Are Ca O Seeataregm B) Rergua \ (3 Expoitetion CaO) ae 0) Re L fia) Cathal HISTORICAL NARRATIVE OF Bo |INESSiET Hig 250) OFIT MAXIMIZAT ION s fe) EORPORATE SOCIAL BeoPONSIBILITY (CSR) — fet is, (bg oa eailialippge wy a TSR rn rath pecntleg Cul ta the OTE a A oe as EON Cerny ee rar ca ee- bon ee gk Pn aa a earn PCT real Lda INTRODUCTION 5 FPO TOY UNL MARKET ECONOMY. Ber Senet bi ee niet Valdas Pa TN aolg INDUSTRIALIZATION CIRCA 1750 A.D. IN NL olsun VOTO ACY Nora YN c) FORCE EMBEDDED IN THE CARDINAL RULE OF THE ei PP at py FSC ICON UC e UM | Contac UMaags 3. HOWEVER IN THE QUEST TO MAXIMISE PROFIT, COSTS WERE TRANSFERRED TO SOCIETY, THUS THE TERM SOCIAL COSTS. Ly rece aa focley ploluce the ‘tie wosle ona expot td THe: Cte ACema ee eS aac EN a ears Come A 2a BIC MAI@ Nome =e 8 SF PRR MC ae eas) Ba nears PRES Taso te ara ca 1... ~~~ MEANS SOCIETY AT LARGE HAD TO PAY, OR BEAR THE CONSEQUENCES OF THE ACTIONS OF CORPORATIONS. 2. OVERTHE CENTURIES, THISCANBESEENIN = | ~ SUCH AS GLOBAL WARMING, CARBON FOOTPRINT AND THE OZONE LAYER. 3. THIS CALLS INTO QUESTION THE WISDOM OF PROFIT MAXIMIZATION (AT ALL COST) AND THE MARKET. MECHANISM, renee ee Dee este OM SR aCSAC TG olscl | SA ea monet et Cicient, IMPLICATIONS OF Se Pee Kes ee COST Jaa a Pan |.) D) 0 (0) \ 7 \V = Og | =e) =n 10 ea PNM a RIGHTS OF WORKERS AND CUSTOMERS, AND THE PROTECTION OF COMMUNITIES. PROFIT MAXIMIZATION RESULTED IN 2. CORPORATE AMERICA WAS A CAULDRON OF THESE PRESSING ISSUES, WITH THE FORMATION OF UNIONS FIGHTING AGAINST _—— AND FOR THE RIGHTS OF WORKERS, AND THE RISE OF THE CONSUMER RIGHTS MOVEMENT. 3. ITISWITHTHIS BACKGROUND, THAT = / = TOOK ROOTS IN MANAGEMENT THEORY AND aren (elaPee dee AEG ali anaes he itll alll Za ry CORPORATE SOCIAL RESPONSIBILITY (CSR) t aaa) BLIND SPOTS THAT THE CORPORATE WORLD OVERLOOKED: aS pone INITS RELENTLESS QUEST FOR MAXIMUM PROFIT AND RETURN. is A 2. CORPORATE AMERICA WAS THE FERTILE GROUND IN WHICH SEEDS OF csR Waa tae EF © U3 |=101°) 3 0) A AVS) MORE ACCEPTABLEAND = =~—~ FACE OF RESPONSIBILITY T: SOCIETY AND THE ENVIRONMENT. CT (© LO) P) NCA (0) 51 Cais P NN POLO SNLO)\ Ist N 5 od INCORPORATED INTO STRATEGIC PLANNING. s reat es CAC Da nena: ire Ceeount otal Ckokehol deeaggteaches other than CSR ESG AND Csv SLM ea Teele nad Covered RIaNeo ae NUT eee WANA ae a oT cata crea ete oreo BOTH HAVE BEEN DEVELOPED FROM CORPORATE SOCIAL RESPONSIBILTY. ae oe om a Onan Resets ute tao ttOC a aes 2 i a loon oni af G SMa ce ermal PRR TELUS (ccc IGRI to cs ae ep aye THE IMPACT OF THEIR) Peas Ca a laste BLY 1. THE INDUSTRIAL REVOLUTION CHANGED THE WAY THE WORLD WORKED, FROM « SEUSS TG. celle) = 2, cio ayn eee, Shediae 2. THEREWAS | ‘ijeaoige) -- 2. . sWHICHOAME APACE EVERY CENTURY, NAMELY: EWIMeRW AVE eC teem linear enol od poe irs ed ae Hai a= een oR ay Seas tc) cy 3. THE FIRST IR TOOK PLACE IN WESTERN EUROPE, AND IT WAS ANCHOREDIN —_, WHICH SEPARATED RELIGION FRO! NI PUBLICLIFE,INCLUDINGBUSINESS. paved eevee Loreindustioiotiea He ASO “Top ust oly 25 paws brome gupta per 1h rod ORC The world vor 3 ened idee TRY -plren4 Mare do CoMrces = hevies ob TR Sar G Big owt ARB -1as0 + X Getalprism wos a thing fain] 26 3 / was a beste 1a 1 morvet ender.ba ea SECULARISM PPO NES ds ee Pre Om Aton - CAME ABOUT BECAUSE OF ANTI-CHURCH MOVEMENT IN WESTERN EUROPE PRECEDING IR. . THE HISTORICAL NARRATIVE OF BUSINESS ETHICS CAN BE UNDERSTOOD BETTER BY LOOKING AT THE PERIOD BEFORE IR, a WHICHWEMAYCALL Leva! ig a . THE PRE-IR PERIOD IN EUROPE IS CALLED THE DARK AGES, WHERE a; eee neM, OR FEUDALISM [iWin eX; Sie =U )ey NES YT EXPLOITATIVE SOGIO-POLITICAE SYSTEM {i= 51> AT THE TOP WERE THE KING AND THE CHURCH, SUPPORTED BY BARONS, AND AT THE BOTTOM WERE THE COMMON PEOPLE.PM FEUDALISM fe Feudalism OVER THE COMMON PEOPLE IS BY THE MISUSE OF WHERE THE CHURCH DOMINATES PUBLIC LIFE. THE ECONOMIC SYSTEM IS BASICALLY Pa alata) LABOUR IS UTILISED TO PRODUCE FARM GOODS. cA ~ SMa hoeo) AoE i ad (PEOPLE DON'T MOVE ABOUT BUT LIVE ON THE BARON'S LAND, AND ARE AT HIS MERCY, AND. WORK FOR HIM), AND (A POOR PERSON WILL REMAIN POOR THROUGHOUT HIS LIFE AND HAS NO CHANCE TO IMPROVE HIS SOCIAL STANDING THROUGH BUSINESS OR EDUCATION.) THE STANDARD OF LIVING IS VERY LOWTHE FALL OF eager ey S FRIAR ate pp SUR le FROM 11TH TO 13 CENTURY AD siete ti ear ae eer een Se ac maar PTTL mee Uy I ee) alia PRIMM IN aceasta elas Se are) ee ah eos ono 2. THE GOLDEN AGE OF ISLAM (7 TO 14 CENTURY A.D.) COINCIDED WITH THE DARK AGES IN eu ela eat elses op Wm coy rt) ue Cr RT 3. HOWEVER, IT OPENED THEIR EYES TO A SOCIETY WHERE ENTREPRISE, INNOVATION, THE Bas Ncfog aro tance Wa lene N aA Sea hao amo CN oar ole GOL aG IN Noe No Laseg ei evs oa Saag oP eae P Ne hag ge Tela Preseason tec Cane Se NR ce ako oR Aa) eesti ea CASE OF THE ROYALTY, THE MAGNA CARTA INTRODUCED A CONSTITUTIONAL MONARCY, Oh Uo ne ton o-t ei saat mort eoTHE FIRST BASIS OF INDUSTRIALISATION 1. INGENERAL RELIGION HAS A MORAL FRAMEWORK, BUT WITH SECULARISM, THE FIRST IR INEUROPE HAS ive) rea FRAMEWORK. eS aaD 2. IRIS BASED ON AQ) EXTREME VIEW OF PROFIT MAXIMIZATION REGARDLESS. 3. OVER THE COURSE OF NUMEROUS IR, THERE WAS NO SUCH eats seat Eninllcr FRAMIEUMORLS ae Creme ave mre ET ec eae eeae eee THE COST OF IR eM seO cir imee = amme@s. (20000 CTC Ss ON aes cigigee (SNR THE STANDARD OF LIVING OF THE AVERAGE PERSON IN MODERN SOCIETYIS = =THANTHATOFAKING IN FEUDAL TIMES. HOWEVER, WITHOUT ANY MORAL OR ETHICAL FRAMEWORK, IR WROUGHT DESTRUCTION ON MANY ASPECTS OF LIFE ON EARTH. THIS RESULTED IN A RETHINK AND THE REINTRODUCTION OF E10) =a tal fO7 Vel ad LO =o 0 N81 00>) 1 Stott THUS WE HAVE A NEW APPROACH IN BUSINESS ETHICS, fey,\ HE) CORPORATE SOCIAL RESPONSIBILITY (CSR) ee NM a esta) BCL ras Bul DN Se oid ene ohTHE FUTURE OF BUSINESS ETHI Cefo) NSol NU COM ESM ML AOC Olan ISN SSD AL (ett 1. ARETURN TO AN ETHICAL, AND MORAL FRAMEWORK. 4 2. ACCEPTANCEOF THENEEDFOR = = =~—~—_—s INBUSINESS AAND. Bis AWVel Canela nd THE == —s CREED OF PROFIT AND GREED WILL BE REPLACED WITH A ___ BETWEEN BUSINESS AND OTHER SPHERES OF LIFE, CALLES WORK-LIFE BALANCE. IN A NUTSHELL, BUSINESS ETHICS IS ABOUT =, WHICH MEANS ENCOMPASSING, BALANCE, AND CONTROL. aEARLY DAYS | OF. aie ae SEPM APPARENT.