Three Approaches to Corporate Responsibility

Corporate Social Responsibility (CSR)

Theory of the corporation that emphasizes both the responsibility to make money and the responsibility to interact ethically with the surrounding community. Second, corporate social responsibility is also a specific conception of that responsibility to profit while playing a role in broader questions of community welfare.

The Triple Bottom Line

The triple bottom line is a form of corporate social responsibility dictating that corporate leaders organize bottom-line results not only in economic terms (costs versus revenue) but also in terms of company effects in the social land, and with respect to the environment. There are two keys to this idea. First, the three columns of reponsibility must be kept separate, with results reported independently for each. Second, in all three of these areas, the company should obtain sustainable results.

Three columns are:1. Economic Sustainability2. Social Sustainability3. Environmental Sustainability

Stakeholder Theory

Where did Stakeholder Theory Started…

The theory began by identifying the stakeholders of a corporation that must be

managed carefully…

As a result…

Traditionally, managers had an extremely difficult

but very narrowly defined responsibility: guide

the enterprise toward money. The best

companies have been those generating the

highest sales, gaining the most customers, and

clearing the largest profits.

The idea of corporate social responsibility opens a

different kind of business ethics. Morality in the

economic world is now about corporate directors

sensing and responding to a broad range of

obligations, ones spreading through the town

where the business is located and then out into

surrounding communities and through society

generally.

First Question of your Midterm!

• Is media a stakeholder? Please discuss your answer and define the relationship between media and corporate social responsibility…