Types of Corporate Social Responsibility

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 In this era, the development of Corporate Social Responsibility has grown rapidly in last decade as it realises that the existence of Corporate Social Responsibility is much important to boost company’s brand and public image, as well as giving the opportunity to open the access to invest and finance for the companies. This study aims to learn and analyze how the existence of Corporate Social Responsibility is able to give the effect the influence to the performance of corporation’s stock market. There are (4) four types of Corporate Social Responsibility on the following (Krohn, 2018);

  • Environmental Responsibility – focusing on limiting pollution and decreasing greenhouse gases
  • Philanthropic Initiatives – doing in social care actions, such as giving the donation to charities or organizations.
  • Ethical Business Practices – providing the fair labor practices to the employees of the business.
  • Economic Responsibility – focusing on practicing long-term business growth. For instance, manufacturing a product which is made of the recycled materials.

The definition of “performance” reflect to how the process of measuring the earnings and losses during that time. Then, it evaluates the performance of stock market and the decision-maker is granted the right to judge the results based on the objective monetary terms.

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