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    Chapter 4 - Part 1 - 2024

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    Chapter 4 - Part 1 - 2024

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    phuc0395197996
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    Chapter 4_Part 1_2024

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    6 views12 pages

    Chapter 4 - Part 1 - 2024

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    Chapter 4

    Corporate Social
    Responsibility
    10/26/2024 1
    After studying this chapter, you should be able to:
    o Describe and explain corporate social responsibility
    (CSR).
    o Distinguish between instrumental and social
    contract approaches to CSR.
    o Explain the business argument for “doing well by
    doing good.”
    o Summarize the five driving forces behind CSR.
    o Explain the triple bottom-line approach to corporate
    performance measurement.
    o Discuss the relative merits of carbon-offset credits.
    10/26/2024 2
    10/26/2024 3

    Defining Corporate Social Responsibility - CSR


    o A voluntary initiative on the part of a business
    to contribute to a better society and a greener
    and cleaner environment.
    o The actions of an organization that are
    targeted towards:
     The achievement of a social benefit over
    and above maximizing profits for its
    shareholders,
     The meeting all its legal obligations.
    These obligations include:
    o Payment of all taxes related to the
    profitable operation of the business,
    o Payment of all employer contributions
    for its workforce,
    o Compliance with all legal industry
    standards in operating a safe working
    environment for its employees,
    o Delivering safe products to its
    customers.
    10/26/2024 4
    What is Corporate Social Responsibility?

    10/26/2024 5
    Main Concepts of CSR
    CSR (Carrol, 1979)
    o Firms have responsibilities to societies including economic,
    legal, ethical and discretionary (or philanthropic).
    Social Contract (Donaldson, 1982; Donaldson and Dunfee, 1999)
    o There is a tacit social contract between the firm and society;
    the contract bestows certain rights in exchange for certain
    responsibilities.
    Stakeholder Theory (Freeman, 1984)
    o A stakeholder is “any group or individual who can affect or is
    affected by the achievement of an organization's purpose.”
    o Argues that it is in the company’s strategic interest to respect
    the interests of all its stakeholders.
    10/26/2024 6
    Types of Social Responsibility

    10/26/2024 7
    Types of Social Responsibility
    o Economic
    The duty of managers, as agents of the company
    owners, to maximize stockholder wealth
    o Legal
    The firm’s obligations to comply with the laws that
    regulate business activities
    o Ethical
    The company’s notion of right and proper business
    behavior.
    o Discretionary
    Voluntarily assumed by a business organization.
    10/26/2024 8
    Carroll’s Four-Part Definition of CSR
    Societal
    Responsibility Examples
    Expectation
    Be profitable. Maximize sales,
    Economic Required minimize costs.
    Obey laws, adhere to
    Legal Required regulations
    Avoid questionable practices.
    Ethical Expected Do what is right, fair, and just
    Desired/ Be a good corporate citizen.
    Philanthropic Give back.
    Expected
    10/26/2024 9
    CSR: Evolving Viewpoints
    1. CSR considers the impact of the company’s
    actions on society.
    2. CSR requires decision makers to take actions
    that protect and improve the welfare of society
    as a whole along with their own interests.
    3. CSR supposes that the corporation has not only
    economic and legal obligations, but also
    certain responsibilities to society which extend
    beyond these obligations.
    10/26/2024 10
    CSR: Evolving Viewpoints (cont’d)
    4. CSR relates primarily to achieving outcomes
    from organizational decisions concerning
    specific issues or problems which (by some
    normative standard) have beneficial rather
    than adverse effects upon pertinent
    corporate stakeholders.
    o The normative correctness of the
    products of corporate action have been
    the main focus of CSR.
    10/26/2024 11
    Thanks !!!
    10/26/2024 12

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