Topic 3 Seminar: What is CSR

1. Read page 138 in Johnson et al (2011) and justify your answer to the question
should business be responsible for
An organisation should responsible for both internal and external aspects in their
business environment. Internal aspects include of employees, policies and practices.
Therefore employees at every level of hierarchy in the organization are talented key
players which may bring professionalism and energy to the organization and
important to retain diverse to achieve businesss goals. An organisation should
responsible for internal aspects of their employee in term of welfare, working
environment or conditions, job design and intellectual property. A good employee
welfare policy and conditions would improve their employee overall performance
which is the critical success factors and its sustainability. External aspects include of
environmental issues, products, markets and marketing, suppliers, human rights,
employment and community activity. For products which are environmental friendly
and safely to be use are important for customers nowadays because they expecting for
good value, high quality products and good services. Besides, organization should
also ensure the right materials are being used by complying products mandatory
standards as well as fair term trade between both parties. This will allow the
community to work together and support the growth of the communities by
sponsoring local events and local works. In addition, organization should implement
and integrate a strict policy to ensure employment discrimination on workplace and
provide a good cultural expectations and norms which can lead to attraction of good
employees and increase the reputation of organizations. Moreover, it may also act as
corporate hospitality that promotes good relations with all the remaining stakeholders.
Human rights that related with economic, social and environmental aspects of
corporate activity should be focused on.
2. Using Sethis continuum of CSR how would you categorise each of the
decisions in illustration 4.4 of Johnson et al (2011)?
Sethis continuum of CSR comprises of three state schema which is social obligation,
social responsibility and social responsiveness.
Social obligation is refers to a purpose of business is primarily economic. In
illustration 4.4 of Johnson et al (2011) stated that Pepsi Co launched a range of

healthy snacks targeting 8-12 years old school children and also launch a childrens
porridge under the Quaker brand as well as publish a health audit of its products.
Therefore, it means that this purpose of Pepsi Co business is to reduce saturated fat in
its Walkers Crips by 70% by switching from palm oil to sunflower oil in order to
publish a healthy food to the school children.
Social responsibility is refers to in where a business has both economic and social
goals, shareholders still primary but will take a wider view of stakeholders. In
illustration 4.4 of Johnson et al (2011) stated that in early 2009 Andrew Witty, the
Chief Executive of GSK announced the decision to cut its prices in the 50 least
developed countries in the world to no more than 25% of levels in the UK and the US
prices on all medicines produced by GSK. They also re-invest 20% of any profits it
made in the least developed countries into hospitals, clinics and staff and share
knowledge about potential drugs. However, there is a criticisms of drug companies for
defending their patents, fighting off generic alternatives and refusing to drop prices
for HIV drugs despite the HIV/AIDS crisis in Africa and Asia.
Social responsiveness is refers to a business has both economic and social goals but
anticipates forthcoming social problems and issues. Proactive and anticipatory.
Stakeholders are key to decision making. In illustration 4.4 of Johnson et al (2011)
stated that the World Bank has both economic and social goals but anticipates
forthcoming social problems such as that would a huge benefit Western
multinationals and quite possibly feed African energy into European households when
less than 30% of Africans have access to electricity since in some African countries as
low as 10%.
3. Read the key debate on page 147 of Johnson et al (2011) and answer the two
questions at the end of the debate giving justification for what you say.
1. Which view do you hold:
(a) as a manager?

(b) as a shareholder?

I will hold a view as a shareholder as the reasons of Charles Handy argues that there
is a first a clear and important need to meet the expectations of a companys
theoretical owners: the shareholders. As a shareholders, I have no responsibility of
ownership and are only there for the money. The purpose of the business is not to
make a profit, is to make a profit so that the business can do something more or better.

2. What are the implications of the different organisational strategy?

The implications of the different organisational strategy are to put your investments in
lot of companies then your disadvantage to seek any business to behave socially
irresponsibly towards other businesses, the customers, employees or society. By doing
this, they will damage the interests of other firms in which you have interest. However,
they will not be serving their share owners interest if they undertake activities that
may be good for them individually, but damaging to the larger economic system.
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