UNIVERSITY OF NEW BRUNSWICK FOREIGN TRADE UNIVERSITY

SCHOOL OF BUSINESS HO CHI MINH CITY CAMPUS

ADMINISTRATION
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HOMEWORK

Module: Ethical Issues In Business

Code: F-01-EIB-00

THE PYRAMID OF
CORPORATE SOCIAL RESPONSIBILITIES
Student: Group 1 FOR EXAMINERS ONLY
Grade (in number):
Student ID:
………………..
Cohort: K60CA-B Grade (in words):
Semester: Summer ………………..
Academic year: 2022-2023 Examiner 1
(Signature & Full name)
Headteacher: Vuong Thi Nhan
………………..
Submission date: 15 September 2022 Examiner 2
Student’s signature: (Signature & Full name)
………………..

Ho Chi Minh City, September 2022

UNIVERSITY OF NEW BRUNSWICK
SCHOOL OF BUSINESS
ADMINISTRATION
----------***----------
FOREIGN TRADE UNIVERSITY
HO CHI MINH CITY CAMPUS
----------***----------

HOMEWORK

Module: Ethical Issues In Business

Code: F-01-EIB-00

Student’s full name:

Student ID:
Cohort: K60CA-B
Semester: Year II Academic year: 2022-2023
Lecturer: Vo Hoang Kim An

Ho Chi Minh City, September 2022

THE PYRAMID OF CORPORATE SOCIAL
RESPONSIBILITIES
TEAM MEMBERS:

1/ HUYNH NGOC KIM CUC………………………………………………...2142219003

2/ HUYNH ANH HAO………………………………………………………..2142219008

3/ LE TANG KHANH LOAN………………………………………………...2142219097

4/ LE THI KHANH NGUYEN…………………………………………….....2142219098

This article will explore the nature of corporate social responsibility (CSR) with an eye
toward understanding its component parts.

The intention will be to characterize the firm's CSR in ways that might be useful to
executives who wish to reconcile their obligations to their shareholders with those to other
competing groups claiming legitimacy

For CSR to be accepted by a conscientious business person, it should be framed in four

kinds of social responsibilities constituting total CSR: economic, legal, ethical, and
philanthropic. This concept has significantly influenced the acceptance of the social
responsibility in the business world

Economic and Legal Components of Corporate Social Responsibility

perform in a manner consistent with

1) Performing in a manner consistent with
maximizing earnings per share.
expectations of government and law.

being committed to being as profitable 2) Compiling with various federal, state, and
as possible local regulations.

maintain a strong competitive position. 3) Being a law-abiding corporate citizen.

maintain a high level of operating 4) A successful firm can be defined as one that
efficiency. fulfills its legal obligations.

A successful firm is defined as one that 5) Providing goods and services that at least
is consistently profitable. meet minimal legal requirements.
 Economic Components Legal Components (Responsibilities)
(Responsibilities)

The Pyramid of Corporate Social Responsibility is a four-tier guide to self-regulation.

• 1: Economic Responsibility
Business → stay profitable → continue existing
• 2: Legal Responsibility
Impose the laws and regulations → by governing bodies → ensure fair and ethical
corporate responsibility
• 3: Ethical Responsibility
Operate in a fair and ethical manner → Making changes that reflect ethical decision-
making
• 4: Philanthropic Responsibility
Business’s effort → make a larger impact → a positive change in society and/or other non-
self-serving areas.

Ethical Responsibilities Philanthropic Responsibilities

Company Society

The value of what should/ shouldn’t be done A business's aim actively making the
from the business point of view better world and society

Recognize/ respect ethical/ moral norms Assist the fine and performing arts

Prevent ethical norms → achieve goals Do charitable social activities

Understand about ethic/moral Private and puplic educational

institutions

Corporate integrity/ ethical behavior rank first Enhance quality of life

Stakeholders personalize social or societal responsibilities. The challenge for management
is to determine which stakeholders should be taken into account. The degree to which a
group has a justifiable right to make a claim is referred to as legitimacy. Stakeholder
management is the process by which managers reconcile their own objectives with the
claims and expectations that various stakeholder groups place on them. The challenge of
stakeholder management is to ensure that the firm's primary stakeholders achieve their
goals while also satisfying other stakeholders. This stakeholder/ responsibility analysis
should provide useful information for developing priorities and making long-term and
short-term decisions.

An earlier Business Horizons article defined and discussed three ethical approaches.
Immoral management is defined as managers whose decisions, actions, and behavior
demonstrate an active opposition to what is considered right or ethical. Amoral managers
are neither immoral nor moral, but they are not aware that their daily business decisions
may have negative consequences for others. To guide their decisions, moral managers seek
out and apply sound ethical principles such as justice, rights, and utilitarianism.

After understanding the three ethical types (or approaches) the stakeholder might use the
three ethical approaches to propose a profile because their main goal is to highlight the
moral management by contrasting with other two types. In basic, there are five major
stakeholder groups that every industry or firm are recognized through owners
(shareholders), employees, customers, local communities and the society. Their general
ethic is essentially identical which means protect their rights, treat them with respect and
fairness, because of the differences between the groupings, certain behaviors and attitudes
arise.

The stakeholder management perspective provides:

• language and using names and faces to personalize connections
 • some helpful conceptual and analytical ideas for diagnosis and analysis
• putting an organization's connections and strategy first
• a management framework for organizing analysis and decision making

Moral management was defined and characterized by drawing comparisons between

immoral and amoral management. It's hard to find an morral manager though the
competitive business. The standard must be set high, and moral management is the finest
example of what that high bar may entail.

Three Moral Types:

- Immoral Management: No regard for ethical standard in business

- Amoral Management: are either intentionally or unintentionally amoral
- Moral Management: Is dedicated to the high standards of ethical behavior for
both in their own personal actions and his decision of how to manage the
company’s activities.

Three Moral Types and Orientation Toward Stakeholder Groups

Owner/ Employee Customer Local

Shareholder Community

Immoral Focus on No concern is Views as Disregards the

Management improving the shown for opportunities to requirements of
executive employees’ be exploited for the community.
group's needs/ rights/ personal and Takes maximum
position and expectations. organizational advantage of
minimally gain. community
treated and resources while
 given short contributing
shrift. nothing.

Amoral No thought is The It simply makes Community

Management given to ethical organization judgments based factors are thought
consequences perceives it as on profitability to be unimportant
of decision for self-interest to while keeping while making
any treat the wording of corporate
stakeholder employees the law in mind. decisions.
group, with little Management is
including regard. not concerned
owners. with what is fair
to the client.

Moral To treat all Employees’ The managerial Positions of

Management stakeholder rights to due emphasis is on leadership in the
claimants in a process, providing clients environment,
fair and ethical privacy, with fair value, education,
manner. To freedom of complete culture/arts,
protect speech and information, a volunteering, and
shareholders, safety are reasonable general
an ethics maximally guarantee, and community fairs.
committee of considered in satisfaction. Management sees
the board if all decisions. Consumer rights community goals
created. are broadly and company
understood and goals as mutually
respected. interdependent.