Government and Society

Corporate Social Responsibility is essentially about doing good and doing well.It generally refers to the process of integrating social values and mission within business decision making, to achieve positive and sustainable outcomes towards business, environment and the community at large. Concept of CSR includes specific issuesProduct safety Honesty in advertising Affirmative action Employees rights Affirmative action Environmental sustainability Ethical behavior Difference btw illegal and unethical behavior Eg: Buffet: wasted food. Glob csrCorporate Citizenship Concepts Corporate Social Responsibility ïÆ'   Obligation ïÆ'   accountability Corporate Social Responsiveness ïÆ'   Action activity Corporate Social Performance ïÆ'   outcomes resultsBusiness criticism/ social Responsibility cycle4-part definition of CSR Sustainable stakeholder model The Social Responsibility of business encompasses the economic, legal, ethical and discretionary ( philanthropic) expectations that societ y has of organizations at a given point of time. Economic ResponsibilitiesBusiness employs many management concepts that are directed toward financial performance of the organization Economic sustainability REQUIRED of biz by society Profitable Max sales, min costs Strategic decisions Legal responsibilities Reflect spciety’s view of â€Å"codified ethics† in the sensethat they embody basic notions of fair practices as established by our law makers Biz’s responsibility toward society to comply with these laws Do not embrace the full range of behaviours expected of biz by society Law is unable to address all issues that biz may faceLaw often lags behind more recent interpretationsof what is considered appropriate behavior Laws are made by lawmakers and may reflect the personal interest and political motivations of legislators rather than appropriate ethical justifications. Laws are essential but not adequateREQUIRED of biz by society Obey all laws, adhere to all r egulationsEthical Responsibilities Embrace activities and practices that are epected or prohibited by society even though they are not codified into aw Embody the full scope of norms, standards values and expectations that reflect what consumers, employes, shareholders, and the community regard as fair, just, and consistent with respect for or protection of stakeholders’ moral rights. Ethics/values are the driving forces behind the initial creation of laws and regulations. EXPECTED of a bizAvoid questionable practices. Do what os fair right and justDiscretionary expectations ( Philantrophic) Reflect current expectaions of biz by the public. Amount and nature of these activities are voluntary or discretionary, guided only bu biz’s desire to engage in social activities that are not mandated, not req by law, and not generally expected by biz in an ethical sense DESIRED/EXPECTED of biz by societyGood corporate citizen Contribute back by providing programs supporting commun ity: education, health or human services etc†¦ Provide for community betterment Engage in volunteerismPyramid of CSR Sustainable stakeholder modelEquation Economic Responsibility + Legal Responsibilities + Ethical Responsibilities + Philantrophic Responsibilities = Total Corporate ResponsibilityArguments against CSR FOR AGAINST Enlightened Self-interest If business is to have a healthy climate in which to operate in the future, it must take actions now to ensure long term viability Long term viability is the pri driver in the current concern for sustainability. Warding off government RegulationsAbility to ward off future govt regulations and intervention May ensure greater freedom in decision making Resources available Biz has a reservoir of management talent functional expertise, and capital.Proacting versus Reacting Proacting is more practical and less costly than simply reacting to problems that have alr occurred. Eg: environmental pollution: Biz cld prevent environmental de teoriration by adopting cleaner alternativesPublic support Classical Economics Social issues are not concerns of biz pp Should be resolved by the unfettered workings of the free market Business not equipped Managers are oriented towards finance and operations and do not have necessary expertise ( social kills) to make social decisions. Less true todayDilutes business purpose Too much power already Global competitiveness Placing biz in a vulnerable position in terms of global competition. Biz has to internalize costs that it formerly passed on to the society: environmenta cisr, discrimination.