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1. A thorough understanding of the term
corporate social responsibility.
2. An ability to argue both for and against the
assumption of social responsibility by
business.
3. Useful strategies for increasing the social
responsiveness of an organization.
4. Insights into the planning, organizing,
influencing, and controlling of social
responsibility activities.
3-2
Environmental
Social issues
issues

Economic issues

3
Why does business exit?

What contribution/value should

business make to society?

4
5
Society needs Business
business needs society

employment Create
& wages demand

public assets
investment &
&
innovation
infrastructure

Profits & Legal

taxes protection

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“CSR is a concept whereby companies integrate social
and environmental concerns in their business
operations and in their interaction with their
stakeholders on a voluntary basis.”
The EU Commission (2002:5)

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 The Davis Model of Corporate S.R.

• Proposition
1: S.R. arises from social power
2: Business shall operate as a two-way open system
3: Calculate and consider social costs and benefits
4: Pass social costs on to the consumer
5: Businesses should be involved in certain social
problems

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Viện Quản trị Kinh doanh, Trường Đại học Kinh tế, ĐHQGHN
Economic • Fair return on investment for its shareholders
reponsibility
Legal reponsibility • Responsible marketing (i.e: dont break the rules when advertising to children or
responsible finacial support services)
• A willingness to act ahead of regulatory confrontation (i.e ISO Standards,
Environmental Standard, Carbon Footprint)

Ethical reponsibility • Understand and follow local ethical values, preferences, and expectation
• Cause-related marketing: Contributing to causes based on sale
• Safe working condition & fair pay

Philanthropic • Corporate philanthropy: Donating directly to causes – usually cash

reponsibility • Investing in education
• Community volunteering: Employees donating time in the community
• Cause promotion: Increasing awareness and concern for social causes

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 Areas of Corporate S.R. : Going Green

 Varying Opinions on S.R.

• Arguments for Business Performing S.R. Activities

• Arguments Against Business Performing S.R. Activities

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Shareholders value theory (Free Market View)
The only responsibility of business toward the society is the
maximisation of profits to the shareholders, within the legal framework
and the ethical custom of the country

CSR View
Business should be concerned with social issues as the strong
interdependence of society and business now can’t be ignored

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 The job of business is to create weath for shareholders
 The efficient use of resource will be reduced if business is
restricted in how they act
 Business cannot decide what is in society’s interest
 Extra cost will be incurred which must be passed onto customers

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 Ethical thing to do
 Balancing shareholders’ interest against the interest of a wider community
 Increase employee motivation
 Correct social problem caused by business
 Attractive to stakeholders, including consumers and investors
 An improved enviroment will benefit the business

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 Conclusions About the Performance of S.R. Activities by Business
• Performing Required S.R. Activities

• Voluntarily Performing S.R. Activities

• Communicating the Degree of S.R. Involvement

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 Determining if a Social Responsibility (S.R.) Exists
 Social Responsiveness and Decision Making
 Approaches to Meeting Social Responsibilities
• Socially responsive approach:
1. Incorporate social goals
2. Seek comparative industry norms
3. Present reports
4. Experiment with different approaches
5. Attempt to measure the cost of social programs
• Management approaches:
1. Social obligation approach
2. S.R. approach
3. Social responsiveness approach

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3-24
 Planning Social Responsibility (S.R.) Activities

• The Overall Planning Process

 Organizing Social Responsibility (S.R.) Activities

 Influencing Individuals Performing S.R. Activities

 Controlling S.R. Activities

• Areas of Measurement

1. The economic function area

2. The quality-of-life area
3. The social investment area
4. The problem-solving area

• The Social Audit: A Progress Report

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Copyright @ 2010 Pearson Education, Inc. Publishing
as Prentince Hall 27
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 A Definition of Ethics

 Why Ethics Is a Vital Part of Management Practices

• Productivity

• Stakeholder relations
• Government regulation

 A Code of Ethics

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 Creating an Ethical Workplace
1. The golden rule
2. The utilitarian principle
3. Kant’s categorical imperative
4. The professional ethic
5. The TV test
6. The legal test
7. The four-way test

 Following the Law: Sarbanes–Oxley Reform Standards

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 Defining Sustainability

 Defining a Sustainable Organization

 Why Sustainability
• Increased profit
• Increased productivity

• Increased innovation

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 Steps for achieving sustainability
• Set sustainability goals
• Hire expertise

• Reward employees
• Track progress

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