Lesson 4: Corporate Social Responsibility

• Corporate Social Responsibility - Management’s obligation to make choices and take actions that will contribute to the welfare and interests of society as well as the organization 
• Corporate Social Responsibility An organization’s self-regulated actions to benefit society or the environment beyond what is required by the law
• Corporate Social Responsibility - A business’s intention, beyond its legal and economic obligations, to do the right things and act in ways that are good for society.
• • Social obligation is when a firm engages in social actions because of its obligation to meet certain economic and legal responsibilities.
• Social responsiveness - is when a company engages in social actions in response to some popular / pressing social need. 
• Social responsibility - as a business’s intention, beyond its legal and economic obligations, to do the right things and act in ways that are good for society.
• Equal Opportunity

  • People are entitled to job opportunities without regard to non-performance related factors such as race, religion, color, political beliefs, or sex.
  • They are entitled to salaries equal to those of others doing the same work under the same conditions
• Ecology

  • Refers to the relationship between a business firm and the environment to which it operates. Business enterprises must see to it that they do not disturb the balance of nature where their business is located.
• Consumerism

  • Advertising claims
  • Pricing policies fair and consistent to all
  • Product safety, product and service warranties and others.
• • Social - it refers to the improvement of the social life of the people in a community. (health and sanitation, waste disposal, and education)
• • Political - government policies can influence business relationship with the public. Business should cooperate with some of the plans regarding the alleviation of poverty, housing problem, etc.
• Economics - the area of concern includes the upliftment of the condition of the community where business operates.
• Cultural - business can help to preserve culture and promote cultural pursuits of both amateur and professional artists.
• Social contract - unwritten agreement
• Howard Bowen - coined the term Corporate Social Responsibility / Father of CSR
• Andrew Carnegie & John D. Rockefeller - rise of philanthropy
• 1800s - birth of responsible organizations
• Economic and legal responsibility - SOCIAL OBLIGATION
• Welfare of the society as a whole - SOCIAL RESPONSIBILITY 
• Pressing social need - SOCIAL RESPONSIVENESS
• Philanthropy - DISCRETIONARY RESPONSIBILITY
• Environment - ECOLOGY
• Product safety - CONSUMERISM
• Product warranty and guarantee - CONSUMERISM
• Consumer rights - CONSUMERISM
• Just and impartial employee treatment - EQUAL OPPORTUNITY
• Ethics is the code of moral principles and values that governs the behavior of a person or group with respect to what is right or wrong.