MG517 – Ethical and Regulatory Environment
Dr. Carrie A. O'Hare
December 9, 2012
Week Five Assignment
What is Corporate Social Responsibility? Discuss the four stages of the Corporate Social Responsibility continuum. Please be sure to refer to the article I have attached! Question 5 of 6:
Corporate initiative to assess and take responsibility for the company's effects on the environment and impact on social welfare. The term generally applies to company efforts that go beyond what may be required by regulators or environmental protection groups. Corporate social responsibility may also be referred to as "corporate citizenship" and can involve incurring short-term costs that do not provide an immediate financial benefit to the company, but instead promote positive social and environmental change. “In recent years, several writers have suggested that our focus on the social “responsibility” of business indicates undue effort to pinpoint accountability or obligation and therefore is too narrow and too static to fully describe the social efforts or performance of business” (Carroll, 1979, pp.498). Social responsibility easily put is being responsible to society. They have a responsibility to treat everyone they do business with well, be ethical, make contributions to charities, help with social problems, and to make socially responsible decisions all while earning profit. The Corporate Social Responsibility concept is broken down into four stages. Stage one indicates that the company is only responsible to the stakeholders, no matter if there are two or thousands individuals (economic). These interested parties are the only ones with a direct financial interest in the company, so the organization does not owe anyone else anything except the stakeholders. This stage holds that if the stakeholders are satisfied, the company has fulfilled its purpose. As stakeholders move toward the second stage and involve employees in...