Backgrounds of Corporate Social Responsibility: A Long History

In recent years, corporate social responsibility (CSR) has taken an unprecedent dynamic, it seems like a new concept of modern societies, but it is not new in the history of mankind, its origins date back to the end of the 50’s derived from the world conflicts of the time communities thought that by working with some companies they could maintain and collaborate with ethically questionable political or economic systems.

That is how the impact of organizations with their environment demands to be evaluated not for what they give back to society, due to this, ethics and values begin to be discussed in universities, generating academic debates the purpose of the company in terms of social compensation is questioned and the rules that guarantee correct commercial practices are established.

The concept of corporate social responsability (CSR) was addressed for the first time by the economist Howard B Bowen in his work « Social Responsibilities of the Businessmen » he questions the responsibility of giving back to society what it gave them. Later Archie Carroll defines the responsibility of a company as something legal ethics and philanthropy must born voluntarily by organizations.

It was Carroll himself who developed the “Pyramid Theory” he proposes four classes of social commitments of companies framed in a pyramid, in this, the responsibilities at the bottom serve as a support for higher responsibilities.

Its history begins with the birth and creation of small foundations and philanthropic projects in countries such as the United Kingdom and France. Therefore, corporate social responsibility has always existed, considered as « the ethical way in which businessmen and entrepeneurs assumed their responsibilities towards the society they carried out their economic activities ».

Due to this concept, the idea of why companies that use resources owned by the society must ethically find a way to return those same social assets arose, in this order, chronologically it can be said that it was the International Labor Organization, in 1919, the first group created with the determination to improve working conditions and deal with work-related issues.

In recent years, more precise actions have been carried out in the company-society relationship, taking the pyramid as a model and practices that seek to generate social value over economic value. In Colombia CSR practices are hardly carried out by companies that have a significant impact on the environment, which is why they are targeted by the state.

Contemporary companies that seek to be succesful in their commercial activities must prevail by CSR within their management, not only because is required by regulations, but as a result of a voluntary ethics derived from the impact caused to the environment, resources and general population.

Small or large companies must be aware at all organizational levels valuing the resources provided by the environment and that are used for their production processes, so these resources should be preserved because in this way they can be used by future generations.

When a company ignored the CSR, it affects its corporate image, negatively impacting its clients, workers and suppliers, who normally see these companies as examples to follow in their own business practices. As a result of this, organizations take on an important role in society, not only as sources or employment and productivity, but as generators of development in the population around them.

On the other hand, following CSR practices allows organizations to develop competitive advantages and have good relations with interest groups, so it ceases to be an independent and private activity, becoming one more link in the productive structure but focused on contribute through its corporate purpose.