Corporate Social Responsibility

Chapter 1: Corporate Social Responsibility (CSR)

• Definition o How the action and conduct of corporation affect society. Corporate have the duty to improve and protect society through the business.

• Four Different Perspective o Economic Responsibility:
 Maximize profits.
 Fair pricing and quality products.
 Stakeholders in Corporation:
 Shareholders.
 Employee.
 Upper Management.
 Customer/Consumer.
 Vendors/Supplier.
 The key is to be able to balance and decide which stakeholders need to be valued more o Legal Responsibility:
 “Obey the Law” o Fair wage (eg. Minimum wage or more)
 Cannot discriminate against employee beliefs, race, color, gender, and age. o Ethical Responsibility:
 (There is no right or wrong, where you draw the line is your responsibility) o Philanthropic Responsibility
 Giving back to the society

• Morals and Laws o Morals are more ethical, and laws made ot create better environment for everyone. o There are point where morals and laws cross the line
 Eg. Cannot kill.

• The Benefits Of Having A Social Responsibility o Improve company image/brand. o Improve environment. o Improve tax benefit. o Better employee (more loyal, healthy). o Affiliate with positive corporate partner.

• Negative of Social Responsibility o Cost money (bottom line). o Negative repercussion from social stance in society.
 Eg. pro abortion vs. pro life.

• What it Means to be a Good Corporate Citizens o Recognize your CSR, you have responsibility to society. o Respond to your CSR, what will you do with your CSR. o Performance in holding up your CSR, benefiting employee, consumer, community
• Bottom Line o Economic Bottom Line
 Wealth of the company,( profits, assets) o Social Bottom Line
 How are they improving the life of employee, society
 Are you improving the quality of life of your community o Environmental Bottom Line
 Are you preserving the environment ? o Triple Bottom Line
 Gauge