Corporate Social Responsibility Ethics and Sustainability 3 Copyright

Objectives 1. A thorough understanding of the term corporate social responsibility. 2. An ability to argue both for and against the assumption of social responsibility by business. 3. Useful strategies for increasing the social responsiveness of an organization. 4. Insights into the planning, organizing, influencing, and controlling of social responsibility activities. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 3 -2

Target Skill: Corporate Social Responsibility Skill: Ability to take action that protects and improves both welfare of society and the interests of the organization. It is a managerial obligation. It means different things to different people. Its importance increased and will be increasing more and more. WHY? Discuss!!!! Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 3 -3

Fundamentals of Social Responsibility (S. R. ) The Davis Model of Corporate S. R. • 5 Propositions that describe why & how business should adhere to the obligation to take actions as CSR 1: S. R. arises from social power 2: Business shall operate as a two-way open system 3: Calculate and consider social costs and benefits 4: Pass social costs on to the consumer 5: Businesses should be involved in certain social problems Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 3 -4

Fundamentals of Social Responsibility (S. R. ) Areas of Corporate S. R. : Going Green Varying Opinions on S. R. • Arguments for Business Performing S. R. Activities • Arguments Against Business Performing S. R. Activities Conclusions About the Performance of S. R. Activities by Business • Performing Required S. R. Activities • Voluntarily Performing S. R. Activities • Communicating the Degree of S. R. Involvement See. Sara Lee Bakery Case – Pg. 77 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 3 -5

Fundamentals of Social Responsibility (S. R. ) Copyright © 2012 Pearson Education, Inc. Publishing

Social Responsiveness Determining if a Social Responsibility (S. R. ) Exists The degree of effectiveness and efficiency an organization displays in pursuing its S. R. As Effectiveness and efficiency increases organization SR increases. Social Responsiveness and Decision Making: Socially responsive organizations that is both effective and efficient meets its social responsibilities without wasting organizational resources in the process. - which S. R. Organization should pursue? - How to pursue them? are the main Decision Making areas. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 3 -7

Social Responsiveness Determining if a Social Responsibility (S. R. ) Exists Social Responsiveness and Decision Making Approaches to Meeting Social Responsibilities • Socially responsive approach: 1. Incorporate social goals 2. Seek comparative industry norms 3. Present reports 4. Experiment with different approaches 5. Attempt to measure the cost of social programs • Management approaches: 1. Social obligation approach 2. S. R. approach 3. Social responsiveness approach Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 3 -8

Social Responsiveness • Management approaches: 1. Social obligation approach: Considers business as having primarily economic purposes and confines social responsibility activity. 2. S. R. Approach: Sees the business as having both economic and social goals. 3. Social responsiveness approach: Considers business as having both societal and economic goals as well as anticipating for social problems and trying to prevent them. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 3 -9

Social Responsiveness Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 3 -10

Social Responsiveness Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 3 -11

Social Responsibility Activities and Management Functions Planning Social Responsibility (S. R. ) Activities • The Overall Planning Process Organizing Social Responsibility (S. R. ) Activities Influencing Individuals Performing S. R. Activities Controlling S. R. Activities • Areas of Measurement 1. The economic function area 2. The quality-of-life area 3. The social investment area 4. The problem-solving area • The Social Audit: A Progress Report Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 3 -12

Social Responsibility Activities and Management Functions Copyright © 2012 Pearson Education, Inc. Publishing as

Social Responsibility Activities and Management Functions Controlling Social Responsibilities: Areas of Management 1. The economic function area, 2. The quality of life area, 3. The social investment area, 4. Problem-Solving area. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 3 -14