ABSTRACT

In this chapter, we aim to offer a unifying interpretation of CSR as an economic philosophy of entrepreneurship and innovation with a distinct theoretical course. We argue that CSR, whether as a management idea or a management innovation, is implicated in various forms of governance of corporate actions, which are largely private. CSR deals with the reduction (internalization) of negative externalities and the promotion of positive externalities by an organization. It is worthwhile to note that externalities here is not used in the strict sense of the term, but as a shorthand metaphor for the impacts firms have on both society and the environment. Thus, we envision CSR as a self-regulatory mechanism adopted or to be adopted by corporations in the governance of these positive or negative impacts. This is in line with the new definition of CSR offered by the European Commission (2011): “firms taking responsibilities of their impacts on the society.” This way of viewing CSR also limits the profusion of often incongruous meanings and interpretations associated with the term, while making a case for a different way of doing business.