CORPORATE SOCIAL RESPONSIBILITY (CSR) AND ETHICS

Submitted to:Prof.Moreno

Submitted by:Amiri Parvin(kiana)

January 2013

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 work* Most admired* Best (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

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 Activities* Philanthropy

* 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 Globally* Incorporate values to make it part of an

articulated belief system* Act worldwide on those values

* Cause-related marketing* Cause-based cross sector partnerships

* Engage with stakeholders* Primary stakeholders* Secondary 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 Ethics* From domestic where ethics are shared * To international where ethics are not shared

when companies:* Make assumptions that ethics are the same* Ethical 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 uncertainties* Voluntary guidelines avoid government impositions

* Ethical conduct is needed in an increasingly interdependent world—everyone in the same game

* Companies 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 codes

* Caux Round Table Principles

Reasons for Businesses to Engage in Development of a Global Code of Business

Ethics

* Create 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