SOCIAL RESPONSIBILITY
(WORLD BUSINESS COUNCIL FOR
- A moral obligation on a company on a company
or an individual to take decision or actions the
least in favor and useful to society
- An ethical framework in which an individual is
obligated to work and cooperate with other
individuals and organizations for the benefit of
the community that will inherit the world that
individuals left behind
- The practice of producing goods and services in
a way that is not harmful to the society or the
environment
SOCIAL RESPONSIBILITY EXAMPLES
❖ Student Social Responsibility
▪ Keeping the surrounding clean
▪ Picking a litter and putting it in the trashcan
▪ Energy reduction
❖ Individual Social Responsibility
- Individual action that have an effect in the
society
a. Charitable acts
● Philanthropy
● Donations
b. Working for the community
● Volunteering
● Giving blood donation
● Working at the food bank and animal
shelter
c. Supporting issues that affect society
● Advocating social issues
d. Individual ethics
● Integrity
● Honesty
● Empathy
❖ Corporate Social Responsibility
- the business obligation to contribute to
sustainable economic development, working
with employees, their families, the local
community and society at large to improve
quality of life.
SUSTAINABLE DEVELOPMENT [WBCSD])-UK
base
- morph from nice thing to do to a necessity for a
successful business
ANDREW CARNEGIE
- wealthy businessman and philanthropist that
challenged wealthy people to support social
causes, following his belief in the Gospel of
Wealth
John D. Rockefeller
- followed Andrew
- donating more than half a billion dollar
- first US dollar billionaire
Frederick Goff
- a well-known banker in Cleveland
- founder of Cleveland Foundation
- trustee of the CLEVELAND TRUST COMPANY
Cleveland Foundation
- first community foundation
- its purpose is to give power to the community
by accepting gifts from multiple donor
1940s
- start where business could support charities
Howard Bowen
- American economist and Grinnell College
President
- Cited as Father of CSR
- Published a book in 1953 called SOCIAL
RESPONSILITIES OF THE BUSINESSMAN
LICENSE TO OPERATE
- A concept of social contract
- Declared by the Committee for Economic
Development in1971
- Based on public consent (in operating business)
- To contribute more to society than solely their
product to sale
Three Responsibilities
1. Provide jobs and economic growth through well
run businesses
2. Run business fairly and honestly regarding
employees and customers
3. Become more broad involved in improving the
conditions of the community and environment
in which it operates
Professor Sandra L. Holmes
In 1976, she conducted a survey on CSR to find how
decision on which causes to support were made. Her
results, from the Executive perception of corporate
social responsibility, can boil down to:
● Utilizing a corporation’s ability to help a
specific need
● Severity of a social need

● Executive interest

● PR gained from action

● Government influence
Archie B. Carroll
- Summarized the A THREE-DIMENSIONAL
Conceptual Model of Corporate Performance
Using the Evolution of the Corporate Social
Performance Model, which debuted in 1985, Caroll’s
definition of CSR was understood as a 3-pronged
approach:
1. Companies adopted principles (or ethics)
2. Created and executed formal processes (how
they would respond)
3. Developed policies (managing specific issues)

Early Adopters of CSR

● Johnson and Johnson

● Hershey’s (Milton S. Hershey)

Carroll’s Pyramid of Corporate Social Responsibility

Top-to-Bottom
1. Philanthropic Responsibility
- Giving back to society
2. Ethical Responsibility
- Morality and fairness
3. Legal Responsibility
- Laws and rules based
4. Economic Responsibility
- profit