Corporate social responsibility

A manager’s duty or obligation to make decisions that promote the welfare and wellbeing of stakeholders and society as a whole.

The degree to which an organisation is socially responsible is directly related to the decisions managers make in relation to ethical dilemmas

It is the continuing commitment by organisations to behave ethically, and to contribute to economic development, as well as improving the quality of life for the local community and society as a whole

CSR is about balancing economic, environmental, and social obligations The strength of an organisation’s commitment to CSR ranges from low to high:

Obstructionist approach is lowest level of CSR. Managers behave unethically and illegally

Defensive approach is a higher level, and involves managers behaving legally, and focusing on economic/profit-making decisions

Accommodative approach is a higher level again, with managers focusing on legal, economic, and societal obligations

Proactive approach is highest level, and involves managers proactively embracing the need to behave in socially responsible ways, developing strategies to use organisational resources to meet needs of all (ie The Bodyshop)

Personality traits, values, attitudes, moods, and emotions influence the behaviour, and decisions, of managers

These factors form the basis of a manager’s ethical beliefs

Managers are influenced also by the need to balance the conflicting interests of the organisation’s stakeholders

The development of approaches to CSR include obstructionist approach, defensive approach, accommodative approach, proactive approach The general consensus is that organisations should focus on economic, environmental, and social obligations when making CSR decisions