Relational theory of corporate social responsibility has a root from the complex firm-environment relationships. As the term implies interrelations between the two are the focus of the analysis of CSR. Corporate citizenship of the rational theory strongly depends on the type of community to which it is referred. It is the path that a corporation may take to behave responsibly. Foundamentary, it is about the relationship that a corporation develops with its stakeholders, and, therefore, the former has to continuously search for engagement and commitment with the latter.
In the utilitarian theory the corporation serves as a part of the economic systems in which the function is mechanical i.e. traditionally known as in profit maximization.CSR ideas emerged after a realization that there is need for an economics of responsibility embedded in the business ethics of a corporation. Utilitarian could also be taken synonymously with instrumental theories (Garriga and Mele, 2004; Jensen 2002) in which the corporation is seen as only an instrument for wealth creation, and its social activities are only a means to achieve economic results.
This theory aims to measure the contribution the social variable makes to economic performance. Thus, the problem is that of managing the firm considering social and economic factors together. It is based on the assumption that business depend on society for its growth and sustainability. Three activities are managerial activities but they are interrelated to each other. And these include, corporate social performance, social accountability, auditing and reporting and social responsibility of Multinationals. All these contribute to the socially behaviour of a firm which finally measures the corporations activities that have social impact.
Here are some of the roles CSR
(1) Shares the negative consequences as a result of business activities. This is related to increasing conscience focused marketplaces necessitating more ethical business processes.eg. high United Kingdom road tax for high emission vehicles, thus reducing the burden on small vehicle owners in a community.(Wikipedia 2009).By doing so smaller vehicle owners share less the tax burden hence could re-channel the money for more productive uses in the community.