Corporate Social Responsibility

Question 1

corporate social responsibility

Answer 1

a broad-based identification of important business and social issues and a critique of business organizations and practices

Question 2

What are the 3 schools of thought for CSR?

Answer 2

narrow view, moderate view, and broad view

Question 3

narrow view

Answer 3

by Friedman; the only responsibility of a business is to maximize shareholder wealth (the maximizing profits theory); make as much profit as legally possible

Question 4

“invisible hand”

Answer 4

the common good is best served when people and businesses pursue their self-interest

Question 5

moderate view
(government hand view)

Answer 5

it is the government’s job to establish legal and regulatory guidelines because they represent the whole moral views of the public; business’ responsibility is to comply with the law and pursue legal objectives

Question 6

broad view

Answer 6

socially defined principles are more important than business objectives; aims to achieve commercial success that honors ethical values and respects people, communities, and the natural environment in a sustainable manner while recognizing stakeholders interests

Question 7

“corporate citizenship”

Answer 7

a business should strive to promote economic, legal, ethical, and philanthropic social responsibilities expected of it by its stakeholders

Question 8

moral minimum theory

Answer 8

profitability is secondary

Question 9

the social license to operate

Answer 9

demands on, and expectations for, a business that emerges from neighborhoods, environmental groups, community members, and other elements of civil society

Question 10

the triple bottom line

Answer 10

a CSR approach that emphasizes not only the conventional creation of economic value (profits), but also a company’s creation (or destruction) of environmental and social value; putting in the public’s self-interest