CSR and

Ethical
Management
Presented By:

MD Sadnam Shoron

ID:2024010000273

Tahrim Kabir

ID:2024010000289

Bayzid Mahmud

ID

Joyeta joye

Presented to:

MS.Soneya Akter, Lecturer,

28-10-2024
 Introduction

▪ Corporate Social Responsibility (CSR) and ethical management have become integral to
modern business practices as organizations face increasing scrutiny from stakeholders,
including consumers, employees, investors, and regulatory bodies. This report provides an
extensive exploration of CSR and ethical management, tracing their historical evolution,
defining their roles in contemporary business, identifying key drivers, examining their benefits,
analyzing case studies, discussing challenges, and outlining future trends.
▪ 1. Understanding Corporate Social Responsibility (CSR)

▪ 1.1 Definition of CSR

CSR encompasses the voluntary actions taken by companies to address social, environmental,
and economic challenges. Unlike traditional business models that prioritize profit
maximization, CSR emphasizes the importance of operating in a manner that is beneficial to
society at large. This broader approach recognizes that businesses have responsibilities beyond
shareholders, including obligations to employees, customers, suppliers, communities, and the
environment.
▪ 1.2 Historical Context of CSR

The concept of CSR has evolved significantly over the decades, reflecting changing societal
values and expectations:
▪ Early 20th Century: The roots of CSR can be traced back to the early 1900s, where corporate
philanthropy began to emerge. Business leaders like Andrew Carnegie advocated for giving
back to society through philanthropic endeavors.
▪ Post-World War II Era: The rise of consumer advocacy and labor movements in the 1960s
and 1970s brought greater attention to corporate practices. Notable events, such as the
publication of Rachel Carson's "Silent Spring" (1962), highlighted environmental issues and
prompted businesses to reconsider their impact.
▪ 1980s to 1990s: The concept of CSR began to gain formal recognition, leading to the
development of frameworks and standards for measuring corporate responsibility, such as the
Global Reporting Initiative (GRI) and the United Nations Global Compact.

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▪ 21st Century: With the advent of globalization and digital communication, CSR has
transformed into a more strategic and integral component of business operations, often
encompassing issues such as climate change, human rights, and ethical supply chains.
▪ 1.3 Key Drivers of CSR
Several factors have contributed to the increasing significance of CSR in today’s business
environment:
▪ Consumer Demand: Modern consumers are more informed and conscientious about their
purchasing decisions. They seek brands that align with their values and demonstrate a
commitment to social and environmental causes.
▪ Globalization: As businesses operate in a global marketplace, they encounter diverse cultural
expectations and regulatory frameworks, necessitating a more robust CSR approach to
navigate varying stakeholder demands.
▪ Technological Advancements: The rise of social media and digital communication has
amplified public awareness of corporate actions, making transparency and accountability
critical. Companies are now held accountable for their practices on a global scale.
▪ Regulatory Pressure: Governments and international organizations are implementing stricter
regulations concerning environmental protection, labor rights, and corporate governance,
compelling companies to adopt responsible practices.
▪ Investor Expectations: Investors are increasingly considering Environmental, Social, and
Governance (ESG) criteria when making investment decisions. Organizations that prioritize
CSR are often viewed as more attractive investment opportunities.
▪ 1.4 Dimensions of CSR
▪ CSR encompasses multiple dimensions, which can be categorized as follows:
▪ Environmental Responsibility: Companies are expected to minimize their environmental
impact by adopting sustainable practices such as reducing carbon emissions, conserving
energy, managing waste, and sourcing materials responsibly.
▪ Social Responsibility: This includes initiatives aimed at improving community welfare,
supporting local economies, ensuring fair labor practices, and promoting diversity and
inclusion within the workplace.
▪ Economic Responsibility: Businesses have an obligation to contribute positively to the
economy by providing fair wages, creating jobs, and engaging in ethical business practices that
foster long-term growth and stability.

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▪ Philanthropic Responsibility: Many companies engage in charitable activities, supporting
causes such as education, healthcare, and disaster relief. This dimension underscores the
importance of corporate giving and community engagement.
▪ 1.5 Benefits of CSR
▪ Implementing CSR practices can yield numerous advantages for organizations:
▪ Reputation Enhancement: Companies recognized for their CSR initiatives often enjoy a
stronger public image, fostering brand loyalty and increasing customer retention.
▪ Risk Management: Proactive CSR efforts can help organizations identify and mitigate risks
associated with compliance, public relations, and social issues, reducing the likelihood of
crises.
▪ Employee Engagement: Employees are more likely to be engaged and satisfied when they
work for companies that prioritize social responsibility. This can lead to increased productivity
and reduced turnover rates.
▪ Competitive Advantage: Businesses that effectively communicate their CSR efforts can
differentiate themselves from competitors, attracting customers who prioritize ethical
consumption.
▪ 1.6 CSR Measurement and Reporting

▪ Measuring the impact of CSR initiatives is crucial for assessing effectiveness and ensuring
accountability. Companies can utilize various frameworks and metrics to evaluate their CSR
performance, including:
▪ Global Reporting Initiative (GRI): A widely used framework that provides guidelines for
sustainability reporting, allowing organizations to disclose their economic, environmental, and
social performance.
▪ Sustainability Accounting Standards Board (SASB): Provides industry-specific
sustainability accounting standards, helping companies disclose material ESG information to
investors.
▪ ISO 26000: An international standard providing guidance on social responsibility, outlining
best practices for integrating CSR into business operations.
▪ B Corporation Certification: A certification for companies that meet high social and
environmental performance standards, accountability, and transparency.
▪ 2. Ethical Management

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▪ 2.1 Definition of Ethical Management
▪ Ethical management involves the application of ethical principles and values in decision-
making processes and organizational practices. It focuses on aligning business strategies with
moral and ethical considerations, fostering a culture of integrity and accountability

▪ 2.2 Key Principles of Ethical Management

▪ Integrity: Upholding honesty and ethical standards in all business dealings, including
transparency in communications and accountability for actions.
▪ Fairness: Ensuring equitable treatment of all stakeholders, including employees, customers,
suppliers, and the community.
▪ Respect for Stakeholders: Recognizing the rights and interests of all stakeholders, fostering
positive relationships, and addressing concerns through open dialogue.
▪ Accountability: Taking responsibility for decisions and actions, including their social and
environmental impacts, and being transparent about outcomes.
▪ 2.3 Importance of Ethical Management
▪ Building Trust: Ethical management fosters trust among stakeholders, enhancing
relationships and collaboration. Trust is essential for long-term success and reputation
management.
▪ Guiding Decision-Making: An established ethical framework provides guidance for making
difficult decisions, especially in complex situations where the right course of action may not
be immediately clear.
▪ Cultural Development: Ethical management contributes to the cultivation of a positive
organizational culture, promoting employee engagement, morale, and productivity.
▪ 2.4 Implementing Ethical Management Practices
▪ Organizations can adopt several strategies to implement ethical management effectively:
▪ Develop a Code of Ethics: Create a comprehensive code of ethics that outlines the
organization’s values, principles, and expected behaviors for all employees, ensuring
alignment with CSR objectives.
▪ Training and Education: Provide regular training programs to ensure employees understand
ethical principles and how to apply them in their daily work. This includes case studies, role-
playing, and real-life scenarios.

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▪ Establish Ethics Committees: Form ethics committees or advisory boards to oversee ethical
practices and provide guidance on complex ethical dilemmas.
▪ Encourage Whistleblowing: Implement robust whistleblower policies to encourage reporting
of unethical behavior without fear of retaliation. This fosters a culture of transparency and
accountability.
▪ 2.5 Ethical Decision-Making Framework
▪ To support ethical decision-making, organizations can adopt a structured framework that
includes:
▪ Identify the Ethical Issue: Recognize the ethical dilemma and gather relevant facts.
▪ Consider Stakeholder Perspectives: Evaluate how the decision will impact various
stakeholders, including employees, customers, suppliers, and the community.
▪ Evaluate Alternatives: Explore different courses of action and their ethical implications.
▪ Make a Decision: Choose the option that aligns with ethical principles and organizational
values.
▪ Reflect and Review: After implementing the decision, assess its outcomes and learn from the
experience to inform future decisions.
▪ 3. Interrelationship Between CSR and Ethical Management
▪ 3.1 Shared Values and Objectives
▪ CSR and ethical management are deeply interconnected, both relying on a foundation of shared
values, including respect for human rights, environmental stewardship, and social equity.
Organizations that prioritize ethical behavior are more likely to engage in genuine CSR
initiatives that create meaningful social and environmental impact.
▪ 3.2 Stakeholder Engagement
▪ Effective CSR and ethical management both emphasize the importance of stakeholder
engagement. Listening to the concerns of employees, customers, suppliers, and the community
enables organizations to develop CSR strategies that resonate with stakeholders and promote
ethical decision-making.
▪ 3.3 Long-Term Vision and Sustainability
▪ A long-term perspective is crucial for both CSR and ethical management. Organizations that
focus solely on short-term profits often neglect the broader social and environmental
implications of their actions. By adopting a long-term view, companies can create sustainable
value for all stakeholders, including shareholders, employees, customers, and the community.

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▪ 4. Case Studies of CSR and Ethical Management in Action
▪ 4.1 Unilever
▪ Unilever has established itself as a leader in sustainability and CSR, with its Sustainable Living
Plan guiding its operations. Key initiatives include:
▪ Health and Well-Being: Unilever aims to improve the health and well-being of over one
billion people by promoting hygiene and nutrition through its products.
▪ Environmental Impact: The company is committed to reducing its environmental footprint,
targeting a 50% reduction in greenhouse gas emissions across its product lifecycle.
▪ Sustainable Sourcing: Unilever focuses on sourcing 100% of its agricultural raw materials
sustainably, promoting ethical practices throughout its supply chain.
▪ 4.2 Patagonia
▪ Patagonia is an exemplary case of a company that intertwines ethical management with robust
CSR initiatives. Notable practices include:
▪ Environmental Activism: Patagonia actively supports environmental causes, donating 1% of
sales to grassroots organizations working to protect the planet.
▪ Transparency in Supply Chain: The company publishes its supply chain information,
allowing consumers to trace the origins of its products and ensuring ethical labor practices.
▪ Sustainable Products: Patagonia emphasizes the use of recycled materials and
environmentally friendly manufacturing processes, reinforcing its commitment to
sustainability.
▪ 4.3 Starbucks
▪ Starbucks has integrated CSR into its business model through various initiatives, such as:
▪ Ethical Sourcing: The company is committed to ethically sourcing its coffee through its
Coffee and Farmer Equity (C.A.F.E.) Practices, ensuring fair wages and sustainable farming
practices.
▪ Community Engagement: Starbucks invests in local communities by offering job training
programs and supporting local businesses through partnerships.
▪ Environmental Stewardship: The company aims to reduce its environmental impact by
transitioning to sustainable practices, such as using recyclable cups and reducing water usage
in its stores.
▪ 4.4 TOMS Shoes

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▪ TOMS Shoes revolutionized the concept of "one for one" with its business model, where for
every pair of shoes purchased, TOMS donates a pair to a child in need. This model illustrates
the intersection of CSR and ethical management, highlighting the importance of social impact
in business operations. TOMS has also expanded its efforts to include environmental initiatives
and community development programs.
▪ 4.5 Ben & Jerry’s
▪ Ben & Jerry’s is known for its strong commitment to social and environmental causes. The
company actively engages in advocacy for climate justice, fair trade practices, and LGBTQ+
rights. Its "Caring Dairy" program promotes sustainable dairy farming, while its commitment
to sourcing Fairtrade-certified ingredients demonstrates a holistic approach to CSR and ethical
management.
▪ 5. Challenges and Criticisms of CSR and Ethical Management
▪ 5.1 Greenwashing
▪ One of the significant challenges facing CSR is the issue of greenwashing, where companies
exaggerate or falsely claim their environmental efforts to enhance their public image. This
practice undermines genuine CSR initiatives and can erode trust among consumers. Companies
must ensure that their claims are substantiated and transparent to avoid damaging their
reputation.
▪ 5.2 Measurement and Accountability
▪ Measuring the impact of CSR initiatives can be challenging. Organizations often struggle to
quantify their social and environmental contributions, making it difficult to assess
effectiveness and hold themselves accountable. The development of standardized metrics and
reporting frameworks is essential for enhancing transparency.
▪ 5.3 Balancing Profit and Purpose
▪ Companies frequently face the dilemma of balancing profit motives with social and
environmental responsibilities. Short-term financial pressures may lead some organizations to
prioritize profits over ethical considerations, compromising their CSR commitments.
Developing a strong corporate culture that values ethical behavior can help address this
challenge.
▪ 5.4 Resistance to Change
▪ Implementing CSR and ethical management practices may encounter resistance from within
the organization. Employees accustomed to traditional business practices may be hesitant to

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 embrace new initiatives, requiring effective change management strategies. Leadership
commitment and clear communication are crucial for overcoming resistance.
▪ 5.5 Diverse Stakeholder Expectations
▪ Meeting the diverse expectations of stakeholders can be challenging. Different stakeholder
groups may have varying priorities and concerns, making it difficult for organizations to
develop CSR strategies that satisfy all parties. Engaging stakeholders in the decision-making
process can help bridge these gaps.
▪ 5.6 Global Disparities
▪ Organizations operating in multiple countries may encounter varying cultural, social, and
economic conditions. Balancing global CSR initiatives with local needs and expectations is
essential for achieving meaningful impact. Companies must adopt a flexible approach that
respects local contexts while adhering to core ethical values.
▪ 6. The Future of CSR and Ethical Management
▪ 6.1 Trends Shaping CSR and Ethical Management
▪ The landscape of CSR and ethical management is continually evolving. Key trends include:
▪ Increased Accountability: Stakeholders are demanding greater transparency and
accountability from organizations, pushing them to disclose more information about their CSR
initiatives and performance.
▪ Integration of Technology: Technology is playing a crucial role in enhancing CSR efforts.
Companies are leveraging data analytics and digital platforms to track and report their social
and environmental impacts.
▪ Focus on Circular Economy: There is a growing emphasis on the circular economy, which
promotes sustainable resource use, waste reduction, and the reuse of materials.
▪ Employee Activism: Employees are becoming more vocal about their values and expectations,
pushing companies to align their practices with social and environmental issues.
▪ Diversity, Equity, and Inclusion (DEI): Organizations are increasingly prioritizing DEI
initiatives, recognizing the importance of fostering a diverse workforce and creating inclusive
environments.
▪ 6.2 Recommendations for Effective CSR and Ethical Management
▪ To enhance the effectiveness of CSR and ethical management, organizations can adopt the
following recommendations:

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▪ Set Clear Goals and Metrics: Establish specific, measurable goals for CSR initiatives and
regularly assess performance against these objectives. Utilizing frameworks such as the
Balanced Scorecard can help track progress.
▪ Engage Stakeholders: Actively involve stakeholders in the development and implementation
of CSR strategies to ensure their concerns are addressed. Conduct regular surveys and feedback
sessions to gather input.
▪ Foster a Culture of Ethics: Encourage ethical behavior at all levels of the organization
through training, recognition programs, and leadership commitment. Developing an ethics
hotline can provide employees with a safe channel for reporting concerns.
▪ Continuously Improve: Stay informed about best practices and evolving trends in CSR and
ethical management, and adapt strategies accordingly. Participating in industry forums and
collaborative initiatives can provide valuable insights.

Conclusion

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Corporate Social Responsibility and ethical management are indispensable components of
modern business practices. By integrating social responsibility into their operations and
adhering to ethical principles, organizations can enhance their reputation, manage risks, attract
and retain talent, and achieve sustainable success. The interplay between CSR and ethical
management fosters a positive impact on society and the environment, contributing to a more
sustainable future.
As businesses continue to evolve in an increasingly complex global landscape, embracing CSR
and ethical management principles will be crucial for driving meaningful change and creating
long-term value for stakeholders. By prioritizing social and environmental responsibility,
companies not only contribute to the greater good but also position themselves for enduring
success in the marketplace. In the coming years, organizations that fully integrate CSR and
ethical management into their core strategies will not only thrive but also lead the charge
toward a more equitable and sustainable world.

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