Chapter 6:

Business Ethics
and Corporate
Social
Responsibility
 Corporate
Social
Responsibili
ty
  Corporate social responsibility,
also known as CSR is the
concept that a business has a
responsibility to do good
What is
Corporate Social
Responsibility  CSR is about how companies
manage the business,
environment and towards a
sustainable development
 Howard Bowen
 Father of Corporate social
responsibility
What is Serve as president of Grinnell
Corporate College from 1955 to 1964
Social  PublishedSocial Responsibilities of the
Businessman in 1953.
Responsibility The Corporate Social Responsibility is, “The
obligations of businessmen to pursue those
policies, to make those decisions, or to follow
those lines of action which are desirable in terms
of the objectives and values of our society”
(Bowen, 1953).
 Archie B. Carroll
 “The social responsibility of business
encompasses the economic, legal ,
What is ethical,
and discretionary expectations that
Corporate society has organizations at a given
time. ”
Social
Responsibil Archie Carroll highlights the four most important
of responsibility of organisations. These are:
ity 1. Economic responsibility
2. Ethical responsibility
3. Legal responsibility
4. Philanthropic responsibility
 Frederick (2006)
summarizes what CSR stands for in the
50s under three basic issues;
What is 1. Corporate managers are appointed as
public trustees
Corporate 2. There is need to balance competing
Social stakeholders claims with corporate
resources; and
Responsibil 3. The acceptance of philanthropy as a
ity humane philosophy and discretionary
principle of the organization.
 Responsibility Towards
Society

Responsibility Towards Responsibility

Government Types of Social Towards Shareholder

Responsibility

Responsibility Towards Responsibility Towards

 Improved
public image
Builds
Customer
Loyalty
Benefits Increased
brand
of CSR awareness and
recognition
An
advantage
over
competitors
Increased
customer
engagement
 PURPOSE
 The ultimate purpose of CSR is
Purpose to maximize shared value
among organizations,
of CSR employees, customers,
shareholders, and community
members.
 STRATEGY
 CSR strategy can be defined as the
Strategy manner in which companies plan,
execute and monitor the social
of CSR initiatives they have chosen to put
in place within their organization.
 Some
Companies
with the
Best CSR
Reputation
COCA-
COLA
MICROSOFT
STARBUCKS
CSR is the heart
and soul of
modern
corporations and
is an important
standard for
corporate
governance.