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Chapter 7

ADM 1301 Chapter 7: 10.16.15 (ch. 7) pdf


Department
Administration
Course Code
ADM 1301
Professor
John Palmer
Chapter
7

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Friday, October 16, 2015
ADM 1301 Chapter 7
Corporate Social Responsibility: the way a corporation achieves a balance among its economic, social,
and environmental responsibilities in its operations so as to address
shareholder and other stakeholder expectations
environmental: the natural environment
social: the relationship between business and society
economic: socio-economic and financial aspects
stakeholder: stakeholders and stakeholder groups
voluntariness: actions not prescribed by law
KEY ELEMENTS OF CSR
corporations have responsibilities beyond the production of goods and services
these responsibilities involve helping to solve social problems
corporations have a broader constituency than just stockholders
corporations have impacts beyond simple marketplace transactions
corporations serve a wider range of human values than just economic values
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Case for CSR
business must satisfy society's needs
CSR prevents public criticism & government
regulation
business & society are interdependent
CSR is good for the bottom line
investors & consumers support CSR
addressing social problems can become
financial opportunities
business should take long term CSR
approach
social actions improve public image and
goodwill
business can solve problems as well as
government
proactive approach is better than reactive
business people are also concerned citizens
Case against CSR
profit maximization is the primary purpose of
business
business is responsible to shareholders
social policy is role of government
business lacks training in social issues
CSR would give too much power to business
business involvement in social matters
increases costs
no reliable guidance for business in CSR
matters
business cannot be held accountable unlike
social institutions
there is divided support in business community
for social involvement
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Friday, October 16, 2015
7.3 SOCIAL RESPONSIBILITY THEORIES
amoral view: traditional view of business as merely profit-making entity
fundamentalism: none or very little CSR
legal recognition: corporation is autonomous, not created by society
individual agreement: only CSR within contractual limits
personal view: corporations are like people and can therefore be held accountable for their actions
social view: corporations are social institutions with social responsibilities
7.4 PYRAMID OF CORPORATE SOCIAL RESPONSIBILITY
economic responsibilities:
to produce goods and services of value to society
key stakeholders: shareholders, creditors, consumers
“must do” responsibilities
legal responsibilities:
responsibilities as defined by government laws and regulations
“have to do” responsibilities
ethical responsibilities:
responsibilities expected by society
not required by law (yet)
“should do” responsibilities
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