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Lecture

adms 1000

4 Pages
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Department
Administrative Studies
Course Code
ADMS 1000
Professor
Len Karakowsky

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Description
Session 3: Societal Context & Labour Context Chapter 8: The Societal Context (Pages 174 – 187) Business • Private, commercially oriented organizations Society • Acommunity/national or group of people with common values, traditions, institutions, activities & interests Stakeholders • Are individuals or groups with whom business interacts and who have a “stake” or vested interest, in the business • Astake can range from an interest in management’s actions to a legal or moral right to be treated a certain way to a legal claim of ownership at the other extreme • Two groups of stakeholders – external and internal stakeholders • External stakeholders are composed of such parties as government, consumers and community members • Internal stakeholders can include business owners and employees among the principal groups Corporate Social Responsibility • The obligation of decision makers to take actions which protect and improve the welfare of society as a whole along with their own interests • Obligations that involve going beyond: o The production of goods/services at a profit o The requirement of competition, law or custom • Social responsibility involves an obligation to create policies, make decisions and engage in actions that are desirable in terms of society’s values and objectives • Archie Carroll’s four-part definition asserts that the social responsibility of business encompasses the economic, legal, ethical, and discretionary (philanthropic) expectations that society has of organizations at a given point in time • Carroll’s definition indicates that there are issues above economic and legal ones that a business must confront • Abusiness must address economic responsibilities – it must generate goods and services that society wants • Abusiness must abide by the laws in order to fulfill its legal responsibilities • Ethical responsibilities include the standards or expectations that reflect what the social stakeholders regard as fair • Abusiness has somewhat voluntary or philanthropic responsibilities that, while voluntary, do reflect part of the implicit agreement between business and society and can include such activities as corporate donations, volunteerism and any other kind of voluntary involvement of the business with the community or other stakeholders The Four Components of CSR CSR Responsibilities Societal Expectation Examples Economic Responsibilities Society requires business to Generate rational business fulfill these responsibilities strategy, make profits, minimize costs... Legal Responsibilities Society requires business to Honour all relevant laws and fulfill these responsibilities regulations governing business activities... Ethical Responsibilities Society expects business to fulfill Engage in business practices that these responsibilities are in line with what society considers acceptable, fair, just... Philanthropic Responsibilities Society desires business to fulfill Engage in activities that help the theses responsibilities betterment of society – e.g. volunteerism, charity... The CSR Debate Against Social Responsibility For Social Responsibility Business is business Business should conform to societal expectations Business plays by its own rules CSR is a practical strategy Business should not dictate morality Must acknowledge network of stakeholders Organizations can’t be held accountable for their Long-term benefits actions The Case against CSR 1. Business is Business • Profit maximization is the primary purpose of business, and to have any other purpose is not socially responsible • Abusiness’s primary responsibility is to the owners or shareholders. Clearly, owners and shareholders want to maximize profit, and so this should be the business’s highest priority. • Some have argued that a regard for ethical values in market decisions might lead businesspeople to confuse their economic goals with unselfish goals so that they fail to fulfill the basic business fu
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