MKTG10001 Lecture Notes - Lecture 21: Risk Management, Corporate Social Responsibility
3 Jun 2018
School
Department
Course
Professor
MKTG10001 Semester 1 – Ethics in Marketing
Corporate Social Responsibility (CSR)
• Corporations should do more than just creating shareholder value & generate
profits
• Definitions vary
o E.g. "CSR encompasses the economic, legal, ethical, and philanthropic
expectations placed on organisations by society at a given point in
time"
o "the continuing commitment by business to behave ethically and
contribute to economic development while improving the quality of life
of the workforce and their families as well as of the local community
and society at large"
o "the integration of business operations and values whereby the
interests of all stakeholders including customers, employees and
investors, and the environment are reflected in the company's policies
and actions"
Motivations for the Social Responsibility of Business
1. Business reasons (instrumental; 'enlightened self-interest')
o Opportunities/rewards
o Risks/penalties
2. Moral reasons (normative)
o Corporations cause social problems/have social impacts; almost
inevitable
o With power comes responsibility
o Because governments cannot fix all social problems
o Corporations rely on resources from a broader set of stakeholders than
just shareholders
Classifying Stakeholders
• Stakeholder power
o Ability to bring about desired outcomes/change (despite resistance)
• Stakeholder legitimacy
