CSR and Business Ethics
Ethics is the internal moral compass. CSR is the external manifestation of that compass.
The Connection
- A company with strong ethics will naturally engage in CSR.
- However, a company can do CSR without strong ethics (just for PR).
Greenwashing
When a company spends more money advertising their green initiatives than actually doing them.
- Example: An oil company planting 100 trees and spending millions on a TV ad about it, while spilling oil in the ocean. This is Unethical CSR.
Ethical Arguments for CSR
- Restitution: Corporations use society's resources (roads, educated workforce). CSR is paying back.
- Iron Law of Responsibility: "In the long run, those who do not use power in a manner which society considers responsible will tend to lose it." (Keith Davis).
Ethics vs CSR
Business Ethics
- Nature: Internal Values / Conscience.
- Focus: Right vs Wrong.
- Example: Deciding not to use child labor.
VS
CSR
- Nature: External Actions / Programs.
- Focus: Impact on Society.
- Example: Building a school for workers' children.
Note
The Hypocrisy Test: If a tobacco company funds cancer research, is it ethical? Many ethicists say No, because their core business causes the problem.
Test Your Knowledge
Question 1 of 5
1. Greenwashing refers to: