Integrative Theory: is a theory stating that the key aim of firms lies in requirements and needs of society being met appropriately. This is what franchises the organizational existence. The theory is also known as the view of socio-economics with 4 chief approaches inclusive of issue towards management, responsibility of people, management of stakeholders and social performance for corporate aimed at fulfilling the demands socially. First approach has its relation to organizational response towards issues of political and social nature. Through response being delivered over these encountered issues, a company can gain the ability of performing its responsibilities towards the people in an effective way.
Another approach here states that using legal rules and policies of people for locating society is of utmost importance. The third approach has its relation to management of stakeholders with an aim on balancing all key members identified interests for the stakeholder groups (Mayes et al., 2015). The performance of corporate in the society illustrates that firms need to identify their social legitimacy and processes for responding to the issues and requirements of the society. Only after social issues and demands are searched, it becomes possible for organizations to fulfil the society’s unmet needs.
CSR’s ethical theory: This theory indicates that organizations need to have a focus over the correct paths to develop a better society. This also consists of 4 key approaches inclusive of the theory of stakeholder normative, global rights, development sustainability and general good. The initial approach argued firms to perform as per their fiduciary duties towards their stakeholders. In order to do this, an organization also needs to apply the theories of morality (Ladkin et al 2016) (Cornett et al 2015). Another approach argues that organizations need to take into consideration the human, labour and environmental rights by ensuring that they are working in an ethical way towards these members. Focus should also be on sustainable development of the organization and everyone involved in the process through taking into consideration their needs and requirements.