Ethical Perspective on Social Responsibility

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Ethical Perspective on Social Responsibility

Social responsibility defined (3 views)

* Responsibility of an organization for the impacts of its decisions and activities on society and the environment, through transparent is consistent with sustainable development and the welfare of society * takes into account the expectations of stakeholders

* is in compliance with applicable law and consistent with international norms and behavior * is integrated throughout the organization (Puneet, S., & Ashish, N. 2012).

* The commitment of the company to contribute the the sustained economic development by working with employees, their families, the local community, and the entire society in order to improve life quality. (Holiday, 2002).

* Social Responsibility is an evolving set of values that guide business executives and leaders in determining what is right, wrong, moral, immoral, prudent and imprudent with a bias towards operating a business for the greater good of not only the business but of society (Drucker, 1981).

* Ethics have evolved over centuries and differ across countries and cultures.

* “Casuistry” was the first attempt to think through ‘social responsibility” and to embed it in a set of special ethics for those in power. “Casuistry” was first propounded in Calvin Institutes, then taken over by the Catholic theologians of the counter-Reformation and developed into a “political ethics by the Jesuit disciples in the 17th century. (Drucker, 1981).

* The confucian ethics of interdependenceis a universal ethics, in which the same rules and imperatives of behavior hold for every individual. There is no ‘social responsibility’ overriding individual conscience. There are five basic relationships (Drucker, 1981). 1. Superior and subordinate

2. Father and child
3. Husband and wife
4. Oldest brother and sibling
5. Friend and friend

* Corporate social responsibility is the concept prevailing from the 1960’s and has become a strategic tool for businesses and corporation to achieve long term sustainable growth. Out of this growth emerged the International Standards for social responsibility (ISO 26000). The ISO 2600 is a global intuitive which started in 2001 as was finally drafted in 2010. 94 countries and 4 organizations participated to provide guidance on SR and assist organizations to sustainable development of all stakeholders and to go beyond just legal compliance rather than implementing new management systems (Puneet, S., & Ashish, N. 2012).

Cohen’s social responsibility of a business, to its workers and stakeholders and society.

* Cohen as well as Drucker believed that the organizations first responsibility is always to its own mission. “The business is to make a profit sufficient to cover operational cost in the future” (Cohen, 2009). They believed that if the basic responsibility of the fulfilling the organizations purpose fails in its primary mission then no other social responsibility can be achieved.

* Cohen also believed that people are not a cost; they are a resource and he called the new class of workers “knowledge workers” (Cohen, 2009).

* Cohen and Drucker found that opportunities could be gained by a business by looking at the company’s actions causing negative reactions that need to be attended to. Drucker proclaimed that fulfilling social responsibility was not only a duty but a potential source of competitive advantage for a company far beyond mere public relations with the general public (Cohen, 2009).

Cohen perspective align with Drucker
* William Cohen studied under Peter Drucker and was Drucker’s first executive Ph.D graduate. Cohen went on to write over 50 books most of continuing what the teaching he learned from his long time mentor Druker. Books such as “A Class with Drucker: the Lost...
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