Bus Ethics Ch 3

The costs of corporate social responsibility may ultimately be passed on to whom?

Customers

The iron law of responsibility

In the long run, those who do not use power in ways that society considers responsible will tend to lose it.

What do global social audit standards concentrate on?

Internally focused economic benefits for the firm. Externally focused social benefits for the environment. Externally focused social benefits for key stakeholders.

When undertaking social initiatives, what is the consequence of the company?

May sacrifice short-term profits

Concept of Global Corporate Citizenship

Refers to putting these commitments into practice worldwide.

Statements about corporate social responsibility?

Act in a way that enhances society and its inhabitants and be held accountable. Acknowledge any harm to people and society and correct it if possible. May forgo (omit) some profits if its social impacts hurt its stakeholders or if its funds are usable for a positive social impact.

How can positive reputation be valued as an intangible corporate?

Asset

The argument in favor of corporate social responsibility

Balances corporate power with responsibility, Discourages government regulation, and Promotes long-term profits for business, Improves stakeholder relationships, and Enhances business reputation.

The argument against corporate social responsibility?

Lowers economic efficiency and profit. Imposes unequal costs among competitors, Imposes hidden costs passed onto stakeholders, Requires skills business may lack, Places responsibility on business rather than individuals.

Concept of B Corporation

Must meet rigorous, independent social and environmental performance standards. Focus on social responsibility and citizenship by blending their social objectives with financial goals. B Corporation must prove it's socially responsible by meeting the B Lab standards. B Lab is a non-profit organization that assesses a corporation's social and environmental performance standards.

Philanthropic funding and corporate social responsibility:

Policy instruments of the Corporate Social Stewardship phase

Concept of good corporate citizens:

Actions taken to put their commitments to corporate social responsibility into practice.

Concept of corporate power

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

What is the most significant motivator of corporate social reporting?

Ethical Concerns