Journal QuestionJournal Question Why is it important to practice ethical Why is it important to practice ethical

behaviour at the workplace?behaviour at the workplace?

Social ResponsibilitySocial Responsibility

What is social responsibility?What is social responsibility?

When organizations act in ways that serve When organizations act in ways that serve their own interests and the interests of their own interests and the interests of society. society.

A socially responsible business provides A socially responsible business provides goods and services in line with society’s goods and services in line with society’s valuesvalues

Social ResponsibilitySocial Responsibility Perspectives on social responsibility:Perspectives on social responsibility:

Classical viewClassical view—— Management’s only responsibility is to maximize Management’s only responsibility is to maximize

profits.profits.

Socioeconomic viewSocioeconomic view—— Management must be concerned for the broader Management must be concerned for the broader

social welfare, not just profits.social welfare, not just profits.

CSR CompaniesCSR Companies Believe that it is important for businesses Believe that it is important for businesses

to be socially responsible to their to be socially responsible to their employees, customers and communitiesemployees, customers and communities

CSR – Corporate Social Responsibility - CSR – Corporate Social Responsibility - companies generally follow the following companies generally follow the following 6 principles6 principles

6 - CSR Principles6 - CSR Principles

1. Provide a safe and healthy work 1. Provide a safe and healthy work environmentenvironment

some business offer employee some business offer employee wellness programs (gym wellness programs (gym memberships, fitness breaks etc.)memberships, fitness breaks etc.)

6 - CSR Principles6 - CSR Principles

22. Adopt fair labour policies. Adopt fair labour policies

offer to pay more than minimum offer to pay more than minimum wage or offer employees flexible wage or offer employees flexible work scheduleswork schedules

6 - CSR Principles6 - CSR Principles 3. 3. Protect the environmentProtect the environment

a business could fund a business could fund environmental program or make environmental program or make their business operation as their business operation as environmentally friendly as environmentally friendly as possiblepossible

6 - CSR Principles6 - CSR Principles

4. Being truthful in advertising4. Being truthful in advertising

business should ensure that business should ensure that advertising does not contain advertising does not contain inaccurate or deceptive inaccurate or deceptive statements/illustrationsstatements/illustrations

6 - CSR Principles6 - CSR Principles

55. Avoid price discrimination. Avoid price discrimination

A business could base its pricing A business could base its pricing structure on one price, such as structure on one price, such as MSRPMSRP

6 - CSR Principles6 - CSR Principles 6. Donate to Charity6. Donate to Charity

Businesses can sponsor charities and Businesses can sponsor charities and encourage employees to get involved as encourage employees to get involved as wellwell

Arguments for social Arguments for social responsibility:responsibility:

Adds long-run profitsAdds long-run profits Improved public imageImproved public image Avoids more government Avoids more government

regulationregulation Businesses have the resources Businesses have the resources

and ethical obligationand ethical obligation

Arguments against social Arguments against social responsibilityresponsibility

Reduced business profitsReduced business profits Higher business costsHigher business costs Dilution of business purposeDilution of business purpose Too much social power for Too much social power for

businessbusiness

Criteria for evaluating Criteria for evaluating corporate social corporate social performance.performance.