Evolving Meanings of CSR
is seriously considering the impact of the company’s actions on society. is the obligation of decision makers to take actions that protect and improve the welfare of society as a whole, along with their own interests. supposes that the corporation has economic and legal obligations as well as responsibilities to society that extend beyond these obligations.
Four part definition of CSR: Corporate social responsibility encompasses economic, legal, ethical and discretionary expectations that society has of organizations
Arguments Against CSR -
Classical Economics: The classical economic view is that business’ only goal is to maximize profits for owners.
Business Not Equipped: Business is not equipped to handle social activities.
Dilutes Business Purpose: It dilutes the primary purpose of business.
Too Much Power Already: Businesses have too much power already .
Global Competitiveness: It limits the ability to compete in a global marketplace.
Arguments For CSR -
Enlightened self-interest: Businesses must take actions to ensure long-term viability.
Warding off government regulations. Business would prefer to self-regulate than have governments regulate.
Resources Available: Business has the resources and expertise.
Proaction is better than Reaction. Proaction is also less costly both financially and reputationally.
Public supports: The public strongly supports—and expects—CSR.
Corporate Citizenship definition
Embraces all the facets of corporate social responsibility, responsiveness, and performance.
Benefits of Corporate Citizenship:
Improved employee relations (improves recruitment, retention, morale, loyalty, etc.)
Improved customer relationships (increases customer loyalty; a tiebreaker)
Improved business performance (positively impacts bottom-line returns, increases competitive advantage)
Enhanced marketing efforts ( helps create a positive company image)
ANs 4 triple bottom line- A variant of the “multiple bottom