MGT3031: Managing Responsibly in a Global Environment Jan 26/12
Corporate Social Responsibility
Video: World Economic Forum, Stephen Harper speech
Occupy Davos? http://www.cbc.ca/news/politics/story/2012/01/25/pol-vp-milewski-davos-
Corporate social responsibility:
o obligation to protect and improve the welfare of society along with their own interests
o more than making a profit and obeying the law
o Carroll’s Model
Why do we need CSR?
o Can’t anticipate events
o The law is often slow to respond, and cannot be relied on to enforce everything
o Laws are pluralistic outcomes compromises not ideal
Negative consequences of CSR
o Social issues are not the main concern of business. It’s not what they should be doing.
Profits could be going to shareholders
o Managers don’t have the social expertise
o Dilutes primary mission of business. Efforts are diluted to CSR.
o Why give business more power?
o Makes business less competitive in global markets
Positive consequences of CSR
o Best long-term interest is business (this is their world too).
o Ward off government regulation and intervention. Better to do them first, then to be
compelled and obligated to.
o Business has resources ($$$ & people)
o Instead of regulating the economy and such, let businesses try CSR. Something good
could come out of experimentation.
o Pro-acting vs. reacting
o Public expects CSR
o Social obligation – business responds to markets and legal, “just enough” approach
o Social responsibility – business responds to prevailing norms and expectations
o Social responsiveness – businesses anticipate, and are proactive. Best approach. MGT3031: Managing Responsibly in a Global Environment Jan 26/12
The Five CSR Positions
o Minimalist CSR Position
Responsible to stockholders or owners
Maximizing profits, specializing in providing affordable G&S of high quality
o Self-interested Model
Responsible to stockholders/owners and those who can impose high costs upon
Interested in bottom line impact (reputation, increased sales, etc)
Does good for other only when it furthers its quest for growth and profits
o Social Contract Perspective