CSR Flashcards
What is a corporation?
It is a legal entity that is separate and distinct from its owners.
They enjoy most of the rights and responsibilities that individuals possess.
What are the key features of a corporation?
- Limited liability
What is the quote by Milton Friedman regarding CSR?
“The social responsibility of business is to increase profits”
What was Milton Friedman’s argument?
He was against the notion of CSR because:
- Only human beings have a moral responsibility for their actions
- It is the manager’s responsibility to act solely in the interests of shareholders
- Social issues and problems are the mandate of the state rather than corporate managers
What are the benefits for Corporations in having social responsibility?
- Employees maybe more attracted/committed
- More satisfied customers
- Brand reputation
- Societal approval
- Government support
Why do corporations have social responsibility?
It aims to create a structure to a company’s efforts to give back to the community and practice philanthropy
What is the nature of CSR?
It includes:
- Economic
- Legal
- Ethical
- Philanthropic expectations which are placed by the organization
What are the 4 responsibilities stated om Archie Carrols CSR Model?
Economic responsibilities
Legal responsibilities
Ethical responsibilities
Philanthropic responsibilities
What are the outcomes of CSR?
Social policies
Social programs
Social impacts
What is the stakeholder theory of the firm?
It is a theory by Edward Freeman.
It states that “the tasks odf executives is to create as much value as possible for stakeholders without resorting tradeoffs. Great companies endure because they manage to get stakeholder interests aligned in the same directions.
What are the key drivers of CSR?
- Enhance long term revenues
- Reduce costs
- Manage risk and uncertainty
- Maintain the social license to operate
