Cooperate Social Responsibility Flashcards
Define CSR
A concept whereby companies decide voluntarily to contribute to a better society and a cleaner environment.
What are the 4 perspectives of the CSR?
*The degree to which a company minimizes its negative effects on the community within which it operates.
*The positive benefits an organization brings to the community and to society in general (areas such as charities, sponsorship, education)
*Treatment and care of employees in an organization.
*Ethical code of conduct.
List the 4 fold nature of CSR
-Ethical responsibility to do what’s right even when not required and adhere to rules and regulations.
-Economic responsibility to make money.
-Environmental responsibility to protect mother nature.
-Philanthropic responsibility to contribute to society’s projects even when independent to business.
Describe ethical responsibility.
Ethical responsibility means operating with integrity, transparency, and values. This includes following laws and regulations and ensuring that business practices align with ethical standards.
Some examples of ethical responsibility include:
-Treating employees fairly and providing a safe working environment.
-Ensuring that suppliers and partners adhere to ethical standards.
-Engaging in transparent and honest business practices.
Describe economic responsibility
Economic responsibility refers to a company’s obligation to operate in a financially sustainable manner while also contributing to the economic well-being of the communities in which it operates.
This includes but is not limited to:
-Investing in local communities by contributing.
-Supporting small and local businesses by sourcing products and services locally.
-Donating to charitable organizations.
Describe environmental responsibility
Environmental responsibility focuses on minimizing the negative impact of a company’s operations on the environment.
This includes measures such as reducing carbon emissions, conserving natural resources, reducing waste, and using renewable energy sources.
Describe Philanthropic Responsibility
Philanthropic responsibility refers to a company’s obligation to give back to communities through charitable donations, volunteer work, and community involvement. Philanthropic initiatives can support a variety of causes, including education, health, and social welfare.
Some examples of philanthropic responsibility include:
Supporting employee volunteer programs.
Sponsoring community events and initiatives.
Creating a foundation or corporate trust.
How do organizations respond to social responsibilities
Reaction: Thecorporationdeniesanyresponsibilityforsocial issues.
Defense: Thecorporationadmitsresponsibilitybutfightsit doingtheveryleastthatseemstoberequired.
Accommodation: Thecorporationacceptsresponsibilityanddoes whatisdemandedofitbyrelevantgroups.
Pro-action: Thecorporationseekstogobeyondindustrynorms.
How to implement CSR strategy
1.Set clear goals and strategy.
2.Integrate environmental and social concerns into core business practices.
3.Pursue alignment between stakeholders
4.Use technology to monitor, report and improve CSR programs
List the three approaches of CSR
-Traditional Approach
-Stakeholder’s Approach
-Affirmative Approach
What is the management priority of the stakeholder approach?
Accumulation of capital
Describe the traditional approach
Management’s sole responsibility then is to serve the shareholders’ interests by managing the company to produce profits from which shareholders benefit.
Describe Shareholder’s approach
Managers are responsible to certain groups that are affected by the company’s objectives and interests.
Groups such as shareholders, customers, government agencies, competitors, unions, employees, trade associations, important suppliers, protest groups.
What is good for the company is therefore good for society.
Describe affirmative approach
managers have a responsibility to promote best mutual interests of the firm and its various stakeholders, including the public.
It obligates managers to anticipate changes in the social environment and blend the goals of the company with general and diverse interests of society.
What are the arguments against CSR?
-Restricts the free market goal of profit maximization
-Businesses are very likely to add the costs incurred on social programs to the prices of their products, thereby hurting society.
-Combining social activities with economic activities will give business firms excessive power.
-Business is not equipped to handle social activities
-Business managers are not elected, so they are not directly accountable to the people.
