csr = corporate social responsibility

key terms:

corporate social responsibility: the wider ethical responsibility of a business towards the community, the environment, etc

shareholders: a person who has invested money into a business in return for a share of the profit

stakeholders: the people who can be both positively n negatively affected by the actions of a business

warren buffett: “it take 20 years to build a reputation and five minutes to ruin it.”

dame anita ruddick: “the business of business should not be about money, it should be about responsibility. it should be about public good, not private greed.”

why do businesses take on corporate social responsibilities?

1. what positive motivations do businesses have to be socially responsible?

2. what factors are considered as ‘ethical’?

3. what are the negative reasons a business may have for pursuing corporate social responsibilities? Give an example

who are the stakeholders in a business?

• shareholders

• customers

• local community

• environment

• suppliers

• government

• employees

• management

utilitarian responses to CSR:

• key ideas:

  • consequence-based ethic focused on the greatest good

  • the greatest good could be interested in greatest profit but it could also be interested greatest good for people

• consequences for CSR:

  1. if the interest is in greatest profit, then this could lead to ruthless tactics to maximise income at all costs

  2. however, the greatest good principle would also mean that selfish interests would be overshadowed by the need to act in the interest of all stakeholders in the business eg employees, shareholders, customers, etc

  3. if this were applied fully, this would also extend to the interests of the local community, the national economy, the environment, etc