CORPORATE SOCIAL Group 6:

RESPONSIBILITY
CORPORATE SOCIAL
RESPONSIBILITY
•Referring to the responsibilities
that a business has to the society
in which it operates
CORPORATE SOCIAL
RESPONSIBILITY
• From an economic perspective, a business is
an institution that exists to produce goods
and services demanded by society and, by
engaging in this activity, the business creates
jobs and wealth that benefit society further.
• Corporations, this form of business is created
by law which limits the liability of individuals
for the risks involved in these activities.
RESPONSIBLE
• It is reliable or trustworthy
• Involves attributing something as a cause for
an event or action.
• Involves attributing liability or accountability
for some event or action, creating an
obligation to make things right again.
RESPONSIBILITY

• Things that we ought, or should do even if we

would rather not.
• Responsibilities bind, or compel, or constrain
or require us to act in certain ways.
• Thus, to talk about corporate social
responsibility is to be concerned with
society’s interests that should restrict or bind
business behavior.
• Social responsibility is what a business should
or ought to do for the sake of society, even if
this comes with an economic cost.
 3 Levels of
Responsibilities
1.Duty or Obligation

- A business ought not to sell a product that causes harm to

consumers, even if there would be a profit in doing so.
-Is there a duty not to cause harm? When it discovered that a
product cause harm, then business can approximately be prevented
from marketing that product and can be held liable for harms
caused by it. Business are restricted in marketing products that
have been proven to cause cancer and other serious medical harms.
2. Prevent Harm

-Is there a responsibility to prevent harm? There are

also cases in which business is not causing harm, but
could easily prevent harm from occuring. A more
exclusive understanding of corporate social
responsibility would hold that business has a
responsibility to prevent harm.
3. To do Good

-Is there responsibility to do good ? Corporate

philanthropy would be the most obvious case in which
business takes on responsibility to do good. Corporate
giving programs to support community projects in the arts,
educations, and culture are examples. Some corporations
have a charitable foundation or office that deals with such
philanthropic program.
Models of Corporate Social Responsibility
Economic View Primary Responsibility:
of CSR Produce good and services
(seek profit), within the law
For reputational and
public relations
Philanthropic Economic Business may also CHOOSE
purposes
to contribute to social need
CSR View of
as a matter of philanthropy,
CSR but not as a matter of duty
or social responsibility
Because it is the
Business is embedded within a web of right thing to do
Social web or
social relationships of mutual rights and
“citizenship”
responsibilities (including but not limited
Models of CSR to the responsibility to produce goods and
services, while obeying the law)

Integrative/ Part. Or all, of the mission of the company

Strategic Models is to serve some important social goals
of CSR (e.g., social enterprise, other businesses
with serious commitment to sustainability
Philanthropic Model Of CSR

• Like individuals,business is free to contribute to social

causes as a matter of philanthropy. From this
perspective,business has no strict obligation to
contribute to social causes,but it can be a good thing
when they do so. Just as individuals have no ethical
obligation to contribute to charity or to do volunteer
work in their community,business has no ethical
obligations to serve wider social goods.
Social Web Model of CSR

• Variety of perspectives on CSR would fall under

what we call the social web model of CSR.
• Views business as a citizen of the society in which
it operates and,like all members of a
society,business must conform to the normal
ethical duties and obligations that we all face.
Example of Social Web Model: Stakeholder
Theory

• The most influential version of CSR.

• Every business decision affects wide variety of
people,benefiting some and imposing costs on others.
Every decision also involves opportunities
foregone,choices given up. Stakeholder theory
recognizes that every business decision imposes costs on
someone and mandates that those costs be
acknowledged.
• The stakeholder theory does not give primacy to one
stakeholder group over another,though there will be
times when one group will benefit at the expense of
others. In general,however,management must keep the
relationships among stakeholders in balance. Therefore,
social responsibility would require decisions to prioritize
competing and conflicting responsibilities.
Integrative Model Of CSR

• The knowledge and skills thought in business schools, from the

management and marketing to human resources and accounting,
are just as relevant for non-profits as they are in for-profit
organizations.
• But there is a growing recognition that some for-profit
organization also have social goals as a central part of the
strategic mission of the organization. In two areas in particular,
social entrepreneurship and sustainability, we find for-profit firms
that do not assume a tension between profit and social
responsibility.
• Firms bring social goals into the core of their
business model, and fully integrate economic and
social goals, we refer to this as the integrative
model of CSR.
• In some ways, sustainability offers a model of CSR
that suggests that ethical goals should be at the
heart of every corporate mission.
The Implications Of Sustainability In The
Integrative Model Of CSR

• Sustainability holds that a firm’s financial goals must be balanced

against, and perhaps even overridden by, environmental
considerations. Defenders of this approach point out that all
economic activity exists within a biosphere that supports all life.
• From this perspective, the success of a business must be judged
not only against the financial bottom line of profitability, but also
against the ecological and social bottom lines of social
sustainability.
• The sustainability version of CSR suggests that the long term
financial well-being of every firm is directly tied to questions of
how the firm both affects and is affected by the natural
environment. A business model that ignores the biophysical and
ecological context of its activities is a business model doomed to
failure.