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According to the results of a global survey in 2002 by Ernst & Young, 94 per cent of companies believe the development of a Corporate

Social Responsibility (CSR) strategy can deliver real business benefits, however only 11 per cent have made significant progress in implementing the strategy in their organisation. Senior executives from 147 companies in a range of industry sectors across Europe, North America and Australasia were interviewed for the survey.

with many investors and employees also being swayed in their choice of companies.Research found that company CSR programs influence 70 per cent of all consumer purchasing decisions. .

are necessary to ensure that companies behave in a socially responsible manner. and limit the reach of CSR by focusing more on direct impacts of the organization . argue that CSR should be considered more as a corporate moral responsibility. • Patricia Werhane.• Critics concerned with corporate hypocrisy and insincerity generally suggest that better governmental and international regulation and enforcement. rather than voluntary measures.

but merely profit maximization. then they are not CSR at all. under the cloak of social responsibility’ • It has to be seen whether profit was the main motive or was it altruism • Direct relation between profit maximization and social work in business (Griffin and Mahon) .when such actions are carried out for the reasons of self-interest.• Friedman (1970):.

Lewis Carroll’s Model of CSR Desired By Society Philant hropic Resp Ethical Responsibilities Expected By Society Legal Responsibilities Economic Responsibilities Required By Society Economic Responsibilities Required By Society .

Also considered CSR? Most important and basic • Legal:.shareholders demand economic return. Some companies have been convicted of anticompetitive behaviour to maintain a marketshare . Laws are codification of society’s moral views.• Economic:.‘play the rules by the game’.

oblige corporations to do what is right. Example: of Shell throwing away the petrol in the Sea – overturned – eventhough all the permissions were received • Philanthropic:.Greek word ‘love for the fellow human’.’ .• Ethical:. Example: Greenpeace’s campaign against ExxonMobil:‘Company is world’s number 1 climate criminal. Charitable donations. recreational facilities for employees • Extra and more satisfied customers.

Corporate Social Responsibility CSR means: ‘The Capacity of a corporation to respond to social pressures. ethical and philanthrophic expections placed on organisations by society at a given point in time .’ CSR encompasses economic. legal.

Why are corporations tempted to look at CSR in a narrow way? • By now.corporation takes on social responsibility in so far as doing so promotes its own self interest . widely accepted that businesses do have responsibility beyond simply making profits • Enlightened Self-Interest:.

There is increasing expectation that companies will be more open. .contributing to physical infrastructure and social capital is increasingly seen as a necessary part of doing business.business has low ratings of trust in public perception. • Transparency and trust . more accountable and be prepared to report publicly on their performance in social and environmental arenas • Increased public expectations of business globally companies are expected to do more than merely provide jobs and contribute to the economy through taxes and employment.• Social investment .

when organisations are social responsible • Voluntary actions by corporations ensures greater corporate independence from government • Long-term investment. and even be more committed to.• Employees might be attracted to work for. which establishes stable context to do business .

Whether CSR brings financial success or financial success liberates company to indulge in the ‘luxury’ to bring CSR? .Debate • Question:.

Workers rights. if possible • As powerful social actors.Moral Arguments for CSR • Corporations cause social problems such as pollution – they have a responsibility to solve it and prevent. quality standards etc – they cannot escape responsibility • Taking care of the interests and goals of different stakeholders . corporations should use their power responsibly • All corporate activities have social impact: eg.

Evades reponsibility – Defence:.According to Archie Carroll (1979).accepts responsibility and does what is demanded by several groups – Proaction:. Arguing that the corporation is not to blame.the classic ‘denial’ mode.Corporation admits responsibility but fights it – doing the very least that is required – Accommodation:.goes beyond industry norms and does more than anticipated . there are four philosophies of social responsiveness: – Reaction:.

distract the public from ethical questions posed by their core operations. .corporations which exist solely to maximize profits are unable to advance the interests of society as a whole • Sometimes companies claim to promote CSR and be committed to sustainable development but simultaneously engage in harmful business practices.Concerns • McDonalds:. • Bill McKibben:.