This document discusses ethical objectives and corporate social responsibility (CSR) for businesses. It defines ethical objectives as goals that positively impact society in a measurable way, like reducing pollution. It also examines the benefits of being ethical for a business's image, customer loyalty, costs, and staff motivation. The document then defines CSR as businesses acting morally towards stakeholders and explores different views on whether corporations have a responsibility to society and the extent they implement CSR initiatives based on pressures, perceptions, objectives, and costs/profits. It concludes by discussing how a social or environmental audit can provide marketing opportunities but be costly.

1. Ethical Objectives & CSR
Unit 1.3

2. Ethical Objectives
 Goals a company sets that impact
society in a positive way
 Measurable
• Example: Reducing pollution
 What are some examples of unethical
practice?
• Financial dishonesty

3. Is being ethical important for
businesses?
 Depends on the evaluation of costs and
benefits of being ethical BUT…
 Examine the results/impacts of being ethical:
• Corporate Image
• Customer Loyalty
• Cost
• Staff motivation
• Staff morale
• Stakeholders
• Profit

4. Corporate Social Responsibility
 Businessesthat act morally towards their
stakeholders
• What is right or wrong?
 Should corporations have a responsibility
to society?
• Why?

5. Views on CSR
• Free-Market attitude
• Businesses goals are to make profits not to help
society
• Governments should be responsible
• Altruistic attitude
• Believes companies should act in a moral way
regardless if they make profit from it or not
• Strategic attitude
• Believes that businesses should be morally
responsible if it is profitable for the company

6. To what extent will a company
implement CSR initiatives?
 Pressure from media or pressure groups
 Perceptions and beliefs
• Employees (corporate culture)
• Consumers
 Objectives
• Short vs long-term
 Costs/Profits

7. Social or Environmental Audit
 Review of CSR initiatives by an independent
company
 Why is getting an audit done beneficial to
companies?
• Marketing opportunities
• Less pressure from government and pressure groups
• Reassure stakeholders
 Drawbacks
• Costly to have it done and to comply with
recommendations of audit