Corporate Social Responsibility

Overview

This module explores the evolving relationship between business, society, and ethics through the lens of corporate social responsibility (CSR) and conscious capitalism. Lesson One introduces the foundations of CSR, examining its competing viewpoints, ethical challenges, and growing importance in global business, illustrated through real-world case studies. Lesson Two builds on these ideas by introducing conscious capitalism, a modern approach that links business success to purpose-driven, ethical, and sustainable practices. This module shows how organizations can integrate social responsibility into their core strategies.

Presentation Files

Lesson 1 Lesson Plan

What is CSR? Two Opposing Views

Module 8 Lesson One begins with an explication of the relationship between business and society, which helps understand the notion of corporate social responsibility (CSR). The lesson provides a definition of CSR, identifies the different viewpoints of CSR and then shows why CSR is of growing concern to students and leaders as well as public relations practitioners. Though businesses are economic entities that exist to advance the financial interests of their owners; this is not their only concern. The lesson argues that without the balance of a multi-stakeholder approach, firms can become unethical, exploitive, anti-social, and corrupt—losing legitimacy and their ability to pursue the owners’ economic goals over the long term. Arguments for and against CSR are presented along with trends that are propelling CSR to a greater prominence in corporate and strategic thinking.

Collectively, Lesson One draws on core concepts and innovative models to provide a comprehensive overview of CSR. The lesson concludes with a case study that illustrates how broad societal issues, such as LGBT rights, are increasingly influencing the relationships between stakeholders, including shareholders, and corporations. The lesson illustrates the practical challenges faced by organizations and practitioners that grapple with this complex topic. Throughout the lesson and its accompanying instructional materials, additional readings, suggested audio/visual resources, and stimulating questions for debate allow easy application in the classroom.

Key Concepts: Corporate social responsibility, stakeholder, economic view, societal View, globalization, affluence, and sustainability

1. What is CSR?
2. Arguments for CSR
3. Why is CSR important?
4. Why is CSR increasingly relevant today?
5. Case study
6. Conclusion

Lesson 2 Lesson Plan

An Introduction to Conscious Capitalism

Module 8 Lesson Two discusses conscious capitalism as an emerging concept grounded in the theory of corporate social responsibility (CSR). The lesson provides an introduction to conscious capitalism, which argues that success in today’s business environment is correlated highly with ethical, responsible, and inspiring behavior. Many large companies have recently created or installed models to practice conscious capitalism as a business strategy. It is important for students to understand this new approach to CSR and determine whether the movement could offer the prospect of integrating greater social responsibility into mainstream business practices. The lesson first defines conscious capitalism and presents an evolution of the concept with a focus on values-based economic values where values represent social and environmental concerns at both global and local scales. Then, a case study completes the lesson, which reflects the extent to which conscious capitalism can turn into an opportunity for both firms and stakeholders.

Together, Lesson Two draws on core concepts to provide a comprehensive overview of conscious capitalism. Through a case study on REI’s recent #OptOutside, the lesson illustrates the progression of CSR into a new framework—conscious capitalism—and the practical opportunities faced by firms that help redefine and shape the notion of CSR. Throughout Lesson Two and its accompanying instructional materials, additional readings, suggested audio/visual resources, and stimulating questions will allow instructors to facilitate a lively debate in the classroom.

Keywords: CSR, conscious capitalism, stakeholder, culture, leadership, tactile

1. Conscious capitalism
2. Four pillars of conscious capitalism
3. Conscious capitalism vs. corporate social responsibility
4. Case study
5. Conclusion

Discussion Questions:

1. What does it mean for an organization to be ethical? What is the difference between an unethical and an illegal act?
2. What does it mean for an organization to be conscious?
3. What is the difference between an ethical company and a conscious company?

Module Summary

Lesson One defined CSR as the notion of companies looking beyond profits to their role in society and identified the different viewpoints of CSR and then shows why CSR is of growing concern to business students and leaders. Though businesses are economic entities that exist to further the financial interests of their owners; this is not their sole concern. Without the balance of a multi-stakeholder approach, firms can become exploitive, anti-social, and corrupt—losing legitimacy and their ability to pursue the owners’ economic goals over the long term. Arguments for and against CSR are presented along with trends that are propelling CSR to a greater prominence in corporate and strategic thinking. The lesson concludes with a case study that illustrates how broad societal issues, such as LGBT rights, are increasingly influencing the relationships between stakeholders, including shareholders, and corporations.

During the recent corporate scandals that include companies such as Goldman Sachs, BP, Volkswagen, and Wells Fargo, a few companies have distinguished themselves by their commitment to ethical and sustainable business practices. This lesson focuses on conscious capitalism as a movement in the United States, which is grounded in the theory of corporate social responsibility with a holistic focus on voluntary exchange, entrepreneurship, competition, freedom to trade and the rule of law. Conscious enterprises, such as Whole Foods, Trader Joe’s, Patagonia, claim to follow a business strategy in which they seek to benefit both human beings and the environment. The lesson will first define the idea of conscious capitalism, identify its main tenets, and discuss some exemplary corporate practices. After presenting a case study on REI’s recent #OptOutside campaign, the lesson concludes with a discussion on whether conscious capitalism can be a viable framework for enhancing the profit-making potential of responsible, ethical, and sustainable corporate behavior.

Module Developers