Social Responsibility Framework

Vocabulary flashcards covering the definitions, frameworks, history, and key figures within the Social Responsibility Framework lecture notes.

Corporation

A legal entity created by an individual or group of shareholders who have ownership through shares of stocks; Monks and Minow ($2011$) define it as a structure established by law for the maximum benefit of parties contributing capital, expertise, and labor.

Corporate Social Responsibility (CSR)

A manifestation of good corporate governance representing the responsibility of companies to act ethically to satisfy stakeholder needs and ensure accountability to those their existence impacts.

Economic Responsibility

The dimension of Carroll's Pyramid of Corporate Social Responsibility that dictates a corporation must be profitable.

Legal Responsibility

The dimension of Carroll's Pyramid of Corporate Social Responsibility that dictates a corporation must obey the law.

Ethical Responsibility

The dimension of Carroll's Pyramid of Corporate Social Responsibility that dictates a corporation must be ethical.

Philanthropic Responsibility

The highest dimension of Carroll's Pyramid of Corporate Social Responsibility which encourages a corporation to be a good corporate citizen.

Howard Bowen ($1953$)

American Economist and educator whose seminal work on social responsibility officially introduced CSR in the early $1950$s and paved the way for academic research.

Milton Friedman ($1970$)

Economist who argued that the sole responsibility of corporations is to generate profit for shareholders and that government should provide for society’s needs.

Drivers of CSR

External and internal factors including regulations, market behavior, social activism, culture, and strategy.

Barriers of CSR

Factors that hinder CSR implementation, including limited financial resource, profit maximization, and availability of human resources.

Balanced Scorecard (Kaplan and Norton, $1996$)

An integrated strategic management system used for translating strategy into action, with quadrants defined by The Chartered Institute of Management Accountants ($2006$).

Triple Bottom Line

An accounting framework also called the three Ps (People, Planet, and Profit) that describes evaluation perspectives contributing to organizational value creation.

Individual Social Responsibility

As argued by Hudotan ($2009$), the principle that the individual, rather than corporations, acts as the catalyst for sustainable development and socio-political-economic influence.

Leadership in CSR

Based on concepts of service, integrity, and inspiration; according to Guarneri and Kao ($2008$), the relationship is mutually empowering and transforming.