The document discusses the concept of corporate social responsibility (CSR). It defines CSR as actions by organizations to achieve social benefits beyond maximizing profits for shareholders and meeting legal obligations. It presents different perspectives on a corporation's obligations, such as the instrumental approach that a corporation's only obligation is to maximize profits, and the social contract approach that corporations have broader obligations to society. It also discusses drivers of CSR like transparency, sustainability concerns, and globalization. It introduces the "triple bottom line" of financial, social and environmental responsibilities and different types of CSR approaches organizations may take.

1. Chapter 4Corporate Social ResponsibilityMcGraw-Hill

2. Years ago William Jennings Bryan once described big business as “nothing but a collection of organized appetites.”Daniel Patrick Moynihan, 19864-2

3. Defining CSR“The New Lemonade Stand…Consider that age-old icon of childhood endeavors: THE LEMONADE STAND. Within a CSR context, it’s as if today’s thirsty public wants much more than a cool, refreshing drink for a quarter. They’re demanding said beverage be made of juice squeezed from lemons not sprayed with insecticides toxic to the environment, prepared by persons of appropriate age in kitchen conditions which pose no hazard to those workers. It must be offered in biodegradable paper cups and sold at a price which generates a fair, livable wage to the workers – who, some might argue, are far too young to be toiling away making lemonade for profit anyway. It’s enough to drive young entrepreneurs…. straight back to the sandbox.”4-3

4. Defining CSRCorporate Social Responsibility (CSR)The actions of an organization that are targeted towards the achievement of a social benefit over and above maximizing profits for its shareholders and meeting all its legal obligations.4-4

5. Defining CSRThe Instrumental ApproachThe perspective that the only obligation of a corporation is to maximize profits for its shareholders in the provision of goods and services that meet the needs of their customers.4-5

6. Management Without ConscienceThe Social Contract ApproachThe perspective that a corporation has an obligation to society over and above the expectation of its shareholders.Modern social contract approach argues there is an obligation for corporations to meet the demands of the society rather than just the demands of a targeted group of customersRecognize all stakeholders4-6

7. Management by InclusionActions of corporations impact customers, employees, suppliers, and communities Some groups will be positively impacted, others will be negatively impacted4-7

8. Management by InclusionRecognizing the interrelationship of these groups leads beyond the bottom lineGoing beyond generating profit inevitably attracts a lot of attention4-8

9. The Driving Forces Behind CSRTransparency- companies can no longer sweep things under the rugKnowledge – consumers and investors have more information at their disposal and can wield more influenceSustainability – companies are under more pressure to demonstrate environmentally sound plans and strategiesGlobalization –new stage of capitalist development without public institutions to protect societyFailure of the Public Sector – many developing countries are governed by dysfunctional regimes, so people have lost confidence in the public sector to address social problems 4-9

10. The Triple Bottom LineFINANCIAL

11. SOCIAL

12. ENVIRONMENTAL4-10

13. The Triple Bottom LineCoca-Cola’s 2004 Citizenship Report:“Our Company has always endeavored to conduct business responsibly and ethically. We have long been committed to enriching the workplace, preserving and protecting the environment, and strengthening the communities where we operate. These objectives are all consistent with—indeed essential to—our principal goal of refreshing the marketplace with high-quality beverages.”4-11

14. The CSR BandwagonEthical CSROrganizations pursue a clearly defined sense of social conscience in managing their financial responsibilities to shareholders, their legal responsibilities to their local community and society as a whole, and their ethical responsibilities to ‘do the right thing’ for all their stakeholders.4-12