CSR Theory Underpinnings Flashcards
Define CSR
defined differntly by everyone - broadly considered a business practice wherby companies are socially accountable for thier actions and impacts that they have on society
what is the Triple Bottom Line of CSR ( ELkington, 1994 )
context specific organisational actions or policies that take into account expectations of shareholders, and importantlty the people, planet and profit baselines
what are the main drivers for businesses CSR / Ethical practices
- legislation / regulation
- social expectations ( vocal consumers )
- business benefits
- moral and ethical stances of individuals
explain Freidman’s Shareholder Theory
the main responsbility of a business is to increase their profits, managers need to act in the best interest of shareholders - social issues should be resolved by the market not managers
explain Corporate Citizenship
oragnisations arent only responsible for shareholders but society in general, beyond just profit so must consdier doing the right thing
Whats Carolls Pyramid ( 1979 )
Economic + Legal + Ethical + Philanthropic Responsibilites = Total CSR
Explain Instrumental CSR
focus on profit maximisation, the implementation of CSR is reliant on having the money to do so in the first place - CSR can be consdiered uncessary expense because there is little financial gain that comes with it
Political CSR
use the organisational power in the political arena, especially if a large organisation with the power of small countires - if they dont do so they can end up losing influence in the long term
Intergrative CSR
adding social demands / causes into business practices - organisations dont exist in a vaccum and have responsiblity for people they share their enviornment with
Ethical CSR
focus on the right thing to do as opposed to profit, use baseline regulations such as the UN human rights approaches
whats preventing more organisations from acting ‘more ethically’
there’s no proof that organisations acting ethically will create more profit for them, and unitl there’s proof of such theres few incentive to do so
Short Term Business Interests
- profit and compettive advantage driven
- immediate benefits are measurable and show growth
- what solves the problem for now approach
- action furthers immediate self itnerests at expense of others if needed
Long Term Business Objectives
- promotes business longevity
- delayed benefits less easily measured
- complex, more thoughtful thinking
- obligation is to future stakeholers and the world around them
