Corporate Social Responsibility
Introduction: A Stakeholder’s
Recent Business Incidents for
Deliberation – 1
• Toyota: http://www.youtube.com/watch?v=qNm-h9FbJg&feature=channel • The Octopus: http://www.youtube.com/watch?v=o30eVK1C1C0
• Cafe de coral: http://www.chinadaily.com.cn/hkedition/201011/04/content_11499922.htm • Minimum Wages
• Cafe de Coral
• PCCW and HSBC
Cases of lack of Corporate Social
• Olympus accounting scandal
• Meng Niu Milk Scandal
▫ http://www.globaltimes.cn/NEWS/tabid/99/ID/689954/Mengniumilk-scandal-forces-company-to-tighten-cow-fodder-inspections.aspx ▫ http://www.youtube.com/watch?v=7bUEd7GPJ44
• CLP Tariff increases
▫ http://www.youtube.com/watch?v=n61s0ej0a7w (Chief Executive) ▫ http://www.youtube.com/watch?v=EQzgA_dobzg (SAR Government – EPB)
▫ http://www.youtube.com/watch?v=hlE3EVhSNcI (General public) ▫ http://www.youtube.com/watch?v=EseoUL6lDgk&feature=related (CLP –final decision)
▫ http://www.youtube.com/watch?v=1uRt-4yAAY8&feature=related (News report)
▫ http://www.youtube.com/watch?v=mo-145CDgbs&feature=related (News)
Reflections on Business
• Do you agree with that “the Social Responsibility of Business is to Increase its Profits (a remark by Milton Friedman)”?
• Are profits the only business of business? – the location of corporate social responsibility
• Do you agree with that “others have a legitimate claim on the corporation (a reply by Freeman to Friedman’s remark)”?
• The idea of socially responsible corporations
• Which are the major stakeholders to which corporation should be responsible to?
▫ CSR companies (in HK and other countries)
▫ Non-CSR companies (in HK and other countries)
Fundamental Questions in Business
• What is the purpose of business within society?
▫ Any other purposes apart from making profit?
▫ A company exist simply to make money???
• Do companies have obligations beyond the
benefits their economic success already
▫ Business Ethics/corporate social responsibility???
• What are the stakeholders business should be
▫ Solely shareholders/investors??
Carroll’s four-part model of
corporate social responsibility
2007. All rights
Desired by society
Expected by society
Required by society
Required by society
Source: Carroll (1991)
CSR – Concept and Definition – 1
• CSR: a much broader concept than business
▫ Business ethics – the application of ethics and
ethical theory to the decision of business
• CSR – business are more than just profit-seeking
entities and, therefore, also have any obligation
to benefit society
CSR – Concept and Definition – 2
▫ is about business and other organizations going
beyond the legal obligation to manage the impact
they have on the environment and society.
▫ In particular, this could include how organizations
interact with their employees, suppliers,
customers and the community in which they
operate, as well as the extent they attempt to
protect the environment
CSR – Concept and Definition – 3
• CSR: both a means and an end
▫ Mean: it is an integral element of the firm’s
strategy: the way the firm goes about delivering its
products or services to the markets
▫ End: it is a way of maintaining the legitimacy of its
actions in the larger society by bringing
stakeholder concerns to the foreground
• CSR is complex and still evolving: between social...
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