Stakeholder Activist Approach

Management’s only social responsibility is to maximize profits (create a financial return) by operating the business in the best interests of the stockholders (owners of the corporation). Expending the firm’s resources on doing “social good” unjustifiably increases costs that lower profits to the owners and raises prices to consumers.

The Socioeconomic View is that corporate social responsibility goes beyond making profits to include protecting and improving society’s welfare. Corporations are not independent entities responsible only to stockholders. Firms have a moral responsibility to larger society to become involved in social, legal, and political issues. They always follow the policy of “To do the right thing”.

Social Obligation is the

Market Approach is that firms respond to the preferences of their customers for environmentally friendly products. Stakeholder Approach is that firms work to meet the environmental demands of multiple stakeholders—employees, suppliers, and the community. Activist Approach is that firms look for ways to respect and preserve environment and be actively socially responsible.

Values-Based Management is an approach to managing in which managers establish and uphold an organization’s shared values. The Purposes of Shared Values is serving as guideposts for managerial decisions. Shaping employee behavior and influencing the direction of marketing efforts The Bottom Line on Shared Corporate Values an organization’s values are reflected in the decisions and actions of its employees.

Ethics are the rules and principles that define right and wrong conduct. Four Views of Ethics are the utilitarian view, the rights view, the theory of justice view and the integrative social contracts

Stage of moral development interacts with individual characteristics, organization’s structural design, organization’s culture and the intensity of the ethical issue.

Moral development demonstrates that people proceed through the stages of moral development sequentially. There is no guarantee of continued moral development.

Values are the basic convictions about what is right or wrong on a broad range of issues. Stage of moral development is a measure of an individual’s independence from outside influences

Social impact management is the field of inquiry at the intersection of business practice and wider societal concerns that reflects and respects the complex interdependency of those two realities. The question of how to go about increasing managers’ awareness within their decision-making processes of how society is impacted by the conduct and activities of their firms.

For any business, corporate social responsibility is an increasingly important issue. On an international level, corporate social responsibility is enforced by the government especially in regards to safeguarding the environment. It is not necessary that responsible business measure the positive impact of their behaviour on their