1. Financial
2. Environmental
3. Social responsibility

1. Make a profit
2. Obey the law
3. Be ethical in its practices
4. Be a good corporate citizen

1. An invisible hand promoted public welfare
2. The public interest was served by the individuals pursuing their own economic self interests
3. Belief that profitable and social responsibility are the same thing

1. Business has an obligation to meet the needs of the many groups in society, not just stockholders
2. Support of stakeholder audits- identifying all the parties that could possibly be affected by the company's performance

ENRON

1. Economic responsibility- be profitable- do what is REQUIRED by global capitalization
2. Legal responsibility- Obey the law- do what is REQUIRED by global stakeholders
3. Ethical responsibility- Be ethical- do what is EXPECTED by global stakeholders
4. Philanthropic responsibility- be a good global citizen- do what is DESIRED by global stakeholders

1. Business is unavoidable involved in social issues, part of the the problem or part of the solution
2. Business has the resources to tackle today's complex societal problems- can play a decisive role in solving societal problems with its vast resources which were built with society's support in the first place
3. A better society means a better environment for doing business- today's problems can turn into tmw's profits.
4. Corporate social action will prevent government intervention-government will force business to do what it fails to do voluntarily

1. Profit maximization ensures the efficient use of society's resources- social expenditures means theft of stockholder's equity
2. As an economic institution, business lacks the ability to pursue social goals- inefficiencies can be expected when managers lose focus from the pursuit of profits
3. Business already has enough power- they dictate too much already and more power is not desired.
4. Business mgrs are not elected so they are not accountable to the people

What are the 4 Social Responsibility Strategies?

(how companies react when things happen)

1. Reaction- deny or ignore responsibility
2. Defense- put up a fight
3. Accommodation- accept responsibility in response to pressure only
4. Proactive- taking the initiative and being a role model for the industry

1. Ethical hot spots
2. Pressure from above
3. Discomfort with abiguity
4. Rationalization of unethical conduct

1. balancing work and family
2. poor leadership
3. too many hours and workload
4. lack of mgmt support
5. pressure to meet sales,profit, and budget goals
6. no recognition or achievements
7. company politics
8. personal finances
9. insufficient resources

1. they can consciously avoid putting pressure subordinates
2. they can prepare to deal with excessive company pressure

1. denial of responsibility
2. denial of injury to others
3. denial of victim, they deserved it
4. social weighting, others do it too
5. appeal to higher loyalties, answered to a more important cause
6. metaphor of the ledger, entitled because they "put in their time"

1. support of top mgmt
2. open discussion
3. clear focus on ethical issues specific to the organization
4. integration of ethics into the organization
5. a mechanism for anonymously reporting ethical violations
6. organizational climate that rewards ethical conduct

1. a reference to specific practices (kickbacks, payoffs, record falsification, etc)
2. must be firmly supported by top mgmt and equitable enforced through the reward-punishment system

the practice of reporting perceived unethical practices to outsiders such as the news media, government agencies, or public interest groups

(Sherron Smith foresaw Enrons collapse)