Four Approaches to Csr

1126 WordsJun 25, 20115 Pages
4 Approaches to CSR Corporate social responsibility is the management’s obligations to make choices and take actions that will contribute to the welfare and interests of society as well as the organization. CSR can be a difficult concept to be understood because different people have different beliefs as to which actions improve society’s welfare. To make matter worse, social responsibility covers a range of issues, many of which are ambiguous with respect to right or wrong. Eg. Kmart declare bankruptcy because of their financial problems. Some said that it is perfectly legal while some say that they declared bankruptcy to avoid financial obligations to suppliers, labour unions or competitors. There are four approaches to social…show more content…
An example would be a scenario which explains a situation in which the customers of a restaurant are killed and injured by a madman who decided to shoot up the place on day when they were eating lunch. The CEO discovered the situation and took action immediately to resolve the situation. The CEO took an accommodative stance in that they offered to meet the legal requirements as well as ethical requirements. This stance is related to the Ethical Responsibility criteria of CSR performance. It includes behaviours that are not necessarily codified into law and may not serve the corporation’s direct economic interests. To be ethical, organization decision makers should act with equity, fairness and impartiality, respect the rights of individuals. Unethical behavior occurs when decisions enable an individual or company to gain at the expense of others. Eg. Student loan case. Advisor get tips from the money lender. The last and highest level would be the Proactive Stance. In this level, a company actively seeks to contribute to the well-being of groups and individuals in its social environment. Starbucks for example. They are willing to help improve the living conditions of the coffee bean farmers by paying a fair price to certified fair trade suppliers. This will ensure that the coffee bean farmers will not be bullied on the pricing by the suppliers and at the same time
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