Session 5: Corporate Social Responsibility

Question 1

an idea that suggests that organizations behave ethically and with consideration to social, cultural, economic, and environmental issues

Answer 1

Social Responsibility

Question 2

Social Responsibility applies to all types of businesses that implement social responsibility initiatives. Small businesses may have a greater impact in local communities. Social responsibility, as it applies to business, is known as

Answer 2

Corporate Social Responsibility

Question 3

adopts a strategic focus that involves action, measurement, and result

Answer 3

Social Responsibility

Question 4

the duty of business to do no harm to society; should be concerned about the welfare of society and mindful of how its actions could affect society as a whole

Answer 4

Social Responsibility

Question 5

fulfills societal expectations

Answer 5

Social Responsibility

Question 6

Archie Carroll’s Pyramid of Social Responsibility (4)

Answer 6

From bottom to top:

1. Economic
2. Legal
3. Ethical
4. Philantropic

Question 7

the responsibility of business to be profitable

Answer 7

Economic

Question 8

only way to survive and benefit society in long-term

Answer 8

Economic

Question 9

responsibility to obey laws and other regulations

Answer 9

Legal

Question 10

E.g. Employment, Competition, Health & Safety

Answer 10

Legal

Question 11

responsibility to act morally and ethically

Answer 11

Ethical

Question 12

businesses should go beyond narrow requirements of the law

Answer 12

Ethical

Question 13

E.g. Treatment of suppliers & employees

Answer 13

Ethical

Question 14

responsibility to give back to society

Answer 14

Philantropic

Question 15

responsibility is discretionary, but still important

Answer 15

Philantropic

Question 16

E.g. charitable donations, staff time on projects

Answer 16

Philantropic

Question 17

blueprint to achieve a better and more sustainable future for all

Answer 17

Sustainable Development Goals

Question 18

address the global challenges we face, including those related to poverty, inequality, climate, environmental degradation, prosperity, and peace and justice

Answer 18

Sustainable Development Goals

Question 19

important that we achieve each Goal and target by 2030

Answer 19

Sustainable Development Goals

Question 20

“development that meets the needs of the present without sacrificing the right of future generation to fulfill their needs.”

Answer 20

Sustainability

Question 21

seriously considering the impact of the company’s actions on society

Answer 21

Corporate Social Responsibility

Question 22

take actions which protect and improve the welfare of the society as a whole along with their own interests

Answer 22

Corporate Social Responsibility

Question 23

impact of every business policy and business action on society

Answer 23

Corporate Social Responsibility

Question 24

extending beyond the business compliance with laws and other legal requirements

Answer 24

Corporate Social Responsibility

Question 25

Pros of Corporate Social Responsibility

Answer 25

* Enhances reputation among stakeholders. * Better customer relations * Attract and retain employees * It’s the right thing to do.

Question 26

Cons of Corporate Social Responsibility

Answer 26

* Costs money to implement. * Conflicts with the Profit Motive * Customers are careful about Greenwashing / PR Ploys * Many businesses put the cost on consumers.

Question 27

he practice of making an unsubstantiated or misleading claim about the environmental benefits of a product, service, technology or company practice

Answer 27

Greenwashing

Question 28

can make a company appear to be more environmentally friendly than it really is.

Answer 28

Greenwashing

Question 29

Historical Phases of Corporate Social Responsibility

Answer 29

Phase 1: (1800s to 1900s) Profit Maximizing Management Phase 2: (Early 1900s) Trustee Management Phase 3: (1930s) Quality of Life Management

Question 30

1. Management must maximize profit. 2. Individual drive for profit maximization would ultimately create wealth for the nation. 3. Business systems as a profit maximizer are used as a tool for the elimination of economic scarcity. 4. Business ignored unsafe working conditions, paid starvation wages and used child labor in order to maximize profit. 5. Problems of cultural minorities, unsafe products, unfair advertising and urban poor problems were given little if no attention at all. 6. Abuses of capitalism are extremely rampant and the government tolerates these deplorable business practices.

Answer 30

Phase 1: (1800s to 1900s) Profit Maximizing Management

Question 31

1. Management was considered both as an instrument of stockholders and as a trustee for all groups who contribute to the business enterprise. 2. Aside from the profit maximization, the management’s concern is also to maintain a fair balance in the interests of employees, customers, creditors, stockholders and the community.

Answer 31

Phase 2: (Early 1900s) Trustee Management

Question 32

1. Security of basic goods and services was no longer a principal problem. 2. Social and economic problems brought about by economic growth expanded the concept of social responsibility management. 3. Society demanded management’s active participation in helping solve social and environmental problems in view of the cast resources (funds, manpower, materials, management, skills and technology) of businesses 4. Business is expected to contribute to the improvement of the quality of life which involves cultural, social, education, political factors and economic security. 5. Society is unstable if the quality of life of the people is poor. Businesses contribute to a good quality of life and society. 6. A prosperous society is the best environment for a business to thrive in. Businesses will benefit from its self-investment in society.

Answer 32

Phase 3: (1930s) Quality of Life Management 1