CORPORATE SOCIAL

RESPONSIBILITY (CSR)

The notion that corporation

have an obligation to constituent
groups in society other than
stockholders and beyond that
prescribed by law or union
contract.
(Prin.
Of
Mgnt.Cassidy/Kreitner)

THEORIES OF SOCIAL
RESPONSIBILITY
1)

Economic Model. Traditional

concept of business. Business
has done its social by satisfying
the needs of the consumers,
creating jobs and by paying
taxes to the government.

2)

Socio-economic
ModelBusinessmen
have
their
responsibility to stockholders as well
as to their employees, customers,
suppliers and the general public.
Since it is a creation of society, and
that it conducts business in the
community, the enterprise has social
responsibility to share its earned
resources with the needs of society.

There is only one

social responsibility of business to
use its resources and engage in
activities designed for profit so long
as it stays within the rules of the
game.

3) Classical Model

FIGURE 4.1: CARROLLS CORPORATE

GLOBAL SOCIAL RESPONSIBILITY PYRAMID

Global Corporation Should:

Make a profit
Obey the law
Be ethical in its practices
Be a good corporate citizen

ARGUMENTS FOR CSR

Business is unavoidably involved in social
issues.
- business cannot and should not ignore social
problems because it is part of society.
Business has the resources to tackle todays
complex societal problems.
- it has symbiotic relationship with society.

A better society means a better environment.

- Business can earn more profits in the ling run by
helping eliminate or reduce social problems.
Corporate social action will prevent government
intervention.
- business can expect less government intervention if it
performs social responsibility.

ARGUMENT AGAINST CSR

Business managers are primarily responsible to
stockholders. Thus, their job is to earn profit to
their investors.
The resources of the enterprise time, money,
and talent should be used to maximize profit
not to solve the problems of society.

The effects of social problems on society is very

general. Business should not be expected to solve such
problems.
Social problems are responsibility of the government
officials. They were elected basically to solve social
problems. This is their fundamental responsibility to
the voters

SOCIAL RESPONSIBILITY TO
CONSUMERS
The right to safety. product are safe for
intended use, tested, clear and complete
instruction for their proper use.
The
right to be informed. Detailed
information about its use and ingredients.
The right to choose. Policy of the govt. to
encourage competition among sellers so that
consumers can choose the best product.

The right to be heard. This is based on the

concept the consumer is always right. Good
business enterprises have their customer
relations department to act on the consumers
complaints.

OTHER SOCIAL RESPONSIBILITIES

Employment
Education and Training
Community Development

References:
Principles of Management 12th edition by:
Cassidy/ Kreitner
Entrepreneurship by: F.R. Fajardo