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Corporate Social Responsibility

CHAPTER 4
SOCIAL RESPONSIBILITY AND  Focuses on what an organisation does to
ETHICS influence the society in which it exists.
Corporate Social Responsibility
Doctrines of Social Responsibility ◦ Close up-1: Tomakai khujche Bangladesh.
Enlightened Self Interest ◦ British American Tobacco: Tree Plantation.
Corporate Social Responsiveness ◦ Citycell-B League.
Corporate Social Performance
Ethics and its Levels
Tools of Ethics
The Challenge of Relativism

Doctrines of Social Responsibility Corporate Social Responsiveness

 Charity principle  How to respond to issues rather than trying to
◦ More fortunate should assist the less fortunate. determine social responsibility.
 Stewardship principle
 The approach
◦ Businesses and wealthy people should view themselves as
caretakers of their property holding them in a trust. ◦ How to respond to social issues.
◦ What forces determine issues to respond

 Enlightened Self Interest

 Process
◦ The realization that it is in the organisation’s own interest
to ac it ways that the community considers socially ◦ Recognition of the problem,
responsible. ◦ Study of problem and consideration of ways to deal with it,
◦ Implementation of solution.

Corporate Social Performance Corporate Social Performance

 Such decisions and policies can reflect one of

 Social responsibility debates is shaped by four stances
economic, legal, and ethical principles. ◦ Reactive
 Responding to social issues only when they affect
organizational goals.
◦ These principles create a social contract between  developing a new campus realising that the existing rented campus can
no longer accommodated the growing student size.
business and society that permit companies to act
as moral agent.
◦ Defensive
 Acts to ward off challenge. Doing what may be demanded in
◦ Corporate managers try to implement the the near future.
principles of the social contract in their decision-  Developing new campus because other similar universities are
making , and policies. doing/have done the same.

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Corporate Social Performance Ethics

◦ Accommodative  The study of how our decisions affect other people.
 Bringing in line with government requirements and public
opinion.
 developing new campus because the University Grants Commission
 Also the study of people’s rights, duties, the moral
requires all private universities to have their own campus. rules applied in decision making, and the nature of
the relationships among people.
◦ Proactive
 Anticipating demands that have not yet been made.
 Installing students’ transportation service anticipating more
students will be coming to the university from places relatively
far from Dhaka.

Ethics Tools of Ethics

 Four levels of Ethics
◦ Societal:
 what is to be the basic structure of the organisation?
 Values
 Should a large group of people be kept away from working in the organization. ◦ Relatively permanent desires that seem to be good
◦ Stakeholder: in themselves
 How to deal with external groups affected by company decisions?
 The obligation to inform customers about the potential dangers of its products.  They are the answers to the question why.
◦ Internal policy:
 what to be the nature of relationship with employees?
 Rights
 What kind of job contract is fair? ◦ Claims that entitle one to take a particular action.
◦ Personal:  Scope of individual rights are limited by the rights of
 how should people treat each other within the organisation?
 Should we be honest with each other regardless of the consequences?
other.
 Duties
◦ Obligation to take specific steps or obey the law.
 Checking unfair means in exams.

Tools of Ethics Tools of Ethics

 Common morality
 Moral rules
◦ A body of moral rules governing ordinary ethical
◦ Guide us through situations where competing problems.
interests conflict. Act as tiebreakers.  Promise keeping.
 Taking test on a heavily rainy day.  Nonmalevolence:
 Mutual aid:
 Human relationships  Respect for persons.
◦ Relationships with respect to position, gender, etc.  Respect for property:

 Morality of care
◦ Morality has two components
 Justice:Guided by rules.
 Care:Guided by love, affection, sympathy.

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Institutionalising Ethics Moral Relativism

 We cannot decide matters of right or wrong, good

 Corporate code of conducts or evil in any rational way.
 Ethics committee
◦ Naïve relativism
 Ombudsman offices
 Judicial board ◦ Cultural relativism
 Ethics training programmes
 Social audits: report describing a company’s
activities in a given area of social interest.

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