The Impact of Business and Social Responsibility

BBI2O

Review….

Good things businesses do?– Meet our needs/wants– Generate wealth– Create jobs– Innovate

Review…

Bad things businesses do?– Pollution– Sweatshops/child labour– Fraud– Consumerism

Stakeholders

Who is affected by the actions of a business?

Stakeholders

Owners/shareholders Employees Customers Buyers and Suppliers The community

Social Responsibility

Related to “corporate citizenship” and business ethics

Corporate social responsibility (CSR) means taking your duty to all stakeholders, especially the community as a whole, seriously

Social Responsibility

Doing good things– Donating goods, services, or money to charities– Sponsoring public service ads

Not doing bad things– Being environmentally responsible– Safe working conditions and fair wages– Transparency and accountability

Why CSR?

Owner(s) feel strongly about it Good publicity = good for business Tax deductions The right thing to do

The case against CSR

Improving the community should be the responsibility of the public sector

Diminishes profit to owners/shareholders Makes business less competitive

Responses to these arguments?