The Ethical Dimension of Impact-Oriented Corporate Social Responsibility (CSR)

Abstract

Impact-oriented corporate social responsibility (CSR) shifts from a conventional business case for CSR to the perspective of society-at-large. Impact-oriented CSR may have a different ethical basis than does conventional CSR based on the business case. In the latter, a business assesses effects of CSR on its financial and strategic performance. This business case is instrumental and voluntary. Generating profits and satisfying powerful non-financial stakeholders is the criterion. The context is a capitalist market economy for which regulations may reduce negative impacts. Impact-oriented CSR is a framework in which businesses should maximise positive impacts on society-at-large and ideally should not generate any negative impacts. The ethical dimension is that impacts of business and CSR activities on society-at-large and the natural environment ultimately outweigh effects on business. This ethical dimension becomes defining the purpose of business and under what conditions business can operate profitably. The context shifts away from free market capitalism towards a social market economy, defined here generically as intermediate between free market capitalism and state socialism.