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Questions and Answers
What is the focus of Corporate Social Responsibility (CSR)?
What is the focus of Corporate Social Responsibility (CSR)?
Which perspective argues that a corporation's only obligation is to maximize profits?
Which perspective argues that a corporation's only obligation is to maximize profits?
Which of the following is NOT considered a driving force behind CSR?
Which of the following is NOT considered a driving force behind CSR?
What does Jim Roberts suggest about CSR?
What does Jim Roberts suggest about CSR?
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How has the transition to an information-driven economy impacted consumers?
How has the transition to an information-driven economy impacted consumers?
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What is a characteristic of management by inclusion?
What is a characteristic of management by inclusion?
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What does transparency in business practices imply?
What does transparency in business practices imply?
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What is one implication of the failure of the public sector on CSR?
What is one implication of the failure of the public sector on CSR?
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What is the primary focus of CSR regarding the business practices of corporations?
What is the primary focus of CSR regarding the business practices of corporations?
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Which of the following best describes the concept of 'carbon neutral'?
Which of the following best describes the concept of 'carbon neutral'?
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What is a potential negative consequence of companies engaging in CSR?
What is a potential negative consequence of companies engaging in CSR?
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What distinguishes ethical CSR from altruistic CSR?
What distinguishes ethical CSR from altruistic CSR?
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What are the three components of the triple bottom line approach in corporate reporting?
What are the three components of the triple bottom line approach in corporate reporting?
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What is a critical issue leading to the decline in CSR effectiveness in some developing countries?
What is a critical issue leading to the decline in CSR effectiveness in some developing countries?
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How do global pressures impact corporate sustainability efforts?
How do global pressures impact corporate sustainability efforts?
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What is the primary intention behind strategic CSR?
What is the primary intention behind strategic CSR?
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Study Notes
Corporate Social Responsibility (CSR)
- CSR is actions by an organization to achieve social benefits beyond maximizing profit and meeting legal obligations.
- Also known as corporate citizenship or corporate conscience.
- Some companies only adopt CSR after public pressure.
Management Without Conscience
- Instrumental approach: The only obligation is maximizing shareholder profits and providing goods/services that meet customers' needs. (Milton Friedman's view)
- Social contract approach: Corporations have obligations to society beyond profit maximization.
Management by Inclusion
- Corporate actions impact customers, employees, suppliers, and communities.
- Impacts can be positive or negative.
- Companies are focusing on long-term interests, not just immediate profit.
Driving Forces Behind CSR
- Transparency: Businesses are becoming increasingly transparent, and companies can't hide negative actions.
- Knowledge: Consumers and investors have more information, allowing for greater scrutiny and influence.
- Sustainability: The earth's natural systems are in decline; corporations are under pressure to have environmentally sound plans and strategies.
- Globalization: Globalization represents a new stage of capitalist development where public institutions balance private corporate interests against broader public interests.
- Failure of Public Sector: Many developing countries have dysfunctional or corrupt regimes, diminishing public trust and leading to increased CSR demands.
Criticisms of CSR
- Risk of adverse results from CSR
- Employees may feel their organization is insincere
- Public perception may be one of tokenism, not genuine community concern
- Organizations may not see much benefit and lack motivation to develop it.
The Triple Bottom Line
- Many companies are adjusting annual reports to include social and environmental performance information alongside financial performance.
Types of CSR
- Ethical CSR: A defined sense of social conscience, fulfilling legal and ethical responsibilities to stakeholders (including shareholders, local communities, society as a whole).
- Altruistic CSR: Philanthropic approach; giving back to local or international communities without concern for corporate profitability (e.g., specific initiatives, donations to national/international programs).
- Strategic CSR: Philanthropic activities focused on positive publicity, but carries the risk of appearing self-serving.
Carbon Footprint
- Total carbon dioxide emissions annually.
- Carbon neutral: Offsetting environmental damage by purchasing credits from carbon-positive projects (e.g., Kyoto Protocol).
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Description
This quiz explores the concepts and practices of Corporate Social Responsibility (CSR), including various approaches like the instrumental and social contract perspectives. It examines the driving forces behind CSR and the relevance of transparency in corporate actions. Test your knowledge on how companies balance profit with social contributions.
