CSR (Week 1) PDF Watermark
CSR (Week 1) PDF Watermark
CSR (Week 1) PDF Watermark
Be ethical Expected
Ethical
Required
Obey the law Legal
Required
Be profitable Economic
The CSR Hierarchy
(Carroll, 1991, in Werther & Chandler, 2010)
Discretionary
Responsibilities
Ethical
Responsibilities
Legal
Responsibilities
Economic
Responsibilities
The CSR Hierarchy (Contd.)
(Carroll, 1991, in Werther & Chandler, 2010)
Growing affluence
Ecological sustainability
Globalization
The free flow of information
The public image of an organization
Thank You
Theories of CSR
Legitimacy Theory
(Fernando & Lawrence 2014)
20
Types of stakeholders (Florea & Florea, 2013)
Based on involvement:
“Internal stakeholders have a range of interests in
the different parts of the company [or organization
or community] and its activities.”
Ethical perspective:
“Irrespective of the stakeholder power, all the
stakeholders have the same right to be treated
fairly by an organization.”
“”Managers of an organization are expected to
manage the business for the benefit of all
stakeholders, regardless of whether management of
stakeholders leads to improved financial
performance.”
Limitation: very difficult to manage different
and contradictory interests of stakeholders
Perspectives of stakeholder theory
(Contd.) (Fernando & Lawrence, 2014)
Social acceptance
“Institutional theory views organizations as
operating within a social framework of norms,
values, & taken-for-granted assumptions about
what constitutes appropriate or acceptable
economic behavior.”
Dimensions of institutional theory
(Fernando & Lawrence, 2014)
Instrumental theories
Political theories
Integrative theories
Ethical theories
Instrumental theories (Garriga & Mele, 2004)
Issues management
The principle of public responsibility
Stakeholder management
Corporate social performance
Issues management (Garriga & Mele, 2004)
Institutional pressure
Stakeholder Weak Intense
pressure
Weak Obstructionist: Absence of Defensive: Institutional pressure
external pressures without stakeholder support
Economic conditions
Institutional conditions
Economic antecedents of CSR
(Campbell, 2007)
Individual level
Organizational level
National level
Transnational level
Individual level Antecedents of CSR
(Aguilera et al., 2007)
Instrumental motives:
Power to facilitate NGOs and social welfare groups
Promotion of competitiveness among businesses
Relational motives:
Collaborative relationships among Inter Government
Organizations (IGOs)
Moral motives: Altruism: “…trying to make the
world a better place to live in”
Antecedents of CSR at the
transnational level (Contd.) (Aguilera et al., 2007)
Transnational
Motives Individual Organizational National Intergovernment Corporate
al entities interest groups &
NGOs
Instrumental Need for control Shareholder interests Competitiveness Competitiveness Power (obtain
(Short Term) scarce
resources)
Relational Need for •Stakeholder interests Social cohesion Social cohesion Interest
belongingness •Legitimation/ alignment,
collective identity collaboration &
(long term) quasi-regulation
Moral Need for •Stewardship interests Collective Collective Altruism
meaningful •Higher-order values responsibility responsibility
existence
Interactions Upward •Insider downward Compensatory Compensatory Multiplicative
hierarchical hierarchical
•Outsider upward
hierarchical
Why CSR? (Carroll & Shabana, 2010)