1. Social Responsibility Framework
CHAPTER 1
Social Responsibility Framework

2. Chapter Objectives To define the concept of social responsibility
To trace the development of social responsibility
To examine the global nature of social responsibility
To discuss the benefits of social responsibility
To discuss the framework for understanding social responsibility

3. What do you believe organizations should be responsible for accomplishing?

4. Social Responsibility Defined
The adoption by a business of a strategic focus for fulfilling the economic, legal, ethical and philanthropic responsibilities expected of it by its stakeholders

5. Social Responsibility Defined (cont.)
Businesses should look beyond their self-interests and recognize that they belong to a larger group that expects responsible participation.
Applies to all types of businesses
Adopts a strategic focus
Fulfills societal expectations

6. Social Responsibility Defined (cont.)
Economic responsibilities
Legal responsibilities
Ethical responsibilities
Philanthropic responsibilities

7. Who are the key stakeholders of the organization?

8. Social Responsibility Defined (cont.)
Requires a stakeholder orientation
Customers
Employees
Investors
Stockholders
Suppliers
Government
Communities

9. Stakeholders
Those constituents who have a stake in, or claim on, some aspect of a company’s products, operations, markets, industry, and outcomes

10. Lessons Learned from Economic Crises
Transparency
A long-term perspective
Liquidity
Limited use of derivatives
Absence of rating triggers
Minimal counter-party exposure
Diversification

11. Global Nature of Social Responsibility
Who determines social responsibility on a global scale?
Host country
Home country
Outside organizations

12. Benefits of Social Responsibility
Greater trust with stakeholders
Greater customer satisfaction
Stronger employee commitment
Stronger investor loyalty
Greater profitability
Countries with greater trust-based institutions foster a productivity-enhancing environment.

13. Social Responsibility Builds Trust
Trust is the glue that holds organizational relationships together.
Stephen Covey contends that low trust results in organizational decay and relationship deterioration.

14. Social Responsibility Strengthens Employee Commitment
The greater a company’s dedication to employees, the greater the likelihood that employees will take care of the organization.

15. What happens when employee loyalty is breached?
Quality is compromised.
Service is compromised.
Efficiency decreases.

16. Strengthening Employee Commitment
Employee stock ownership plans (ESOPs)
Employee-centered programs

17. Social Responsibility Contributes to Investor Loyalty
Investor relationships require dependability, trust, and commitment.
Shareholders are concerned about ethics, social responsibility, and corporate reputation.
Half of investors sell their stock within one year.

18. Social Responsibility Enhances Economic Performance
Economic well-being is promoted by:
Trust and a sense of community
Rigor in the legal and ethical systems
Consistent exercise of authority within society
Social institutions that foster access, productivity and economic growth
Positive attitudes about work, innovation, savings, and profits

19. Framework for Studying Social Responsibility
Chapter 2
Strategic Management of Stakeholder Relationships
Chapter 3
Corporate Governance
Chapter 4
Legal, Regulatory, and Political Issues
Chapter 5
Business Ethics and Ethical Decision Making

20. Framework for Studying Social Responsibility (cont.)
Chapter 6
Strategic Approaches to Improving Ethical Behavior
Chapter 7
Employee Relations
Chapter 8
Consumer Relations
Chapter 9
Community Relations and Strategic Philanthropy

21. Framework for Studying Social Responsibility (cont.)
Chapter 10
Technology Issues
Chapter 11
Sustainability Issues
Chapter 12
Social Responsibility in a Global Environment