Summary EHM2 TASK 2: DEVELOPING ORGANIZATIONAL ETHICS AND SOCIALLY RESPONSIBLE BEHAVIOR NAME

EHM2 TASK 2:

DEVELOPING ORGANIZATIONAL ETHICS

AND SOCIALLY RESPONSIBLE BEHAVIOR




NAME

Western Governors University

C206: Ethical Leadership

DATE

, A. Purpose of CSR

Corporate Social Responsibility (CSR) is a form of self-regulation that encourages

companies to take responsibility for their societal and environmental impact. CSR aims for a more

conscious way of doing business beyond maximizing shareholder profits (Trevino and Nelson 2017,

Ch 9). CSR takes into account the concerns of multiple stakeholders, such as employees, customers,

and communities.




There are three reasons for companies to care about CSR:

1. Pragmatic: If companies don’t use their power responsibly, they risk losing it.

Stakeholders can take actions to interfere with the company’s ability to conduct business

1 as usual. Companies must aDcetvcealouptiinogusOlyrgiannitzhaetipornoatleEctthioicns
onf dthSeoicriarellypuRteastpioonn.sible Behavior

2. Ethical: Companies have an ethical duty to do the right thing and attend to stakeholder’s

needs and concerns.

3. Strategic: CSR helps create a shared value on initiatives that benefit both the company

and society.




A.1. Primary and Secondary Stakeholders

One primary stakeholder that influences Paradigm Toys is its employees. They have a

formal contractual relationship with Paradigm Toys and have a strong interest in the financial well-

being of the company.