ESR 103 Ethical Principles and Social Responsibility Week 11

ELEVENTH WEEK
Social Responsibility-II
(Corporate Social Responsibility Concept, Approaches and Dimensions)
Social responsibility is evaluating the positive or negative effects social assets such as; individual,
group, community, institution, organization, business etc. caused by its activities in public life, and
taking precautions against negative effects. (Öztürk vd., 2013, s.5) Social responsibilities that must
be done in society are formed in formal and informal forms and are known by all social beings in
society. As a social state, the approach that the state fulfills some social responsibilities has been
adopted in the past.
The thought that social responsibility is a duty to be fulfilled by the state has come to a point in its
historical course where it argues that profit-oriented organizations and also civil society have
obligations. (Hof, 2009, s.62) Today official and all private institutions and organizations are
expected to fulfill their social responsibilities. The extent to which these expectations are met is
questioned by the society.
Just as people have responsibilities towards the environment and society, organizations also have
responsibilities towards people, the environment and society. For example, businesses accountable
not only to the environment and society, but to consumers, employees, government, competitors
and many more.
The concept of social responsibility, besides individual social responsibilities, appears in every
field (corporate social responsibility) that affect activities of institutions and organizations
included in our daily life. Today, people follow for-profit organizations and their marketing efforts
that are reflected to the public in a sensitive way. In this context, consumers' expectations regarding
corporate social responsibilities are also increasing.
Corporate Social Responsibility (CSR)
Responsibility (CSR); based on ethical values, in accordance with legal requirements, refers to
transparent corporate practices that respect people, communities and the environment.
In other words, CSR is the behaviors and principles that an institution
adopts as a volunteer to meet the social and environmental expectations of stakeholders' or in
activities that meet these expectations.
With the increasing globalization, CSR has become an important and widespread issue all over the
world. In this context, CSR takes more place in the media. Consumer organizations constantly
seeks information about production conditions, marketing methods, etc. Civil society
organizations (NGOs), trade unions and corporate customers monitors the fulfillment of their
responsibilities to the society. People look at the organization behind the product that they buy
what they are doing for society. (Özgen, 2007, s.2) Institutional social responsibility practices are
also used effectively in strengthening the corporate image.
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CSR emerged as a result of leaving the "maximum profit" understanding of enterprises to the
understanding of "responsible towards society". CSR is to follow a working strategy in line with
organizations' economic and legal conditions, business ethics, internal and external individuals and
groups expectations. (Aktan, 2007, s.63) Social responsibility is the obligation of decision makers
to promote and protect the general interests of society as well as their own. In this context, CSR
can be summarized as managing organizational processes within the framework of the principle
of social usefulness. For example; protecting the natural environment, providing quality and safe
products to customers, respecting to the basic rights and freedoms of employees, providing
accurate information about activities and supporting issues such as education, health and art
activities that contribute to the level of welfare of society are evaluated within the scope of CSR.

Demonstrating socially ethical and responsible behavior makes business compromises in the short
run, even may lead to difficulties. However, it should be noted that it will provide long-term gains.
(Aktan, 2007, s.13) According to the Turkey Corporate Social Responsibility Association, CSR is
beneficial for the development of the private sector to be more competitive in international
markets, more effective participation of employees in business processes, environmental
protection and civil society-private sector cooperation. At the same time, it is also an important
factor for realization of sustainable development and success in the social field.
(http://kssd.org/kss) In addition, CSR; creates new business opportunities by enabling companies
to interact with their social stakeholders, increases companies brand value, competitive power and
long-term profitability, attracts the attention of international investors. In addition to these; benefits
of corporate social responsibility are, to develop goodwill, to increase customer loyalty, provide
benefits for connected organizations, increase employee loyalty and to increase retail sales, to
create competitive advantage, to establish stakeholder relations, to build and develop reputation.

In addition to the responsibilities of an enterprise towards the environment and society, it has
responsibilities to all stakeholders which may be affected significantly from business decisions
and activities that has a direct and/or indirect relationship with it. (Özdemir, 2009, s.58)
Commercial organizations, which were previously seen only as a means of profit, are now
perceived as structures with responsibilities against the geography on which they operate and the
society in which they live. (Akgül, 2010, s.102)
Corporate Social Responsibility Approaches
Ethical values of an organization; emerges as a result of changes in social, organizational,
professional and individual ethical understandings. On the other hand, the ethical values (rules) of
the institution form the basis of the social responsibility understanding of that institution. Within
the framework of the aforementioned ethical rules, the managers and employees of that institution,
decide on the responsibilities they will fulfill for the benefit of the stakeholders and the society.
Different approaches to ethical issues of the institutions, cause changes in social responsibilities
to be fulfilled towards society and stakeholders.
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In most of the decisions made institutionally, it is possible to see traces of organization's attitude
and view of the subject social responsibility. For example; an employer who decides to make
significant expenditures for in-service training of employees, will take a more responsible attitude
towards removals. On the other hand, it can be said that the business not informing the customer
about the defect detected in the sold product and does not take precaution to correct the defect,
does not act sensitively about social responsibility.
In the fulfillment of corporate social responsibilities, organizations show four different attitudes.
These are preventive, defensive, adaptive and proactive approaches (attitudes).
Managers of organizations exhibiting an preventive attitude are not socially responsible. On the
contrary, by choosing an unethical and illegal way, they try to prevent the society and stakeholders
from knowing about what has been done.
Defensive institutions and their managers take care to stay within the legally established minimum
limits, they do not try to do more. This kind institutions and their managers generally act
unethically in situations that are not defined in the legislation. For example, the manager of an
institution dealing with stock trading when notice the downward trend, he sells his own shares first
and does not consider other stakeholders.
Institutions with an adaptive attitude and their managers, with the awareness of social
responsibility, think ethical and legal. They want all employees also to believe and act in the same
way. They try to balance the mutual interests of all stakeholders and interested parties.
Aforementioned managers of institutions, in a socially responsible situation, try to make a correct
and acceptable choice by the society. Large institution and organizations with a long history, take
advantage of every opportunity to gain competitive advantage. In this context, they observe social
sensitivities and act with social responsibility awareness.
Institutions with a proactive attitude and their managers actively engage in social responsibility
and implement their behavior. (Öztürk et al., 2013, p.54) In this context, they try to identify the
different expectations of stakeholders and to meet them by using existing institutional
opportunities. Institutions and organizations with a proactive social responsibility attitude are at
the forefront of campaigns such as; clean environment, recycling, conservation of resources,
minimizing the use of animals in drug-cosmetics testing, minimizing crime, reducing poverty and
illiteracy.
Dimensions of Corporate Social Responsibility
The services that the businesses (in addition to the activities they have to do within the scope of
legal regulations) perform as a requirement of social responsibility, if in the interest of the society
and humanity, it is the result of a moral (ethical) behavior. Today, people expect new things from
organizations in terms of ethical and voluntary responsibilities.
There are many approaches developed regarding CSR. According to the most common of the main
approaches featured on the subject; there are four core corporate social responsibilities: economic,
legal, moral (ethical) and voluntary (philanthropic) responsibilities. (Carroll, 1991, p. 40) The
ESR 103 Ethical Principles and Social Responsibility Week 11

aforementioned corporate social responsibility dimensions are conceived as a pyramid with

voluntary responsibilities at the top.
Economic responsibilities: According to the traditional approach to social responsibility, the
primary responsibility of the business is profitability. The economic dimension of social
responsibility relates to how goods and resources are distributed within a social system for service
production. (Özgener, 2000, p.157) Economic responsibilities are to produce and/or supply goods
and services of enterprises that society needs, in this context, to use resources effectively and
efficiently, and to sell their products in a profitable way. Research puts that investors and
customers prefer businesses that exhibit socially responsible behavior.
Within the scope of the economic responsibilities of the enterprises; it is important to maximize
the earnings of each share, to carry out profitable works, to ensure continuity in profitability, to
maintain strong competitive position and institutional effectiveness. Three areas that are thought
to be the basis of the economic dimension of social responsibility and effective on the economic
performance of the enterprise are; economy, competition and technological concerns. (Özgener,
2000, p.158)
Social problems can arise when managers make decisions that affect stakeholders (employees,
customers, society, etc.) for economic gain. Regarding the economic dimension of CSR; When
economic pressures increase, it is important that normal practices do not change and moral (ethical)
and illegal actions are not taken. In an intensely competitive environment or in the absence of
competition, avoiding unethical practices is a part of social responsibility.
Legal Responsibilities: Businesses while continuing their economic activities must consider the
existing legal framework and act accordingly. (Çerik&Özarslan, 2008, p.593) Legal
responsibilities are the demands from the business by the society and the matters that the business
is obliged to fulfill. The legal framework is also a dimension of ethical principles for businesses.
The principles and values that organizations must comply with are determined by legislators.
Regarding the economic dimension of social responsibility, laws that regulate competition, protect
the consumer and the environment, and ensure equality and safety (and other arrangements) are
done by the legislators. Businesses to act in accordance with the said regulations provided by
sanctions. Organizations' understanding of social responsibility should be in compliance with the
law.
Moral (Ethical) Responsibilities: Businesses are expected to fulfill their ethical responsibilities
as well as economic and legal responsibilities. al
responsibilities; not included in the scope of legal regulations, but encompasses activities,
practices, policies and behaviors that are adopted by social individuals, expected to be done if
positive and expected to be avoided if negative.
Ethical social responsibility; concerned with the institutions' goals and the way they choose to
achieve these goals and methods without harming the political, economic, social and cultural well-
being of the society. In other words, it points out to identify what is right and act accordingly.
The ethical components of corporate social responsibility can be expressed as follows:
ESR 103 Ethical Principles and Social Responsibility Week 11

Activities should be carried out in a way that is consistent with the expectations of social
norms.
Accepting and respecting new or evolving ethical norms adopted by society
Sacrificing moral norms for institutional purposes should be avoided.
As a good citizen, it should be clearly stated what is expected from the institutions in terms
of ethics.
Institutional integrity and ethical behavior are more important than behavior compliance
with laws and other regulations.
Voluntary (philanthropic) Responsibilities: Voluntary corporate responsibilities are only
voluntary and philanthropy applications for the benefit of society. (Lembet, 2012, p.7) In other
words, charitable contributions what the institution voluntarily accepts are, education of the
unemployed, and the establishment of day-care centres. These practices, which fully express
volunteering, could be directly or indirectly. Institutions, with practices that will be a solution to a
social problem or that will attract attention, can contribute to the welfare of society.
In general, society expects within the possibilities of private institutions and organizations to take
on voluntary responsibilities to a certain extent. For example; philanthropic activities, health
programmes, childcare centres, crèches, services for the elderly and job training for the
unemployed, etc. are voluntary social responsibility activities. Optional (voluntary)
responsibilities are applications demanded by the society that private institutions and organizations
fulfill voluntarily, even though it is not mandatory. These activities create a positive image of the
institution in the society, maintain its existence and increase its profits in the long run.
The four categories in the social responsibility pyramid cannot be considered separately from each
other. Organizational activities are based on a combination of economic, legal, ethical and
discretionary motives. While managers focus on their economic responsibilities to shareholders,
must also fulfill their legal, ethical (moral) and discretionary responsibilities towards other groups.
According to scientists, economic and legal responsibilities are necessary; ethical responsibilities
are expected; philanthropic responsibilities are desirable responsibilities. In addition to legal and
economic responsibilities, people's ethical (moral) and expectations regarding voluntary
responsibilities are increasing. All institutions and organizations must decide which types of social
responsibility they will focus on considering external and internal factors.
Result
The importance of the concept of social responsibility, which forms the basis of community service
practices increasing day by day. The scope of the concept of social responsibility for institutions
and organizations that keep up with the change in people's expectations has also changed and
developed. While initially making a profit was sufficient for social responsibility for most
corporations, today corporate social responsibilities require social benefit beyond economic, moral
and legal obligations. Today, the majority of private and public institutions and organizations;
focus on philanthropic activities completely on a voluntary basis and strategic social problems
beyond legal obligations.
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