Corporate Social Responsibility Overview

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Questions and Answers

What are the three pillars of the Triple Bottom Line framework for CSR impact measurement?

Marketing, Sales, Operations

Economy, Society, Environment

Financial, Social, Environmental

Profit, People, Planet (correct)

According to Carroll's CSR Pyramid, what is the foundation of a company's responsibilities?

Economic Responsibilities (correct)

Ethical Responsibilities

Philanthropic Responsibilities

Legal Responsibilities

Which of the following is NOT a characteristic of Traditional CSR?

Reactive

Risk-focused

CSR as an 'add-on'

Reward-focused (correct)

Which ethical theory emphasizes the importance of considering all stakeholder interests?

Edward Freeman's Stakeholder Approach Signup and view all the answers

According to Milton Friedman, the sole responsibility of businesses is to maximize profits for shareholders within the bounds of the law

True Signup and view all the answers

Which ethical theory focuses on motivation and principles behind actions rather than their outcome?

Deontology Signup and view all the answers

Which of the following is NOT a key element of Corporate Accountability?

Profitability Signup and view all the answers

Which ethical theory suggests that morality is context-dependent and subjective?

Ethical Relativism Signup and view all the answers

Which of the following is NOT a key maxim of the Categorical Imperative?

Profitability Signup and view all the answers

In Kohlberg's Theory of Moral Development, which level focuses on conformity to societal norms and expectations?

Conventional Signup and view all the answers

Whistleblowing involves disclosing unethical or illegal practices to internal parties within an organization.

False Signup and view all the answers

Which of the following is NOT a challenge to Ethical Issues in Financial Markets?

Corporate Social Responsibility Signup and view all the answers

What is the goal of Shareholder Activism?

Influence corporate governance Signup and view all the answers

Which of the following is NOT a characteristic of the Gig Economy?

Long-term contracts Signup and view all the answers

What is the primary focus of Socially Responsible Investing (SRI)?

Integrating social and environmental criteria into investment decisions Signup and view all the answers

Which of the following is NOT a challenge associated with the application of the 'Race to the Bottom' phenomenon?

Increased competition Signup and view all the answers

Which of the following is a primary difference between NGOs and Social Enterprises?

Social Enterprises are profit-driven Signup and view all the answers

What is the main objective of 'Catalytic Activism'?

Encouraging broader societal engagement Signup and view all the answers

What are the two primary roles of governments in relation to businesses?

Restricting and enabling Signup and view all the answers

Which of the following is NOT a concern associated with Lobbying?

Profits Signup and view all the answers

Which of the following is a key characteristic of 'State Capture'?

All of the above Signup and view all the answers

The 'Race to the Top' encourages countries to lower environmental and labor standards to attract foreign investment.

False Signup and view all the answers

Which of the following is NOT a characteristic of Ethical Supply Chains?

Maximum profits Signup and view all the answers

Study Notes

Stakeholders

Stakeholders are individuals or groups affected by a company's actions
Companies must consider stakeholder interests for long-term success
Stakeholders include customers, employees, communities, and the environment

CSR Study Sheet

CSR (Corporate Social Responsibility) combines business success with societal impact
Areas of focus: Environmental sustainability, social responsibility, and governance
Businesses have reasons for CSR such as attracting and retaining customers and employees and anticipating/shaping regulations for long-term financial benefits
Moral reasons for CSR are addressing social problems caused by corporations, responsible use of corporate power, and impact on stakeholders and society

Triple Bottom Line

A framework for measuring corporate social impact
Elements: Profit (economic growth), People (stakeholders), Planet (environmental accountability)
Provides a holistic view of a company's performance

Carroll's CSR Pyramid

A model for understanding corporate social responsibility
Components: Economic Responsibilities (profit generation), Legal Responsibilities (compliance with laws), Ethical Responsibilities (societal expectations beyond legal), and Philanthropic Responsibilities (voluntary contributions to society)

Spheres of Influence of a Company

Community responsibility (engagement with communities, partnerships with NGOs)
Workplace responsibility (working conditions, employee well-being)
Marketplace responsibility (supply chain ethics and consumer impacts)
Environmental responsibility (direct and indirect environmental impacts)
Economic responsibility (obligations to shareholders, employees, and local economies)

Traditional vs. Contemporary CSR

Traditional: Risk-focused, reactive, and an add-on to business activities
Contemporary: Reward-focused, proactive, and integrated into business value creation strategy

Stakeholder Theory

Firms impact and are impacted by multiple stakeholders
Stakeholders include employees, consumers, suppliers, communities, and the environment
Businesses have responsibilities to all stakeholders for long-term success and accountability

Stakeholder Salience

Prioritize stakeholders based on Power, Legitimacy, and Urgency
Power: Ability to influence outcomes
Legitimacy: Validity of claims
Urgency: How immediate demands are

Ethical Egoism

An action is morally right if decision-makers pursue their own short-term or long-term interests
Focus on self-promotion, maximizing personal or business interests.

Utilitarianism

An action is morally right if it results in the greatest good for the greatest number of people
Focus is on maximizing net happiness (pleasure over pain) for all affected

Ethical Absolutism

Universally applicable moral principles that are context-independent, objective, and rational

Ethical Relativism

Morality is dependent on context, subjective, and based on traditions, convictions, and practices of the individuals

Deontology

Focus on motivation and principles behind actions rather than their outcome
Based on duty and rule-based ethics

Ethics of Rights & Justice

Emphasizes the importance of universal human rights
Rights are basic, inalienable, unconditional, and without exceptions

Categorical Imperative

A universal moral law guiding ethical actions focusing on rational principles, respect for humanity, and consistency in application

Hypothetical agreement among individuals and society establishes fair relationships, rights

Milton Friedman's Critique of CSR

The sole responsibility of businesses is to maximize profits for shareholders within the bounds of the law.
Managers act as agents for shareholders and must prioritize their interests.
Social issues are the responsibility of governments, not corporations.

Kohlberg's Theory of Moral Development

Stages of moral reasoning: pre-conventional (avoiding punishment), conventional (conformity to norms), and post-conventional (universal ethical principles)

Whistleblowing

Disclosing unethical or illegal practices to parties that can effect change.
Potential challenges include risks to personal safety, reputation and career progression

Hawthorne Effect

Individuals modify their behavior when they know they are being observed in a research or testing environment.

Employee Roles

Not all workers are legally classified as employees
Volunteers and contractors are distinct from employees

Workplace Discrimination

Unfair treatment based on characteristics unrelated to job performance
Types include gender discrimination, ageism, and intersectionality

Fair Pay

Ethical concern focusing on equity, reciprocity, and impartiality
Issues include living wages, wage inequality, and gender pay gaps
Solutions include transparency, quotas, and child care support

Meaningful Work

Improves employee engagement, productivity, and purpose
Beneficial for both the individual and the organization

Employee Monitoring

Raises ethical concerns related to invasion of privacy, trust and stress.
Unfair discipline can occur with misuse of data.

Unemployment vs. Misemployment

Unemployment: Lack of a job.
Misemployment: A role misaligned with one's skills or aspirations (negatively impacting both the employee and the organization).

Gig Economy

Temporary, task-based employment without long-term contracts.
Characteristics of Gig Workers: Flexible scheduling, reliance on personal resources, and lack of benefits.

Modern Slavery

Forced labor, dehumanization, restricted movement and exploitation of individuals.

Ethical Issues Linked to Migrant Workers

Low wages, unsafe working conditions, and exploitation are common ethical concerns for migrant workers.
COVID-19 magnified vulnerabilities.

Consumers as Stakeholders

Consumers have rights to fair treatment, including information and safety
Ethical behaviors in marketing include avoiding misleading or deceptive advertising practices.

Inclusive Marketing

Inclusive marketing aims to reflect the diversity of demographics across gender, race, ethnicity, and abilities preventing harmful targeting of sensitive groups.

Price Fixing

Businesses collude to set prices, reducing competition and harming consumers.

Moral Complications of Contemporary Consumerism

Creates artificial wants and reinforces stereotypes, fostering excessive consumption and unsustainable practices.

Ethical Issues with CSOs

Independence: Balancing market demands with social goals might dilute neutrality and moral authority.
Mission Drift: Balancing market demands with social goals can lead to diluted focus.
Sustainability: Difficulty maintaining long-term impact without compromising core values.

Suppliers and Competitors as Stakeholders

Suppliers have rights, such as fair pricing and fair treatment.
Competitors are stakeholders when ethical competition is maintained.

Race to the Bottom

Lowering labor and environmental standards to attract businesses, often at the expense of ethics.

Ethical Sourcing

Integrates social, ethical, and environmental criteria into supply chain management, extending responsibility beyond local factory owners.

Ethical Issues in Governmental Intervention

State Capture: Businesses shape regulations through bribes, undermining fairness and public trust.
Public Corruption: Politicians or officials accept bribes for personal benefit, harming public interests.

Global Production Networks

Networks of interconnected firms, suppliers, and consumers across borders.
Raises concerns about labor practices, environmental degradation, and economic dependency in developing regions.

Responsible Consumption

Businesses and consumers have responsibilities
Businesses: Reducing harmful options, encouraging demand for sustainable products
Consumers: Informed choices, boycotts, and buycotts to influence markets

Circular Economy

Shifts away from "take-make-dispose" toward a regenerative system.
Principles: Reuse, recycle, repair, and share resources to reduce waste.

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Description

Explore the key concepts of Corporate Social Responsibility (CSR), including stakeholder interests and the Triple Bottom Line framework. This quiz covers essential areas such as environmental sustainability, social responsibility, and the moral imperatives for businesses to engage in CSR practices.