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SIGNIFICANCE IN
BUSINESS
Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large
The quality of their management both in terms of people and processes 2. The nature of, and quantity of their impact on society in the various areas.
impact of a companys actions on society Requires a manager to consider his acts in terms of a whole social system, and holds him responsible for the effects of his acts anywhere in that system
social responsibility emphasizes obligation and accountability to society Corporate social responsiveness emphasizes action, activity Corporate social performance emphasizes outcomes, results
HISTORICAL PERSPECTIVE
Economic model the invisible hand of the marketplace protected societal interest Legal model laws protected societal interests
SOCIALAND FINANCIALPERFORMANCE
Perspective 1: CSP Drives the Relationship
Good Corporate Social Performance Good Corporate Financial Performance Good Corporate Reputation
Labour rights: child labour forced labour right to organize safety and health Environmental conditions water & air emissions climate change Human rights cooperation with paramilitary forces complicity in extra-judicial killings Poverty Alleviation job creation public revenues skills and technology
Group Presidents
VP of Human Resources
General Counsel
Steering Committee
Fight social responsibility initiatives Maximize firms profits to the exclusion of all else Do what it takes to make a profit; law; fly below social radar
Act
Check
SPHERE OF INFLUENCE
Who is to be influenced?
SPHERE OF INFLUENCE
What issues are to be influenced?
Sphere of Influence
How are those issues to be influenced?
Core Subjects
Organizational Governance
Implementing SR
7.3 Working With Stakeholders
7.2 Defining scope Fair operating practises Community & society development Consumer issues Labour Practises Human Rights
7.4 Integrating into organization 7.5 Implementing in daily practise 7.7 Evaluating performance 7.8 Enhancing credibility
Environment
7.3 Communicating
Criticism of Business
Increased concern for the Social Environment A Changed Social Contract
CSR encompasses the economic, legal, ethical and discretionary (philanthropic) expectations that society has of organizations at a given point in time
Legal
Ethical
Societal Examples Expectation Required Be profitable. Maximize sales, minimize costs, etc. Required Obey laws and regulations.
Expected Do what is right, fair and just. Be a good corporate citizen.
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