Chapter 10 - Corporate Social Responsibility Flashcards Preview

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Flashcards in Chapter 10 - Corporate Social Responsibility Deck (6):

Corporate social responsibility

The notion that corporations have an obligation to society to take into account not just their economic impact but also their social and environmental impact.


CSR - Moral Case

- It is the right thing to do because you are a good corporate citizen with the same social and environmental obligations
- Goodpaster and Matthews – moral agents – accountable for actions
- Donaldsons: Corporations are a creation of society and therefore should serve the needs of society
- George: Reinforce view hat corporations are social institutions and creations of society


CSR - Business Case

- Countries such as Europe and Japan regard corporations as social institutions with a strong public interest agenda
- UK and North America – maximizing shareholder value is the goals
- Another reasons large corporations have increased the size of their CSR department is to deal with NGOs
- CSR is on the corporate agenda but it is difficult to determine if business sees it as a duty to society of for business sense


Advantages of CSR:

- Brand value and reputation
- Operational effectiveness
- Risk reduction and management
- Organisational growth
- Business opportunity


CSR - Corruption:

- Occurs when organisation or individual profit improperly through their position in both public and private sector
- Examples include:
o Extortion, bribery, favoritism, nepotism, embezzlement and fraud
- Risks for businesses:
o Loss of reputation
o Legal risks
o Adds substantially to the cost of doing business
o In paying bribes, there is no certainty you can get what you want and no recourse to any retribution if you don’t


CSR - Child Labour:

- Work that is done under the specified age for work, which either deprives them of schooling, causes them to leave school early or requires a combination of schooling and long hours of work
- Hazardous work: Exposing children to damaging work – hinders mental, physical and emotional development
- Push factors: poverty, lack of educational opportunities, family breakdown, culture
- Pull factors: cheap labour, obedience, skills, inadequate laws, poor infrastructure
- UN Millennium goals: Eradicate extreme poverty and hunger, achieve universal primary education, promote gender equality and empower women, reduce child mortality rate, combat HIV/AIDs, ensure environmental sustainability, develop a goal partnership for development