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The Effect On Corporate Social Performance Among Multinational Oil Firms ...

The increased spotlight that shines upon business enterprises today as a result of globalization, increased freedom of the media, rapid communication modes and the influence of the Internet in providing news on corporations from standard sources as well as independent ones has a bearing upon corporations whereby their strategies and operations are reported in market as well as non-market environments (Baron, 2000, pp. 121-125). Wood (1991, p. 693) states that corporate social performance is defined as a business organization's configuration of principles of social responsibility and she goes on to add that these represent processes of social responsiveness, and policies, programs which are weaved into observable outcomes as the preceding relate to a company's societal relationships.

In researching corporate social responsibility the aspect of its importance represented a key issue which was determined as a foundation to an improved understanding of its role as well as impacts. Baker (2006a) advises of the perils of using non renewable resources faster that alternative forms can be found, and the problems of pollution, waste and environmental consequences of the actions of industry.

Baker (2006b) delves deeper into this issue, addressing the impacts and measurements of corporate social responsibility. It is important to understand that corporate social responsibility is not linked to works such as charitable donations and philanthropy, it is the obligation of a company to be sensitive to the needs of its stakeholders as represented by employees, suppliers, customers, community organizations, affiliates, subsidiaries, local neighborhoods and regions, investors, shareholders and others who are influenced by, as well as those that can influence, its actions and decisions (Baker, 2006b). Corporate social responsibility is also linked closely with the field of sustainable development in that corporations carry the obligation that their decisions are not based solely on economic and or financial factors, but also include the environmental and social ramifications and consequences of their actions and activities (Baker, 2006b). Baker (2006b) refers to the preceding as the ‘Social Footprint', which represents a term and methodology coined by the Centre for Sustainable Innovation. This organization states that the corporate sustainability measurement and reporting system quantifies the social impact of organizations on people (Centre for Sustainable Development, 2006).


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