A History of Corporate Social Responsibility: Concepts and Practices

Brief Abstract

This chapter provides a comprehensive historical overview of the development of corporate social responsibility (CSR), tracing its conceptual evolution and practical application from the late 19th century to the early 21st century. It explores the progression from early philanthropic and paternalistic business practices to the institutionalization of CSR within strategic management and corporate governance. The chapter highlights key milestones, definitional developments, and influential scholars and theories, including the contributions of Howard R. Bowen, Keith Davis, and Archie Carroll. It concludes by examining the global expansion and increasing integration of CSR into mainstream business practices, particularly in Europe and North America.

Key Findings

• CSR has deep historical roots, but it emerged as a formal concept mainly in the 20th century, particularly post-1950s.

• Early business social activities (1800s–1930s) were characterized by philanthropy, paternalism, and employee welfare—often motivated by both social concern and business performance.

• Howard R. Bowen is credited as the “Father of CSR” for his pioneering work defining social responsibility in business, emphasizing alignment with societal values.

• Four historical CSR eras were identified by Murphy: Philanthropic Era (pre-1950s), Awareness Era (1950s–1960s), Issue Era (late 1960s–early 1970s), and Responsiveness Era (mid-1970s onward).

• Carroll’s four-part definition of CSR includes: Economic (be profitable), Legal (obey the law), Ethical (do what is right), and Philanthropic (contribute to society).

• CSR in the 1970s and 1980s expanded to include corporate social performance (CSP) and corporate social responsiveness.

• CSR in the 1990s and 2000s became intertwined with related concepts such as Stakeholder Theory, Business Ethics, Corporate Citizenship, and Sustainability.

• By the 2000s, CSR had become embedded in corporate strategy and governance, supported by global frameworks, professional associations (e.g., BSR), and formalized reporting standards.

• CSR became a global phenomenon, especially in Europe, where firms adopted more expansive stakeholder-oriented models than in the U.S.

Opportunities for Further Research

• Examine the actual impact of CSR on firm performance, stakeholder trust, and long-term reputation.

• Assess when and how CSR creates competitive advantage, especially across industries and cultural contexts.

• Conduct comparative studies of CSR practices across countries and regions, particularly emerging markets.

• Explore how local cultural, political, and institutional factors influence CSR strategies and stakeholder expectations.

• Investigate CSR integration into strategic management and governance structures.

• Examine the evolution from ad hoc philanthropy to strategic CSR, and the consequences of this shift for legitimacy and accountability.

• Continue historical case studies of CSR evolution in specific industries, companies, or periods, especially underrepresented geographies or sectors.

• Explore the interaction between voluntary CSR practices and regulatory requirements, including how legal changes influence CSR adoption and reporting.

• Investigate how CSR is being reshaped by contemporary movements such as ESG (Environmental, Social, and Governance) investing, purpose-driven business, and B Corps.

Definitions

• Corporate Social Responsibility (CSR): The obligation of businesses to pursue policies, make decisions, and take actions that align with the values and objectives of society.

• Economic Responsibility: The duty of a business to be profitable and economically sustainable, providing a foundation for other responsibilities.

• Legal Responsibility: The requirement for businesses to comply with laws and regulations set by governing authorities.

• Ethical Responsibility: The expectation that businesses act in ways that are morally right, fair, and just, beyond mere legal compliance.

• Philanthropic Responsibility: The voluntary commitment of businesses to contribute to the well-being of communities and improve quality of life.

• Corporate Social Performance (CSP): The outcomes of a company’s principles, processes, and policies in addressing social responsibilities and stakeholder expectations.

• Corporate Social Responsiveness: The ability of a business to anticipate and respond to social demands and pressures in a proactive and adaptive manner.

• Social Obligation: Business actions taken primarily to meet economic or legal requirements, with limited regard for broader societal expectations.

• Public Responsibility: The specific duties of organizations to align their activities with public policy goals and societal standards, as defined by their roles in the public sphere.

• Stakeholder Theory: The concept that businesses have responsibilities to a wide range of stakeholders—including employees, customers, suppliers, and communities—whose interests should be considered in decision-making.

About the Author

Archie B. Carroll is a prominent scholar in the field of business ethics and corporate social responsibility (CSR). He is best known for his influential work on the Carroll’s Pyramid of CSR, which has become one of the foundational frameworks in CSR theory. Carroll is Professor Emeritus of Management in the Terry College of Business at the University of Georgia, where he has had a long-standing academic career. His research has significantly contributed to the understanding of CSR, stakeholder theory, and corporate performance. In addition to numerous articles, Carroll has authored or co-authored several books and textbook chapters that are widely used in business education globally.