Chapter 7

Question 1

Corporate Social Responsibility (CSR)

Answer 1

many definitions, but one is the way a corporation achieves a balance among its economic, social, and environmental responsibilities in its operations so as to address shareholder and other stakeholder expectations.

Question 2

ISO 26000

Answer 2

The International Organization for Standardization (ISO)’s ISO 26000 standard defined social responsibility as the responsibility of an organization for the impacts of its decisions and activities on society and the environment, through transparent and ethical behaviour that:
- contributes to sustainable development, including health and the welfare of society
- takes into account the expectations of stakeholders;
- is in compliance with applicable law and consistent with international norms of behaviour; and
- is integrated throughout the organization and practised in its relationships.

Question 3

Legitimacy

Answer 3

refers to society’s granting of legitimacy and power to business’ appropriate use of that power and the possibility of losing that power.

Question 4

Public Responsibility

Answer 4

business is responsible for outcomes related to its areas of involvement with society.

Question 5

Managerial Discretion

Answer 5

refers to managers as moral actors who are obliged to exercise such discretion as is available to them to achieve socially responsible outcomes.

Question 6

The Case for Involvement

Answer 6

1. Business must realize that society is a “system” of which corporations are a part, and that the system is interdependent. Therefore, if business institutions interact with others in society, the need for social involvement along with increasing interdependence brings the need to participate in the complex system that exists in society.

2.