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CSR ensures businesses balance profitability with ethical, legal, and social responsibilities. Carroll’s CSR pyramid outlines economic, legal, ethical, and philanthropic duties. Ethical strategies range from minimal compliance to proactive engagement. Sustainability and ethics shape long-term business success. CIMA’s Code of Ethics emphasizes integrity, objectivity, and professional responsibility.
CSR involves maximizing positive impacts while minimizing negative effects on stakeholders.
It encompasses economic, ethical, legal, and philanthropic responsibilities.
Managers must balance shareholder interests with societal expectations.
For CSR: Enhances reputation, attracts talent, leads to cost savings, improves trading opportunities, and ensures long-term sustainability.
Against CSR: Profit maximization supports society through tax revenues, ethical sourcing may be costly, and CSR implementation is time-consuming.
Philanthropic Responsibility – Discretionary actions to improve society.
Ethical Responsibility – Acting fairly and justly.
Legal Responsibility – Following laws and regulations.
Economic Responsibility – Ensuring profitability.
Reaction: Denial of responsibility.
Defense: Minimal compliance.
Accommodation: Fulfilling stakeholder demands.
Proaction: Going beyond expectations.
Short-term shareholder focus: Profit-driven, minimum compliance.
Long-term shareholder focus: Investment in stakeholder relations.
Multiple stakeholder obligations: Considering broader social impact.
Shaper of society: Social benefit prioritized over financial goals.
Sustainability ensures resources meet future needs while reducing environmental harm.
Ethical principles enhance brand value and bring financial benefits.
CIMA’s role: Ethical leadership and sustainability integration in strategy.
Principles: Integrity, objectivity, competence, confidentiality, professional behavior.
Resolving Ethical Conflicts: Fact-gathering, consulting experts, reviewing alternative solutions.
Threats to Ethics: Self-interest, advocacy, intimidation.
Safeguards: Regulatory compliance and workplace integrity measures.
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