What Is Corporate Social Responsibility?

management’s obligation to
make choices and take actions
that will contribute to the
welfare and interests of
society, not just the
organization

Responsibility to Whom?
Organizational Stakeholders
Stakeholders are any group within or outside the organization that has some
type of investment or interest in the organization’s performance.

Gap Inc.
 Organizational Stakeholders

• Different stakeholders have different interests in the organization and thus different
criteria for social responsiveness.

• The organization’s performance affects stakeholders, but stakeholders can also have a
tremendous effect on the organization’s performance and success.

Stakeholder Mapping

systematic way to identify the expectation, needs, importance and relative

powers of various stakeholders which may change overtime.

helps managers identify or prioritize the key stakeholders related to specific

issue.
 Stakeholders’
Stakeholders General Concern
Group
Investors, Shareholders, Served by managerial efficiency by achieving
Suppliers profits
Primary Employees Expect work satisfaction, pay, good supervision
stakeholders
Customers Concerned about quality, safety, availability of
goods and services

Government, Safety legislation, environmental protection

Important requirements, antitrust regulations, anti-
stakeholders Community bribery legislation, other laws and regulations

Trade associations, Particular issue

Political action
committees,
Special interest Professional
groups associations,
Consumerists
Conscious Capitalism (Shared Value Approach)

• Refers to following organizational policies and practices that both enhance the
economic success of company and advance the economic and social conditions of
the communities in which the company operates.

• Higher purpose besides just making money by focusing on employees, customers,

suppliers, community and shareholders
The Green Movement

https://youtu.be/J6uYTeFFoWc
 Sustainability and the Triple Bottom line
• Sustainability refers to ability to generate wealth and meets the needs of the
current generation while preserving the environment and society so that future
generations can meet their needs as well.

• Companies that embrace sustainability measure performance in terms of financial

performance, social performance, and environmental performance, referred to as
the triple bottom line.

• This is sometimes called the three Ps: People, Planet, and Profit.
Benefif Corporation and B-Lab
• A benefit corporation is a for-profit organization that has a stated
purpose that includes creating a material positive impact on society,
consider the impact of all decisions not only on shareholders but on
employees, the community and the environment.

• B-Lab
Being a Certified B Corporation means a company meets B Lab’s
highest standard of verified overall social and environmental
performance, public transparency and legal accountability.
Evaluating Social Corporate Responsibility