BUSINESS ETHICS AND SOCIAL RESPONSIBIOITY.CSR.pptx

BUSINESS ETHICS

1. The Different Models and Frameworks of Social Responsibility

2. Corporate Social Responsibility (CSR) is a term used to describe a company’s obligation to be sensitive to the needs of all the stakeholders in its business operations. These includes the following; owners, investors, suppliers, customers, employees and community. The “community” stakeholder may include the government and environment that the companies operate in. For companies with business investments in different countries, the “communities” take account of a variety of governments and environments.

3. There are 4 models of Corporate Social Responsibility I. Economic Model Profit-Based Social Responsibility aka Economic Model: Milton Friedman's 1970 New York Times article "The Social Responsibility of Business Is to Increase Its Profits" is perhaps best known as an argument for this profit-based social responsibility of business. Economic Model of CSR: holds that business' sole duty is simply to fulfill the economic functions businesses were designed to serve.

4. There are 4 models of Corporate Social Responsibility II. Philanthropic Model Philanthropic Model: like individuals, business is free to contribute to social causes as a matter of philanthropy. This approach is especially common in small locally-owned business where the owners also often play a prominent leadership role within their local community. There are occasions in which charity work is done because it brings the firm good public relations, provides a helpful tax deduction, and builds good will and a good reputation within a community.

5. There are 4 models of Corporate Social Responsibility 3. Social Web Model (Ethical) - It projects business as a citizen of the society in which it functions as such. Just like all members of a society business must obey to the normal ethical duties that every citizen of the community faces. It is the duty of the corporation to comply with the law of the community.

6. There are 4 models of Corporate Social Responsibility 4. Integrative Model –There is combination of social goals with economic objectives of the organization. Most of the successful corporations have recognized that some for-profit organizations also have social goals as a fundamental part of the organizational strategy.

7. Step by step creation of a social responsibility framework for a sound business practice. TASK 1 Conduct an Assessment A logical first step is to gather and examine relevant information about the firm’s products, services, decision-making processes and activities to determine where the firm currently is with respect to CSR activity and to locate its ‘pressure points’ for CSR action.

8. TASK 2 Develop a Strategy The CSR assessment generates a base of information the firm can use to develop a CSR strategy. A strategy is a road map for moving ahead on CSR issues. It sets the firm’s direction and scope over the long term with regard to CSR. It allows the firm to be successful by using its resources within its unique environment to meet market needs and fulfill stakeholder’s expectations.

9. TASK 2 Develop a Strategy A good strategy identifies the following: • overall direction for where the firm wants to take its CSR work • the stakeholders and their perspectives and interests • a basic approach for moving ahead • specific priority areas • a timeline for action, responsible staff, and immediate next steps • a process for reviewing and assuring outcomes

10. TASK 3 Develop Commitments Commitments are policies or instruments a firm develops or signs on to that indicate what the firm intends to do to address its social and environmental impacts. CSR commitments flow from the CSR assessment and strategy.

11. TASK 3 Develop Commitments These commitments are developed at the point when a firm moves from planning to doing namely: • They ensure that the firm’s corporate culture is consistent with CSR values. • They help align and integrate the firm’s business strategy, objectives and goals. • They provide guidance to employees about how they should conduct themselves. • They communicate the firm’s CSR approach to business partners, suppliers, communities, governments, the general public and others.

12. TASK 4 Implement Commitments Implementation refers to the day-to-day decisions, processes, practices and activities that ensure the firm meets the spirit of its CSR commitments thereby carries out its CSR strategy. If CSR commitments can be called ‘talking the talk,’ then implementation is ‘walking the walk.’

13. TASK 5 Report and Verify Progress Reporting is communicating with stakeholders about a firm’s management and performance of economic, environmental and social aspects. When done well, reporting should address how societal trends are affecting a firm and, in turn, how the firm’s operations are affecting society. As such, reporting can demonstrate a company’s motivation and willingness to position itself in a broader context. There is a delicate balance between providing sufficient information, to be open and transparent, and giving excessive data that burdens employees and stakeholders. The objective is to share information with stakeholders to gain their trust and be viewed as credible.

14. TASK 6 Evaluation and Improve An evaluation tracks the overall progress of a firm’s CSR approach and forms the basis for improvement and modification. With the information derived from verification and reporting, a firm is in a good position to rethink its current approaches and make adjustments. Evaluation is all about learning. Learning organizations are those whose existence is based on continuous receipt and review of new information and adaptation for sustainable advantage.

15. TASK 6 Evaluation and Improve An evaluation should involve stakeholder engagement, including comments and suggestions from management, CSR coordinators, managers and committees, employees and outside stakeholders.