slide1 n.
Skip this Video
Loading SlideShow in 5 Seconds..
BA 385 Corporate Social Responsibility: The Many Meanings of CSR PowerPoint Presentation
Download Presentation
BA 385 Corporate Social Responsibility: The Many Meanings of CSR

Loading in 2 Seconds...

play fullscreen
1 / 30

BA 385 Corporate Social Responsibility: The Many Meanings of CSR - PowerPoint PPT Presentation

  • Uploaded on

BA 385 Corporate Social Responsibility: The Many Meanings of CSR. Chapter Two: Corporate Citizenship: Social Responsibility, Responsiveness and Performance. The Pullman Story. The Pullman Town Should business demonstrate concern for societal welfare?.

I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
Download Presentation

PowerPoint Slideshow about 'BA 385 Corporate Social Responsibility: The Many Meanings of CSR' - yakov

Download Now An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.

- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript

BA 385

Corporate Social Responsibility: The Many Meanings of CSR

Chapter Two: Corporate Citizenship: Social

Responsibility, Responsiveness and Performance

the pullman story
The Pullman Story
  • The Pullman Town

Should business demonstrate concern for societal welfare?

corporate social responsibility csr

The impact of a company’s actions on society.

Requires the individual to consider his/her acts in terms of a wholesocial system, and holds him/her responsible for the effects of actsanywhere in that system.

CorporateSocial Responsibility

Corporate Social Responsibility (CSR)

The Gap, Inc. Social Responsibility Page

corporate citizenship concepts

Corporate Social…



obligation, accountability


action, activity


outcomes, results

Corporate Citizenship Concepts

McDonald’s and CSR

business criticism social responsibility cycle

Factors in the Societal Environment

Criticism of Business

Increased Concernfor the Social Environment

A Changed Social Contract

Business Assumption ofCorporate Social Responsibility

Social Responsiveness, Social Performance, and Corporate Citizenship

A More Satisfied Society

Fewer Factors Leading toBusiness Criticism

Increased ExpectationsLeading to More Criticism

Business Criticism/Social Responsibility Cycle
historical perspective on csr

Legal Model

Laws developed to constrain business

Social Model

Stakeholder expectations heightened

Historical Perspective on CSR

Economic Model

Society determines wants/needs through the marketplace

modification of the economic model


Community obligations


Motivation: Keep government at arm’s length

Modification of the Economic Model
acceptance and broadening of meaning
Acceptance and Broadening of Meaning

From the 1950’s to the present, the concept of CSR has gained considerable acceptance and the meaning has been broadened to include specific issues, such as:

csr evolving viewpoints
CSR: Evolving Viewpoints

Definitions Over Time

  • CSR considers the impact of the company’s actions on society. --Bauer
  • CSR requires decision makers to take actions that protect and improve the welfare of society as a whole along with their own interests. --Davis and Blomstrom
csr evolving viewpoints1
CSR: Evolving Viewpoints

More Definitions Over Time

  • CSR mandates that the corporation has not only economic and legal obligations, but also certain responsibilities to society which extend beyond these obligations. --McGuire
csr evolving viewpoints2
CSR: Evolving Viewpoints

Even More Definitions Over Time

  • CSR relates primarily to achieving outcomes from organizational decisions concerning specific issues or problems, which by some normative standard have beneficial rather than adverse effects upon pertinent corporate stakeholders. The normative correctness of the products of corporate action have been the main focus of CSR. --Epstein
carroll s four part definition of csr the big one the king of all csr definitions
Carroll’s Four-Part Definition of CSR – The Big One, The “King” of All CSR Definitions
  • The social responsibility of business encompasses the economic, legal, ethical and discretionary (philanthropic) expectations that society has of organizations at a given point in time.
carroll s four part definition of csr

Understanding the Four Components













Obey laws and regulations

Do what is right, fair, and just

Be a good corporate citizen

Be profitable. Maximize sales, minimize costs

Carroll’s Four-Part Definition of CSR
the pyramid of csr

Philanthropic ResponsibilitiesBe a good corporate citizen.

Ethical ResponsibilitiesBe ethical.

Legal ResponsibilitiesObey the law.

Economic ResponsibilitiesBe profitable.

The Pyramid of CSR
arguments against csr
Restricts the free market goal of profit maximization

Business is not equipped to handle social activities

Dilutes the primary aim of business

Increase business power

Limits the ability to compete in a global marketplace

Arguments Against CSR
arguments for csr
Addresses social issues business caused and allows business to be part of the solution

Protects business self-interest

Limits future government intervention

Addresses issues by using business resources and expertise

Addresses issues by being proactive

Arguments For CSR
ways firms respond to csr pressure

Defensive approach

Cost-benefit approach

Strategic approach

Innovation and learning approach

Ways Firms Respond to CSR Pressure

Alleviates pain – do what it takes to avoid problems

Only do things for which you identify direct benefit

Recognize changing environment and engage CSR as strategy

CSR involvement provides new opportunities for learning and understanding the marketplace and this brings competitive advantage.

The Civil Corporation, Simon Zadek

corporate responsibility in the 21 st century
Corporate Responsibility in the 21st Century

1000 Global Business Leaders surveyed in 2000 said the following will be necessary for 21st century companies:

  • Demonstrate a commitment to society’s values and contribute to society’s social, environmental, and economic goals through action.
  • Insulate society from the negative impacts of company operations, products and services.
  • Share benefits of company activities with key stakeholders as well as with shareholders.
  • Demonstrate that the company can make more money by doing the right thing.
corporate social responsiveness

TWO Alternative Views

Sethi’s Three-Stage Schema

Frederick’s CSR1, CSR2, and CSR3

Corporate Social Responsiveness
sethi s three stage schema
Sethi’s Three Stage Schema

Three ways to classify corporate behavior:

  • Social obligation – stage one: respond to market forces
    • Example: McDonald’s offers apples because parents complain
  • Social responsibility – stage two: bring behavior up to general norms of society
    • Example: McDonald’s gives out pedometers because “fit is in”
  • Social responsiveness – stage three: see below
    • Example: You tell me….

Responsiveness suggests corporations be “anticipatory” and “preventive”.

Obligation and responsibility alone are not enough.

The final stage in CSR is business taking a long-term role in the social context in which it operates.

frederick s csr 1 csr 2 and csr 3
Frederick’s CSR1, CSR2 and CSR3
  • CSR1– corporate social responsibility
      • Example: We acknowledge many families dine regularly at McD’s. We have an obligation to offer some options that are healthier.
  • CSR2 – corporate social responsiveness
    • Capacity to respond to social pressures
    • Literal act of responding or being poised to respond
      • Example: We offer tasty sliced apples as an alternative to fries (response) because we already have apple suppliers for our pies (capacity).
  • CSR3 – corporate social rectitude
    • The moral correctness of the actions taken
      • Example: You tell me….
carroll s corporate social performance model 3d
Carroll’s Corporate Social Performance Model – 3D

Plane One: Social Responsibility:

economic, legal, ethical and discretionary/philanthropic

Plane Two: Philosophy of Social Responsiveness (or mode of responding):

reaction, defense, accommodation and proaction

Plane Three: Stakeholder Issues Involved: consumers, environment, community, government, employees, etc.

corporate citizenship

Corporate Citizenship…

…embraces all the facets of corporate social responsibility, responsiveness, and performance.

…embraces the functions of business interaction with nonprofit organizations, citizen groups, and other community stakeholders.

Corporate Citizenship
research based benefits of good corporate citizenship
Research-based Benefits of Good Corporate Citizenship
  • Improved employee relations
  • Improved customer relations
  • Improved business performance
  • Enhanced company’s marketing efforts
social and financial performance

Perspective 1: CSP Drives the Relationship

Good CorporateSocial Performance

Good CorporateFinancialPerformance

Good CorporateReputation

Perspective 2: CFP Drives the Relationship

Good CorporateFinancialPerformance

Good CorporateSocial Performance

Good CorporateReputation

Perspective 3: Interactive Relationship Among CSP, CFP, and CR

Good CorporateSocial Performance

Good CorporateFinancialPerformance

Good CorporateReputation

Social and Financial Performance
a multiple bottom line perspective economic social environmental other

Owner Stakeholders’ “Bottom Line”

Consumer Stakeholders’ “Bottom Line”

Corporate Social Performance

Employee Stakeholders’“Bottom Line”

Community Stakeholders’“Bottom Line”

Other Stakeholders’ “Bottom Line”

A Multiple Bottom-Line Perspectiveeconomic, social, environmental, other?
socially responsible or ethical investing

A technique used to screen firms for socially-responsible investment purposes

Social Screening

Socially Responsible or Ethical Investing

Portfolio 21: Global Fund using Sustainability SRI (socially responsible investing) Principles

reasons for upsurge in socially responsible investing
More reliable research on CSP (corporate social performance)

Investment firms using social criteria have solid track record

The socially conscious 1960s generation is making investment decisions

Reasons for Upsurge in Socially Responsible Investing
for next class 1 28
For Next Class (1/28)
  • Read chapters three and six
  • Complete and Hand-In Best Practices Report Assignment by start of class
  • Read online or print newspaper(s) of choice to find stories of businesses challenged by issues relating to CSR