Question

As a business professional, assume you have been invited as a guest speaker for the next managerial meeting for your organization. Senior leadership has expressed concerns about corporate social responsibility and how this may influence appropriate ethical business practices.

After reading and viewing this week’s required resources, develop a PowerPoint presentation for senior leadership that addresses the following:

• Analyze the concept of corporate social responsibility (CSR).
• Discuss at least three arguments for CSR.
• Discuss at least three arguments against CSR.
• Illustrate the differences and similarities between the three CSR strategies: 1) corporate philanthropy, 2) social entrepreneurship, and 3) sustainability.
• Provide examples of three corporations or companies that are making a positive social impact. Identify the corporation or business, the product(s) or service(s), the recipients, and the benefits.
• Define and explain what business ethics is. Document an example of a breach of business ethics that has occurred and been publicized recently. It can be a major firm or a firm you recently heard or read about in your local community. Unfortunately, examples will not be hard to find.
• Summarize the lessons your organization (the one you are making for this presentation) can learn from the elements and examples you have just presented.

Be sure to deliver your presentation in the order presented above and have at least one slide per topic. For example, you probably will have a slide that introduces the topic of CSR strategies, and then have one slide for each of the three strategies.

Incorporate appropriate animations, transitions, and graphics as well as speaker notes for each slide. The speaker notes may be comprised of brief paragraphs or bulleted lists and should cite material appropriately. Add audio to each slide using the Media section of the Insert tab in the top menu bar for each slide.

Support your assignment with the items in the Books and Resources for this Week. In addition to these specified resources, other appropriate scholarly resources, including seminal articles, should be included.

Length: 12-15 slides (with a separate reference slide)
Notes Length: 100-150 words for each slide

Answer 1

There is no provision to attach a PPT/DOC file here. So you may copy below into a PPT file.

Analyze the concept of corporate social responsibility (CSR).

Corporate social responsibility directly involves the corporation’s business model and its business practices. It goes a step further than philanthropy by directly involving the corporation in the causes and in the community. For example, a mining company should implement cleanup programs to mitigate pollution from the operation. Leaving a polluting mine after the work is done is irresponsible, and it has negative consequences for the community and for the health of the community.

In the entrepreneurial history, corporate social responsibility had its origins in the primary and only interest group that was the shareholder or owner; with an image of predator all their actions and their effects were seen as negative which was countered by the state with increased tax load, that sanctioned irresponsible practices; then over time it was realized that the objectives of the company and its raison d'être should include others who directly or indirectly was involved in the activity of the company. It is based on ethical reflection of entrepreneurs about the need for different methods of organization for its relationship with its environment arises the topic of Corporate Social Responsibility and creating social value.

Definitions:

"Continued commitment by the companies to maintain ethical behavior and contribute to economic development while improving the quality of life for its staff and their families, the community in which they work and society in general. The World Business Council for Sustainable Development (The World Business Council for Sustainable Development –WBCSD12).

"Any person or group of people that may affect the performance of the company or to be affected by the achievement of the goals of the organization " (Freeman, 1984)

The shared value is "redefining the limits of capitalism." (Porter and Kramer 2011)

Discuss at least three arguments for CSR.

1. Business is a part of society

Business is a part of society. Society is a system and business is one of its subsystems. Every subsystem of a system functions for the betterment of the whole system and not for its own betterment only. This version applies to business too. Therefore, business is responsible for the society as a whole and profit motive of the business cannot have precedence over other motives of the society.

2. Long-term Self-interest of Business

Social responsibility is in the long-term self-interest of the business. Existence of any business is because of existence of various social organs like financiers, employees, customers, society as a whole, etc., and not otherwise. Therefore, business should provide satisfaction to all these organs on continuous basis for its continued existence. By discharging social responsibility, the business may provide this satisfaction.

3. Moral Justification

Social responsibility has moral justification. This moral justification emerges from the fact that if any one takes something from others, he must give something to them in return. On moral ground, this equation must be based on equity so that it continues. A business takes various inputs (money, materials, people, information, etc.) from the society and gives outputs (goods and services) to the society by using various inputs. System of taking inputs and giving outputs works well only if it fulfills social requirements.

4. Creating Better Public Image

Any business which involves in fulfilling the aspirations of the society creates better image in the public. Creation of this type of image is a source of satisfaction itself for those who operate business. This also helps in increasing the business volume, both in terms of taking inputs and giving outputs.

5. Avoidance of Government Regulations

Government aims at maintaining equilibrium in the society on long-term basis. For this purpose, it tries to ensure that every organ of society meets social requirements. If any organ fails to do so, government has power to take actions against it. Since business is an organ of the society, government may take actions against those business organizations which involve in activities not meeting social requirements. In order to avoid such actions having long-term negative impact, it is preferable to adopt social responsibility.

6. Maintenance of Society

For maintaining society, there are legal provisions, but these provisions cannot be comprehensive because of social changes on continuous basis. Therefore, the business has to be socially responsible in order to avoid anti-social activities so that society is maintained on continuous basis.

Discuss at least three arguments against CSR.

1. Contrary to Basic Function of Business

The basic function of a business is to provide a product to its customers at a price which is lower than the level of satisfaction provided by the use of the product or, at the most, equal to that. If this relationship is reversed, the product becomes meaningless. Generally, cost of production is a significant factor in determining the product price. Discharge of social responsibility adds to cost, hence product price which may reverse the above equation and business may not remain viable in the long term. Because of this phenomenon, Milton Friedman, a noted economist, has observed, there is one and only one responsibility of business — to use its resources and engage in activities designed to increase its profit so long as it stays within the rules of the game.

2. Conflict with Profit Motive

Social responsibility is in conflict with profit motive of business. Undertaking business involves assuming risk. Earning profit is the reward for this risk. If social responsibility is added as an objective of business, it reduces profit margin which is against the concept of profit optimization even if not profit maximization. Thus, social responsibility and profit motive do not proceed in the same direction.

3. Distortion in Resource Allocation

Social responsibility leads to distortion of resource allocation. Resources in an economic system are allocated on the principle that every resource finds its most optimum utilization. This utilization is best possible without social responsibility and not with it. Thus, social resources may go in waste if the concept of social responsibility is added to business operations.

4. Imposition of Business Values

Discharging social responsibility involves lot of influence of the business on the society. Therefore, by undertaking social responsibility, a business is likely to impose its own values on the society, thereby replacing the social values with business values. This phenomenon has taken place in many cases. This is highly undesirable from social point of view.

5. Inefficiency in the System

Social responsibility brings inefficiency in the system. There is no substitute for the power of self-interest to get people to act. Any replacement of self-interest will, therefore, be fatal to the efficiency of the system. Social responsibility tends to replace self-interest of business defined in terms of profit motive to a great extent, thus, making the business as a system inefficient.

6. Operational Problems

There are certain operational problems in implementing social responsibility. Conceptually as well as operationally, social responsibility is a confusing term. Therefore, managers involved in managing business affairs are not very clear about what they are expected to do under social responsibility. As a result, actions ranging from mere showing lip sympathy to undertaking multi-crore concrete programmes are included in social responsibility.

Illustrate the differences and similarities between the three CSR strategies:

1) Corporate philanthropy

On the corporate level, philanthropy is practiced in many different ways. Many corporations simply donate money to causes that are intended to bring about social change. They may or may not place their brand on the cause and take credit for the resources offered. This kind of giving often happens without any direct involvement outside of the funds offered.

2) Social entrepreneurship

The Social Entrepreneurship is associated with the activity of the non-profit sector, this is a general classification, which includes a majority of organizations that cannot be classified as social enterprises, despite the fact that they are linked to social change, and that somehow favor or promise solutions to thorny problems such as poverty, hunger and disease (Light, 2006), in this context of social change the scope of this type of projects is analyzed.

3) Sustainability

Sustainability refers to an organization’s activities, typically considered voluntary, that demonstrate the inclusion of social and environmental concerns in business operations and in interactions with stakeholders (van Marrewijk & Verre, 2003).

Provide examples of three corporations or companies that are making a positive social impact. Identify the corporation or business, the product(s) or service(s), the recipients, and the benefits.

Microsoft - Microsoft have one of the best reputations as a corporate social responsibility company. The business operates a number of initiatives, including 4Afrika which focuses on helping African youth and entrepreneurs develop skills and opportunities. So far, the scheme has brought over 500,000 SMEs online, upskilled almost 800,000 people and assisted 82 startups expand their businesses.

Similarly, YouthSpark is a global initiative by Microsoft in partnership with governments and charities to offer free computer programming resources and courses to help create educational, employment and entrepreneurial opportunities for over 300 million young people across the globe.

However, Microsoft doesn’t just have strong programmes. The business also operates environmental corporate social responsibility efforts, with 44% of all electricity used in Microsoft data centers coming from wind, solar and hydro power electricity and this number expected to pass 50% by 2018.

As if that weren’t impressive enough, the company’s global operations have been carbon neutral since 2012.

Google - Besides being the world’s most popular search engine, Google also achieved its 100 percent renewable energy target in 2017, and is now the largest corporate renewable energy purchaser on the planet.

As if that wasn’t enough to earn a spot at the top of the corporate social responsibility totem pole, the company also provides grants to several dedicated social impact initiatives, including the Equal Justice Initiative, Goodwill Industries International, and Pratham Books: StoryWeaver platform.

From facilitating green commuting, to employee gift matching, to paid time off to volunteer, Google inspects nearly every part of their business with a social impact lens.

Levi Strauss - Are your jeans contributing to water scarcity? Most of us probably don’t think about this when shopping, but it’s an important question for Levi Strauss. In recent years, the company has committed to reducing the amount of water used in production of their jeans, a product they have been making since 1873.

According to Levi Strauss’s website, their Water of designing and manufacturing has saved more than 1 billion liters of water since its inception in 2011. The company has also worked to fight stigma and support people living with HIV/AIDS, facilitate clothing recycling with Goodwill, and decrease their contribution to climate change.

Define and explain what business ethics is. Document an example of a breach of business ethics that has occurred and been publicized recently. It can be a major firm or a firm you recently heard or read about in your local community. Unfortunately, examples will not be hard to find.

Business ethics refers to implementing appropriate business policies and practices with regard to arguably controversial subjects. Some issues that come up in a discussion of ethics include corporate governance, insider trading, bribery, discrimination, social responsibility, and fiduciary responsibilities.

Enron - Enron's downfall, and the imprisonment of several members of its leadership group, was one of the most shocking and widely reported ethics violations of all time. It not only bankrupted the company but also destroyed Arthur Andersen, one of the largest audit firms in the world.

The charges related to knowingly manipulating accounting rules and masking the enormous losses and liabilities of the company.

Summarize the lessons your organization (the one you are making for this presentation) can learn from the elements and examples you have just presented.

According to the emergent literature, there is a growing awareness that business needs to manage its relationship with the wider society. Corporate leaders are responsible for their corporations’ impact on society and the natural environment beyond legal compliance and the liability of individuals.

CSR is becoming a leading principle of top management and of entrepreneurs. The number of observations in research in this field clearly delineated models, leadership competencies, accountability, and structure of partnerships as well as organizational challenges and limitations and ethics.

Organizations can reexamine their pattern of behaviors in the TBL framework (triple bottom line - the environmental, societal, and business) and begin their journey toward a sustainable approach that is integrated into their business strategy.

Well-managed Corporate Social Responsibility can integrate the expectations of society with corporate objectives and strategy of the company, at the same time allowing to improve all its processes.