The concept of companies acting responsibly is not new, but through the term “corporate social responsibility” (CSR) it has taken on a modern meaning. Even centuries ago people were occupied with the question of whether the economic activity of a business should be used for good rather than to simply make a profit. In the middle ages there was a concept of the “honest merchant” who would operate according to a code of values and thereby influence other traders to bring benefits to society as a whole by complying with certain rules of conduct.
For bigger companies, corporate responsibility won a greater meaning during industrialization, as firms would build housing for their employees and harsh working conditions prompted a growth of the issue in the collective consciousness. Companies slowly began to accept social responsibility for their employees and their families, although when decisive improvements were made it has only as a result of nationwide implementation and state legislation. An environmental ethic simply did not exist in most companies at that time.
The modern concept of company responsibility as we know it today arose in the 1950s in the US. At that time, many public discussions were being held on the topic and the first scientific findings were being published. Howard R. Bowen in his article “Social Responsibilities of the Businessman” described corporate responsibility as the logical consequence of the social accountability of individuals within the company. Thereby, it would have to orient itself according to these rules and thereafter enforce them. At the time, most companies did not feel obliged to work towards a more moral business focus: the defining outlook was that economic growth remained the determiner of everyday working life.
From the 1970s, socially active institutions that could have a positive influence on the moral outlook of society were increasingly recognized by companies. Society and business were in constant interaction and it was believed that through this there could be a consolidation of social norms within the capitalist economy. Corporate social responsibility existed before the century’s end, although perhaps more so as a hopeful ideal than as a behavior-changing act.
In recent years, with the growing focus on environmentalism and questions of ethics within a globalized world, CSR has begun to take on a stronger meaning. The rising importance of the internet meant that companies who behaved irresponsibly were quickly derided and suffered a serious blow to their public image when operational scandals, abuses, and grievances were publicized on social networks. From this, corporate social responsibility developed from an ideal to an important field of work for many companies.
Corporate social responsibility (CSR) and "corporate citizenship" are also often used synonymously. The confusion of terms shows, on the one hand, that CSR is a broad field and covers many sub-areas, while on the other hand, that the term itself is misleading. This is because "responsibility" implies an externally imposed principle and emphasizes the less voluntary nature of CSR.
These days, large companies cannot afford to not take CSR seriously. Some employ CSR specialists who help to not only formulate the companies’ moral code but also to monitor its implementation. This can often have added economic benefit if the positive corporate social responsibility can be used for marketing and PR use; everyone involved benefits from well-implemented CSR.
Companies are sometimes accused of driving their CSR efforts in the hope of having a positive advertising effect and increasing profits, and not for moral motives. Critics therefore simply equate CSR with marketing. On the other hand, there is also a widespread opinion that the intention behind corporate social responsibility is not so important, as long as it is ultimately benefitting people.