CHAPTER 3

SOCIAL RESPONSIBILITY AND ETHICS

IN STRATEGIC MANAGEMENT

REPORTED BY:

AILEEN S. BALAJADIA
and
PRIMA CRISTINA LOPEZ
LEARNING OBJECTIVES
 Compare and contrast Friedman’s traditional view with
Carroll’s contemporary view of social responsibility

 Understand the relationship between social responsibility

and corporate performance

 Explain the concept of sustainability

 Conduct a stakeholder analysis

 Explain why people may act unethically

 Describe different views of ethics according to the

utilitarian, individual rights, and justice approaches
Introduction

SOCIAL RESPONSIBILITY

1. What are the Social Responsibilities of

Decision Makers
2. Responsibilities of Business Firm
3. Sustainability: More than Environmental
4. Corporate Stakeholders
 3.1 Social Responsibilities of Strategic
Decision Makers

Social Responsibility

Corporate Social Responsibility (CSR)

Responsibilities of a Business Firm

Two (2) Contrasting views of the Responsibilities of

business firm:

1. Friedman’s traditional view of a business

responsibilities;

2. Carroll’s Four Responsibilities of Business

Friedman’s Traditional View of
Business Responsibility
Carroll’s four responsibilities of business:
(in order of priority)

 Economic
 Legal
 Ethical
 Discretionary
Carroll’s Pyramid of Responsibilities of Business
Social Capital

 the goodwill of key stakeholders, that can be

used for competitive advantage

 open doors in local communities

 enhance reputation with customers

 Benefits Received from Being Socially
Responsible

 Gain brand loyalty

 Trustworthiness
 Attract outstanding employees
 More welcomed into a foreign country
 Goodwill
 Attract capital infusion from investors
SUSTAINABILITY: MORE THAN ENVIRONMENTAL?

Sustainability focuses on meeting the needs of the

present without compromising the ability of future
generations to meet their needs.
CONCEPT OF SUSTAINABILITY

Environmental

Social Economic
 Corporate Stakeholders

Stakeholders have an interest in the business and

affect or are affected by the achievement of the firm’s
objectives

Enterprise strategy- articulates the firm’s ethical

relationship with its stakeholders
Stakeholder Analysis

1. Primary Stakeholders

2. Secondary Stakeholders

3. Estimate

STAKEHOLDER INPUT
FINAL THOUGHT

We Make Living By What We Get

But We Make Life By What We Give

Winston Churchill
REFERENCES
Strategic Management & Policy: Toward Global Sustainability, 2004-
2012 Thirteenth Edition, Prentice Hall by Thomas L. Wheelen and J.
David Hunger
Toms Shoes CSR , IKEA CSR , Uniliver CSR, and UCPB-CIIF
Foundation

Johnson & Johnson Credo: http:www.jnj.com/ credo; Strategic

Management & Policy: Toward Global Sustainability, 2004-2012
Thirteenth Edition, Prentice Hall by Thomas L. Wheelen and J. David
Hunger

Creating Shared Value: Redefining Capitalism and the Role of the

Corporation in Society, Harvard Business Review by Michael Porter and
Mark Kramer

University of Michigan Sustainability Assessment of 2002

Thank you