Corporate Social Responsibilities. What is CSR? Social responsibility is the awareness that...
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Transcript of Corporate Social Responsibilities. What is CSR? Social responsibility is the awareness that...
Corporate Social Responsibilities
What is CSR?
Social responsibility is the awareness that business activities have an impact on society, and the consideration of that impact by firms decision making.
Corporate Social Responsibility is the obligation of decision makers to take actions that protect and improve the welfare of the society as a whole, along with their own interests.
Social responsibility is the set of obligations an organization has to protect and enhance the society in which it functions.
Example- McDonald
Arguments in Favor of CSR
Changed public expectations of business Better environment for business Public image Avoidance of government regulation Sociocultural norms
Arguments in Favor of CSR
Balance of responsibility with power System interdependence requires social concern Citizen in our society Business has the resources Make the firm internally more efficient
Arguments Against Social Responsibility
Profit maximization Costs to society for social responsibility Business costs of social involvement Lack of social skill Dilution of business primary purpose
Arguments Against Social Responsibility
Weaken international balance of payment Business has enough power Lack of accountability Can reduce business’s public image Social issues are the concern of government not of
business
Approaches to Social Responsibility
Obstructionist Stance: Avoid social responsibility Reflect mainly economic priorities Profit motives put ahead of all objectives Unlikely to survive in the long run
Approaches to Social Responsibility
Defensive Stance: Firms intend to avoid or do the minimum CSR
functions
Do the legally required and nothing more
Stick to the principle of doing profit
Attitude towards CSR is hostile
Approaches to Social Responsibility
Accommodative Stance: Accept social responsibility
Try to satisfy economic, legal and ethical criteria
Meet legal requirement
Comply with CSR laws
Voluntarily agree to participate in social program
May respond to the request of donations, selected charitable cause
Approaches to Social Responsibility
Proactive Stance: Meet all the criteria of social responsibility
Integrate social objectives with business goals
Actively figure out how to help instead of being reactive
Does something of its own without any formal call of request from the society