| Term | Definition |
|---|
| Rules of the game | arguments for csr |
| Corporate executives are agents of stockholders, and must act in their best interests Involves spending of someone else | arguments against csr |
| Minimalist Self-interested Social contract Stakeholder – Management Stakeholder – Stewardship | 5 csr debate positions |
| Traditional stockholder model or classical, advocated by Milton Freidman "....there is only one social responsibility of business-to use its resources and engage in activities designed to increase profits so long as it stays within the rules of the game that is, engages in free and open competition without deception or fraud" (1970). Individualism, competition and primacy of the law Basically, make money without breaking the law Government will over regulate business if left to itself But, should the corporation be responsible only to its stockholders? | minimalist |
| Similar to minimalist CSR, but takes it one step further CSR when it furthers the organization's long term goals CSR is one of the tools in a managers kit For example, by giving away money to open a public library, a corporation gets free publicity, a good public image, tax benefits and helps improve literacy among its potential employees | self interested csr |
| The corporation is not only an economic person, but also a moral person If a firm has rights, it also has responsibilities. With more power comes more responsibility A moral corporation is responsible for all its contracts, both explicit and implicit Legal solutions are necessary, but not sufficient. Business is a force for change, while the law reacts to change. For example, passing laws about pollution and product safety | social contract csr |
| Any group or individual who can affect or is affected by the achievement of the organization | stakeholder management |
| Idealistic, serve those who might not otherwise be served Hold as trust, 'servant leadership', Move firm beyond laws and self interest Devote resources to help tertiary stakeholders as well | stakeholder stewardship |
| Choosing to operate at a higher ethical level than the law requires Making civic and charitable contributions Providing extra benefits to employees beyond economic and legal requirements Using corporate resources to address a major social problem | types of social responsibility |
Combine with other sets
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