Ch. 2 Corporate Citizenship

Modification of the Economic model

Philanthropy Community Obligations Paternalism Motivation is to keep government at arm's length

Arguments Against CSR

- The classical economic view that business' only goal is the maximize profits for owners. - Business is not equipped to handle social activities. - It dilutes the primary purpose of business. - Businesses have too much power already. - It limits the ability to compete in a global marketplace.

Evolving meanings of CSR

1. Corporate social responsibility is seriously considering the impact of the company's actions on society. 2. The obligation of decision makers to take actions that protect and improve the welfare of society as a whole, along with their own interests. 3. Supposes that the corporation has economic and legal obligations as well as responsibilities to society that extend beyond these obligations.

Ethical Responsibility

Avoid questionable practices. Do what is right, fair, and just. Societal expectation expected

External pressures of corporate citizenship

Customers and Consumers Expectations in the communities Laws and Political Pressures

Philanthropic Responsibility

Be a good corporate citizen and give back. Societal expectation desired/expected

Economic Responsibility

Be profitable, maximize sales, minimize costs, societal expectation is required

Global Business Citizen

Business enterprise (including managers) that responsibly exercises its rights and implements its duties to individuals, stakeholders, and societies within and across national borders.

Fredrick's 3 CSR

CSR1 is accountability-focused CSR2 is responsibility-focused CSR3 is refers to corporate social rectitude

Responsiveness

Cannotes a dynamic, action-oriented condition

Corporate Citizenship

Collectively embrace a host of concepts related to CSR and seriously consider the impact of a company's actions on society.

Narrow View of corporate citizenship

Corporate community relations. Embraces the functions through which business internationally interacts with nonprofit organizations, citizen goups, and stakeholders at the community level

The CSR Equation

Economic + Legal + Ethical + Philanthropic = Total Corporate CSR

Responsibility

Implies a state or condition of having assumed an obligation

Benefits of corporate citizenship

Improved Employee Relations Improved customer relationships Improved business Performance Enhanced marketing efforts

Business for Social Responsibility (BSR)

Is a consulting business firm and global business network helping organizations to develop sustainable business strategies and solutions

Triple bottom line perspective

Key Spheres of sustainability by John Elkington are economic, social, and environmental The goal is corporate sustainability.

Global Corporate Citizenship

Multinational enterprises are expected to be good corporate citizens in the countries in which they do business. (Are expected to tailor initiatives to conform to cultural environment) Internatioanl academics and business people do research on and advocate CSR and corporate citizenship concepts

Legal Responsibility

Obey laws, adhere to regulations, societal expectation required

Corporate Social Responsibility

Seriously considering the impact of a company's actions on society. Requires the individual to consider their acts in terms of a whole social system and holds them responsible for the effects of their acts anywhere in that system.

Sethi's Three-Stage Schema

Social obligation social responsibility social responsiveness

Internal motivators of corporate citizenship

Traditions and values Reputation and image Business strategy Recruiting and retaining employees

Corporate Social Responsiveness

_________ emphasizes action and activity

Corporate Social Responsibility

_________ emphasizes obligation and accountability

Corporate Social Performance

_________ emphasizes outcomes and results

social intrapreneurship

firms are companies that did not have a specific social agenda as part of their initial information but later developed a highly visible social agenda or program

The Pyramid of CSR

highest-> economic, legal, ethics, philanthropic

Drivers of corporate citizenship

internal motivators and exteernal pressures

sustainability development

pattern of resource use that aims to meet human needs while preserving the environment so that these needs can be met not only in the present but also for the future generation

corporate sustainability

the goal of the triple bottom line approach

social entrepreneurship

to bring about social change or to reflect certain social values as a part o their organization character

community obligation

to improve and beautify and uplift were also evident

mainstream adapters

would include all other conventional businesses that have adopted, practiced and achieved some degree of excellence or recognition for socially responsible policies and practices.