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This document discusses ethics, corporate social responsibility, and their importance for businesses. It defines ethics as moral guidelines that govern good behavior and distinguish right from wrong. Corporate social responsibility is defined as a business's commitment to operate ethically and contribute to economic development while improving life for its workforce, local community, and society. The document outlines some key ethical issues businesses face and how firms can implement codes of practice to ensure ethical behavior. It also discusses the advantages of CSR for both businesses and communities as well as some potential disadvantages.
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Corporate social responsibility (CSR) refers to business practices that benefit society. The goals of CSR include increasing long-term profits, upholding high ethical standards to reduce risk, and encouraging positive environmental and social impacts. CSR can be based in human resources, business development, or public relations departments, or as a separate unit reporting to top executives. Key areas of CSR interventions include the environment, philanthropy, and ethical labor practices. CSR differs from other tools by creating shared value for businesses and society.
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This document discusses definitions and types of corporate social responsibility (CSR). It provides 3 main definitions of CSR: 1) the relationship between corporations, governments, and individuals, 2) the relationship between a corporation and the local society it operates in, and 3) the relationship between a corporation and its stakeholders. While there is no universal definition, CSR generally refers to ethical and transparent business practices that respect people, communities, and the environment beyond just making profits. The document then discusses types of CSR activities like philanthropy and environmental sustainability practices. It provides examples of specific CSR practices corporations can implement, such as social auditing, sustainability reporting, and ethical accounting statements.
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- 1. ETHICS & CORPORATE SOCIAL RESPONSIBILITY(CSR) What is Ethics? And law Importance? CSR definition Importance Advantages & Disadvantages
- 2. Ethics are about what is right and what is wrong.
- 3. Ethics: moral guidelines which govern good behavior.
- 4. Business ethics reflect the philosophy of a business, in line with its objectives and moral standing of the community. Ethical principles and standards in business: • Define acceptable conduct in business • Should underpin how management make decisions
- 5. ETHICS AND LAW An important distinction to remember is that behaving ethically is not quite the same thing as behaving lawfully:
- 6. ETHICAL ISSUES AND CSR • WHAT ARE SOME OF THE ETHICAL ISSUES BUSINESSES FACE? • HOW IS BUSINESS ETHICS RELATED TO CSR? • HOW IS CSR DIFFERENT FROM ETHICS?
- 7. HOW DO FIRMS ENSURE ITS DIRECTORS AND EMPLOYEES ACT ETHICALLY? A common approach is to implement a code of practice. Ethical codes are increasingly popular – particularly with larger businesses.
- 8. Importance: Stop business malpractices Creates good image Survival of business Safeguarding consumers' rights Protecting employees and shareholders
- 9. Corporate Social Responsibility (CSR) • What is it? • Importance • For and against
- 10. CSR DEFINITION • Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce & their families as well as of the local community and society at large.
- 11. Quick Definition: • “CSR is about how companies manage the business processes to produce an overall positive impact on society.”
- 12. • CSR is about the Stakeholders not Stockholders alone.
- 13. Stakeholder: A person, group or organization that has interest or concern in an organization. For example: creditors, employees, government, owners (shareholders), customers & the community.
- 14. Importance: For the business: An easy way for building its brand, reputation and public profile. Attracts and retains employees and customers. Helps to cut business costs e.g recycling & conserving energy.
- 15. Importance: For the Community: Basic needs are met e.g food, water, healthcare. The environment is conserved. Economic empowerment.
- 16. How CSR is performed by firms • Environmental CSR: focuses on eco-issues such as climate change. • Community based CSR: businesses work with other organizations to improve the quality of life of the people in the local community. • HR based CSR: projects that improve the wellbeing of the staff. • Philanthropy: businesses donate money to a good cause, usually through a charity partner. – give money or time or in kind to charity – Integrative philanthropy—select beneficiaries aligned with company interests e.g. The Football Association endowing local youth clubs with funds However, Philanthropy will not enhance corporate reputation if a company – fails to live up to its philanthropic image or – Has consumers who perceive philanthropy to be manipulative
- 17. Arguments for & against CSR
- 18. For: SATISFIED EMPLOYEES SATISFIED CUSTOMERS RELEVANT RESEARCH POSITIVE PR COSTS REDUCTIONS MORE BUSINESS OPPORTUNITIES
- 19. Against: • ROLE OF PROFIT: will a business engage in activities that have no regard to financial gain? • COMPETITIVE DISADVANTAGE: if invest my resources to CSR and my competitors do not I will fall behind in the competition • LOSS OF FOCUS • LASTING IMPACT
- 20. Class Discussion