MGT211 - Review of CSR

CSR stands for:

• Common Social Recommendations

• Corporate Social Responsibility

• Creative Society Recommendations

• Corporation Society Responsibility

A Corporation cannot:

• Live on beyond the natural life of its founders

• Own property

• Borrow money

• Ignore its economic responsibilities

Why is it difficult to hold companies morally accountable?

• They are made up of many individuals which diffuses responsibility

• They are legal agents only

• They hold the same status in society as human being

• They can enter into contracts

The narrow view of CSR is mainly concerned with:

• The environment

• Human rights

• Profit

• Supporting charities

The broad view of CSR is mainly concerned with:

• The social contract

• Profit

• The environment

• Legal responsibilities

The Invisible Hand is a theory that says:

• Businesses that behave selfishly benefit society

• Businesses should share their profits with the community

• Governments should control businesses

• Business does not understand ethics

One argument for the narrow view is:

• Corporations should serve society

• Corporations are a human creation

• Corporations are more powerful than the Government

• Corporations lack expertise in ethics

One argument for the broad view of CSR is:

• If corporations stray from purely economic matters, they will impose their values on society.

• Corporations should not be held morally responsible for non-economic matters

• Since society allows businesses to operate, and to use ‘free’ resources such as clean air and water, business has a responsibility not to harm society

• Corporations are profit-oriented, and will profit themselves while impoverishing society.

What does the narrow view say about company shareholders?

• Companies should be run entirely for the benefit of their shareholders

• Companies have a responsibility to all stakeholders affected by their actions - not just shareholders

• Companies can choose whether or not to benefit shareholders

• Managers and CEOs are more important than shareholders

What does the broad view say about company shareholders?

• Companies should be run entirely for the benefit of their shareholders

• Companies have a responsibility to all stakeholders affected by their actions - not just shareholders

• Companies can choose whether or not to benefit shareholders

• Managers and CEOs are more important than shareholders