CSR and Ethics

Question 1

What is Corporate Social Responsibility (CSR)?

Answer 1

The concern businesses have for the welfare of society. It is voluntary and broad.

Question 2

What are philanthropic responsibilities?

Answer 2

Can be considered only after economical, legal, and ethical responsibilities.

Question 3

What does Corporate Responsibility entail?

Answer 3

Acting responsibly within society (i.e., hiring minorities, minimizing pollution).

Question 4

Who are stakeholders?

Answer 4

Individuals, groups, or organizations upon whom a business may impact and to whom they may have a responsibility.

Question 5

What is the relationship between stakeholders and shareholders?

Answer 5

Shareholders are owners. Stakeholders are impacted by an organization’s actions but can also equally influence the operations of a business.

Question 6

Why do ethical problems occur in business?

Answer 6

1. Personal gain and self-interest (self vs. others) - ‘I want it!’
2. Competitive pressure on profits (firm vs. others) - ‘We have to beat the others at all costs!’
3. Conflicts of interest (multiple obligations) - ‘Help yourself and those closest to you.’
4. Cross-cultural contradictions (ethnocentric mentality) - ‘Foreigners have a funny way of doing business.’

Question 7

What are the two ethics approaches in business?

Answer 7

1. Compliance-based approach: Preventative
2. Integrity-based approach: Proactive