Chapter 3: The Corporation's Social Responsibilities

returns

16 percent of CEOs in a survey believed that the appropriate role of business is to provide the highest possible ______ to shareholder while obeying all laws and regulations

Corporate Social Responsibility

Andrew Carnegie, Henry Ford and William C. Fredrick are all examples of business executives who implemented what type of responsibility?

social

Companies with the ability to recognize profound _______ changes and anticipate how they will affect operations have proven to be survivors

economic, legal and social

What three responsibilities should an organization of a manger seek to juggle simultaneously?

corporate social responsibility

a corporation should act in a way that enhances society and its inhabitants and be held accountable for any of its actions that affect people, their communities, and their environment

enlightened self-interest

a process in which a company recognizes the long-term rewards from its global involvement, through an enhanced reputation, customer loyalty, employee satisfaction, and global community support this is when a company contributes to the well-being of society and the environment in which it functions, and in doing so would become profitable

efficiency

an argument against CSR that states that any time a business uses some of its resources for social purposes, it risks lowering its _______ .

rewarded and bigger

foreign competitors who are the least socially responsible will actually be _____ because they will be able to capture a ______ share of the market

stakeholder relationships

incorporating social responsibility by developing a strong social agenda and series of social grams is thought to improve _____ ______

social entrepreneurs

the are individuals who, like traditional entrepreneurs, act boldly to pursue opportunities, attract support, and build new organizations, but they are typically driven by a core mission to create and sustain social rather than economic value

corporate power

the capability of corporations to influence government, the economy, and society, based on their organizational resources

hidden costs

this argument against CSR states that a company imposes _____ _____ on to its stakeholders by incorporating social responsibility ie. stockholders may receive lower dividends, employees must be paid less, or consumers may be charged higher prices

require skills businesses may lack

this argument against CSR states that businesspeople are not primarily trained to solve social problems so CSR may require skills they may ____ .

individual persons

this argument against CSR states that only _____ ______ are responsible for their actions; in which people make decisions and businesses do not this states that it is wrong for a business manager to want to contribute their company's funds to a social cause

solidarity lending groups

this is a community of borrowers in a low income community

poverty premium

this is a premium that creates an opening for companies that allows them to deliver quality products at lower prices in a vast market at the bottom of the pyramid

B corporation

this is a specific type of enterprise, or benefit corporation that seeks to blend its social objectives with financial goals this organization must prove it is socially responsible by meeting B lab standards

social enterprise

this is an organization that uses business strategies for the purpose of improving human and environmental well being their primary purpose is to not maximize returns to shareholder rather its core mission is social benefit

discourages government regulation

this is one of the most appealing arguments in favor of Corporate Social Responsibility that states that socially responsible acts may head off increased government regulation of business by increasing the freedom of decision making through CSR this helps keep power as decentralized as possible in a democratic society

iron law of responsibility

this laws states that in the long run those who do not use power in ways that society considers responsible will tend to lose it

social entrepreneurship

this occurs when a person or group of people identify a social need and use their entrepreneurship skills to address this need

microfinance

this process of financing occurs when financial organizations provide loans to low-income clients or solidarity lending groups (a community of borrowers) who traditionally lack access to banking or related services

responsibility

this term means "to pledge back" in which a company creates a commitment to give back to nicety and the organization's stakeholders

reputation

this term refers to desirable or undesirable qualities associated with an organization or its actors that may influence the organization's relationships with its stakeholders this is considered an important element in establishing trust between the firm and its stakeholders

bottom of the pyramid

this term refers to the poorest people i the world--nearly 4 billion people who earn less than 2.50 per day