1. Sec 3-8
Strategic Model of Corporate Social
Responsibility

2. • Business should or should not be expected to sacrifice
profits for social ends.
• Corporate social responsibility: tension between the
pursuit of profit and social responsibility.
• Some organizations turn tension: pursue social ends as
core of their mission
– Non-profits: hospitals, NGOs, foundations, professional
organizations, schools, colleges and government agencies.
• Some for-profit organizations: social goals as a central
part of the strategic mission of the organization
• Grameen Bank founded by Nobel Peace Price
winner, Mohammad Unas: example of growing
movement of social entrepreneurship.
– Pioneered the practice of micro lending to poor people.

3. • Social entrepreneurs demonstrate: profit is not compatible with doing
good, and that one can do good profitably.
• ethical responsibilities associated with sustainability are relevant to every
business concern.
• Sustainability: ethical goals should be at the heart of every corporate
mission
• Sustainability: firm’s financial goals must be balance against, and perhaps
even overridden by environmental considerations.
• Defenders of Sustainability: all economic activity exists within a biosphere
that supports all life.
– The present model of economics, and macroeconomic goal of economic growth is already running up
against the limits of the biosphere's capacity to sustain life.
– Fundamental human needs for such goods as clean air, water, nutritious food, and a moderate
climate are threatened by the present dominant model of economic activity.
– The success of a business must judged not only against the financial bottom line of profitability, but
also against the ecological and social bottom lines of sustainability.
– A business or industry that is financially profitable, but that uses resources at unsustainable rates
and that creates wastes at rates that exceed the earth’s capacity to absorb the, is a business that is
failing its fundamental social responsibility.
– A firm that is environmentally unsustainable is also a firm that tis in the long term, financially
unsustainable.

4. • Sustainable Corporate social responsibility: long-
term financial well-being of every firm is directly
tied to questions of how that firm both affects
and is affected by the natural environment
– Corporations see sustainability as increasingly
significant to all aspects of the firm, from suppliers to
operations to customers
– Corporate annual financial reports are being
supplemented with corporate sustainability reports.
• Laws and regulation require corporations to file an annual
report that provide a comprehensive accounting of a
business’s activities in the preceding year
• Report provide shareholders and the public with
information about the financial performance of the company
in which it has invested.