Srgg.docx

Social Responsibility 

 

The idea that businesses should balance profitmaking activities with activities that benefit society involves developing businesses with a positive relationship to the society in which they operate means that individuals have a duty to act in the best interests of their environment and society as a whole

Corporate Social Responsibility -- Social responsibility as it applies to business Being socially responsible means:

c. 25 percent of adults follow “To Thine Own Self Be” – they believe SR has little consequence in their lives Social Responsibility – an organization’s obligation to maximize its positive impact on stakeholders and to minimize its negative impact Levels of Social Responsibility 1. Legal – businesses are expected to obey all laws and regulations Legality may be viewed in terms of 3 general categories: A. Compliance B. Avoidance of civil litigation C. Anticipation of the law

people and organizations must behave ethically with sensitivity toward social, cultural, economic and A. Compliance is sub-divided into 3 types: environmental issues a.1 passive – the company is doing what it wants and The International Organization for Standardization (ISO) just happens to be complying with the law states: Example: if the speed limit is 60 km/hr, and one drives at “In the wake of increasing globalization, we have or below 60 km/hr because it is safer to do so, and not become increasingly conscious not only of what we buy, because of the speed limit, he is passively complying but also how the goods and services we buy have been with the law produced.” Example 2: if there is a safety standard for a certain Social Responsibility can be “negative”, when it is a product that a company adheres to even if the legal responsibility to refrain from acting (resistance) or can be requirements do not exist, the company is in a passive “positive”, meaning there is a responsibility to act compliance mode (proactive) a.2 restrictive – occurs when a company is legally Being socially responsible not only requires participating compelled to do something that it would not otherwise in socially responsible activities like recycling, donating, want to do volunteering and mentoring, but actually making it a lifestyle. Example 1: if one is in a hurry and would like to drive 70 km/hr but does not do so because of the 60 km/hr speed ONLY THROUGH A COMMITMENT TO limit, he is restrictively complying with the law EMBRACE AND EMBED SOCIAL RESPONSIBILITY INTO OUR PERSONAL VALUE AND BELIEF SYSTEM Example 2: the payment of taxes, tariffs, or duties is CAN WE TRULY BECOME SOCIALLY RESPONSIBLE often done reluctantly and therefore, restrictively IN ALL THAT WE DO. Example 3: a company may want to pollute at higher According to “the Harris Poll” in June 18, 2007, there are levels, however, the law prohibits it from doing so, 3 types of people when it comes to social responsibility: leading to restrictive compliance a. two-thirds of adults have “good intentions” - a.3 opportunistic – they do what they can in terms of volunteering but they do not sacrifice huge amounts of time or a.3.1 when a company abides by the letter of the law but not the spirit of the law money b. 8 percent of adults “practice what they preach” - a company may seek out and take advantage of loop holes in the legislation to be able to engage in activities – they believe SR is extremely important

Example 1: some companies decide to operate in Three General Ethical Standards developing nations because of less stringent a. Conventional environmental, consumer-protection or employee-welfare b. Consequentialist protection laws, are opportunistically complying with the c. Deontological law a. Conventional standard – standards or norms which a.3.2 when a company has based its decision on the have been accepted by the organization, industry, legal system, and is still technically complying with profession, society as necessary for the proper the law functioning of business - when a company chooses to operate in a particular b. Consequentialist standard – sometimes referred to jurisdiction because of its weaker legal standards as “teleological”; focuses on ends or consequences; Example 1: the decision to drive one’s sports car on a includes: highway because of its higher speed limit entails b.1 egoism – promoting the good of an individual opportunistically complying with the law b.2 utilitarianism – promoting the good of society B. Avoidance – related to corporate activities that are motivated by the desire to avoid possible current and - an action is considered ethical, according to future civil litigation for negligent conduct consequentialism, when it promotes the good of society or when the action is intended to produce the greatest In response to fears of litigation, companies: net benefit to society when compared to all of the other alternatives a. disengage in manufacture of dangerous products c. Deontological standard – standards that embody those activities which reflect a consideration of one’s duty or obligation; includes:

b. voluntarily recall products c. cease non-environmentally friendly activities C. Anticipation – company consideration of the legal system

actions

based

on

c.1 moral rights

c.2 justice

Rights – an individual’s entitlement to something and - before a bill is enacted into law, companies may wish to can be positive or negative engage in activities that will result to immediate Justice – the moral principle determining just conduct; compliance upon the legislation’s enactment administration of what is just by law 2. Economic – businesses have an economic responsibility to be profitable so that they can provide an Types of Justice: ROI to their owners and investors, create jobs and a. Distributive – whether benefits and burdens have contribute goods and services to the economy been distributed equitably b. Compensatory – the extent to which people are 3. Ethical – business ethics are principles and standards fairly compensated for their injuries by those who that guide behavior in the world of business have injured them; just compensation is proportional to the loss inflicted on a person - what consumers, employees, shareholders and the c. Retributive – a system of criminal justice based community considers as fair, just, or in keeping with the on the punishment of offenders rather than on respect or protection of stakeholders businesses should rehabilitation adhere to their principles and standards 4. Philanthropic – activities that are not required of businesses but promote human welfare or goodwill

Examples of Legal Motives and Possible Responses