CSR + Ethics

Question 1

CSR
- Define

Answer 1

The obligation of organizational management to make decisions and take actions that will enhance the welfare and interests of society as well as the organization.

Question 2

Caroll’s CSR Pyramid

Answer 2

Economic Responsibility: Profit maximization and producing goods and services that society wants.
Legal Responsibility: Obeying the law and operating within the legal framework.
Ethical Responsibility: Doing what is right, fair, and just.
Discretionary Responsibility: Voluntarily contributing to the community and improving the quality of life.

Question 3

Pro’s and con’s of CSR

Answer 3

Favorable Public Image: Enhances reputation by pursuing the triple bottom line (people, planet, profit).
Risk Management: Can prevent criticism and discourage government regulation.
Ethical Obligation: CSR is viewed as the right thing to do.
Long-Run Profitability: Socially responsible companies tend to have more secure long-term profits.
Cons:
Profit Maximization: Pursuing social goals can dilute the primary goal of profit maximization.
Costs: Many socially responsible actions do not cover their costs.
Jurisdictional Domain: Addressing social and environmental problems is seen as the responsibility of the government.
Lack of Skills: Business leaders may lack the necessary skills to address social issues.

Question 4

Types of CSR Initiatives

Answer 4

Philanthropic Initiatives: Donations and community projects.
Environmental Initiatives: Sustainability practices and reducing carbon footprint.
Ethical Labor Practices: Fair treatment of employees and ethical supply chains.
Economic Initiatives: Fair trade practices and local economic support.

Question 5

Measuring and improving CSR Impact

Answer 5

Triple Bottom Line: Focusing on social, environmental, and financial performance.
ESG (Environmental, Social, Governance) Framework: Planning and leading initiatives that deliver sustainable business outcomes, reduce business risk, attract investors, and achieve higher returns.

Question 6

Managerial ethics
- Define
- Levels of moral d/ment
- Factors shaping ethical behaviour

Answer 6

Definition: The code of moral principles and values that govern managerial behavior and decision-making regarding what is right or wrong.
Levels of Moral Development: Most managers operate at a level where their ethical behavior is influenced by the expectations of others and their organizational environment.
Factors Shaping Ethical Behavior: Economic pressures, organizational culture, and leadership play significant roles in shaping managers’ ethical behavior.

Question 7

Building an ethical organisation
- Structural
- Cultural

Answer 7

Structural Components:
Chief Ethics Officer and Ethics Committee: Overseeing ethical practices and policies.
Code of Ethics and Ethics Training: Providing guidelines and education on ethical behavior.
Hotlines and Whistle-Blower Support: Facilitating reporting of unethical behavior.
Cultural Components:
Artifacts and Symbols: Reinforcing values of openness and ethical behavior.
Humble, Moral Leaders: Setting examples of ethical behavior.
Alignment of Values and Rewards: Ensuring that reward structures support ethical behavior.