As said by Elkington (1997), sustainability is regarded as following the “Triple Bottom Line” (environmental, economic, and social). This represents the idea that businesses do not have to focus on one single goal pertaining to adding economic value, but it is expected to meet the extended goal set of adding social and environmental value too.
According to Davis (1973), social responsibility refers to the obligation on decision makers to implement actions that protect and improve the society’s welfare as a whole, along with their own interests. Thus, this rationale suggests two active aspects of protection and improvement of social responsibility. Protection of the welfare of society calls for avoidance of negative impacts on the society. Improvement of the welfare of society calls for the creation of positive benefits to the society. Accordingly, the concerns to be addressed include corporate governance (which is related to top-level decision-making), risk management, accountability, and the remuneration of executives; treatment of employees in a fair manner, environmental management and the concept of sustainability; operating ethically in the marketplace, in dealings with suppliers and customers; along with ethical investment and social reporting.
As per the tenets of corporate social responsibility, the company must consider its acts in context of the whole social system. It would be held responsible for the consequences of its acts anywhere in the system. Thus, corporations must take social responsibilities for the self-interest. Corporations which are socially responsible are rewarded with a good brand image and extra customers. Similarly, if they are irresponsible, they may be confronted with decreased sales and customer boycotts. In several cases, employees are attracted to work for corporations which are perceived as being socially responsible.