CSR Defined

Business has to take acount of its responsibilities to society

in coming to its decisions, but society has to accept its
responsibilities for setting the standards against which
decisions are made.
Sir Adrian Cadbury
Intelligent and objective concern for the welfare of society
that restraints individual and corporate behavior from
ultimately destructive activities, no matter how immediately
profitable and leads in the direction of positive contributions
to human betterment
-Kenneth R. Andrews

Is There a Social Responsibility of

Business? If So, What Is Its Origin?
Corporation is an ingenious device for obtaining individual
profit without individual responsibility
-Ambrose Bierce, Devils Dictionary
CSR is a concept whereby companies decide voluntarily to
contribute to a better society and a cleaner environment
-European Commission

CSR encompasses the responsibilities that

businesses have to the societies within which
business operate

3 Models of CSR
Corporate Citizenship Model
- Engage in CSR solely for the public
good & do not expect a commercial
return on their contributions
- Believe that they play a particular role
in the community & that their ability to
do good

3 Models of CSR
Social Contract Model
- Corporations reap the benefits of
serving as a community citizen and
therefore owe a reciprocal obligation to
that community
- Corporate rensponsibility respect the
moral rights of various stakeholders

3 Models of CSR
Enlightened Self-Interest Model
- CSR can lead to differentiation and
competitive market advantage for the
business, something that can
contribute to companys brand for the
present and future

A corporate executive has a responsibility is

to conduct business in accordance with
(employers) desires, which generally will be
to make as much money as possible while
conforming to the basic rules of society, both
those embodied law and those embodied in
custom.
-Milton Friedman, The Social Responsibility of
Business Is to Increase Its Profits

We are not in a business to make

maximum profit for our shareholders. We
are in business...to serve society. Profit is
our reward for doing it well. If business
does not serve society, society will not
long tolerate our profits or even our
existence.
-Kenneth Dayton

Is There a Social Responsibility of

Business? If So, Responsibility to
Whom?
Firms exists in relationships with many
stakeholders & these relationships can
create a variety of responsibilities
Social responsibility would require
decisions to prioritize competing and
conflicting responsibilities