Government and Society

Corporate Social Responsibility is essentially about doing good and doing well.
It generally refers to the process of integrating social values and mission within business decision making, to achieve positive and sustainable outcomes towards business, environment and the community at large. Concept of CSR includes specific issues
Product safety

Honesty in advertising
Affirmative action
Employees rights
Affirmative action
Environmental sustainability
Ethical behavior
Difference btw illegal and unethical behavior
Eg: Buffet: wasted food.
Glob csr
Corporate Citizenship Concepts
Corporate Social Responsibility  Obligation  accountability Corporate Social Responsiveness  Action activity
Corporate Social Performance  outcomes results
Business criticism/ social Responsibility cycle
4-part definition of CSR
Sustainable stakeholder model
The Social Responsibility of business encompasses the economic, legal, ethical and discretionary ( philanthropic) expectations that society has of organizations at a given point of time. Economic Responsibilities
Business employs many management concepts that are directed toward financial performance of the organization Economic sustainability
REQUIRED of biz by society
Profitable
Max sales, min costs
Strategic decisions
Legal responsibilities
Reflect spciety’s view of “codified ethics” in the sensethat they embody basic notions of fair practices as established by our law makers Biz’s responsibility toward society to comply with these laws Do not embrace the full range of behaviours expected of biz by society Law is unable to address all issues that biz may face
Law often lags behind more recent interpretationsof what is considered appropriate behavior Laws are made by lawmakers and may reflect the personal interest and political motivations of legislators rather than appropriate ethical justifications. Laws are essential but not adequate
REQUIRED of biz by society
Obey all laws, adhere to all regulations
Ethical Responsibilities
Embrace activities and practices that are epected or prohibited by society even though they are not codified into aw Embody the full scope of norms, standards values and expectations that reflect what consumers, employes, shareholders, and the community regard as fair, just, and consistent with respect for or protection of stakeholders’ moral rights. Ethics/values are the driving forces behind the initial creation of laws and regulations. EXPECTED of a biz
Avoid questionable practices.
Do what os fair right and just
Discretionary expectations ( Philantrophic)
Reflect current expectaions of biz by the public.
Amount and nature of these activities are voluntary or discretionary, guided only bu biz’s desire to engage in social activities that are not mandated, not req by law, and not generally expected by biz in an ethical sense
DESIRED/EXPECTED of biz by society
Good corporate citizen
Contribute back by providing programs supporting community: education, health or human services etc… Provide for community betterment
Engage in volunteerism
Pyramid of CSR
Sustainable stakeholder model
Equation
Economic Responsibility + Legal Responsibilities + Ethical Responsibilities + Philantrophic Responsibilities = Total Corporate Responsibility
Arguments against CSR
FOR
AGAINST
Enlightened Self-interest
If business is to have a healthy climate in which to operate in the future, it must take actions now to ensure long term viability Long term viability is the pri driver in the current concern for sustainability. Warding off government Regulations
Ability to ward off future govt regulations and intervention May ensure greater freedom in decision making
Resources available
Biz has a reservoir of management talent functional expertise, and capital.
Proacting versus Reacting
Proacting is more practical and less costly than simply reacting to problems that have alr occurred. Eg: environmental pollution: Biz cld prevent environmental deteoriration by adopting cleaner alternatives
Public support
Classical Economics
Social issues are not concerns of biz pp
Should be resolved by the unfettered workings of the free market Business not equipped
Managers are oriented towards finance and operations and do not have necessary expertise ( social kills) to make social decisions. Less true today
Dilutes business purpose
Too much power already
Global competitiveness
Placing biz in a vulnerable position in terms of global competition. Biz has to internalize costs that it formerly passed on to the society: environmenta cisr, discrimination.

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