COM 445 Chapter 1: WHAT DO WE MEAN BY CORPORATE SOCIAL RESPONSIBILITY?

• School: University of Victoria
• Department: Commerce
• Course: COM 445
• Professor: Sorin

Document Summary

Overview: stakeholder theory ii) social contracts theory iii) legitimacy theory. Definitions of csr from both practice and the literature. How & why business might undertake csr - - theories to explain why such behaviour takes place. Cannon (1992): primary role of business is to produce goods and services that society wants and needs. Wood (1991): business and society are interwoven rather than distinct entities. Business only contributes if it"s efficient, profitable, socially responsible. Advocates: csr covers plant closures, employee relations, human rights, corporate ethics, community relations, environment. Behavioural theorists: corporate social activity (political aspects and non-economic) influences on managerial behaviour. Moral or ethical imperative (business has resources and part of the roles is to assist in solving social problems regardless the potential of short-run or long-run profit. Ex) holmes: solve social problems whether or not business helps to create those problems. Profit motive = achieve maximization of shareholder wealth; whether there is an underlying moral or ethical imperative.