WEEK 1: The business–society relationship Describe the changing nature of business–society relationships and why it is important for managers Explain the increasing pressure on businesses to act in a sustainable manner and to be accountable for their actions Define the role of stakeholders with divergent interests and values. From corporate social responsibility (CSR) to corporate citizenship (CC) Over the last 50 years there has been increasing interest in CSR. In the US, the notion of CSR aligned strongly with Adam Smith’s (Carroll & Buchholtz 2015) traditional or classical economic thinking that the market is the best means of determining society’s wants and needs, in that ‘the invisible hand transforms self-interest into societal interest’ (p. 29). As society became more complex, a legal model emerged, followed by a social model and, ultimately, a stakeholder model. The importance of understanding the nature of the modification of the CSR model Early engagement of business people with philanthropy and voluntary community obligations. Why might this be? (Carroll & Buchholtz 2015, p. 30-31 will give you some insights into this). From the late 19th century onwards, business also embraced community wellbeing through what Carroll and Buchholtz (2015) call paternalism. What does this imply? Johnson, as cited in Carroll and Buchholtz (2015, p. 30-31), suggests that by the late 19th century, political resentment growing against the huge fortunes being amassed by Carnegie and Rockefeller type corporations built up community criticism of business and business practices. Therefore, business was looking for a philosophy and a set of practices to demonstrate that businesses were a source for social good (e.g. Carnegie’s program of library building in the USA). Even these forms of benevolence were questioned in the US. For example, in the 1950s, the legality of corporate philanthropy was
raised. 2. The increasing role of government Other forces were gradually changing attitudes to business ethics and responsibilities in increasingly complex business environments, including the role of government. By the 1930s, there was a shift from laissez-faire to a more mixed economy. The reasons for this were diverse, such as: world depression mass unemployment community demands for government to intervene to stimulate the economy focus on increasing poverty and social impact. Some commentators have seen the ongoing development of business interest in various forms of Plurism pg. 7 eText TOMS pg. 7 eText 6 capitals – Financial, Manufactured, Intellectual, Human, Social and Relationship, Natural IR – Integrated reporting pg. IIRC – International Integrated Reporting Council 1.4 modules Theorists Milton Freeman Social contract – pg. 19 eText
WEEK 2: From corporate social responsibility to corporate citizenship Define the terms corporate social responsibility, corporate citizenship, corporate social responsiveness and corporate social performance
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