『経済研究』（明治学院大学）第 148 号

2014 年

The conceptual model of organizationsocial responsibility
Lan Luo; Jingfu Wei(Business College of USST, 200093)

Abstract
With the developing of the research of CSR, people more and more deeply noticethat the corporate should take responsibility. Whether other organizations besides corporates should not take responsibilities beyond their field? This paper puts forward theconcept of organization social responsibility on the basis of the concept of corporate social responsibility and other theories. And the conceptual models are built based on theconception, introducing the OSR from three angles: the types of organizations, the typesof responsibilities and the stakeholders. The models make the concept more specific andeasy to understand, also will be the driver of the research of social responsibility.
Key words：Organization; Corporate; Social responsibility; Stakeholder; Conceptual
model

1．Introduction
Early in the 20th century, due to the traditional economic theory, many corporation treat profit
maximization as the only goal, and it caused serious social problems. Some far-sighted entrepreneurs
and scholars put forward a new idea of corporate management ethic, corporate social responsibility,
aimed at the series problems. After the theory being put forward, the whole academic circles have a
lively discussion about the CSR, so do the whole society.
After more than half a century of development, the study of CSR is being constantly deepened. And the theory is aimed at requiring the corporate to protect the profit of other stakeholders
while pursuing economic profit and achieving its own profit targets. It means the corporate should31『経済研究』（明治学院大学）第 148 号

avoid negative effect to the society, including avoiding damage to social members and the whole society, respecting others’ interest, creating positive benefits for community members, improving andenhancing the overall level of development of human society, and promoting social progress. Essentially, CSR is more on the compliance and consideration of social regulations and social common values, and it emphasizes the responsibility for other stakeholders. For corporate, in addition to pursuing economic benefits and achieving profit target, but also should undertake corresponding social
responsibility, both of them constitutes the dual goal of corporate.
But there are some non-profit organizations including non-governmental organizations andgovernmental organizations in addition to corporate in the social organizations. And the existence ofthem is not for the pursuit of profit, and we cannot deny that some activities of them will cause somesocial problems. Parsons and Barnard treat the organization as the social unit of interaction within
the environment. So when we focus on the responsibility of corporate, we should not forget the responsibility for other organizations.
And now starting from the CSR, combining with other organizations, we put forward the concept of organization social responsibility. What the defects of CSR? What is the OSR? What the definition of OSR? Theoretical analysis and study of these issues will be able to effectively guide the social organizations to undertake responsibility effectively and also reduce the problems caused bytheir activities. Therefore, the in-depth analysis of OSR means a lot to both the development of organizations and the development of the whole society.

2．Literature review
2.1

The concept of corporate social responsibility
Since the concept of CSR is put forward, it’s always being focused on, and also one of the fo-

cuses of academic debate.
2.1.1

Foreign scholars’ opinions of CSR
In 1905, John Davis put forward original views about CSR, and in his opinion that the corpo-

rate is created by society, is supposed to return. After then, 1924, American scholar Sheldon had further extended of the connotation of CSR in the book “Management Philosophy”. And he advocatedthat the community service of corporate is beneficial to the increase of the interest of the community.
Joseph W. McGuire, 1963 , thought that the aim of CSR means corporate not only have economic and legal obligations, but also have responsibility for society more than these obligations. Davis Keith and Blomstrom Robert L. said that CSR refers to the obligation of protecting and increasing a kind of social welfare while the corporate is seeking the benefit in 1975.
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The conceptual model of organization social responsibility

In 1991, Stephen P. Robbins proposed that CSR refers to the responsibility that the corporate
undertake for a long-term benefit for the society more than legal and economic requirements. Afterthen, Archie B. Carroll made a precise description on the basis of predecessors, “CSR is the responsibility that the society wants the corporate to undertake. Society not only requires the corporate torealize its economic mission, but also expects it to follow testimonies, value ethics and do public welfare. Therefore, CSR is economic responsibility, legal responsibility, ethical responsibility and discretionary responsibility.
2.1.2

Domestic scholars’ opinions of CSR
The concept of CSR entered into China after the development in the west, in 1990, the first

Chinese scholar who defined the CSR, Jiafang Yuan proposed that CSR means the obligation that thecorporate undertake to maintain and increase the profit of society while pursuing the economic benefit.
Since the middle of 1990th, more and more scholars in China studied CSR. Honggui Li (1995)
thought CSR is that corporate should take the responsibility actively during the procedure of produce, and try to make its behavior meet the social standard, also solve the social problem actively.
Junhai Liu (1999), who was the first to brought CSR into the research of corporate management,
thought CSR means that corporate could not only treat the profit of shareholders or make money as
their only goal, but should increase other stakeholders’ interest beside shareholders.
Zucheng Zhou (2005) proposed that CSR is a comprehensive responsibility that the corporate
should undertake, and is an object with stakeholders, including economic responsibility, legal responsibility and moral responsibility. Also, Wenmei Guo and Youhuan Li (2007) thought as a responsible
corporate should not only seek profit, but notice the interest of stakeholders, such as supplying safe
product to consumers, building good relationships with cooperative partners and pay close attention
to environment and public welfare. And all of those will meet the requirement of sustainable development. As some leaders confuse CSR with maintenance of corporate image, crisis management andpublic relations, Mingqi Xu (2008) pointed out that CSR is the responsibility which is recognized andexpected by the public beyond the legal responsibility. Then Pei Cao (2012) proposed the CSR is the
responsibility that the corporate undertakes during the daily operational activities to make sure longterm profit and development, and it should be responsible for the shareholders, creditors, employees,
government and community.
Besides these scholars, some international organizations make their own definition of CSR.
WBCSD (2001) proposed that CSR is the ethical behavior that corporate act to society, including
shareholders and other stakeholders. In October 2006, the international organization for standardization (ISO) made the definition of CSR in <social work guide> (draft). CSR is the behavior that thecorporate take responsibility for the effect of its business activities to the society and the environ33

『経済研究』（明治学院大学）第 148 号

ment, and such behavior is based on the ethics and complies with the interest of the society and thesustainable development, also complies with the relevant policy and law. And the series of behaviors
should be integrated into the corporate in daily activities. Business for social responsibility, the authoritative organization in US that help member companies carry out the strategy of CSR, proposedthat CSR is through respect ethical values and respect for people, community and the natural environment to achieve business success. Global reporting initiative (GRI) published <Guide to the Sustainable Development Report> in 2002, it required that it should be from economic, environmental
and social aspects to review the performance of the corporate, and all the content and the evaluationindex of all aspects are given. The European Parliament also argues that CSR means not only conforms to the law, but should actively improve the human capital, the environment and the interestsof stakeholders.
2.2

The theory of corporate social responsibility

2.2.1

Shareholder priority theory
Led by Adam Smith, classical economists believed that: corporate is the profit institution that

pursues the profit maximization, whose primary responsibility is to maximize shareholders’ interest,and no other social responsibilities. Adolf A. Berle put forward in 1931: “corporate managers only canbe the consignees of the shareholders. And their power shall be established in line with the principlethat the shareholders are the only beneficiary. Also, the interest of the shareholders is always superior to the interest of other potential interested party.
The famous economist and the Nobel Prize winner Milton Friedman published “CSR Is To Increase Profits” and “Capitalism and Freedom” in the New York Times, putting forward: “The corporate is private property of shareholders, then the managers’ most important responsibility is responsible for shareholders, and do not have to bear the social responsibility for the other.”
2.2.2

Social contract theory
In 1937, Coase, the first person who puts the social contract theory into the modern corporate

theory research put forward: “the existence of corporate is to save the transaction cost; the essential
feature of corporate is to replace the price mechanism; the corporate is the replacement of a series ofshort-term contracts in the market; the trade of factors of production, exactly, is the authoritative
long-term contractual relationship of labor and capital.”
The master of corporate social contract theory, Donaldson (1982) argued that corporate offereda contract to the society: corporate should take responsibility for the society which provides conditions for its existence, while society should take responsibility for the development of the corporate.
Chinese scholar Lin Jun (2004) proposed that the emergence and the development of CSR are due tothe changing social contract relationship between the corporate and the society. CSR starts from the34

The conceptual model of organization social responsibility

whole society, considering the corporate behavior’s influence on the society and the social expectations and requirements of corporate behavior.
2.2.3

Stakeholder theory
In 1963 , Stanford Research Institute explicitly put forward the concept of stakeholders: thecorporate is, in fact, the social tool that helps the government to achieve its public policy objectives,
and the goal of corporate is to achieve the interests of all stakeholders, such as employees, community and government, rather than just the interests of shareholders. Then, Ansof put forward in 1965
that make ideal corporate goal should synthesize the conflicting residual claims of various stakeholders of corporate, and the stakeholders may include managers, workers, shareholders, suppliers andcustomers.
Friedman (1984) pointed out in his book “Strategic Management: Theory of Stakeholders” that:stakeholders are any individuals or group who can affect the achievement of corporate goals, or canbe affected by the process of achieving goals.” In 1992, Charkha divided stakeholders into contractual
stakeholders and public stakeholders according to whether there is a transactional contract relationship between groups and corporate, the former include shareholders, employees, customers, distributors, suppliers and lenders, while the latter include consumers, regulators, government, pressuregroups, media and community. Clarkson (1995) pointed out that those natural person or social group
who have or claim ownership, rights or interests about the corporate and its past, present and future
events are all belong to stakeholders.
2.2.4

Corporate citizenshipIn the 1970s, Britain’s “Civil Society” first put forward the concept of “corporate citizenship”, ittakes corporate as a public citizen who not only to create profits, but to take responsibility for theenvironment and the society. Corporate citizenship refers to a company’s behavior that integrates social basic value with daily business practices, operations and policies. The elements of corporate citizenship include harm minimization, benefit maximization, concerned stakeholders and take responsibility for them three basic principles as well as understanding and strengthening corporate values,
blends into the core of the corporate strategy to form system improved values.
In 2003 , the standard of “corporate citizenship” got summary in the WEF (World Economic
Forum) of CEO: first of all is good corporate governance and moral values; the second is take responsibility for person; and the third is the responsibility to the environment; the fourth is contribution to
the society and economic welfare.
Mirvis (2006) divided corporate citizenship into five stages, these are: the primary stage is thatthe corporate organize production according to the law and the standards of the industry, rarely
think of affairs beside shareholders; the second stage is the involvement stage that the corporate participate in more community and social affairs to get public trust; third stage is the innovation stage
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『経済研究』（明治学院大学）第 148 号

that the corporate take responsibility for the stakeholders; then the combination stage is that corporate combines the social responsibility with economic responsibility and legal responsibility; at last,
the transition stage, in which the corporate pay attention to the world poverty and disease, and a series problems, and become a philanthropist.

3．The conceptual model of organization social responsibility
To speak of CSR, we require the corporate to consider the interests of other stakeholders
while they are finishing their own economic responsibility. Then, to organization, we also requirethem to consider other stakeholders’, such as environment and community, interest while they finishing their own duty. And what is the exact concept of OSR? This paper builds the conceptual modelfrom different angles.
3.1

From the angle of the pattern of organization
Because of the complexity of the organization, combined with the different angles of thinking,there are a lot of differences for the classification of organization. From the perspective of government, organization can be divided into government organization and non-governmental organization.
From the angle of market standard, the organization can be divided into profit organization and nonprofit organization. From the social function points, the organization, generally, can be divided into
four parts, namely political organization, economic organization, integrated organization and culture
maintained organization. In order to establishing the conceptual model, this paper classifies organization in nature, divide into political organization, economic organization, integrated organization andculture maintained organization.
Different organization has its own inevitable responsibility.
Government organization is the organization that ensure to achieve the goal of the whole society and to excise the distribution and use of the power. Their basic function is organizing and managing social public affairs and providing services to the nation, such as government agencies, politicalparties, etc.
Economic organizations, just as its name implies, are social organizations that provide the economic function and through a series of social activities to achieve profit.
Integrated organization is the kind of organization that is used to adjust the internal relationship of the whole society, deal with social conflicts and solve problems, make every part of the society coordinate with each other to maintain society order, such as judicial organ and supervisory organ.
Culture maintained organizations are organizations that through education and cultural activi36

The conceptual model of organization social responsibility

ties to maintain the sustainability of society and culture, like schools and churches.
We can notice with these instructions that organizations have their own unique functions andshould bear their own responsibility. But beyond that, do not organizations need to undertake other
responsibilities? In 1991, Carroll proposed the pyramid model of CSR, from the bottom to top are economic responsibility, legal responsibility, ethical responsibility and charitable responsibility. The socalled organization social responsibility, that is, to the organizations with different functions, they areshould take these four responsibilities while they finish their own.
Table 1


The responsibility of different types of organizations

Social responsibility

Legal
Responsibility

Moral
Responsibility

Charitable
Responsibility

Yes

Yes

Yes

Yes

Yes

Yes

Integrated organization

Yes

Yes

Yes

Culture maintained organization

Yes

Yes

Yes

Type of organizations

EconomicResponsibility

Government organization
Economic organization

Yes

Synthesize each kind of situation, we can summarize that profit-making organization should undertake four kinds of responsibility including economic responsibility, while non-profit organization should undertake legal responsibility, moral responsibility and charitable responsibility.

Figure 1

Carroll’s Pyramid Model

Charitable Responsibility
Proﬁt-making
Organization

Moral Responsibility

Non-profit
Organization

Legal Responsibility
Economic Responsibility

3.2

From the angle of the pattern of responsibility
If we consider from the pattern of responsibility that the organization should undertake, we

can divide the OSR into duty responsibility, mandatory responsibility, half-mandatory responsibility
and voluntary responsibility. Then the responsibility that organization should undertake all can be
included, there are also differences between this model and the pyramid model.
Duty responsibility: the responsibility that the organizations undertake to achieve the goalthat why the organizations exist.
Mandatory responsibility: the responsibility that the government and the state set to makethe organizations must undertake.
Half-mandatory responsibility: part of the moral responsibility.
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Figure 2

The comparison of different classification of responsibility

EconomicResponsibility

Legal
Responsibility

Moral
Responsibility

Charitable
Responsibility

Duty
Responsibility

Mandatory
Responsibility

Half-mandatory
Responsibility

Voluntary
Responsibility

Voluntary responsibility: the responsibility has nothing to do with the organization, and organization will not receive t legal sanction and moral condemnation if it doesn’t undertake it.
From this angle, OSR refers that organization should undertake the responsibilities including
those in the Pyramid Model.
3.3

From the angle of stakeholders
All kinds of organizations have their own stakeholders, we paraphrase Friedman’s words:

stakeholders are any individuals or group who can affect the achievement of organization goals, orcan be affected by the process of achieving goals. For all the stakeholders, the organization should dosomething to protect their interests.
①the responsibility for the organization itself: including the employees and other direct stakeholders.
②the responsibility for other organization: the organizations which have connections with thestudied one.
③the responsibility for the environment: natural environment.
④the responsibility for the community: indirect stakeholders in the social environment, including the individuals and organizations.
Among those stakeholders, the former two are the main stakeholders, and they are directly
related to the implement of the organization goals; and the last two are the secondary stakeholders,which are associated with the organization goals, but have no direct influence.
The same as CSR, OSR means that the organizations should take responsibility of their own
duty and also should protect other stakeholders’ interest. And to the stakeholders, organization has
indirect stakeholders beyond the internal stakeholders, such as environment and community etc.

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The conceptual model of organization social responsibility
Figure 3

The conceptual model from the angle of the stakeholders①③

Organization②

Environment（naturalenvironment）④

Community（social environment）

4．Conclusion
The concept of OSR is based on the concept of the CSR, it is a complement to the CSR. This
paper shows the relevant theoretical framework and the existing literature, summarizes the related
conceptual model, which illustrated from the content of the responsibility and from the perspectiveof stakeholders.
Theoretically, putting forward the concept of OSR plays a supplementary role in the development of CSR, and promotes the development of this academic field.
In practice, the definition of OSR and the description of the content are able to effectively
guide the organization to undertake the social responsibility, to know what and how to take these responsibilities. And this helps solve many social problems, in the meantime helps to reduce social
problems caused by the activities of the organizations. More than that, documented concept of OSR
helps people more effectively realize that the organization should undertake the social responsibility,
and then help people supervise and urge the organizations’ activities.

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