Business ethics (3.5)

• Social Responsibility


  To act in a manner that benefits society
• Each individual understands and expresses social responsibility in their own way
• Ways individuals can be socially responsible


  • Following the law and obeying authorities
  • Being productive
  • Helping others
• Businesses also have varying views of their social responsibility
• Responsibilities of Businesses


  • Economic
  • Legal
  • Ethical
  • Philanthropic
• Economic Responsibility


  The base and foundation of social responsibility, e.g. providing goods and services, dividend policies, payment of salaries
• Legal Responsibility


  Obeying laws and regulations, e.g. labor law, tax regulation, quality assurance, rights of workers
• Ethical Responsibility


  Do what is right, just, and fair, going beyond the minimum, e.g. fair treatment of customers, suppliers, employees
• Philanthropic Responsibility


  Discretionary and voluntary, represents the company's goodwill to society, e.g. feeding program, housing projects, humanitarian aid
• Caroll's Pyramid Model


  • Presents society's expectations using a pyramid with four levels, shows the different responsibilities arranged hierarchically
• The Intersecting Circles Model


  • Presents the interconnection among the four domains, rejects the hierarchical arrangement, a CSR program can fall under two or more domains, the goal is to cater to multiple domains simultaneously
• The Concentric Circles Model


  • Views economic responsibility as the core social responsibility, the various components of CSR are interconnected with each other, corporate social responsibility is not a system of mutually exclusive elements; it is a system of inclusion
• Businesses are expected to act in a manner that benefits society, aside from their economic functions, they are required to perform social responsibilities
• The effectiveness of CSR programs can be assessed by weighing the costs and benefits it brings to the company and the society
• Social Benefit-Cost Framework 


  • deviates from the four elements that constitute CSR.
  • weighs the benefits and cost of a CSR program to the business owner and the society.
• The concentric circles model 


  • views economic responsibility as the core social responsibility
  • the various components of CSR are interconnected with each other
  • corporate social responsibility is not a system of mutually exclusive elements; it is a system of inclusion
• Corporate Social Responsibility (CSR)


  ● to guide businesses in understanding their role in society ● to refer to a business's more extensive obligations to society
• Corporate Social Responsibility (CSR)


  "the continuing commitment by businesses to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large” - World Business Council for Sustainable Development (WBCSD)
• CSR models

  • Caroll’s Pyramid Model
  • The Intersecting Circles Model
  • The Concentric Circles Model