2[1].CORPORATE SOCIAL RESPONSIBILITY & CORPORATE RESPONSIVENESS.ppt

8/18/2019 2[1].CORPORATE SOCIAL RESPONSIBILITY & CORPORATE RESPONSIVENESS.ppt

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Corporate Social

Responsibility&

Corporate Responsiveness


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p p

Social Responsibility...

an organization’s obligation to maximize its

positive impact on stakeholders and tominimize its negative impact

includes legal, ethical, economic, and

philanthropic (discretionary) dimensions


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Legal imension...

re!ers to obeying governmental la"s andregulations

civil la"# rights $ duties o! individuals andorganizations

criminal la"# prohibits speci!ic actions andimposes !ines and%or imprisonment as punishment !or breaking the la"


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&thical imension...

behaviors and activities that are expected or

prohibited by organizational members, the

community, and society (not codi!ied intola")

standards, norms, or expectations that

re!lect the concern o! ma'or stakeholders


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&conomic Responsibilities...

ho" resources !or the production o! goods

and services are distributed "ithin the

social system

o you think consumers !avor socially

responsible companies or are they most

enamored "ith companies that maximize

pro!its


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hilanthropic imension...

business’s contributions to society

strategic philanthropy * +ome epot

* icroso!t, +e"lett ackard, -

* /von


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Foundation principles of

corporate social responsibility

0harity )rinciple Ste"ardship)rinciple

e!inition • .usiness should givevoluntary aid to

society’s needy persons

and groups

• .usiness, acting as a public

trustee, should consider the

interests o! all "ho are

a!!ected by business

decisions and policies1ype o!

activity

• 0orporate philanthropy

• 2oluntary actions to promote the social good

• /ckno"ledging business

and society interdependence

• .alancing the interests and

needs o! many diverse

groups in society

&xamples•

0orporate philanthropic!oundations

• )rivate initiatives to

solve social problems

• Social partnerships "ith

needy groups

•&nlightened sel!3interest

• eeting legal re4uirements

• Stakeholder approach to

corporate strategic planning


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The pros and cons of corporate

social responsibility

Arguments for corporate

social responsibilityArguments against corporate

social responsibility

alances corporate po"er

"ith responsibility.iscourages government

regulation.

romotes long3term pro!its

!or business.

Responds to changing

stakeholders’ demands.

0orrects social problems

caused by business.

Lo"ers economic

e!!iciency and pro!it.-mposes une4ual costs

among competitors.

-mposes hidden costs passed on

to stakeholders.

Re4uires social skills business

may lack.

laces responsibility on business

rather than individuals.


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The multiple responsibilities of business

&conomic

Responsibility

Legal

Responsibility

Social

Responsibility


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Two views of corporate social

responsibilityThe shareholder view

5 1he only social responsibility o! business is to create shareholder

"ealth.5 0orporate management cannot decide "hat is in the social interest.5 1he costs o! social responsibility "hich do not increase the value o!

stock, "ill be passed on to consumers.

The multiple stakeholders view5 /ll customers and employees are treated "ith dignity.5 Relationships "ith suppliers must be based on mutual trust.5 elie! in !air economic competition.5 usiness can contribute to social re!orm and honor human rights.


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Contrast between corporate social

responsibility, corporate socialresponsiveness, and corporate citizenship 0orporate social

responsibility

0orporate social

responsiveness

0orporate citizenship

6rigin 789:s 78;:s 788:s

asis

rinciples o!

charity and

ste"ardship

emands made by

numerous social

stakeholder groups

uilding collaborative

partnerships "ith

stakeholder groups


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A three-stage model of corporate

social responsivenessSTAGE 6rganizational

olicy Learning 0ommitment

Time (years)

D e g r e e o f r e s p o

n s i v e n e s s t o a s p e c i f i c i s s u e +igh

Lo"

5 -dentity problem

5


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Principles of corporate citizenship

Good corporate citizens strive to conduct all business dealings in an ethical

manner, make a concerned effort to balance the needs of all stakeholders,

while working to protect the environment.

7) &ngages in !air and honest business practices in its relationship "ith

stakeholders.

9) Sets high standards o! behavior !or all employees.

=) &xercises ethical oversight o! the executive and board levels.

>) Strives to manage the company !or the bene!it o! all stakeholders.

?) -nitiates and engages in genuine dialogue "ith stakeholders.

;) 2alues and implements dialogue.

@)


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Principles of corporate citizenship

7:) 6!!ers 4uality products and services.

77) rovides in!ormation that is truth!ul and use!ul.

79) rovides a !amily3!riendly "ork environment.

7=) &ngages in responsible human3resource management.7>) rovides an e4uitable re"ard and "age system !or employees.

7?) &ngages in open and !lexible communication "ith employees.

7;) -nvests in employee development.

7@) Strives !or a competitive return on investment.7A) &ngages in !air trading practices "ith suppliers.

78) emonstrates a commitment to the environment.

9:) emonstrates a commitment to sustainable development.

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2[1].CORPORATE SOCIAL RESPONSIBILITY & CORPORATE RESPONSIVENESS.ppt