Presentation is loading. Please wait.

Presentation is loading. Please wait.

CORPORATE SOCIAL RESPONSIBILITY 1. INTRODUCTION ORGANIZATIONS FOR- PROFIT GOVERNMENTSNON- PROFITS 2.

Similar presentations


Presentation on theme: "CORPORATE SOCIAL RESPONSIBILITY 1. INTRODUCTION ORGANIZATIONS FOR- PROFIT GOVERNMENTSNON- PROFITS 2."— Presentation transcript:

1 CORPORATE SOCIAL RESPONSIBILITY 1

2 INTRODUCTION ORGANIZATIONS FOR- PROFIT GOVERNMENTSNON- PROFITS 2

3 INTERACTION OF THE ORGANIZATIONS (corporations, companies, firms, proprietorships, etc. SOCIETY GOVERNMENT NON- PROFITS OTHER STAKEHOLDERS 3

4 FIRM’S STAKEHOLDERS (R. Edward Freeman. (1984). ‘Strategic Management: A Stakeholder Approach). ORGANIZATIONAL STAKEHOLDERS Employees Managers Stockholders Unions ECONOMIC STAKEHOLDERS Customers,Creditors, Distributor Suppliers SOCIETAL STAKEHOLDERS Communities, Government & Regulators Nonprofits & NGOs Environment 4

5 THINK!!!  What is the relationship between a business and the societies within which it operates?  What responsibilities do business owe society to self-regulate their actions in pursuit of profit? (William B. Werther, JR & David Chandler. (2006). Stategic Corporate Social Responsibility. U.S: Sage Publication.) 5

6 WHAT IS CSR???  “The notion of companies looking beyond profits to their role in society is generally termed corporate social responsibility (CSR)… It refers to a company linking itself with ethical values, transparency, employee relations, compliance with legal requirements and overall respect for communities in which they operate... 6

7  … It goes beyond the occasional community service action, however, as CSR is a corporate philosophy that drives strategic decision-making, partner selections, hiring practices and, ultimately, brand development.” (South China Morning Post, 2002). 7

8  “CSR is about business and other organizations going beyond the legal obligations to manage the impact they have on environment and society. In particular, this could include how organizations interact with their employees, suppliers, customers and the communities in which they operate, as well as the extent they attempt to protect the environment. (The Institute of Directors, UK, 2002). 8

9  “The social responsibility of business encompasses the economic, legal, ethical and discretionary expectations that society has of organizations at a given point in time. (Archie B. Carrol, 1979). 9

10 The Hierarchy of Corporate Social Responsibility ECONOMIC RESPONSIBILITIES DISCREATIONARY RESPONSIBILITIES ETHICAL RESPONSIBILITIES LEGAL RESPONSIBILITIES Source: Archie B. Carroll, ‘The Pyramid of Corporate Social Responsibility: Toward the Moral Management of Organizational Stakeholder,’ Business Horizons, July-August,

11 Think…  Why is CSR important?  Why is CSR relevant today? 11

12 CSR : THE ISSUES AND CASE STUDIES 12

13 STAKEHOLDER CLASSIFICATION ORGANIZATIONAL STAKEHOLDERS ECONOMIC STAKEHOLDERS SOCIETAL STAKEHOLDERS GLOBALIZATION TECHNOLOGY 13

14 Organizational Issues Action versus intention Corporate governance – Reporting Principal-agent conflict Auditing CSRCorporate governance – Boards Research and development Compliance – Ethics CorporationShareholder activism Compliance – Approaches Employee relations Stakeholder relations Corporate charters HypocrisyVolunteering 14

15 Economics Issues AdvertisingDiversity-Helpful intent Loans BrandsEnvironmental sustainability NGO and corporate cooperation Consumer apathyFair tradePhilanthropy Cultural conflictFinanceProfit Diversity- Discrimination InvestingWages 15

16 Societal Issues CommunityHuman rightsPatriotism Corruption and bribery InternetScience and technology Country of originLegislationSex EthicsLitigationPatents GlobalizationMediaUniversity and CSR 16

17 Questions to ponder…  Why do firm exist?  What value do business serve for society?  Using a real life examples, list a firm’s stakeholders and attempt to prioritize their importance. What criteria should be used in deciding between competing stakeholder interests?  What are the factors make CSR more relevant today? 17

18 Questions to ponder…  Milton Friedman argued, “Few trends could so thoroughly undermine the very foundations of our free society as the acceptance by corporate officials of a social responsibility other than to make as much money for their stockholders as possible.” What do you think? 18

19 Questions to ponder…  Is a low paying job better than no job at all?  Why are large, multinational firms more likely to be concerned about CSR?  Why is top management support for CSR so critical? Can CSR be delegated? If so, why and to whom?  What elements should be present for a firm to change the organizational culture toward a more CSR outlook? Which one do you think is the most important? Why? 19


Download ppt "CORPORATE SOCIAL RESPONSIBILITY 1. INTRODUCTION ORGANIZATIONS FOR- PROFIT GOVERNMENTSNON- PROFITS 2."

Similar presentations


Ads by Google