16 Questions
What is the main difference between Corporate Social Responsibility (CSR) philanthropy and Strategic CSR?
The former involves donation of money, goods, or services, while the latter involves social contributions aligned with business strategy
According to the perspective of Milton Friedman, what is the social responsibility of a business?
To use its resources and engage in activities designed to increase its profits within the rules of open and free competition
Why might the perspective advocated by Milton Friedman seem selfish and antisocial to some people?
Because it promotes open and free competition without any consideration for social welfare
What is Defensive CSR in the context of businesses today?
A response to pressure from activists and NGOs by engaging in CSR activities to avoid further criticism
In the context of businesses today, what does Strategic CSR entail?
Social contributions that are directly aligned with a company’s overall business strategy
Why do many companies engage in Defensive CSR as described in the text?
As a way to avoid further criticism from activists and NGOs
What term is used to describe publicity efforts that portray companies as environmentally friendly when their actions suggest otherwise?
Greenwash
When company leaders believe they have responsibilities beyond making a profit and back up their beliefs with actions, it is an example of:
Proactive CSR
What is the foundation of being a purpose-driven business?
Proactive mindset
What does the term 'greenwash' imply?
Exaggerated environmental claims
In the context of CSR, what does 'moving beyond CSR' involve?
Shifting focus from profit to social good
What distinguishes proactive CSR from cynical CSR?
Leadership commitment and actions
What are the potential criticisms of the perspective advocated by Milton Friedman regarding the social responsibility of a business?
Some potential criticisms include the view that it is too focused on profit maximization, neglects the impact of business on society, and lacks consideration for ethical and moral obligations.
How does Defensive CSR differ from Proactive CSR, and what are the implications of these differences for businesses?
Defensive CSR involves minimal effort to comply with social and environmental responsibilities, while Proactive CSR focuses on actively contributing to society and the environment. The implications of these differences include varying impacts on reputation, stakeholder relationships, and long-term sustainability.
Explain the concept of 'greenwash' and provide an example of how it can be detrimental to a company's reputation.
'Greenwash' refers to the deceptive practice of presenting a company as environmentally responsible when its actions do not support this image. An example could involve a company advertising eco-friendly products while engaging in environmentally harmful practices in its operations, leading to a loss of trust and credibility.
In what ways can a company demonstrate that it is 'moving beyond CSR' and embracing a purpose-driven approach to business?
A company can demonstrate this by integrating social and environmental concerns into its core business strategy, aligning its operations with a clear purpose that goes beyond profit, and actively engaging in initiatives that create positive societal and environmental impacts.
Test your knowledge of corporate social responsibility (CSR) and philanthropy with this quiz. Explore concepts such as strategic CSR and the ethical debate surrounding the social responsibilities of businesses.
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