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Corporate social responsibility, sustainability, and business ethics

6 important questions on Corporate social responsibility, sustainability, and business ethics

Define corporate social responsibility (CSR).

A perspective which stresses the responsibilities that corporations have towards society and other stakeholders.

Define teological ethics before going on to define utilitarianism.

An action can only be judged by its consequences.

Utilitarianism is a teleological perspective arguing that an action is only good if it increases the overall well-being of people.

Define deontological ethics before defining the libertarian and social justice views.

Asks if the reasons behind an action are right, fair, and honest? Consequences are not considered.

The libertarian view stresses individual freedom; do as you like as long as you don't break the law.

The social justice view looks at what a just society would look like without people knowing their position in the world.

Define the ethical perspective "individual growth and organisational learning" before defining communitarianism.

Focuses on how one can become more effective at their job while developing an ethical character.

Communitarianism stresses the importance of social relations and suggests that human life will improve if the community and public values guide decision-making.

CSR draws heavily from the ideas of Scottish Industrialist Andrew Carnegie. What two principles did he stress in order for businesses to be a positive force on society?

1. The charitable principle: Where the more fortunate help the less fortunate.

2. The stewardship principle: Where the rich hold the wealth "in trust" for the rest of society.

What are the four parts of the Four-Part Model of CSR (Carroll 1991)?

1. (highest) Philanthropic responsibilities, characterised by charitable giving and actions desired by society.

2. Ethical responsibility, characterised by what is right and fair and what is expected by society.

3. Legal responsibilities, where law is considered the codification of society's models and is required by society.

4. (lowest) Economic responsibilities, characterised by basic needs, (why organisations are set up, employment, etc.) and is characterised by what is required by society.