Corporate social responsibility is the managerial obligation to take action that protects and improves both the welfare of society as a whole and the interests of the organization. Management must strive to achieve societal as well as organizational goals. Society as one of the organizational stake holders should be served and their interest should be protected in order to accomplish one of the main organizational objectives: increasing value of the firm. In the past two decades, this issue becomes stronger and even today it becomes an important issue raised by the society that gives intensive pressure on organization performance. One challenge facing managers who are attempting to be socially responsive is to determine which specific social obligations are implied by their business situation. Managers in the tobacco industry, for example,
are probably socially obligated to contribute to public health by pushing for development of innovative tobacco products that do less harm to people’s health not only for the smoker itself, but also for all persons around it. Clearly, management’s performance should be monitored and valued based not only on their achievement to reach their organizational goals, but also in their effort to serve
and accommodate stake holder’s interest and needs
