Generations of CSR

Based on the changing between business and society, Simon Zadek (2001)
describes the development of CSR broadly in terms of three generations.

·      First Generation: The first generation of CSR showed
companies can be responsible in ways that do not detract from, and may
contribute to commercial success. Companies out of their own free will
contributed towards charity or corporate Philanthropy to address a variety of
social. Economic and other issues. Such contributions were part of overall
corporate citizenship strategy.

·      Second Generation: The second generation of CSR is
where companies and entire industries see CSR as an integral part of long-term
business strategy. Currently many companies because of the intellectual capital
undergoing change within the organizations are taking CSR seriously and are
moving companies towards second generation CSR. For creating social cohesion
and business competition the organization tries to align business goals and
social goals to maintain its profitability.

Third Generation: The third generation of CSR makes
significant contribution to addressing poverty, exclusion and environmental
degradation. This generation goes beyond voluntary approaches by individual
companies and involves leadership companies and organizations influencing the
market in which they operate and how it is regulated to remold entire markets
toward sustainability. This involves both partnerships with civil society and
bringing changes in public policy, which reward CSR and penalize poor
performance.