CORPORATE SOCIAL RESPONSIBILITY (CSR)

Definitions and Relationships

Corporate social responsibility (CSR) is the process by which businesses negotiate their role in society

In the business world, ethics is the study of morally appropriate behaviors and decisions, examining what "should be done”

Although the two are linked in most firms, CSR activities are no guarantee of ethical behavior

Recent Evidence of CSR Interest

An Internet search turns up 15,000 plus response to “corporate citizenship”Journals increasingly “rate” businesses (and NGOs) on socially responsive criteria:

Best place to workMost admiredBest (and worst) corporate reputation

Reasons for CSR Activities

CSR activities are important to and even expected by the public

And they are easily monitored worldwide

CSR activities help organizations hire and retain the people they want

CSR activities contribute to business performance

Maximize firm’s profits to the exclusion of all else

Balance profits and social objectives

Do what it takes to make a profit; skirt the law; fly below social radar

Fight social responsibility initiatives

Comply; do what is legally required

Integrate social objectives and business goals

Lead the industry and other businesses with best practices

Do more than required; e.g. engage in philanthropic giving

Articulate social value objectives

Corporate Social Responsibility Continuum

CSR are Grounded by Opposing Objectives (Maximize Profits to Balance Profits with Social Responsibility) and so Activities Range Widely

Do what it takes to make a profit; skirt the law; fly below social radar

Fight CSR initiatives

Comply with legal requirements

Do more than legally required, e.g., philanthropy

Articulate social (CSR) objectives

Integrate social objectives and business goals

Lead the industry on social objectives

Businesses CSR ActivitiesPhilanthropy

give money or time or in kind to charity

Integrative philanthropy—select beneficiaries aligned with company interests

Philanthropy will not enhance corporate reputation if a company

fails to live up to its philanthropic image or

if consumers perceive philanthropy to be manipulative