Assignment 6 Granth
Drgraham27
W6Lecture.pptx
Corporate Social Responsibility
Key Take A Ways
Dr. Gregory Pace
Planning Ahead — Key Takeaways
Discuss social responsibility and corporate governance.
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Social Responsibility
Stakeholder Management
Stakeholders: persons, groups, and other organizations directly affected by the behavior of the organization and holding a stake in its performance.
Stakeholder power: the capacity of the stakeholder to positively or negatively affect the operations of the organization.
Demand legitimacy: the validity and legitimacy of a stakeholder’s interest in the organization.
Issue urgency: the extent to which a stakeholder’s concerns need immediate attention.
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Figure 3.4: The Many Stakeholders of Organizations
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Social Responsibility
Corporate social responsibility and governance:
Looks at ethical issues on the organization level.
Obligates organizations to act in ways that serve both its own interests and the interests of society at large.
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Social Responsibility
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Stewardship
Taking personal responsibility to always respect and protect the interests of society at large
Sustainability:
acting in ways that support a high quality of life for present and future generations
Alternative energy
Recycling
Waste avoidance
Triple bottom line
evaluates organizational performance on economic, social, and environmental criteria
3 P’s of organizational performance – profit, people, and planet
Social Responsibility
Perspectives on social responsibility:
Classical view
Management’s only responsibility is to maximize profits.
Socioeconomic view
Management must be concerned for the broader social welfare, not just profits.
Shared value view
Approaches business decisions with the understanding that economic and social progress are interconnected
Virtuous circle-socially responsible behavior improves financial performance which leads to more responsible behavior
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Social Responsibility
Arguments against social responsibility:
Reduced business profits
Higher business costs
Dilution of business purpose
Too much social power for business
Lack of public accountability
Arguments in favor of social responsibility:
Adds long-run profits
Improved public image
Avoids more government regulation
Businesses have resources and ethical obligation
Four strategies of corporate social responsibility—from obstructionist to proactive behavior.
Social Responsibility
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Corporate governance:
The oversight of the top management of an organization by a board of directors.
Corporate governance involves:
Hiring, firing, and compensating the CEO.
Assessing strategy.
Verifying financial records.
How government influences organizations:
Businesses required by law to have boards of directors that are elected by stockholders
Figure 3.6: Ethics Self-governance in Leadership and the Managerial Role
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