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Organizational Stakeholders Those persons, groups, and other organizations directly affected by the behavior of the organization and holding a stake in its performance. Typical organizational stakeholders Employees Customers Suppliers Owners Competitors Regulators Interest groups Management Fundamentals - Chapter 3

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What is corporate social responsibility?
Looks at ethical issues on theorganization level. Obligates organizations to act inways that serve both its owninterests and the interests ofsociety at large. Management Fundamentals - Chapter 3 Organizational Stakeholders
Those persons, groups, and other organizations directly affectedby the behavior of the organization and holding a stake in itsperformance. Typical organizational stakeholders Employees Customers Suppliers Owners Competitors Regulators Interest groups Management Fundamentals - Chapter 3 Figure 3.4 Multiple stakeholders in the environment of an organization.
Management Fundamentals - Chapter 3 What is corporate social responsibility?
Beliefs that guide socially responsiblebusiness practices: People do their best with a balance of work andfamily life. Organizations perform best in healthycommunities. Organizations gain by respecting the naturalenvironment. Organizations must be managed and led for long- term success. Organizations must protect their reputations. Management Fundamentals - Chapter 3 Perspectives on Corporate Social Responsibility
Classical view Managements only responsibility is tomaximize profits. Socioeconomic view Management must be concerned for thebroader social welfare, not just profits. Management Fundamentals - Chapter 3 Pros & Cons of Social Responsibility in Business
Arguments against socialresponsibility: Reduced businessprofits Higher business costs Dilution of businesspurpose Too much social powerfor business Lack of publicaccountability Arguments in favor ofsocial responsibility: Adds long-run profits Improved public image Avoids moregovernment regulation Businesses haveresources and ethicalobligation Management Fundamentals - Chapter 3 Criteria for evaluating corporate social performance
Is the organizations Economic responsibility met? Legal responsibility met? Ethical responsibility met? Discretionary responsibility met? Management Fundamentals - Chapter 3 Figure 3.5 Criteria for evaluating corporate social performance.
Management Fundamentals - Chapter 3 Strategies for pursuing social responsibility
Obstructionist meets economic responsibilities. Defensive meets economic and legalresponsibilities. Accommodative meets economic, legal, andethical responsibilities. Proactive meets economic, legal, ethical, anddiscretionary responsibilities. Management Fundamentals - Chapter 3 Figure 3.6 Four strategies of corporate social responsibilityfrom obstructionist to proactive behavior. Management Fundamentals - Chapter 3


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