Business and Society Ch.2

question

Corporate Social Responsibility (CSR) As a Concept Early definitions
answer

– CSR means seriously considering the impact of a company’s actions on society – CSR requires the individual to consider his or her acts in terms of a whole social system, and holds him or her responsible for the effects of his or her acts anywhere in that system. – These definitions provide useful insights into the concept of CSR.
question

Traditional CSR Patterns Emphasize:
answer

– Corporate Social Responsibility Emphasizes Obligation, Accountability – Corporate Social Responsiveness Emphasizes Action, Activity – Corporate Social Performance (CSP) Emphasizes Outcomes, Results.
question

Newer Terms with Similar Meanings (CSR Patterns)
answer

– Corporate Citizenship (C) – Views companies as citizens and all this implies. – Corporate Responsibility (CR) – Broadly Focuses on all categories of corporate Responsibility. – Sustainability (SUS) – Emphasizes longer-term concern for people, planet and profits
question

Corporate Social Responsibility encompasses the
answer

Economic Legal Ethical, and Discretionary expectations that society has of organizations at a given point in time.
question

The pyramid of csr
answer

question

The CSR Equation
answer

Economic Responsibilities + Legal Responsibilities + Ethical Responsibilities + Philanthropic Responsibilities = Total Corporate CSR A stakeholder perspective focuses on the CSR pyramid as a unified whole.
question

Top 20 Activities or Characteristics ofSocially Responsible Companies
answer

….
question

1.
answer

Makes products that are safe
question

2.
answer

Does not pollute air or water
question

3.
answer

Obeys the law in all aspects of business.
question

4.
answer

Promotes honest or ethical employee behavior.
question

5.
answer

Commits to safe workplace ethics
question

6.
answer

Does not use misleading or deceptive advertising.
question

7.
answer

Upholds stated policy banning discrimination.
question

8.
answer

Utilizes \”environmentally friendly\” packaging.
question

9.
answer

Protects employees against sexual harassment.
question

10.
answer

Recycles within company.
question

11.
answer

Shows no past record of questionable activity.
question

12.
answer

Responds quickly to customer problems.
question

13.
answer

Maintains waste reduction program.
question

14.
answer

Provides or pays portion of medical costs.
question

15.
answer

Promotes energy conservation program.
question

16.
answer

Helps displaced workers with placement.
question

17.
answer

Gives money toward charitable or educational causes.
question

18.
answer

Utilizes only biodegradable or recyclable materials.
question

19.
answer

Employs friendy or courteous or responsive personnel
question

20.
answer

Tries continually to improve quality.
question

Arguments against CSR
answer

– Classical Economics – Business Not Equipped – Dilutes Business Purpose – Too Much Power Already – Global Competiveness
question

Classical Economics
answer

The classical economic views is that business’ only goal is the maximize profits for owners.
question

Business Not Equipped
answer

Business is not equipped to handle social activities.
question

Dilutes Business Purpose
answer

It dilutes the primary purpose of business.
question

Too Much Power Already
answer

Businesses have too much power already.
question

Global Competiveness
answer

It limits the ability to compete in a global marketplace.
question

Arguments For CSR
answer

– Enlightened self-interest – Warding off government regulations – Resources Available – Proaction is better than Reaction – Public supports
question

Enlightened self-interest
answer

Business must take actions to ensure long-term viability.
question

Warding off government regulations.
answer

This is one of the most practical reasons.
question

Resource Available
answer

Business has the resources and expertise. Let it try.
question

Proaction is better than Reaction
answer

Proaction is also less costly
question

Public supports
answer

the public strongly supports CSR
question

Business Responses to calls for CSR Make the Business Case for CSR
answer

Defensive approach Cost-benefit approach Strategic approach Innovation and learning approach
question

The Business Case for CSR 6 Reasons for Embracing CSR
answer

1. Innovation 2. Cost Savings 3. Brand differentiation 4. Long-term thinking 5. Customer engagement 6. Employee engagement
question

The Business Case for CSR Business Benefits of CSR
answer

….
question

Business Benefits of CSR 1.
answer

Win new business
question

Business Benefits of CSR 2.
answer

Increase customer retention
question

Business Benefits of CSR 3.
answer

Develop and enhance relationships with customers, suppliers, and networks.
question

Business Benefits of CSR 4.
answer

Attract, retain, and maintain a happy workforce and be an Employer of Choice.
question

Business Benefits of CSR 5.
answer

Save money on energy and operating costs and manage risk.
question

Business Benefits of CSR 6.
answer

Differentiate itself from competitors
question

Business Benefits of CSR 7.
answer

Improve its business reputation and standing
question

Business Benefits of CSR 8.
answer

Provide access to investment and funding opportunities
question

Business Benefits of CSR 9.
answer

Generate positive publicity and media opportunities due to media interest in ethical business activities.
question

Corporate Social Responsiveness
answer

An action-oriented variant of CSR
question

Responsibility
answer

Implies a state or condition of having assumed an obligation.
question

Responsiveness
answer

Connotes a dynamic, action-oriented conditioned.
question

Sethi’s Three-Stage Schema
answer

Social obligation, social responsibility, and social responsiveness; anticipatory, preventive
question

Frederick’s CSR1, CSR2, and CSR3
answer

– CSR1 is accountability-focused. – CSR2 is responsibility-focused – CSR3 refers to corporate social rectitude.
question

Epstein’s Process View
answer

Emphasizes the process of social responsiveness.
question

Corporate Social Performance Carroll’s Model
answer

Social Responsibility Social Issues (Stakeholders) Involved Philosophy (Mode) of Social Responsiveness
question

Corporate Social Performance Carroll’s Model Social Responsibility
answer

(Top to Bottom) Discretionary (Philanthropic) Responsibilities Ethical Responsibilities Legal Responsibilities Economic Responsibilities.
question

Corporate Social Performance Carroll’s Model Social Issues (Stakeholders) Involved
answer

(Left to Right) Consumerism Environment Discrimination Product Safety Occupational Safety Shareholders
question

Corporate Social Performance Carroll’s Model Philosophy (Mode) of Social Responsiveness
answer

(Back to Front) Proaction Accommodation Defense Reaction
question

Corporate Social Performance: Wartick & Cochran’s Model Extensions
answer

Check slide 24
question

Corporate citizenship (1 of 2)
answer

– Embraces all the facets of CSR, Responsiveness, and Performance. – is not a new concept, but one whose time has come – serves a variety of stakeholders.
question

Corporate citizenship (2 of 2) Broad View
answer

– A reflection of shared moral ad ethical principles. – A vehicle for integrating individuals into the communities in which they work. – A form of enlightened self-interest that balances stakeholders’ claims and enhances a company’s long-term value.
question

Corporate citizenship (2 of 2) Narrow View
answer

– Corporate community relations
question

Drivers of Corporate Citizenship Internal Motivators
answer

– Traditions and values – Reputation and image – Business strategy – Recruiting and retaining employees.
question

Drivers of Corporate Citizenship External Pressures
answer

– Customers and consumers – Expectations in the communities – Laws and political pressures.
question

Benefits of Corporate Citizenship Benefits to the business:
answer

– Improved employee relations – Improved customer relationships – Improved business performance – Enhanced marketing efforts.
question

Improved employee relations
answer

(improves recruitment, retention, morale, loyalty, etc.)
question

Improved customer relationships
answer

increases customer loyalty; a tiebreaker
question

Improved business performance
answer

positively impacts bottom-line returns, increases competitive advantage.
question

Enhanced marketing efforts.
answer

helps create a positive company image
question

Stages of Corporate Citizenship
answer

slide 29
question

Development Challenges That Trigger Movement of Corporate Citizenship
answer

Stage 1: Elementary (credability) Stage 2: Engaged (Capacity) Stage 3: Innovative (Coherence) Stage 4: Integrated (Commitment) Stage 5: Transforming
question

Multinational enterprises are expected to:
answer

– be good corporate citizens in the countries in which they do business – tailor their initiatives to conform to the cultural environment
question

Convergence in global CSR
answer

approaches will continue as the world economic stage becomes the common environment within which businesses function.
question

The Relationship Between Social and Financial Performance
answer

Perspective 1: Socially Responsible firms are more financially profitable. Perspective 2: A firm’s financial performance drives its social performance. Perspective 3: There is an interactive Relationship Among CSP, CFP, and CR.
question

Perspective 1: Socially Responsible firms are more financially profitable.
answer

1: refer to slide 33
question

Perspective 2: A firm’s financial performance drives its social performance.
answer

2: refer to slide 33
question

Perspective 3: There is an interactive Relationship Among CSP, CFP, and CR.
answer

3: refer to slide 33
question

The stakeholder-bottom line perspective
answer

– Impacts or benefits of social performance cannot be fully measured or appreciated by considering only the impact on the firm’s bottom line. – CSP cannot be fully comprehended unless it includes impacts and measures on consumers. employees, the community and other stakeholder groups.
question

A multiple Bottom Line Perspective
answer

slide 35
question

The Triple Bottom Line Perspective Business Must Attend to Three Key Spheres of Sustainability
answer

– Economic – Social – Environmental The goal is corporate sustainability.
question

Socially Responsible, Sustainable, Ethical Investing Socially Responsible Investing
answer

– Emerged in 1970s – Over $3.74 trillion in socially responsible investments in the U.S.
question

Socially Responsible, Sustainable, Ethical Investing Social Screening
answer

A technique used to screen firms for socially-responsible investment purposes.
question

Reasons for the Upsurge in Socially Responsible Investing
answer

– Total dollars invested in SRI has grown exponentially over past 20 years. – Council on Economic Priorities suggest 3 reasons.
question

Council on Economic Priorities suggest 3 reasons.:
answer

1. More reliable research on CSP 2. Investment firms using social criteria have solid track record. 3. The socially conscious 1960s generation is making investment decisions.
question

Business for Social Responsibility
answer

Globally based resource system; tracks emerging issues and trends, provides information on corporate leadership and best practices, conducts educational workshops and training, and assists organizations in developing practical business ethics tools
question

community obligations
answer

to impower, beautify, and uplift were evident.
question

corporate citizenship
answer

Acceptance by an organisation of its responsibility to stakeholders for its actions and decisions
question

corporate social performance
answer

Focuses on the actual results achieved from CSR The degree to which a firm’s actions honor ethical values that respect individuals, communities, and the natural environment.
question

corporate social responsibility
answer

The extent to which businesses meet the legal, ethical, economic and voluntary responsibilities placed on them by their stakeholders
question

corporate social responsiveness
answer

the action- oriented variant of CSR
question

corporate sustainability
answer

the goal of the triple bottom line approach. The goal of sustainability is to create long-term shareholder value by taking advantage of opportunities.
question

economic responsibilities
answer

a company’s social responsibility to make a profit by producing a valued product or service
question

ethical responsibilities
answer

a company’s social responsibility not to violate accepted principles of right and wrong when conducting its business
question

global corporate citizenship
answer

When a company puts its commitment to social and environmental responsibility into practice worldwide, not only locally or regionally it is called:
question

legal responsibilities
answer

To obey local, state, federal, and relevant international laws.
question

mainstream adopters
answer

question

paternalism
answer

the policy or practice on the part of people in positions of authority of restricting the freedom and responsibilities of those subordinate to them in the subordinates’ supposed best interest.
question

philanthropic responsibilitites
answer

center on the corporation’s participation in activities that promote human welfare or goodwill generally through donations of time and money or products and services
question

philanthropy
answer

contributions to charity ad other worthy causes
question

social entrepreneurship
answer

pursues innovative ways to solve pressing social problems
question

social intrapreneurship
answer

question

socially responsible, sustainable or ethical investing
answer

actively & directly incorporates ethics & morality into the investment decision
question

stages of corporate citizenship
answer

a five-stage model for describing the development of companies as corporate citizens, comprised of Elementary, Engaged, Innovative, Integrated, and Transforming stages
question

sustainability
answer

The ability to keep in existence or maintain. A sustainable ecosystem is one that can be maintained
question

sustainable development
answer

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.
question

triple bottom line
answer

the economic, environmental and social performance of a business.

Get instant access to
all materials

Become a Member