Posted: January 20th, 2015

An Examination of the Role of corporate social responsibility in Saudi Arabia

An Examination of the Role of corporate social responsibility in Saudi Arabia

Order Description

Please write a literature review about 6000 word. The literature review has to contain the points in below. (Please could you look at the previous works that you have

done to give you overview on my topic).

Chapter 2 – literature review

• Overview of CSR /definitions of CSR /concepts of CSR (in the west (UK & USA). (not less than 1000 word)
• The historical Development of CSR in UK and USA- Philanthropy in UK and USA – religious and non-religious forms – link to Industrial Revolution discussion. (not less

than 2000 word)
• The theories of CSR: (Need development) not less than 3000 word. All these theories need development, write in more details and explain more.
1. Review – Critique the theories-what are the negatives.
2. How would these theories work in Saudi Arabia?
Please look at the theories in below:
Theories of CSR
The following explicit theories are important in understanding interdisciplinary nature of CSR in three unique aspects: the economic system, the role of corporation,

and its beneficiaries.
1. Utilitarian Theories
The utilitarian theories view corporations as an important component of the economic system that serve a mechanical function traditional described as profit

maximisations objective (Jensen, 2002). In light of this assumption, CSR function revolves around the need for economic responsibility in relation to the ethics of a

corporation. Secchi (2007 p .347) further describes these theories in two groups: the social cost theory and functionalist theory. The former views corporations as a

tool for wealth creation, and hence their involvement in social activities essentially acts as a means to attain economic results. On the other hand, functionalist

theory views corporations as an element of the economic system that aims for profit making. In general, utilitarian theories suggest that it is important for

corporations to create a balance between social objectives and profit making, in order to attain equilibrium of the economic system (Garriga & Mele, 2004, p. 51).

These theories therefore require corporations to accept social duties as well as participate in social co-operations. Effective managerial skills are crucial factors

for efficient distribution of economic resources. Therefore, managerial theory explains further social accountability of an organisation.

2. Managerial Theory
Secchi (2007) divides Managerial theories into three classes: corporate social performance (CSP), social accounting and reporting, and social responsibility for

multinationals. CPS bases on the assumption that firms depend on the society for their growth and sustainability, and therefore measures the contribution of social

variables to the economic performance of business organisations. Social accounting and reporting calls upon business organisations to account for their actions since

in doing so, they will control their actions towards core business activities while remaining responsible to relevant communities (Adeyeye, 2012). While CSR for

multinationals arise from global competition together with the challenges firms face. In this sense, the managerial theory describes the business responsibility the

managers have to play in order to survive in international markets (Detamosi, 2008, p. 807). These theories therefore view the strength of CSR as arising from the

social power of a corporation while they recognise corporations as a good citizen expected to participate directly in the activities of the community. Through the

managerial theory, a good relation between participants is enhanced. This relationship is explained further in the contract theory of CSR.
3. Relational Theory
Relational theory is primarily based on firm-environmental relationships. This theory further consists of four groups: business and society, stakeholder approach,

corporate citizenship, and social contract (Korhonen 2003:p25). Under business and society, CSR emerges as an interaction between two entities. The first measure of

CSR describes the creation of economic value in the society, and the second one refers to the obligation of the business to consider the effects of their decisions and

actions on the society system at large. On the other hand, stakeholder approach views the firm as an interrelated web of various interests, whereby self-creation

happen interpedently with community creation while individuals behave altruistically. In this perspective, this approach advocates for the need to understand reality

in the business environment to manage a firm’s social responsible behaviour. Corporate citizenship describes the relationship that business organisations develops with

stakeholders, and views that it is important for the former to continuously search for commitment and ways to engage with the latter (Wood & Lodgson 2002, p. 59).

Conversely, according to social contract theory, CSR originates from the moral legitimacy that the firm attains in the society and CSR is justifiable through social

actions that legitimise corporation behaviour. The contribution of CSR is understood through various concepts as explained

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