Stakeholder Activist Approach

Management’s only social responsibility is to maximize profits (create a financial return) by operating the business in the best interests of the stockholders (owners of the corporation). Expending the firm’s resources on doing “social good” unjustifiably increases costs that lower profits to the owners and raises prices to consumers.
The Socioeconomic View is that corporate social responsibility goes beyond making profits to include protecting and improving society’s welfare. Corporations are not independent entities responsible only to stockholders. Firms have a moral responsibility to larger society to become involved in social, legal, and political issues. They always follow the policy of “To do the right thing”.
Social Obligation is the

obligation of a business to meet its economic and legal responsibilities and nothing more. Social Responsiveness is the capacity of a firm to adapt to changing societal conditions through the practical decisions of its managers in responding to important social needs. Social Responsibility is a firm’s obligations as a moral agent extends beyond its legal and economic obligations, to the pursuit of long-term goals that are good for society.
Studies appear to show a positive relationship between social involvement and the economic performance of firms. Difficulties in defining and measuring “social responsibility” and “economic performance raise issues of validity and causation in the studies. Mutual funds use social screening in investment decision slightly outperformed other mutual funds. A general conclusion is that a firm’s social actions do not harm its long-term performance.
The recognition of the close link between an organization’s decision and activities and its impact on the natural environment. Global environmental problems facing managers are air, water, and soil pollution from toxic wastes. Global warming from greenhouse gas emissions and natural resource depletion.
Legal (of Light Green) Approach is that firms simply do what is legally required by obeying laws, rules, and regulations willingly and without legal challenge.

Market Approach is that firms respond to the preferences of their customers for environmentally friendly products. Stakeholder Approach is that firms work to meet the environmental demands of multiple stakeholders—employees, suppliers, and the community. Activist Approach is that firms look for ways to respect and preserve environment and be actively socially responsible.
Values-Based Management is an approach to managing in which managers establish and uphold an organization’s shared values. The Purposes of Shared Values is serving as guideposts for managerial decisions. Shaping employee behavior and influencing the direction of marketing efforts The Bottom Line on Shared Corporate Values an organization’s values are reflected in the decisions and actions of its employees.
Ethics are the rules and principles that define right and wrong conduct. Four Views of Ethics are the utilitarian view, the rights view, the theory of justice view and the integrative social contracts

theory.
Utilitarian View is the ethical decisions are made solely on the basis of their outcomes or consequences such that the greatest good is provided for the greatest number. It encourages efficiency and productivity and is consistent with the goal of profit maximization.
Rights View is concerned with respecting and protecting individual liberties and privacy. It seeks to protect individual rights of conscience, free speech, life and safety, and due process.
The Theory of Justice is defined as organizational rules are enforced fairly and impartially and follow all legal rules and regulations. It protects the interests of underrepresented stakeholders and the rights of employee.
Integrative Social Contracts Theory states that ethical decisions should be based on existing ethical norms in industries and communities in order to determine what constitutes right and wrong. And also based on integration of the general social contract and the specific contract between community members.
Moral development is a measure of independence from outside influences.

Stage of moral development interacts with individual characteristics, organization’s structural design, organization’s culture and the intensity of the ethical issue.
Moral development demonstrates that people proceed through the stages of moral development sequentially. There is no guarantee of continued moral development.
Values are the basic convictions about what is right or wrong on a broad range of issues. Stage of moral development is a measure of an individual’s independence from outside influences
Social impact management is the field of inquiry at the intersection of business practice and wider societal concerns that reflects and respects the complex interdependency of those two realities. The question of how to go about increasing managers’ awareness within their decision-making processes of how society is impacted by the conduct and activities of their firms.
For any business, corporate social responsibility is an increasingly important issue. On an international level, corporate social responsibility is enforced by the government especially in regards to safeguarding the environment. It is not necessary that responsible business measure the positive impact of their behaviour on their

performance.
Earlier, most of the businesses and managers were mainly concerned with raising shareholders’ value. This depends on the size of the business. Generally, managers used to concentrate on short to medium term profits and shooting the share prices through the roof.