CORPORATE SOCIAL

RESPONSIBILITY (CSR) AND

ETHICS
Definitions and Relationships
Corporate social responsibility (CSR) is the
process by which businesses negotiate their role in
society
In the business world, ethics is the study of
morally appropriate behaviors and decisions,
examining what "should be done
Although the two are linked in most firms, CSR
activities are no guarantee of ethical behavior
Reasons for CSR Activities
CSR activities are important to and even
expected by the public
And they are easily monitored worldwide
CSR activities help organizations hire and
retain the people they want
CSR activities contribute to business
performance

Situation in which a business
decision may be influenced
for personal gain.
Employees disclosure
of illegal, immoral, or
unethical practices in
the organization.
Telling the truth and
adhering to deeply felt
ethical principles in
business decisions.
Businesspeople expect
employees to be loyal
and truthful, but ethical
conflicts may arise.
Code of Conduct Formal
statement that defines
how the organization
expects and requires
employees to resolve
ethical questions.
Codes of conduct cannot
detail a solution for every
ethical situation, so
corporations provide
training in ethical
reasoning.
 Helping employees
recognize and reason
through ethical problems
and turning them into
ethical actions.
 Executives must
demonstrate ethical
behavior in their
actions.
 Public Health Issues. What to do about inherently dangerous products
such as alcohol, tobacco, vaccines, and steroids.
Protecting the Environment. Using resources efficiently, minimizing
pollution.
Recycling. Reprocessing used materials for reuse.
Developing the Quality of the Workforce. Enhancing quality of the
overall workforce through education and diversity initiatives.
Corporate Philanthropy. Cash contributions, donations of equipment
and products, and supporting the volunteer efforts of company
employees.
 Workplace Safety. Monitored by Occupational Safety and Health
Administration.
Quality-of-Life Issues. Balancing work and family through flexible
work schedules, subsidized child care, and regulation such as the Family
and Medical Leave Act of 1993.
Ensuring Equal Opportunity on the Job. Providing equal opportunities
to all employees without discrimination; many aspects regulated by law.
Age Discrimination. Age Discrimination in Employment Act of 1968
protects workers age 40 or older.
Sexual Harassment and Sexism. Avoiding unwelcome actions of a
sexual nature; equal pay for equal work without regard to gender.
 The Right to Be Safe. Safe operation of products, avoiding
product liability.
The Right to Be Informed. Avoiding false or misleading
advertising and providing effective customer service.
The Right to Choose. Ability of consumers to choose the
products and services they want.
The Right to Be Heard. Ability of consumers to
express legitimate complaints to the appropriate parties.
CSR are Grounded by Opposing Objectives
(Maximize Profits to Balance Profits with Social
Responsibility) and so Activities Range Widely

Do what it takes to make a profit; skirt the law; fly below

social radar
Fight CSR initiatives
Comply with legal requirements
Do more than legally required, e.g., philanthropy
Articulate social (CSR) objectives
Integrate social objectives and business goals
Lead the industry on social objectives
Businesses CSR Activities
Philanthropy
give money or time or in kind to charity
Integrative philanthropyselect beneficiaries aligned
with company interests
Philanthropy will not enhance corporate reputation
if a company
fails to live up to its philanthropic image or
if consumers perceive philanthropy to be manipulative
Integrate CSR Globally
Incorporate values to make it part of an
articulated belief system
Act worldwide on those values
Cause-related marketing
Cause-based cross sector partnerships
Engage with stakeholders
Primary stakeholders
Secondary stakeholders
Business Ethics Development
The cultural context influences
organizational ethics
Top managers also influence ethics
The combined influence of culture and top
management influence organizational ethics
and ethical behaviors
The Evolving Context for Ethics
From domestic where ethics are shared
To international where ethics are not shared
when companies:
Make assumptions that ethics are the same
Ethical absolutismthey adapt to us
Ethical relativismwe adapt to them
To global which requires an integrative
approach to ethics
Emergence of a Global
Business Ethic
Growing sense that responsibility for righting
social wrongs belongs to all organizations
Growing business need for integrative
mechanisms such as ethics
Ethics reduce operating uncertainties
Voluntary guidelines avoid government impositions
Ethical conduct is needed in an increasingly
interdependent worldeveryone in the same game
Companies wish to avoid problems and/or be good
public citizens
Ways Companies Integrate Ethics

Top management commitment in word and

deed
Company codes of ethics
Supply chain codes
Develop, monitor, enforce ethical behavior
Seek external assistance
External Assistance with Ethics

Industry or professional codes

Certification programs, e.g., ISO 9000
Adopt/follow global codes
Caux Round Table Principles
Reasons for Businesses to Engage in
Development of a Global Code of
Business Ethics
Create the same opportunity for all businesses if
there are common rules
Level the playing field
They are needed in an interconnected world
They reduce operating uncertainties
If businesses dont collaborate, they may not like
what others develop
Four Challenges to a Global
Ethics
Global rules emerge from negotiations and will
reflect values of the strong
Global rules may be viewed as an end rather than
a beginning
Rules can depress innovation and creativity
Rules are static but globalization is dynamic
Thanks and all the best
Happy studying