HRM301 Lecture Notes - Lecture 13: Corporate Social Responsibility, Stakeholder Theory, Human Resource Management
16 Dec 2019
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Document Summary
Business ethics: business ethics: the study of business situations, activities, and decisions where issues of right and wrong are addressed , what is morally right or wrong rather than what is legally right or wrong. To ensure against unethical behaviour organizations need to develop self- regulatory practices that are based on clearly defined ethical guidelines. These are typically referred to as codes of conduct which specify out the way in which employees or members of a occupational group are expected to behave when carrying out their work responsibilities. This includes practices such as human resource management, diversity management, health and safety, and environmental protection. Shareholder theory: gives priority to profit maximisation based on a corporation"s legal obligations to generate shareholder wealth. This is consistent with an economic perspective on globalization. A csr strategy underpinned by shareholder theory tends to encourage a short- term perspective.
