This document discusses corporate social responsibility and ethics. It defines corporate social responsibility as what organizations do to influence society, such as volunteer programs. It provides examples of socially responsible practices like hiring ex-convicts and homeless people and donating profits to charity. The document also discusses the changing views of social responsibility over time and debates between thinkers like Andrew Carnegie who advocated for social stewardship and Milton Friedman who argued that the only social responsibility of business is to increase profits. It describes approaches like corporate social responsiveness and performance and how ethics and social issues should be incorporated into business decision making.

1. Chapter 4

3. Corporate Social Responsibility
Corporate Social Responsibility
What an organization does to influence the
What an organization does to influence the
society in which ititexists, such as through
society in which exists, such as through
volunteer assistance program
volunteer assistance program

4. Ethics
The study of rights
and of who is – or
should be- benefited
or harmed by an
action.

5. Sample Practices of Corporate Social Responsibility and Ethics
Hires ex- convicts
Hires homeless people
Donates all profits of Newman's Own
Food to charity

6. The Changing Concept of Social Responsibility
The muckcrakers exposes of corrupt business practices
Government‘s provision of some ground rules for managers

7. Different Views on Social Responsibility
1. Andrew Carnegie‘s The Gospel of Wealth
Charity Principle
Stewardship
Principle
Doctrine of social responsibility
requiring more fortunate individuals
to assist less fortunate members of
society.
Derived from bible which requires
businesses and wealthy individuals
to view themselves as stewards or
caretakers of their property

9. 2. Milton Friedman‘s Argument
There is only one social responsibility of
business: to use its resources and energy in
activities designed to increase its profits so long
as it stays within the rules of the game and
engages in open and free competition without
deception and fraud.
Businesses should produce goods and services efficiently and leave the
solution of social problems to concerned individuals and government
agencies.

10. Enlightened Self-interest
Organizations realization that it is in their best
interest to act in ways that the community
considers socially responsible.
Corporate Social
Responsiveness
A theory of social responsibility that focuses on how
companies respond to issues, rather than trying to
determine their ultimate social responsibility.
Corporate Social
Performance
A single theory of corporate social action
encompassing social principles, processes and
policies.

11. Application of Social Performance on Decision Making Processes and Policies

12. The Shift to Ethics
Ethics- the study of how our decisions affect other people.
- It is also the study of people‘s rights
and duties, the moral rules that
people apply in making decisions, and the nature of the
relationship among people.

13. 4 Levels of Ethical Questions in Business

14. Tools of Ethics
The key terms of ethical language: VALUES, RIGHTS, DUTIES,RULES, and
RELATIONSHIP
Values-
relatively
permanent desires that seem to
be good in themselves. It is the
answer to the WHY questions.
Moral Rules- guide us
through situations where
competing interests collide. They
are the tie breakers – guidelines
that can resolve disagreement.
Human relationship-
Right-
claims that entitle a
person. It is also known as the
person‘s SPHERE OF
AUTONOMY
Duty-
an obligation to take
specific steps e.g. pay taxes,
obey the law…
every human being is connected to
others in a web of relationship.

15. Common Morality

16. Morality of Care
Recent theories such as Gilligan and Nell Noddings have argues that common moralitythe morality rules of justice- is only one perspective for reasoning about morality.
They have suggested an alternative model called THE ETHICS OF CARE.
Gilligan proposes that there are
strands of moral theory:
Justice and Care Perspectives

17. Institutionalizing Ethics
CEOs do not have to confront
ethical problems in vacuum. Instead
they can institutionalize the process.
Ways of INSTITUTIONALIZING
ETHICS: corporate code of
conducts, ethics committees,
ombudsman offices, judicial board,
ethics training programs, and social
audit
Social Audit- report describing
company activities in a given
area of social interest, such as
environmental protection,
workplace safety, or community
involvement.

18. Challenge of Relativism
There are any versions of moral relativism, but all of them
hold that we cannot
decide matters of:
right and wrong, good and evil, in any
NAÏVE RELATIVISM- idea that all
human beings are themselves the
standard by which their action should
be judged. Ethical decisions are
personal.
CULTURAL RELATIVISM- the idea
that morality is relative to a particular
culture, society, or community.
It tells us to try to understand.
rational way.