4. Goal of CSR
The goal of CSR is to embrace responsibility or the
company’s actions and encourage a positive impact
through its activities on the environment consumers
employees communities, stake holders and all other
members of the public sphere may also be considered
as stakeholders.
9. What is Ethics
Ethics – belief about what is right and wrong
Based upon individual’s moral /value / social context
ethical vs unethical behaviour
10. What is Business Ethic
Business ethics is a form of widely acceptable principle
that applies to a business strategy. It applies to every
aspect of business polices and its operation.
Major corporation went through scandals in US and
Australia in the last decade or so. The unsavoury
practice are:
11. Unsavory Practice
providing bribes for customers (many international firms)
massively increasing senior management compensation while laying off
employees with less power (banks, car manufacturers and many others)
moving corporate head offices offshore to avoid being sued for prior
business practices
moving corporate head offices to select off-shore locations to limit their tax
exposure (many large multinational companies)
hiding bad environmental practices (mining and industrial organisations).
12. But what is “ethical”?
Is the action morally correct? Does it protect the rights
and privileges of the people affected by it?
Is the action equitable? Is it fair to all the various
stakeholders? Is the process leading to the action fair to
all the various stakeholders?
Is the action consistent with the values of the
organisation?
Would the organisation be comfortable to defend the
action if it were widely publicised?
13. Corporate social
responsibility
Corporate social responsibility (CSR) can be defined as balancing the needs
of the different groups of stakeholders affected by a corporation’s actions
(e.g. investors, employees, suppliers, customers, the community and the
environment).
It concentrates on the current time period and tends to be focused more on
relationships with stakeholder groups, with a specific emphasis on employees
and communities.
14. Population definition of CSR
Corporate social responsibility (CSR) is a type of
international private business self-regulation that aims
to contribute to societal goals of a philanthropic,
activist, or charitable nature or by engage in or
support volunteering or ethically-oriented practices.
15. Characteristics of CSR
The idea of CSR first appeared in the late 1960s in response to the need
for business to address the effect of their activities.
16. Type of CSR
Environmental initiatives
Philanthropic Initiatives
Adhere to Ethical Practice
Adhere to Economic Responsibility
17. Social Business
A business that created and designed to address a
social problem, a loss-loss, non dividend company:
It is financially self sustained and
Profits realized by the business are reinvested in the
business itself with the aim of increasing social impact
etc.
18. Exercise 1:
Read the article 30 min (?)
Answer the following question
What are the salient features of social business? 10 min
Briefly describe the differences between social business and corporate
social responsibility.
15 min
“Social business is another type of corporate social responsibility”.
Explain if you agree and/or disagree to this assertion? 20 min
19. business ethics and social
responsibility
Every business’s basic aim is to gain profits for the
company and its employee, but that does not mean a
business can do whatever it wishes to do. There are a set of
rules and responsibilities one has to follo
The main difference between business ethics and social
responsibility is that the concept of business ethics is to know
what is right or wrong for the company and its workers, while the
concept of social responsibility is knowing what impact one’s
business is making in the society and whether it is right or wrong.
