CSR

CSR - Corporate Social Responsibility

Socially responsible businesses are those that act morally towards their stakeholders

3 Broad Views About Delivering CSR

1. The Self Interest (non-compliance) attitude

2. Altruistic Attitude

3. Strategic Attitude

The Self Interest (non-compliance) Attitude

• The role of business is to generate profit

• Government, not business, are responsible for sorting out social problems

• In the pursuit of profit - businesses creates jobs, wealth, therefore help society intellectually

Altruistic Attitude

• Humanitarian and unselfish behaviour

• Altruistic businesses do what they can to improve society

• Willingly donate money (e.x. charity, non-profit, social enterprise)

• Invest in community projects, regardless of whether it creates profit

Strategic Attitude

• Businesses ought to be socially responsible only if such actions help them to become more profitable

• Method of long term growth

Advantages of Acting Ethically

1. Improve corporate image

2. Increase customer loyalty

3. Improve staff moral/motivation

4. Cost cutting

Disadvantage of Acting Ethically

1. Lower profits

2. Compliance costs

3. Stakeholder conflict

4. CSR + Ethics are subjective