1. What is corporate social responsibility?
Looks at ethical issues on the organization level.
Obligates organizations to act in ways that serve both its own interests and the interests of society at large.
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2. Organizational Stakeholders
Those persons, groups, and other organizations directly affected by the behavior of the organization and holding a stake in its performance.
Typical organizational stakeholders
Employees
Customers
Suppliers
Owners
Competitors
Regulators
Interest groups
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3. Figure 3.4 Multiple stakeholders in the environment of an organization.
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4. What is corporate social responsibility?
Beliefs that guide socially responsible business practices:
People do their best with a balance of work and family life.
Organizations perform best in healthy communities.
Organizations gain by respecting the natural environment.
Organizations must be managed and led for long- term success.
Organizations must protect their reputations.
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5. Perspectives on Corporate Social Responsibility
Classical view—
Management’s only responsibility is to maximize profits.
Socioeconomic view—
Management must be concerned for the broader social welfare, not just profits.
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6. Pros & Cons of Social Responsibility in Business
Arguments against social responsibility:
Reduced business profits
Higher business costs
Dilution of business purpose
Too much social power for business
Lack of public accountability
Arguments in favor of social responsibility:
Adds long-run profits
Improved public image
Avoids more government regulation
Businesses have resources and ethical obligation
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7. Criteria for evaluating corporate social performance
Is the organization’s …
Economic responsibility met?
Legal responsibility met?
Ethical responsibility met?
Discretionary responsibility met?
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8. Figure 3.5 Criteria for evaluating corporate social performance.
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9. Strategies for pursuing social responsibility
Obstructionist — meets economic responsibilities.
Defensive — meets economic and legal responsibilities.
Accommodative — meets economic, legal, and ethical responsibilities.
Proactive — meets economic, legal, ethical, and discretionary responsibilities.
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10. Figure 3.6 Four strategies of corporate social responsibility—from obstructionist to proactive behavior.
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