Business

Ethics
CSR - C

J. Oloba Z.
+256-785552288
Slide Outline
• CSR: Evolving Viewpoints
• Models of CSR
• Pyramid of CSR
• Fundamentals of CSR
• Dahlsrud’s dimensions
• Four Pillars of CSR
• The CSR Equation
• CSR: Main Objective
• Response to Petia!
• Response to Hillary!
Traditional View of CSR
Business allegations…
 Little concern for the consumer
 Cares nothing about the deteriorating
social order
 Has no concept of acceptable ethical
behavior
 Indifferent to the problems of minorities
and the environment

What responsibility does business have to society?

Acceptance and Broadening of Meaning

From the 1950’s to the present, the concept

of CSR has gained considerable acceptance
and the meaning has been broadened to
include specific issues, such as:
– corporate governance
– product safety
– honesty in advertising
– employee rights
– affirmative action
– environmental sustainability
– ethical behavior
– global CSR
CSR: Evolving Viewpoints
1. CSR considers the impact of
the company’s actions on
society.

2. CSR requires decision makers

to take actions that protect
and improve the welfare of
society as a whole along with
their own interests.
CSR: Evolving Viewpoints
3. CSR supposes that the
corporation has not only
economic and legal obligations,
but also certain responsibilities
to society which extend beyond
these obligations.
CSR: Evolving Viewpoints
4. CSR relates primarily to achieving
outcomes from organizational
decisions concerning specific issues
or problems which (by some
normative standard) have beneficial
rather than adverse effects upon
pertinent corporate stakeholders.

5. The normative correctness of the

products of corporate action have
been the main focus of CSR.
8
Models of CSR
• There are many!

• Carroll, Archie B. (1979): pyramid of

corporate social performance, the
most cited of all CSR models

• Dahlsrud (2008): five dimensions of

CSR

9
Carroll’s pyramid
• Four areas:
- Economic
- Legal
- Ethical
- Philanthropic
10
Carroll’s pyramid
 Fundamentals Value
Sustainability &
of CSR Innovation
Resources Effort:
• Min. Op Impact/Risks
Risk
• External relationships Management
Legal or Compliance

Philanthropy (Corporate Social Responsibility

Forum:Keeping it Private, 2011)
Funding or Skills

Ethical
(Expected)
Laws/Regulations
Legal Reflects society
values/norms
(Required) Laws and Regulations

(Carroll, 1991)
Economic
(Required)
CSR in Equation Form Is the Sum of:

• Economic Responsibilities
– (Make a profit)
• Legal Responsibilities
– (Obey the law)
• Ethical Responsibilities
– (Be ethical)
• Philanthropic Responsibilities
– (Good corporate citizen)
The CSR Equation

Economic Responsibilities
+
Legal Responsibilities
Total
+ =
Ethical Responsibilities CSR
+
Philanthropic Responsibilities
Dahlsrud’s dimensions
Alexander Dahlsrud
(2008) reviewed
several definitions of
CSR in order to
identify the areas in
which CSR reached,
finding five
dimensions:
- Environmental
- Social
- Economic
- Stakeholder
- Voluntariness
Four Pillars of CSR
• Human Rights
• Labour
• Environment
• Anti-Corruption (Corporate
Governance)

(Corporate Social Responsibility Forum: Keeping it Private, 2011)

 CSR:
Business Responsibilities in the 21st Century
• Demonstrate a commitment to society’s
values and contribute to society’s social,
environmental, and economic goals through
action.

• Insulate society from the negative impacts of

company operations, products and services.

• Share benefits of company activities with key

stakeholders as well as with shareholders.

• Demonstrate that the company can make

more money by doing the right thing.
 CSR: Main Objective

Shared
Value

Corporate
Performance

Porter (2011)
Response to Pitia!
• Zadek (2004): shift from looking at CSR as
managing risk to its role in creating value
• Davis (1960) highlighted that short-term costs
may lead to long-term gains.
• How?
– Reducing emissions – efficient (cheaper) supply chains
– Employee retention – reduced recruitment and training
costs
– Customer loyalty as result of CSR

…but once CSR becomes a profit gaining activity

does it cease to become CSR?
Response to Hillary!
Large corporations – small business!
• CSR causes implementation issues because one
size does not fit all.

• Large corporations: standardisation and

formulation

• Smaller business: organic structure, looser and

informal.

…this leads to significant differences in CSR

approach
Response to Hillary!
Large corporations – small business!
• Large corporations often have a CSR
policy which is developed at board level
and implemented from the top down.

• CSR in smaller businesses often seen as

an additional activity (Jenkins, 2004;
Schaper & Savery, 2004).

• Academic research is dominated by

analysis of CSR in larger organizations
Pitia Cont… A social contract?
• Foundations of CSR and corporate governance as
old as the history of business (Bolton, Kim &
O’Gorman, 2011).

• CSR and corporate governance central to

managing the contemporary relationship
between business and society

• CSR and corporate governance mutually

beneficial and can add value to companies whilst
maintaining a good relationship with society
(Harjoto & Jo, 2011; Jo & Harjoto, 2011)
Conclusion
Enterprises or firms responsibility and
opportunity is to go further than just
making profit by involving all stakeholders.

This includes thinking in Long-term, which

is and added value for any Strategy within a
company

WIN-WIN

STRATEGY/VALUES
Easy Life!