
Schwartz and Carroll (2003, 503) favour the second group and tries
to only boost the economic activity of the organisation and the expec-
tations society has of it. To this end, they argue that corporate social
responsibility combines economic, legal, ethical and philanthropic ex-
pectations that the society holds for organisations in a certain period
of time.
Corporate social responsibility is theoretically explained by Garriga
and Mele using the following theories:
• Instrumental theories suggest that the basic role of an organisa-
tion is to increase the value of the owner’s property, which is why
they follow the economic aspect of cooperation between an organ-
isation and society.
• Political theories underline the social power of organisations, es-
pecially the power that is generated through relations with the
wider society and the responsibility arising from political power.
As a result, organisations need to assume certain social duties and
rights and participate in social activities.
• Integrative theories are based on the conviction that social needs
must be taken into account in the business decisions of managers.
51
• market actions;
• externally mandated actions;
• voluntary actions.
Market actions are a response to the competition on the market. They
are predominant, because an organisation fulfils its main and the most
important corporate responsibility, i.e. normal operation on the mar-
ket, by responding to market change. The second element encompasses
actions that an organisation is obliged to implement owing to govern-
ment regulations or agreements with stakeholders, e.g. collective agree-
ments. Voluntary actions do not need additional explanation. An or-
ganisation opts for them voluntarily, free from legal and other pressures
(Steiner and Steiner 2003, 145–7).
Schwartz and Carroll (2003) propose two broad groups of corporate
social responsibility. In the first group, operation should only focus on
profit maximisation within the legal limits and with minimal ethical
constraints. The second group follows the broader duties of organisa-
tions towards society, i.e. by helping solve social and environmental is-
sues on their markets.
Schwartz and Carroll (2003, 503) favour the second group and tries
to only boost the economic activity of the organisation and the expec-
tations society has of it. To this end, they argue that corporate social
responsibility combines economic, legal, ethical and philanthropic ex-
pectations that the society holds for organisations in a certain period
of time.
Corporate social responsibility is theoretically explained by Garriga
and Mele using the following theories:
• Instrumental theories suggest that the basic role of an organisa-
tion is to increase the value of the owner’s property, which is why
they follow the economic aspect of cooperation between an organ-
isation and society.
• Political theories underline the social power of organisations, es-
pecially the power that is generated through relations with the
wider society and the responsibility arising from political power.
As a result, organisations need to assume certain social duties and
rights and participate in social activities.
• Integrative theories are based on the conviction that social needs
must be taken into account in the business decisions of managers.
51
