Csr & ethics
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Transcript of Csr & ethics
CORPORATE SOCIAL RESPONSIBILITY (CSR)
AND ETHICSDr Jayashree Sadri
and Dr Raju Ganesh Sunder
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 workMost admiredBest (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
Maximize firm’s profits to the exclusion of all else
Balance profits and social objectives
Do what it takes to make a profit; skirt the law; fly below social radar
Fight social responsibility initiatives
Comply; do what is legally required
Integrate social objectives and business goals
Lead the industry and other businesses with best practices
Do more than required; e.g. engage in philanthropic giving
Articulate social value objectives
Corporate Social Responsibility Continuum
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 ActivitiesPhilanthropy
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 GloballyIncorporate values to make it part of an articulated belief systemAct worldwide on those values
Cause-related marketingCause-based cross sector partnerships
Engage with stakeholdersPrimary stakeholdersSecondary 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 EthicsFrom domestic where ethics are shared To international where ethics are not shared when companies:
Make assumptions that ethics are the sameEthical 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 uncertaintiesVoluntary guidelines avoid government impositions
Ethical conduct is needed in an increasingly interdependent world—everyone in the same gameCompanies 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 codesCaux Round Table Principles
Reasons for Businesses to Engage in Development of a
Global Code of Business EthicsCreate 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