This lesson introduces corporate social responsibility (CSR), the triple bottom line, and the ways responsible business practices can create value for organizations and society.
Corporate social responsibility (CSR) is the belief that corporations have responsibilities to society beyond generating profits. It encourages firms to consider how their decisions affect people and the environment, and to take action on relevant social and environmental issues.
All flashcards
What is corporate social responsibility?
CSR is the belief that corporations have responsibilities to society beyond pure profit, including attention to their effects on people and the environment.
What does the triple bottom line measure?
It considers an organization’s financial, social, and environmental outcomes, commonly summarized as profit, people, and planet.
What does “people” mean in the triple bottom line?
It refers to the effects of business decisions on people such as employees, customers, and communities.
What does “planet” mean in the triple bottom line?
It refers to a company’s environmental and ecological impacts, including resource use and emissions.
Name two ways CSR may benefit a company.
CSR may strengthen reputation and stakeholder trust; it can also support employee engagement, customer loyalty, or risk management.
Quiz questions
What is a stakeholder in relation to an organization?Answer: A person or group that can affect, or be affected by, the organization.
What does stakeholder theory encourage organizations to do?Answer: Treat constituencies fairly and consider relationships affected by organizational decisions.
When analyzing a proposed organizational change, what should leaders assess about supporters and resisters?Answer: Their interests, possible gains or losses, and forms of power.
How does CSR generally differ from legal compliance?Answer: Compliance meets required obligations; CSR may address wider responsibilities beyond them.
Why does internal communication matter when an organization implements CSR?Answer: It helps employees understand and participate in putting responsible practices into effect.
Based on Principles of Management by David S. Bright, Anastasia H. Cortes, Eva Hartmann, K. Praveen Parboteeah, Jon L. Pierce, Monique Reece, Amit Shah, Siri Terjesen, Joseph Weiss, Margaret A. White, Donald G. Gardner, Jason Lambert et al. (OpenStax), licensed CC BY 4.0. Adapted into a summary, flashcards and quizzes.