Corporate Social Responsibility,

Business Ethics And Strategic

Management

Presented by
Ayush Jha 41710077
Yogesh Bajpai 41710007
 The Stakeholder Approach To Social
Responsibility
• Identification
I. Stockholders
II. Creditors
III. Employees
IV. Customers
V. Suppliers
VI. Government
VII. Competitors
VIII. Unions
IX. The General Public And Local Communities
To be continued….
• Understanding
• Reconciliation And Priorities
• Coordination With Other Elements
The Dynamics Of Social Responsibility
Inside stakeholders Outside stakeholders

Customers
Suppliers
Executive Officers Company mission Creditors
Board Of Directors Government
Stockholders Unions
Employees Competitors
General Public
Communities
 Types Of Social Responsibility
• Economic Responsibilities-The duty of manager, as
agent of company owners to maximize stockholder
wealth.
• Legal Responsibilities-The firm’s obligation to comply
with the laws that regulate business activities.
• Ethical Responsibilities-The strategic manager’s notion
of right and proper business behavior.
• Discretionary Responsibilities-Responsibilities
voluntarily assumed by a business such as public
relations ,good citizenship and full corporate
responsibility.
 CSR and Profitability
• The idea that business has a duty to serve society in general as well
as the financial interest of stockholders.
• CSR and PROFIT are not mutually exclusive of the other and neither
is a prerequisite of the other.
• CSR is the component in the decision making process of the
business that must determine among other objectives, how to
maximize profit.
• A traditional mainstay of CSR, are undertaken at a discounted cost
to the firm since they are often tax deducted.
• Some philanthropic acts bring specific credit to the firm.
• Socially responsible practices may create savings and as a result
increase profit.
• CSR cost are more than offset in the long run by an improved
company image and increased community goodwill.
 SARBANES-OXLEY ACT 2002
Law that revised and strengthen auditing and
accounting standard.
• Major elements of this act are…
o Corporate responsibility- Fair representation of all
reports by CEO and CFO.
o Increased disclosure-Companies must present their
financial condition with SEC.
o Audit committees-Must be composed entirely of
independent directors.
o New crimes and criminal penalty-like tampering
with records with intent is punishable by 20 year
imprisonment.
o New civil cause of action and increased
enforcement power- Bankruptcy can’t be used to
avoid liability from securities laws violation .
o Auditor independence
New Corporate Governance Structure
Board Of
Board Of Directors Directors

CEO

CEO
Chief Chief
Compliance Accounting
officer Officer

CFO CFO

Compliance Internal
Accountant
Internal Officer Auditors
Accountants
Auditors
 Social Audit
• An attempt to measure a company’s actual social
performance against its social objectives it has set for
itself.
• A social audit may be conducted by the company itself.
However one conducted by an outside consultant who
will impose minimal biases may prove more beneficial
to the firm
• As with the financial audit, an outside auditor brings
credibility to the evaluation.
• Once the social audit is complete, it may be distributed
internally or both internally and externally, depending
on the firms goals and situation.
Continuum of CSR commitment

Philanthropy/Gift Collaborative CSR

giving Social Initiative dominated
mission

Peripheral CSR Balanced CSR Excessive CSR

commitment commitment commitment
 Five Principles of Successful
Collaborative Social Initiatives
Long Term
Durable
Missions

Assemble
Leverage
And value
Collaborative Core
The Total
Social Capabilities
package of
Benefits Initiatives

Contribute
Weigh Specialized
Government Service To A large
Influence Scale
Undertaking
 Management Ethics
• The Nature Of Ethics In Business
Ethics-The moral principles that reflects society’s belief about
the action of an individual or group that are right or wrong.
• Approaches To Questions Of Ethics
o Utilitarian Approach-Judging the appropriateness of a
particular action based on a goal to provide the greatest
good for the greatest number of people.
o Moral Right Approach-Judging the appropriateness of a
particular action based on a goal to maintain the
fundamental right and privileges of individual and groups.
o Social Justice Approach-Judging the appropriateness of a
particular action based on equity , fairness , and impartiality
in the distribution of rewards and cost among individuals
and groups.
 Codes Of Business Ethics
• Nike Inc. Code Of Conduct
o Employment is voluntary
o Employees are age 16 or older
o Contractors doesn’t discriminate
o Compensation is timely paid
o Harassment and abuse are not tolerated
o Regular employment is provided
o Workplace is healthy and safe
o The code is fully implemented