History of Development of Corporate Social Responsibility

Firuza Madrakhimova 
(University of North America, USA)

Abstract: Since the late 80’s of the XX century in many Western countries, the companies received broad support and development of the philosophy of corporate social responsibility (CSR). As noted above, the concept of CSR formed in the whole world recently, about 60 years ago. Prior to this period, there were different standards and regulations in the areas of corporate governance, corporate ethics, and relationships with competitors, responsibilities towards the society and the country. Social policy rules and standards have not been developed at all because there was use of the “random” approach. However, from the late 60s–70s leading U.S. and European companies have started to come to an understanding of the need to unite different elements of corporate policies related to the relationship of the company with the environment, and to the development of a single integrated approach to interaction with society. Such a policy, on the one hand would have to be associated with the philosophy of the company, its marketing strategy, and it should meet the expectations of society. The main reasons for the intensive development of CSR in 1970s, in developed countries was because of the failure of consumers to purchase goods and services of irresponsible companies, as well as the growth of the trade union movement. At the same time in Western Europe and the United States ratcheted up the labor and environmental legislation, there were public policy initiatives aimed at developing the CSR. The history of corporate social responsibility in Russia is about 15 years. Even 10 years ago, the phrase “corporate social responsibility” would hardly be understood and accepted in the business world, and the practice was limited to general statements about following the principles of ethics and a single charity. However, in recent years, due to the almost ensuing political and economic stability and access of Russian companies in the international market, there is a need to review approaches for Russian companies to their responsibilities to society.

Key words: corporate social responsibility; models of CSR; theory of CSR; history of CSR

JEL code: Z19