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CORPORATE SOCIAL RESPONSIBILITY (CSR) AND ETHICS Submitted to:Prof.Moreno Submitted by:Amiri Parvin (kiana) January 2013. Definitions and Relationships. * Corporate social responsibility (CSR) is the process by which businesses negotiate their role in society
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CORPORATE SOCIAL RESPONSIBILITY (CSR) AND ETHICS Submitted to:Prof.Moreno Submitted by:Amiri Parvin(kiana) January 2013
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 work * Most admired * Best (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
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 Activities * Philanthropy * 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
Integrate CSR Globally * Incorporate values to make it part of an articulated belief system * Act worldwide on those values * Cause-related marketing * Cause-based cross sector partnerships * Engage with stakeholders * Primary stakeholders * Secondary stakeholders
Business Ethics Development * The cultural context influences organizational ethics * Top managers also influence ethics * The combined influence of culture and top management influence organizational ethics and ethical behaviors
The Evolving Context for Ethics * From domestic where ethics are shared * To international where ethics are not shared when companies: * Make assumptions that ethics are the same * Ethical absolutism—they adapt to us * Ethical relativism—we adapt to them * To global which requires an integrative approach to ethics
Emergence of a Global Business Ethic * Growing sense that responsibility for righting social wrongs belongs to all organizations * Growing business need for integrative mechanisms such as ethics * Ethics reduce operating uncertainties * Voluntary guidelines avoid government impositions * Ethical conduct is needed in an increasingly interdependent world—everyone in the same game * Companies wish to avoid problems and/or be good public citizens
Ways Companies Integrate Ethics * Top management commitment in word and deed * Company codes of ethics * Supply chain codes * Develop, monitor, enforce ethical behavior * Seek external assistance
External Assistance with Ethics *Industry or professional codes * Certification programs, e.g., ISO 9000 * Adopt/follow global codes * Caux Round Table Principles
Reasons for Businesses to Engage in Development of a Global Code of Business Ethics * Create the same opportunity for all businesses if there are common rules * Level the playing field * They are needed in an interconnected world * They reduce operating uncertainties * If businesses don’t collaborate, they may not like what others develop
Four Challenges to a Global Ethic * Global rules emerge from negotiations and will reflect values of the strong * Global rules may be viewed as an end rather than a beginning * Rules can depress innovation and creativity * Rules are static but globalization is dynamic