Example: market-oriented decisions guided by social norms or values, like Ford’s decision to endorse the federal ban on texting and drivingSocial responsibility: a business’s intention, beyond its legal and economic obligations to do the right things and act in ways that are good for societyExample: choosing an environmentally friendly option even if it costs more; providing free childcare for employeesStakeholders can be investors, employees, community- anyone who is impacted by company actionsTriple bottom line: people, planet, profitAn approach that supports sustainability over simply making a profitCSR predicts:Reputation and customer loyaltyLeads to ability to attract top talent, investors, consumersFinancial performanceSmall financial advantage, will not hurtPositive employee attitudes, productivity, and retentionMay lessen times of low productivity due to low/no employeesWhy do corporations fail to do the right thing?People lieSafety violations often not reportedPeople don’t talk to each otherDepartments don’t talk to each otherSafety and responsibility cost moneyUp front costsFew people bear witnessIf higher ups don’t see something, they are unlikely to fix itNo one know what corporate social responsibility isNo universal standardConsumers won’t pay moreEthics- Stages of Moral DevelopmentPeople progress through stages of ethical development1. PreconventionalJudge an action by it’s direct consequences; self interest driven2. ConventionalJudge an action by society’s view and expectations;3. Postconventional (principled)Morality is guided by principles of right and wrong, that are independent of societal expectationsImagining what the other person would think is right/wrong given what they knowLecture 3 Outline of Last Lecture I. What is diversity, why is it importantII. The three cases for diversityOutline of Current Lecture I. What is Corporate Social Responsibilitya. Social obligationb. Social responsivenessc. Social responsibilityII. The Triple Bottom LineIII. Why corporations fail to do the right thingIV. Stages of Moral DevelopmentCurrent Lecture- Chapter 5: Managing Social Responsibility and EthicsWhat is Corporate Social Responsibility (CSR)?- Social obligation: the obligation of a business to meet it’s economic and legal responsibilitieso Example: obligation to maximize profits- Social responsiveness: when a company engages in social actions in response to some popular social need MGT 305 1st Editiono Example: market-oriented decisions guided by social norms or values, like Ford’s decision to endorse the federal ban on texting and driving- Social responsibility: a business’s intention, beyond its legal and economic obligations to do the right things and act in ways that are good for societyo Example: choosing an environmentally friendly option even if it costs more; providing free childcare for employeesStakeholders can be investors, employees, community- anyone who is impacted by company actionsTriple bottom line: people, planet, profit- An approach that supports sustainability over simply making a profitCSR predicts:- Reputation and customer loyaltyo Leads to ability to attract top talent, investors, consumers- Financial performanceo Small financial advantage, will not hurt- Positive employee attitudes, productivity, and retentiono May lessen times of low productivity due to low/no employees Why do corporations fail to do the right thing?- People lieo Safety violations often not reported- People don’t talk to each othero Departments don’t talk to each other- Safety and responsibility cost moneyo Up front costs- Few people bear witnesso If higher ups don’t see something, they are unlikely to fix it- No one know what corporate social responsibility iso No universal standard- Consumers won’t pay more Ethics- Stages of Moral Development- People progress through stages of ethical development1. Preconventional- Judge an action by it’s direct consequences; self interest driven 2. Conventional- Judge an action by society’s view and expectations;  3. Postconventional (principled)- Morality is guided by principles of right and wrong, that are independent of societal expectations- Imagining what the other person would think is right/wrong given what they