1) Read Chapter 12 in the required textbook about the concept of "Corporate Social Responsibility", which is about learning ethical principles in business. Pay special attention to the difference between these two models:
Classical Model of Corporate Social Responsibility
vs.
Classical Model + Moral Minimum
2) Since our University Librarian contacted you last week about research techniques, you will be applying this little trick for doing effective searches in Google:
In Google, do a search for the term "Corporate Social Responsibility" from educational sites only, that are available as a PDF file. Also, you will need to search for a second subject of you choice like: a country, or an industry, or a company, or a CEO, as examples.
So, for example, you are interested in a search about France, then in Google you would enter this:
France AND "corporate social responsibility" site:edu filetype:pdf
QUESTION 1: What was the complete query that you did? Please give us the query and in 3 sentences tell us the reason for choosing that query?
QUESTION 2: Choose 1 of those search results from your query and in 3 sentences give us a summary from that source in relation to the use of the term Corporate Social Responsibility.
Slide 1 Chapter 12 Corporate Social Responsibility © 2012 Pearson Education, Inc. All rights reserved. The Meaning of CSR • Corporation’s Economic Responsibilities – Producing goods and services – Providing jobs and good wages to the workforce while earning a profit – Seeking out supplies of raw materials – Discovering new resources and technological improvements and develop new products © 2012 Pearson Education, Inc. All rights reserved. The Meaning of CSR • The concept of corporate social responsibility is often expressed as – The voluntary assumption of responsibilities that • Go beyond the purely economic and legal responsibilities of business firms © 2012 Pearson Education, Inc. All rights reserved. The Meaning of CSR • Social responsibility is the – Selection of corporate goals and the evaluation of outcomes by the criteria of both • Profitability and organizational well-being • Ethical standards or judgments of social desirability. © 2012 Pearson Education, Inc. All rights reserved. Corporate Social Responsiveness • Corporate Social Responsiveness – The capacity of a corporation to respond to social pressures • A socially responsive corporation – Uses its resources to anticipate social issues • Develop policies, programs, and other means of dealing these issues © 2012 Pearson Education, Inc. All rights reserved. Friedman’s Argument Against CSR • Friedman’s main argument against CSR is that corporate executives are – Agents of the shareholders of the corporation • CSR causes the executives to: – Take on a role of imposing taxes and spending the proceeds • Proceeds belonging to elected officials © 2012 Pearson Education, Inc. All rights reserved. The Business Case for CSR • Arguments for the business case for CSR – CSR contributes to profitability because • The market rewards responsible behavior • The market punishes a company’s failures – CSR can be a source of competitive advantage © 2012 Pearson Education, Inc. All rights reserved. The Market for Virtue • If CSR is profitable then it’s profit opportunities should be sufficient to – Encourage managers to lead socially responsible companies • However, they must be made aware of the link between CSR and profitability. © 2012 Pearson Education, Inc. All rights reserved. Program Selection and Design • The guiding principles of strategic CSR are that – There is an interdependence between business and society • As a result there are opportunities for mutual benefit © 2012 Pearson Education, Inc. All rights reserved. Program Selection and Design • One important aspect of CSR is the management of reputation risk. – Companies need to identify the activities that could be the target of moral criticism • This is so issues can be anticipated and addressed quickly © 2012 Pearson Education, Inc. All rights reserved. Program Selection and Design • The most successful CSR programs – Make use of a company’s mission and core competencies • Truly strategic CSR identifies opportunities that fit with a company’s strategy. © 2012 Pearson Education, Inc. All rights reserved. Program Selection and Design • Successful CSR programs incorporate stakeholder engagement or dialogue. – Outside groups can be a resource • In expanding a company’s capabilities • In understanding the needs and outlook of others – Engaging them in the pursuit of mutual benefit © 2012 Pearson Education, Inc. All rights reserved. Reporting and Accountability • CSR has value – Only if it has the social benefits companies claim and outside groups want • The demand for measurement of social performance has given rise to – social and ethical auditing, accounting, and reporting and triple-bottom-line accounting