Institutional Model of Corporate Social Responsibility
Purpose: The purpose of this study is to present the structure of a model emphasizing the role of formal and informal institutions in implementing the concept of corporate social responsibility (CSR). Design/Methodology/Approach: In the article the following research methods were applied: method of literature critical analysis allowing to assess the knowledge on the impact of institutions on the effects of CSR concept implementation, methods of analysis and synthesis allowing to present in a comprehensive and multifaceted manner the research issue and identification of factors which determine developing the socially responsible business model and modelling methods implementing the idea of CSR. Findings: The social and economic reality proves that in the modern, very complex and global world, institutions are becoming increasingly important. Therefore, the concept of CSR should include the institutional environment because the quality of institutions, both formal and informal, influences the quality of binding standards and social values.The quality of institution is also affecting the social culture, development of social awareness and sensitivity e.g., regarding natural environment issues and civil society, living conditions and level of education; therefore, factors which are particularly emphasised in the idea of CSR. Practical Implications: The conducted analysis revealed that reference literature presented only marginally the role of formal and informal institutions in developing the concept of corporate social responsibility (CSR). In order to close this gap, the article presents the model of CSR emphasizing the importance of institutions and their role in implementing the concept of CSR. The proposed model may contribute to achieving better results within the implementation of CSR in practice, in the area of economic rationality, natural environment as well as social and economic, moral, ethical, traditional and cultural life. Originality/Value: The proposed model is a progressive model presenting in an optimal manner the concept of CSR from the perspective of formal and informal institutions. The model of CSR concept taking into account the institutions may become ground for further in-depth research into this concept and constitute the imperative in rationalizing the concept of CSR in practice.