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Chapter 15 Lecture 1 CSR & Ethics

This document discusses corporate social responsibility (CSR) and business ethics. It defines CSR as how businesses negotiate their role in society and ethics as morally appropriate business behaviors and decisions. While linked, CSR activities do not guarantee ethical behavior. Reasons for CSR include public expectations, monitoring, hiring/retention, and business performance. CSR activities range along a continuum from profit-maximizing to leading on social objectives. Developing a global business ethic faces challenges but can create common rules and a level playing field.

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Sunilkumar Ce
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31 views

Chapter 15 Lecture 1 CSR & Ethics

This document discusses corporate social responsibility (CSR) and business ethics. It defines CSR as how businesses negotiate their role in society and ethics as morally appropriate business behaviors and decisions. While linked, CSR activities do not guarantee ethical behavior. Reasons for CSR include public expectations, monitoring, hiring/retention, and business performance. CSR activities range along a continuum from profit-maximizing to leading on social objectives. Developing a global business ethic faces challenges but can create common rules and a level playing field.

Uploaded by

Sunilkumar Ce
Copyright
© © All Rights Reserved
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 15

CORPORATE SOCIAL

RESPONSIBILITY (CSR)
AND ETHICS
Chapter 15 Lecture 1

Definitions and
Relationships
Corporate social responsibility (CSR) is the
process by which businesses negotiate their role in
society
In the business world, ethics is the study of
morally appropriate behaviors and decisions,
examining what "should be done
Although the two are linked in most firms, CSR
activities are no guarantee of ethical behavior

Recent Evidence of CSR


Interest

An Internet search turns up 15,000 plus


response to corporate citizenship
Journals increasingly rate businesses (and
NGOs) on socially responsive criteria:
Best place to work
Most admired
Best (and worst) corporate reputation

Reasons for CSR Activities


CSR activities are important to and even
expected by the public
And they are easily monitored worldwide

CSR activities help organizations hire and


retain the people they want
CSR activities contribute to business
performance

Corporate Social Responsibility Continuum

Maximize firms
profits to the
exclusion of all
else

Do what it
takes to
make a
profit; skirt
the law; fly
below
social radar

Do more than
required; e.g.
engage in
philanthropic
giving

Fight social
responsibility
initiatives

Integrate social
objectives and
business goals

Balance profits
and social
objectives

Comply;
do what
is legally
required

Articulate
social value
objectives

Lead the
industry
and other
businesses
with best
practices

CSR are Grounded by Opposing


Objectives (Maximize Profits to Balance
Profits with Social Responsibility) and so
Activities Range Widely
Do what it takes to make a profit; skirt the law; fly below
social radar
Fight CSR initiatives
Comply with legal requirements
Do more than legally required, e.g., philanthropy
Articulate social (CSR) objectives
Integrate social objectives and business goals
Lead the industry on social objectives

Businesses CSR Activities


Philanthropy
give money or time or in kind to charity
Integrative philanthropyselect beneficiaries aligned
with company interests

Philanthropy will not enhance corporate reputation


if a company
fails to live up to its philanthropic image or
if consumers perceive philanthropy to be manipulative

Integrate CSR Globally


Incorporate values to make it part of an
articulated belief system
Act worldwide on those values
Cause-related marketing
Cause-based cross sector partnerships

Engage with stakeholders


Primary stakeholders
Secondary stakeholders

Business Ethics
Development

The cultural context influences


organizational ethics
Top managers also influence ethics
The combined influence of culture and top
management influence organizational ethics
and ethical behaviors

The Evolving Context for


Ethics

From domestic where ethics are shared


To international where ethics are not shared
when companies:
Make assumptions that ethics are the same
Ethical absolutismthey adapt to us
Ethical relativismwe adapt to them

To global which requires an integrative


approach to ethics

Emergence of a Global
Business Ethic
Growing sense that responsibility for righting social
wrongs belongs to all organizations
Growing business need for integrative mechanisms
such as ethics
Ethics reduce operating uncertainties
Voluntary guidelines avoid government impositions

Ethical conduct is needed in an increasingly


interdependent worldeveryone in the same game
Companies wish to avoid problems and/or be good
public citizens

Ways Companies Integrate


Ethics
Top management commitment in word and
deed
Company codes of ethics
Supply chain codes
Develop, monitor, enforce ethical behavior
Seek external assistance

External Assistance with


Ethics
Industry or professional codes
Certification programs, e.g., ISO 9000
Adopt/follow global codes
Caux Round Table Principles

Reasons for Businesses to


Engage in Development of a
Global Code of Business Ethics
Create the same opportunity for all businesses if
there are common rules
Level the playing field
They are needed in an interconnected world
They reduce operating uncertainties
If businesses dont collaborate, they may not like
what others develop

Four Challenges to a Global


Ethic
Global rules emerge from negotiations and will
reflect values of the strong
Global rules may be viewed as an end rather than
a beginning
Rules can depress innovation and creativity
Rules are static but globalization is dynamic

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