Corporate Social Responsibility: Whether or How? By: N. Craig Smith • Saltaire (1851) was an industrial community that provided everything for its employees; Corporate social responsibility (CSR) referred to as a form of “paternalistic capitalism” • Idea develops “that business corporations have an obligation to work for social betterment” • CSR- the obligations the firm has to its stakeholders, those affected by corporate policies and practices o It is not a new idea. o 2 motivators 1) Desire to do Good = the “normative case” • GSK example of trying to make medicine accessible to poorer countries a priority… because it’s the right thing 2) “Enlightened Self-Interest” = the “business case” • CSR is rising in prominence among multi-nationals and small businesses • Should firms make a substantial commitment to CSR? o Direct or indirect economic benefits o Added pressures from media and IT reputationial risk at stake o Threat of boycotts or rewarded with increased patronage with good rep
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