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Mgt 419 - Lecture Notes 9/5

Autor:   •  December 5, 2017  •  Course Note  •  555 Words (3 Pages)  •  101 Views

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MGT 419: Lecture Notes 9/5

Chapter 2:

Corporate Social Responsibility (CSR)

CSR- Managers need to consider the impact of the company’s actions on society.

  • Corporate Citizenship
  • Sustainability
  • Conscious Capitalism
  • Creating Social Value

CSR Timeline

Economic Model – organizations need to be financially viable to survive. Sometimes engaged in: philanthropy, community obligations and paternalism.

Legal Model – organizations need to follow the rules.  

Social Model – organizations need to consider in general when making decisions.

Stakeholder Model – organizations need to consider its impact upon individual stakeholders when making business decisions.

CSR Terminology

Corporate Social Responsibility -Emphasizes obligation and accountability

Corporate Social Responsiveness -Emphasizes action and activity

Corporate Social Performance -Emphasizes outcomes and results

“New” Concepts 

Corporate Citizenship (CC) - Views companies as citizens and all this implies

Corporate Responsibility (CR) - Broadly focuses on all categories of corporate responsibilities

Sustainability (Sus) - Emphasizes longer – term concern for people, planet and profits

Creating Shared Value (CSV) - Focuses upon how companies generate economic value in a way that produces value for society

Conscious Capitalism - “Mindful” business practices – higher purpose, stakeholders, conscious, leaders and conscious culture

Four Part Def. of CSR

Economic Expectations (Required) – Organizations effectively and efficiently produce what society needs at a fair price (drugs & dog food)

Legal Responsibilities (Required) – Obey rules and regulations (gray areas – taxes; quid pro quos)

Ethical Responsibilities (Expected) – Legal responsibilities deal with what organizations need to do; ethical issues are what organizations are supposed to do. (Apple and $246 billion in overseas accounts)

Philanthropic Responsibilities (Desired/expected) – Voluntary or discretionary actions that reflect current expectations of organizations by the public (Hurricane Harvey response)

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MGT 419 – 9/12/2017

CSR Exemplar Firms

  • Social Entrepreneurship
  • Social Intrapreneurship
  • Mainstream Adopters

Arguments against CSR

  • Classical economics
  • Business not equipped
  • Dilutes business purpose
  • Businesses have too much power already

Arguments for CSR

  • Enlightened self-interest
  • Warding off government regulations
  • Better resources available
  • Proaction better than reaction
  • Public support

Business Case for CSR

  • Defensive Approach
  • Cost- benefit approach
  • Strategic approach
  • Innovation and learning approach

Chapter 3 – Stakeholders

View of the Firm

“Production” View

  • Focused on who supplied raw materials and who bought outputs

Managerial view of the firm

  • Included owners and employees

“Stakeholder” view of the firm 

Types of Stakes

  • Included all segments affected by the firm (i.e. social, economic, political)

An interest

  • If an organization does something, does it affect me directly or indirectly?

A right

  • If an organization does something that affects my ability to pursue “life, liberty, or the pursuit of happiness?” (Houston zoning regulations; fossil fuel plant emissions).


  • Do I hold a share of the organization? (Direct ownership/mutual fund ownership).

Types of Stakeholders

Primary Social Stakeholders


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