Business ethics (3.6)

• Businesses ponder whether corporate social responsibility programs are good or bad for business.

  - Does it help increase profits?

  - Does it help expand market share?

  - Does it help establish customer relationships?
• Companies who commit to social responsibility believes that the benefits they give society will eventually lead to business growth and success.
• Businesses have obligations to their internal and external stakeholders. Stakeholders directly and indirectly affect business operations.
• What businesses take

  • Human, technological, and cultural resources
• What businesses should give back

  • Socioeconomic development
• What businesses receive in return

  • Customer and collaborator relationships
  • Product positioning
  • Employee engagement
• Corporate Philanthropy


  The voluntary giving of money and other resources by businesses to their communities
• Corporate philanthropy is generally welcomed by the community as long as it does not contradict community values and cultures.
• Corporate Citizenship


  How businesses fulfill their ethical, legal, and economic obligations, from bare minimum to going beyond
• Corporate citizenship balances the needs of the shareholders and those of the community to which the enterprise belongs.
• Corporate Citizenship Stages

  • Elementary Stage
  • Engagement Stage
  • Innovative Stage
  • Integrated Stage
  • Transforming Stage
• Corporate Social Responsibility (CSR)


  The business's extensive and overall obligations to society, comprehensive framework to contribute meaningfully to socioeconomic development
• Regardless of each enterprise's motivation for doing CSR programs, the positive impact of CSR is encouraging.
• Impact of CSR on Business

  • Employees' motivation
  • Social value
  • Brand recognition and reputation
  • Shareholder's orientation
  • Relationship with government
• Practicing social responsibility incurs costs to businesses. They must allocate significant financial, human, and material resources to fulfill their ethical, legal, economic, and social obligations. Thus, many companies consider how much they intend to give back to society.
• Business giving can take many forms. Among these are corporate philanthropy, corporate citizenship, and corporate social responsibility.
• Practicing social responsibility makes good business sense. It is not always true that CSR is expenses without benefits. An effective CSR program can shift the shareholder's orientation, increase employee motivation, support brand recognition and reputation, strengthen the relationship with the government, and create social value.
• Social Responsibility as Good Business Sense


  Businesses ponder whether corporate social responsibility programs are good or bad for business. - Does it help increase profits? - Does it help expand market share? - Does it help establish customer relationships?
• Social Responsibility as Good Business Sense


  Businesses have obligations to their internal and external stakeholders. ○ Stakeholders directly and indirectly affect business operations
• What businesses take

  Human, technological, and cultural resources
• What businesses

  should give back

  Socioeconomic development
• What businesses receive in return

  ● customer and collaborator relationships ● product positioning ● employee engagement
• Corporate Citizenship Stages

  • Elementary
  • Engagement
  • Innovative
  • Integrated
  • Transforming stage
• Elementary Stage


  ● following all laws and regulations ● having not enough time and assets to advance their social involvement
• Engagement stage


  going beyond primary obligations (e.g., improving employees’ conditions and welfare)
• Innovative stage

  ● extending beyond the internal stakeholders ● maintaining profitability
• Integrated stage


  blends social activities fluidly into the business's operations
• Transforming stage


  ● When economic and social involvement is a normal part of a company's daily operations in this stage
• Corporate Social Responsibility

  ● the business's extensive and overall obligations to society ● comprehensive framework to contribute meaningfully to socioeconomic development

  ● promoting economic development and social progress ● practice of self-regulation, fairness, accountability, and stewardship
• CSR has positive effects on

  • Shareholders’ Orientation
  • Employees’ Motivation
  • Brand Recognition and Reputation
  • Relationship with the Government
  • Social Value
• CSR positive effect