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    Historical Perspective of CSR: Prof. Eduardo L. Malvar, MBA

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    Historical Perspective of CSR: Prof. Eduardo L. Malvar, MBA

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    43 views19 pages

    Historical Perspective of CSR: Prof. Eduardo L. Malvar, MBA

    Uploaded by

    Czarina Mich

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    © All Rights Reserved
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    of 19

    Historical Perspective of

    CSR
    Prof. Eduardo L. Malvar, MBA
    Introduction to Chapter Two

    The focus in this chapter is on corporate


    social responsibility, which involves
    responsibilities outside of making a profit
    and the key questions for corporations
    include:
    • Does business have a social responsibility?
    • If so, what is the extent and type of the responsibility?
    Search the Web
    One of the leading corporations
    promoting corporate responsibility
    is Proctor and Gamble:
    www.pg.com/about_pg/corporate/co
    rp_citizenship_main.jhtml
    Corporate Social Responsibility (CSR)

    Preliminary definitions of CSR


    • The impact of a company’s 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
    Corporate Social Responsibility (CSR)

    Corporate Citizenship Concepts


    • Corporate social responsibility – emphasizes obligation and
    accountability to society
    • Corporate social responsiveness – emphasizes action, activity
    • Corporate social performance – emphasizes outcomes, results
    Corporate Social Responsibility (CSR)

    Historical Perspective
    • Economic model – the invisible hand of the marketplace protected
    societal interest
    • Legal model – laws protected societal interests
    Corporate Social Responsibility (CSR)

    Historical Perspective
    • Modified the economic model
    • Philanthropy Search the Web
    • Community obligations Milton Hershey was a leading example
    of an individual who employed
    • Paternalism philanthropy, community obligation and
    paternalism To learn more about
    Milton Hershey and the company,
    school and town he built, log on to:
    http://www.miltonhershey.com/
    Corporate Social Responsibility (CSR)

    Historical Perspective
    • What was the main motivation?
    • To keep government at arms length

    Search the Web


    Businesses are interested in CSR and one
    leading business organization that companies
    can join is Business for Social Responsibility.
    To learn more about BSR, visit their web site
    at:: http://www.bsr.org/
    Corporate Social Responsibility (CSR)

    Historical Perspective
    From the 1950’s to the present the concept of CSR has gained
    considerable acceptance and the meaning has been broadened to
    include additional components
    Corporate Social Responsibility (CSR)

    Evolving Viewpoints
    • CSR considers the impact of the company’s actions on society
    (Bauer)
    • CSR requires decision makers to take actions that protect and
    improve the welfare of society as a whole along with their own
    interests (Davis and Blomstrom)
    Corporate Social Responsibility (CSR)

    Evolving Viewpoints
    • CSR mandates that the corporation has not only
    economic and legal obligations, but also certain
    responsibilities to society that extend beyond these
    obligations (McGuire)
    Corporate Social Responsibility (CSR)

    Evolving Viewpoints
    • CSR relates primarily to achieving outcomes from
    organizational decisions concerning specific issues or
    problems, which by some normative standard have
    beneficial rather than adverse effects upon pertinent
    corporate stakeholders. The normative correctness of
    the products of corporate action have been the main
    focus of CSR (Epstein)
    Corporate Social Responsibility (CSR)

    Carroll’s Four Part Definition


    • CSR encompasses the economic, legal, ethical and discretionary
    (philanthropic) expectations that society has of organizations at a
    given point in time
    Corporate Social Responsibility (CSR)
    Carroll’s Four Part Definition
    Understanding the Four Components

    Responsibil Societal Examples


    ity Expectati
    on
    Economic Required Be profitable. Maximize
    sales, minimize costs,
    etc.
    Legal Required Obey laws and
    regulations.
    Ethical Expected Do what is right, fair and
    just.
    Discretiona Desired/ Be a good corporate2-16
    Business and Society: Ethics and Stakeholder Management, 5E • Carroll & Buchholtz
    Copyright ©2003 by South-Western, a division of Thomson Learning.  All rights reserved

    ry Expected citizen.
    Philanthropic Responsibilities
    Be a good corporate citizen.
    Ethical Responsibilities
    Be ethical.
    Legal Responsibilities
    Obey the law.
    Economic Responsibilities
    Be profitable.
    Pyramid of CSR
    Corporate Social Responsibility (CSR)

    CSR in Equation Form Is the Sum of:


    Economic Responsibilities (Make a profit)
    Legal Responsibilities (Obey the law)
    Ethical Responsibilities (Be ethical)
    Philanthropic Responsibilities (Good corporate
    citizen)
    CSR
    Corporate Social Responsibility (CSR)
    Arguments Against

    • Restricts
    Increase business
    the free power
    market goal of profit maximization
    • Limits
    Business
    theis ability
    not equipped
    to compete
    to handle
    in a global
    social marketplace
    activities
    • Dilutes the primary aim of business
    Corporate Social Responsibility (CSR)
    Arguments For
    • Limits future
    • Addresses social issues business caused and allows
    government
    business to be part of the solution intervention
    • Protects business self-interest • Addresses issues by
    using business
    resources and
    expertise
    • Addresses issues by
    being proactive
    Corporate Social Responsibility (CSR)
    Business Responsibilities in the 21st Century

    • Demonstrate a commitment to society’s values and contribute


    to society’s social, environmental, and economic goals through
    action.
    • Insulate society from the negative impacts of company
    operations, products and services.
    • Share benefits of company activities with key stakeholders as
    well as with shareholders.
    • Demonstrate that the company can make more money by doing
    the right thing.
    THANK YOU!
    GOD BLESS YOU ALL!!!

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