Corporate Social Responsibility (CSR)

Any ethics course with a business component would have a section devoted to CSR. Corporate Social Responsibility has a variety of related definitions, a number of which, drawn from web based definitions is given below. The concept, in effect, examines the ethical impact of the corporation’s decisions on its various stakeholders – owners, staff, suppliers, customers, the public at large, and finally, future generations.

In the same way that codes of ethics are questioned, there are mixed views on the practice of CSR. Some liken it to window dressing, somewhat akin to the way codes of ethics are at times regarded. Others argue that the implementation of CSR will have a beneficial effect on the bottom line. This argument is similar to that which asserts a code of ethics benefits corporate profitability. The reasoning behind this argument is that employees, customers, suppliers, etc. trust an ethical company and such increased levels of trust yield lower transaction and compliance costs.

We argue that Corporate Social Responsibility and an effective ethics program should be the same, incorporating the same activities. Unfortunately we do not believe that they always do. CSR tends to have an outwards orientation, concentrating on activities that gain public recognition. Assistance or support of the local community in any of its activities for instance - its library, its sporting teams, water supply, etc, is frequently mentioned.

They are ‘do good’ activities. As such they are also ethical activities. But ethical behaviour also involves avoiding harm. A company can win much local or even national beneficial publicity by employing minority groups, for instance, or make a strong and positive impression with its environmental policies, yet be marginally unethical in its purchasing or marketing methods.
This emphasis on the “do good’ component of CSR activities, is seen in range of website definitions below. We accept these definitions, but argue that a full ethical program is wider – it must also incorporate the avoidance of harm –such as James Hardie’s shortfall on its provisions for asbestos damaged employees, or AWB payments to the Saddam Hussein regime, or many similar wrongs by corporations.

• Corporate social responsibility (CSR, also called corporate responsibility, corporate citizenship, responsible business and corporate social opportunity is a concept whereby organizations consider the interests of society by taking responsibility for the impact of their activities on customers, suppliers, employees, shareholders, communities and other stakeholders, as well as the environment.
This obligation is seen to extend beyond the statutory obligation to comply with legislation and sees organizations voluntarily taking further steps to improve the quality of life for employees and their families as well as for the local community and society at large...
en.wikipedia.org/wiki/Corporate_social_responsibility

• A commitment to behave ethically and contribute to economic development while improving the quality of life of our workforce and their families as well as the local community at large. http://www.nexeninc.com/Sustainability/glossary.asp

• Policies and practices to measure and manage the environmental performance and social impact of the organization, its reputation in these areas, and two-way communication with society and stakeholders.
http://www.tqmcg.com/index.php