The Course MGM4137 DasarSosialKorporat (Corporate Social Policy) • Lecture time: Thursday (6.30 pm-9.30pm) • Venue: DKEP 20
The Course Facilitator ~ Dr Ho Jo Ann • Room No.: A311 • Telephone No.: 038946 7681 • e-mail: email@example.com
Attendance ~ • Not less than 80%: • Barred from taking the final examination
Housekeeping rules • Handphones to be switched to silent mode during class time. • Break time: 7.30-8.00pm • Students are expected to read the text book and not just depend on the class notes. • Students are expected to participate in class discussions.
Reference Book ~ Thorne, D. M., Ferrell, O. C., & Ferrell, L. (2010). Business and society: A strategic approach to social responsibility. (4th ed.). Canada: South-Western Cengage Learning.
Social Responsibility and Business 4TH EDITION FERRELL • THORNE • FERRELL CHAPTER 1 Social Responsibility Framework
95% of Respondents Agree • U.S. corporations should have more than one purpose. They also owe something to their workers and the communities in which they operate, and they should sometimes sacrifice some profit for the sake of making things better for their workers and communities. Source: "How Business Rates: By the Numbers, Business Week, Sept. 11, 2000, pp. 148-149.
What happens to companies that fail to meet these responsibilities?
Social Responsibility Defined • Social responsibility • The adoption by a business of a strategic focus for fulfilling the economic, legal, ethical and philanthropic responsibilities expected by its stakeholders. • Businesses should look beyond their self-interests and recognize that they belong toa larger group that expects responsible participation.
Social Responsibility Defined (cont.) • Applies to all types of businesses. • Small businesses • Large businesses • Sole proprietorships • Multinational corporations
Social Responsibility Defined (cont.) • Adopts a strategic focus. • Requires a formal commitment from top management. • Communicated through mission and vision statements, annual reports, websites, and public relations. • Requires action and results. • Depends on collaboration and coordination across business and among constituencies. • Large companies often create specific positions and departments to support social responsibility programs.
Social Responsibility Defined (cont.) • Fulfills societal expectations. • Provides a return on investment for owners. • Obeys the law and regulatory agencies. • Acts in a just, fair, and correct manner. • Promotes human welfare and good will.
Social Responsibility Defined (cont.) • Economic • Maintain profitability • Legal • Abide by legal and regulatory influence • Ethical • Ensure just and fair behavior in the workplace • Philanthropic • Promote human welfare and goodwill
Social Responsibility Continuum Add Figure 1.5 here
Social Responsibility Defined (cont.) • Requires a stakeholder orientation • Customers • Employees • Investors • Stockholders • Suppliers • Government • Communities
Stakeholders • Those constituents who have a stake in, or claim on, some aspect of a company’s products, operations, markets, industry, and outcomes • Companies that operate with a stakeholder orientation recognize that business and society are interpenetrating systems, in that each affects and is affected by the other.
Global Nature of Social Responsibility • Who determines social responsibility on a global scale? • Host country? • Home country? • Outside organizations?
Benefits of Social Responsibility What are the benefits of social responsibility to an organization?
Framework for Studying Social Responsibility • Chapter 2 • Strategic Management of Stakeholder Relationships • Chapter 3 • Corporate Governance • Chapter 4 • Legal, Regulatory, and Political Issues • Chapter 5 • Business Ethics and Ethical Decision Making
Framework for Studying Social Responsibility (cont.) • Chapter 6 • Strategic Approaches to Improving Ethical Behavior • Chapter 7 • Employee Relations • Chapter 8 • Consumer Relations • Chapter 9 • Community Relations and Strategic Philanthropy
Framework for Studying Social Responsibility (cont.) • Chapter 10 • Technology Issues • Chapter 11 • Sustainability Issues • Chapter 12 • Social audit