CSR and Quranic guidance feb 09[1]

CSR and Quranic guidance feb 09[1] - SUFFICIENCY ECONOMY...

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6 West Fifth Street, #300M, Saint Paul, MN 55102 (651) 223 2852 www.cauxroundtable.org SUFFICIENCY ECONOMY PRINCIPLES AND CORPORATE SOCIAL RESPONSIBILITY Corporate social responsibility or “CSR” provides a decision-making framework for all businesses that finds a mean between excessive state regulation and destructive individual selfishness. CSR accepts as legitimate the autonomy of private property and free markets but it provides private sector decision-makers with guidance as to optimal strategies for sustainable profitability. CSR provides a theory of the business firm that takes into account the contributions of customers, employees, owners, creditors, suppliers, and the community, including the environment. CSR confronts the externalities of a private business, which are benefits and costs to others, and seeks to have the benefits maximized and the costs minimized through responsible decision-making on the part of the firm. CSR is a principled approach to business decision-making. One wellknow set of such ethical principles for business is the following: PRINCIPLE 1 RESPECT STAKEHOLDERS BEYOND SHAREHOLDERS Business provides value to society through the wealth and employment it creates and the marketable products and services it provides to consumers. A responsible business therefore maintains its economic health and viability to sustain its value not just for shareholders, but also for other stakeholders, recognizing that its own survival is not the sole objective of responsible enterprise. A responsible business also respects the interests of, and acts with honesty and fairness towards, its customers, employees, suppliers, competitors, and the broader community to ensure their economic viability. PRINCIPLE 2 CONTRIBUTE TO ECONOMIC, SOCIAL AND ENVIRONMENTAL DEVELOPMENT Business cannot sustainably prosper in societies that are failing. A responsible business therefore contributes to the economic and social and environmental development of the communities in which it operates, in order to sustain its essential ‘operating’ capital – social, human, financial and all forms of goodwill.
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2 A responsible business enhances society through effective and prudent use of resources, free and fair competition, and innovation in technology, production methods, marketing, and communications. PRINCIPLE 3 RESPECT BOTH THE LETTER AND THE SPIRIT OF THE LAW Some business behavior, although legal, has adverse consequences. A responsible business adheres to the spirit and intent behind the law, as well as the letter of the law, which requires conduct that goes beyond minimum legal obligations. Candor, truthfulness, transparency, and the keeping of promises in business decision-making are always required. PRINCIPLE 4
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This note was uploaded on 12/12/2011 for the course ECONOMICS 101 taught by Professor Thoman during the Spring '09 term at Abu Dhabi University.

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CSR and Quranic guidance feb 09[1] - SUFFICIENCY ECONOMY...

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