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Hartman 5e Accessible PPT Ch05
Hartman 5e Accessible PPT Ch05
Corporate
Social
Responsibility
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Corporate Social Responsibility 1
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Chapter Objectives 1
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Chapter Objectives 2
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Introduction: Corporate Social Responsibility
• This chapter addresses corporate social responsibility (CSR)
and how firms opt to meet this perceived responsibility.
• Businesses have a social responsibility to obey the law.
• Economically, businesses have a social responsibility to
produce the goods and services society demands.
• There are ambiguities involved in each of the three terms
corporate, social, and responsibilities.
• The primary question of CSR is the extent to which businesses
and the managers who run them have ethical responsibilities
beyond producing goods and services within the law.
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Ethics and Social Responsibility 1
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Ethics and Social Responsibility 2
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Ethics and Social Responsibility 3
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Figure 5.1: Models of Corporate Social Responsibility
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Corporate Social Responsibility 2
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Economic Model of CSR 1
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Economic Model of CSR 2
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Economic Model of CSR 3
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Economic Model of CSR 4
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Stakeholder Model of CSR 1
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Stakeholder Model of CSR 2
Stakeholder theory
• Recognizes that every business decision affects a wide variety of people,
benefiting some and imposing costs on others.
• The stakeholder model simply acknowledges this principle and points out that
other ethical duties have an equal claim on managerial decision making.
• Acknowledges this fact by requiring management to balance the ethical
interests of all affected parties
• Like utilitarianism, it asks managers to consider the consequences of its
decisions.
• Social responsibility requires decisions to prioritize competing and
conflicting responsibilities.
• Because stakeholder theory recognizes that some stakeholders have different
power and impact on decisions than others.
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Corporate Social Responsibility 3
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Integrative Model of CSR
Should business be expected to sacrifice profits for social ends?
• There are organizations that pursue social ends as the very core of their
mission, such as nonprofits.
• Some for-profit organizations have social goals as a central part of the
strategic mission.
• Because these firms integrate economic and social goals, they are using
the integrative model of CSR.
• There are no claims that every business should adopt the principles of
benefit corporations.
• Benefit corporations show profit is not incompatible with doing good, and
therefore that one can do good profitably.
• Others argue sustainability is relevant to every business concern.
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The Implications of Sustainability
As a topic within CSR, sustainability means a firm’s financial goals
must be balanced against, and may be overridden by,
environmental considerations.
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Exploring Enlightened Self-Interest
Are there other reasons besides self-interest and economics for a
business to engage in socially responsible activities?
• CSR can impact a firm’s reputation within a community.
• The problem with a focus on reputation is that social responsibility then can
become merely social marketing.
• The practice of attending to the "image" of a firm is referred to as reputation
management; failure to do so might be a poor business decision.
• Companies may be challenged for engaging in CSR activities solely for the
purpose of affecting their reputations.
• There are many aspects of a firm’s reputation.
• It can be well-respected for its products and services, for its financial
performance, as a good place to work, and as a good corporate citizen.
• If a firm develops a bad reputation, it can create significant barriers to
business success.
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Exploring Enlightened Self-Interest 1
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Exploring Enlightened Self-Interest 2
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Conclusion
This chapter sought to answer the question of whether there
exists a social responsibility of business.
• Several sources were proposed.
• Responsibility may be based in a concept of good corporate citizenship, a
social contract, or enlightened self-interest.