Date post: | 10-Oct-2015 |
Category: |
Documents |
Upload: | gaurav-gupta |
View: | 7 times |
Download: | 0 times |
of 28
5/20/2018 Corporate Social Responsibilties
1/28
2-11
Corporate Social Responsibility
Search the Web
One of the leading organizations promotingcorporate responsibility is Business for SocialResponsibility :www.bsr.org.
http://www.bsr.org/http://www.bsr.org/5/20/2018 Corporate Social Responsibilties
2/28
2-2
Corporate Social Responsibility
(CSR)Preliminary definitions of CSR
The impact of a companys actions on society
Requires a manager to consider his acts interms of a whole social system, and holds himresponsible for the effects of his acts
anywhere in that system
5/20/2018 Corporate Social Responsibilties
3/28
Corporate Social Responsibility (CSR)
Business Criticism/ Social Response Cycle
Factors in the Societal Environment
Criticism ofBusiness
Increased concern
for the Social EnvironmentA Changed
Social Contract
Business Assumption of Corporate Social Responsibility
Social Responsiveness, Social Performance, Corporate Citizenship
A More Satisfied Society
Fewer Factors Leading
to Business Criticism
Increased Expectations Leadingto More Criticism
2-7
5/20/2018 Corporate Social Responsibilties
4/28
2-4
Corporate Social Responsibility
(CSR)Historical Perspective
Economic modelthe invisible hand of themarketplace protected societal interest
Legal modellaws protected societal interests
5/20/2018 Corporate Social Responsibilties
5/28
2-5
Corporate Social Responsibility
(CSR)Historical Perspective
Modified the economic model
Philanthropy
Community obligations
Paternalism
Search the Web
Milton Hershey was a leading example of anindividual who employed philanthropy, communityobligation and paternalism To learn more aboutMilton Hershey and the company, school and townhe built, log on to: http://www.miltonhershey.com/
http://www.miltonhershey.com/http://www.miltonhershey.com/5/20/2018 Corporate Social Responsibilties
6/28
2-6
Corporate Social Responsibility
(CSR)
Historical Perspective
What was the main motivation?To keep government at arms length
Search the Web
Businesses are interested in CSR and one leading businessorganization that companies can join is Business for SocialResponsibility. To learn more about BSR, visit their web siteat:: http://www.bsr.org/
http://www.bsr.org/http://www.bsr.org/5/20/2018 Corporate Social Responsibilties
7/28
2-7
Corporate Social Responsibility
(CSR)Historical Perspective
From the 1950s to the present the concept
of CSR has gained considerable acceptanceand the meaning has been broadened toinclude additional components
5/20/2018 Corporate Social Responsibilties
8/28
2-8
Corporate Social Responsibility
(CSR)Evolving Viewpoints
CSR considers the impact of the companys
actions on society (Bauer)
CSR requires decision makers to take actionsthat protect and improve the welfare of
society as a whole along with their owninterests (Davis and Blomstrom)
5/20/2018 Corporate Social Responsibilties
9/28
2-9
Corporate Social Responsibility
(CSR)
Evolving Viewpoints
CSR mandates that the corporation has notonly economic and legal obligations, but alsocertain responsibilities to society that extend
beyond these obligations (McGuire)
5/20/2018 Corporate Social Responsibilties
10/28
2-10
Corporate Social Responsibility
(CSR)Evolving Viewpoints
CSR relates primarily to achieving outcomes from
organizational decisions concerning specific issuesor problems, which by some normative standardhave beneficial rather than adverse effects uponpertinent corporate stakeholders. The normative
correctness of the products of corporate action havebeen the main focus of CSR (Epstein)
5/20/2018 Corporate Social Responsibilties
11/28
2-11
Corporate Social Responsibility
(CSR)Carrolls Four Part Definition
CSR encompasses the economic, legal, ethical
and discretionary (philanthropic) expectationsthat society has of organizations at a givenpoint in time
5/20/2018 Corporate Social Responsibilties
12/28
Corporate Social Responsibility (CSR)
Carrolls Four Part Definition
Understanding the Four Components
Responsibility Societal
Expectation
Examples
Economic Required Be profitable. Maximize sales,minimize costs, etc.
Legal Required Obey laws and regulations.
Ethical Expected Do what is right, fair and just.
Discretionary
(Philanthropic)
Desired/
Expected
Be a good corporate citizen.
Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz
Copyright 2003 by South-Western, a division of Thomson Learning. All rights reserved 2-16
5/20/2018 Corporate Social Responsibilties
13/28
2-13
Pyramid of CSR
5/20/2018 Corporate Social Responsibilties
14/28
2-14
Corporate Social Responsibility (CSR)
CSR in Equation Form Is the Sum of:
Economic Responsibilities (Make a profit)
Legal Responsibilities (Obey the law)
Ethical Responsibilities (Be ethical)
Philanthropic Responsibilities (Good corporate citizen)
CSR
5/20/2018 Corporate Social Responsibilties
15/28
2-15
Corporate Social Responsibility (CSR)
Stakeholder View
Stakeholder Group Addressed and Affected
CSR
Component
Owners Con-
sumers
Employees Community Others
Economic 1 4 2 3 5
Legal 3 2 1 4 5
Ethical 4 1 2 3 5
Philanthropic 3 4 2 1 5
5/20/2018 Corporate Social Responsibilties
16/28
2-16
Corporate Social Responsibility (CSR)
Arguments Against Restricts the free
market goal of profit
maximization Business is not
equipped to handlesocial activities
Dilutes the primaryaim of business
Increase businesspower
Limits the ability tocompete in a globalmarketplace
5/20/2018 Corporate Social Responsibilties
17/28
2-17
Corporate Social Responsibility (CSR)
Arguments For Addresses social issues
business caused and
allows business to bepart of the solution
Protects business self-interest
Limits future governmentintervention
Addresses issues by usingbusiness resources andexpertise
Addresses issues by being
proactive
5/20/2018 Corporate Social Responsibilties
18/28
2-18
Corporate Social Responsibility (CSR)
Business Responsibilities in the 21stCentury Demonstrate a commitment to societys values and
contribute to societys social, environmental, andeconomic goals through action.
Insulate society from the negative impacts ofcompany operations, products and services.
Share benefits of company activities with key
stakeholders as well as with shareholders. Demonstrate that the company can make moremoney by doing the right thing.
5/20/2018 Corporate Social Responsibilties
19/28
2-19
Corporate Social Responsiveness
Evolving Viewpoints
Ackerman and Bauers action view
Sethis three stage schema
Fredericks CSR1, CSR2, and CSR3
Epsteins process view
5/20/2018 Corporate Social Responsibilties
20/28
2-20
Corporate Social Performance
Carrolls CSP model integrates economic concernsinto a social performance framework
5/20/2018 Corporate Social Responsibilties
21/28
2-21
Corporate Social Performance
Extensions and Reformulations
Wartick and Cochrans extensions
Woods reformulations
Swansons Reorientation
5/20/2018 Corporate Social Responsibilties
22/28
2-22
Corporate Social Performance
5/20/2018 Corporate Social Responsibilties
23/28
2-23
Corporate Social Performance
Nonacademic Research Fortune's ranking of mostand leastadmired
corporations
Council on Economic Priorities CorporateConscience Awards
Business EthicsMagazine Awards
WalkerInformations Research on the impact
of social responsibility
5/20/2018 Corporate Social Responsibilties
24/28
2-24
Corporate Citizenship
Corporate citizenshipembraces all the facets ofcorporate social responsibility, responsiveness
and performance
5/20/2018 Corporate Social Responsibilties
25/28
2-25
Socialand FinancialPerformance
Good Corporate
Social Performance
Perspective 1: CSP Drives the Relationship
Good Corporate
Financial
Performance
Good Corporate
Reputation
Good Corporate
Financial
Performance
Perspective 2: CFP Drives the Relationship
Good Corporate
Social
Performance
Good Corporate
Reputation
Good Corporate
Social Performance
Perspective 3: Interactive Relationship Among CSP, CFP, and CR
Good Corporate
Financial
Performance
Good Corporate
Reputation
5/20/2018 Corporate Social Responsibilties
26/28
2-26
Social and Financial Performance
A Multiple Bottom-Line Perspective
5/20/2018 Corporate Social Responsibilties
27/28
2-27
Socially Conscious or Ethical
Investing
Social screening is a technique used to
screen firms for investment purposes
5/20/2018 Corporate Social Responsibilties
28/28
2-28
Selected Key Terms
Business for SocialResponsibility
Community obligations
Corporate Citizenship
Corporate socialresponsibility Corporatesocial responsiveness
Corporate socialperformance
Economic, legal, ethicaland discretionary
responsibilities Paternalism
Philanthropy
Pyramid of CSR
Socially consciousinvesting