Module 5

• Corporate Social Responsibility

  Practices and activities that business organizations adopt in the course of their operations which have social and environmental impacts and relevance
• More than making a profit, a business organization has a responsibility to society
• 3 social responsibilities of business organization

  • Duty not to cause harm to others
  • Responsibility to prevent harm at all cost
  • Responsibility to do good
• Duty not to cause harm to others

  It is the company's responsibility NOT to cause harm to a property or a person
• Responsibility to prevent harm at all cost

  A company's ethical responsibility to prevent harm from happening. This is often referred to as the DUTY OF CARE of an organization
• Responsibility to do good

  Making the society a better place, Providing solutions to social issues, Giving support to education, arts, and culture
• Models of Corporate Social Responsibility

  • Economic
  • Philanthropic
  • Social Web
  • Integrative
• Economic model


  • Reason of existence is to respond to the demands of the market by providing products or services and to earn profits for its shareholders
  • The society benefits from the success of business organizations which are indirectly fulfilling their social responsibility by contributing to the growth of the economy and by providing jobs to more people as they grow and expand
• Philanthropic model


  • Describes the free will of business organizations to contribute to social causes as a matter of philanthropy
  • Positive Publicity while providing their stakeholders the chance to participate in the activities
  • Earn tax holidays and deductions
  • Not seeking any reputational benefit
• Social Web model

  • Stakeholders theory
  • Every business decision has an impact on a wide variety of people, that is, providing benefits to some and imposing costs on others
  • According to R. Edward Freeman, the stakeholder theory addresses morals and values in managing a business, with the consideration of the stakeholders' interest
• Integrative model

  • Social entrep + sustainability = social enterprise
  • A for profit business organization that seeks to social issues
  • Brings model and fully integrates economic and social goals
• Corporate Social Responsibility = Good Business Sense