MBA205030

Ethics,
Responsibilities,
and Strategy

October 19, 2023

Karl Laurenz G. Diamante
 Corporate social responsibility

• The way a corporation

achieves a balance among its
economic, social, and
environmental
responsibilities in its
operations to address
shareholder and other
stakeholder expectations.

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 CSR Strategy

• A plan that views economic,

ethical, social, and
environmental
responsibilities more
intensively and integrates
corporate social
responsibility (CSR) into all
facets of the corporation's
operations.

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 5 dimensions of CSR

1. Environmental: the natural

environment
2. Social: the relationship between
business and society
3. Economic: socio-economic and
financial aspects
4. Stakeholder: stakeholders and
stakeholder groups
5. Voluntariness: actions not
prescribed by law

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 CSR Strategy Continuum
• corporation ignores sustainability but
cannot be viewed necessarily as
deliberately doing so
• does not address economic, social,
and environmental issues in a
deliberate or explicit manner
• some corporations may consciously
avoid or resist the consideration of
sustainability practices
• vulnerable to sustainability issues as
their lack of attention to them reduces
their preparedness if problems or
issues arise

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 CSR Strategy Continuum
• some consideration is given to
sustainability, but it is motivated by
legal requirements and the possibility
of public backlash or disapproval of
corporate behavior
• sustainability is accepted because of
the possible economic consequences
of doing nothing and the fear of
negative publicity
• strategy is legalistic, focusing on what
should not be done, what is within the
law, and what is required by
government

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 CSR Strategy Continuum
• strategy extends beyond what is
legally required
• corporation voluntarily considers its
economic, ethical, and environmental
responsibilities
• many more aspects of ethics and
corporate social responsibility are
taken into account

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 CSR Strategy Continuum
• strategy becomes a key component of
the corporate strategy in corporations
that fully understand and embrace their
economic, social, and environmental
responsibilities
• implementation requires integration with
all aspects of the corporation's planning
and operations
• needs managers who understand
sustainability
• corporations are establishing
management positions to oversee
sustainability or corporate social
responsibility
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 Sustainability matrix

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 Stakeholder

• an individual, or group, who can

influence and/or is influenced by the
achievement of an organization’s
purpose
• the most general identification of the
parties to which business is
responsible or accountable

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 General types of stakeholders

Owners
• usually referred to as shareholders,
are those individuals or groups who
have invested in the form of equity, or
shares

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 General types of stakeholders

Directors
• elected by shareholders to represent
their interests

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 General types of stakeholders
Employees
• individuals who work for the
corporation and are categorized in
several different ways
Managers
• employees involved in supervising tasks
at low, middle, and top levels in the
corporation
Workers
Blue-collar workers
• involved in manufacturing, production, or
servicing tasks
White-collar workers
• office employees

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 General types of stakeholders

Customers / Consumers
• may be members of the public, usually
referred to as consumers; other
corporations, referred to as industrial
(or business-to-business) customers;
or governments or government
agencies

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 General types of stakeholders

Lenders & Creditors

• different types of individuals or groups
that lend corporations money, usually
financial intermediaries

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 General types of stakeholders

Suppliers
• usually, other corporations that provide
raw materials, component parts, or
finished materials used in the
manufacture or provision of the
corporation's goods and services

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 General types of stakeholders

Service Professionals
• individuals who are not employees of
the corporation but provide services on
a fee-for-service basis

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 General types of stakeholders

Dealers, Distributors, and

Franchisees
• in some types of business, many other
corporations distribute a firm's product
to customers along a distribution or
supply chain

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 General types of stakeholders

Business Organizations
• corporations join together to form
hundreds of organizations to represent
their interests

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 General types of stakeholders

Competitors
• corporations producing the same /
substitute products should be
identified and monitored

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 General types of stakeholders

Joint-venture Participants
• partners cooperating in a particular
enterprise or project

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 General types of stakeholders

Non-governmental
Organizations (NGOs)
• any group outside of the public and
private sectors that holds shared
values or attitudes about an issue
confronting society

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 General types of stakeholders

Society at Large
• represents the general public, i.e., the
views of society

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 General types of stakeholders

Educational Institutions
• business relies on these institutions to
provide it with educated and skilled
employees; universities are relied upon
to perform basic research that is often
applied to industrial situations

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 General types of stakeholders

Religious Groups
• churches often speak out on issues
related to business

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 General types of stakeholders

Charities
• charitable organizations receive some
of their funding from corporations, and
in return the business donors expect
careful stewardship of the funding

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 General types of stakeholders

Service, Fraternal, Cultural, and

Ethnic Associations
• employees of business corporations
join numerous service, fraternal,
cultural, and ethnic associations, such
as Rotary and Lions Clubs

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 General types of stakeholders

The Media
• media publicity about the practices of
a particular corporation or the quality
of its products or services can have a
substantial positive or negative impact
on a corporation's sales

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 General types of stakeholders

Government
• formed by politicians and staffed by
civil servants; business must consider
the impact of both of these groups
within each level of government

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 Position/Importance Stakeholder Matrix

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 Diagnostic Typology of Organizational
Stakeholders

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 Stakeholder Typology

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 Issue

• a point in question or a matter that

is in dispute where different views
are held of what is or what ought to
be, corporate performance-based
management or stakeholder
expectations

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 Issue Life Cycle

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 Issue Salience Matrix

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Reference
Sexty, R. W. (2017). Canadian
Business and Society: Ethics,
Responsibilities, &
Sustainability, 4th Ed. Canada:
McGraw-Hill Ryerson Limited.

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 Questions?

None?

Okay. Thank you.