Business English For International Trade And Business Informatics. В 2 частях. Ч.1. Учебное пособие

Unit 4. Corporate Social Responsibility

5. Complete the following definitions with the words and phrases given in the box.

a shareholder, an obligation, charitable work, fair trade, non-profit social enterprises (NPSEs), public consensus, publicity stunts, social responsibility, sustainability, to publicize.

1.… of corporate stock refers to an individual or legal entity that is registered by the corporation as the legal owner of shares of the share capital of a public or private corporation.

2.… is a course of action which someone is required to take, be it a legal or moral one.

3.… refers to activities that are performed by individuals or organizations to help those in need, particularly those who are disadvantaged or suffering from poverty, illness, or other social problems.

4.… is a trade arrangement designed to help producers in developing countries achieve sustainable and equitable conditions.

5.… are organizations that pursue a social mission while generating revenue from market-based activities.

6.… refers to the general agreement or collective opinion held by a significant portion of a population on a specific issue, policy, event, or norm.

7.… are planned events designed to attract media attention and public interest. They help businesses stand out in a crowded marketplace without spending a fortune on traditional advertising.

8.… of business refers to the obligations of businessmen’s decisions and actions taken for reasons at least partially beyond the firm’s direct economic and technical interest.

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9.… is a social goal for people to co-exist on Earth over a long period of time.

10.… means advertise or promote to attract public attention.

Grammar. Passive Voice

6. Choose the correct passive voice option to complete each sentence.

1.Companies must prioritize ethical sourcing. → Ethical sourcing ______ by companies.

A)must prioritize;

B)must be prioritized;

C)must being prioritized;

D)must prioritized.

2.NGOs support marginalized groups globally.

→ Marginalized groups ______ globally by NGOs.

A)are supported;

B)support;

C)are supporting;

D)supports.

3.Governments should regulate carbon emissions. → Carbon emissions ______ by governments.

A)should regulated;

B)should be regulated;

C)should regulate;

D)should being regulated.

4.Factories often exploit workers by ignoring fair wages. → Fair wages ______ by factories.

A)are often ignored;

B)often ignore;

C)often ignoring;

D)is often ignored.

5.Businesses assess their environmental impact annually. → Environmental impact ______ annually by businesses.

A)is assessed;

B)assesses;

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Unit 4. Corporate Social Responsibility

C)are assessed;

D)is assessing.

6.Volunteers renovated the community center last year.

→ The community project ______ last year.

A)renovated;

B)was renovated;

C)renovates;

D)were renovated.

7.Corporations must adopt sustainable practices.

→ Sustainable practices ______ by corporations.

A)must adopt;

B)must adopted;

C)must be adopted;

D)must adopting.

8.Society cannot violate human rights.

→Human rights ______ by society.

A)cannot violate;

B)cannot violated;

C)cannot be violated;

D)cannot violating.

9.Engineers develop renewable energy solutions.

→Renewable energy solutions ______ by engineers.

A)are developed;

B)develop;

C)is developed;

D)develops.

10.Shareholders demand transparency in corporate governance.

→Transparency in corporate governance ______ by shareholders.

A)demands;

B)is demanded;

C)demanded;

D)are demanded.

7. Rewrite the following sentences using Passive Voice.

1. Companies should implement sustainable practices in manufacturing.

(Passive: Sustainable practices...)

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2.Factories often ignore fair wages for workers.

3.Governments must reduce carbon emissions by 2030.

4.Volunteers are supporting community projects this year.

5.We can power cities using renewable energy.

6.Brands should prioritize ethical sourcing of materials.

7.Society cannot violate human rights.

8.NGOs have assisted marginalized groups for decades.

9.Shareholders demand transparency in corporate governance.

10.Businesses must assess their environmental impact regularly.

Reading

8.Text A. Read the text. Decide whether the following statements below TRUE (T), FALSE (F) or NON-STATED (NS).

1.Milton Friedman argues that the sole social responsibility of business is to increase profits while avoiding deception and fraud.

2.Libertarians believe businesses have no social responsibilities whatsoever.

3.Friedman believes businesses should never devote resources to helping the community.

4.Keith Davis defines social responsibility as including a "sociology-human obligation" focused on human values in the workplace.

5.The meaning and specific obligations of social responsibility are universally fixed and identical across all societies.

6.Most business managers prefer the term "social responsibility" (SR) because it denotes a fixed obligation.

7.The operational definition provided places shareholders above other interest groups like workers, customers, and society.

8.Kenneth R. Andrews defines social responsibility as including the restraint from ultimately destructive activities, even if profitable.

9.Adolph Berle defines social responsibility as the obligation to maximize shareholder value above all else.

10.Howard R. Bowen's definition implies that social responsibility requires actions aligned with society's values, even if they reduce profits.

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Unit 4. Corporate Social Responsibility

11.The text states that practicing social responsibility always leads to increased profits.

12.According to the text, the primary task of business management is solely to maximize shareholder wealth.

Social Responsibility of Business

Social responsibility is a doctrine that claims that an entity, whether it is state, government, corporation, organization or individual, has a responsibility to society. Many people, particularly libertarians, assert that there is no “social responsibility” to do anything.

They argue that social responsibility only exists to the extent that an individual or business should not initiate physical force, threat of force or fraud against another.

“The Social Responsibility of Business is to Increase Profits,” Nobel Economist, Milton Friedman asserts that business has no social responsibility other than to increase profits and refrain from engaging in deception and fraud. He maintains that when business seeks to maximize profits, it almost always incidentally does what is good for society.

Friedman does not argue that business should not help the community but that it may indeed be in the long-run self-interest of a business to “devote resources to providing amenities to the community” in order to “generate goodwill” and thereby increase profits.

Meaning of Social Responsibility of Business

Social responsibility is an imprecise idea and hence is defined in various ways. Adolph Berleh as defined social responsibility as the managers’ responsiveness to public consensus. This means that social responsibilities are bound to differ and would not remain the same for all countries at the same time.

These would be determined in each case by the customs, religions, traditions, level of industrialization and a host of other norms and standards about which there is a public consensus at any given time in a given society.

According to Keith Davis, the term social responsibility refers to two types of business obligations:

•The sociology-economic obligation

•The sociology-human obligation

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The sociology-human obligation of every business is to nurture and develop human values (such as morale, cooperation, motivation and self-realization in work. Every business firm is part of a total economic and political system and not an island without foreign relations.

It is at the center of a network of relationships to persons, groups and things. The businessman should, therefore, consider the impact of his actions on all to which they are related. Business should be carried out in such a manner that it proves to be a boon, packed with benefits for his employees, investors, consumers, the government and the general public.

Their task is to mediate among these interests, to ensure that each gets a square deal and that nobody’s interests are unduly sacrificed to those of others.

Concept of social responsibility might be defined as follow:

Social responsibility implies formulation of business objectives, plans, policies and programmes etc. with emphasis on not only the economic concept of the profit-maximisation; but also with an orientation towards meeting social obligations.

Some popular definitions of social responsibility are given below:

(1) “Social responsibilities refer to the businessman’s decisions and actions taken to reasons at least partially beyond the firm’s direct economic or technical interests.” − Keith Davis.

(2) “Social responsibilities refer to the obligation (of businessmen) to pursue those policies, to make those decisions, or to follow those lines of action which are desirable, in terms of objectives and values of society.” − Howard R. Bowen.

(3) “By social responsibility, we mean the intelligent and objective concern for the welfare of society that restrains individual and corporate behavior from ultimately destructive activities, no matter how immediately profitable and leads in the direction of positive contributions to human betterment.” – Kenneth R. Andrews.

These definitions prescribe some actions by managers for the betterment of the society but do not prescribe the actions precisely. Therefore, most business managers prefer words other than SR because these words to them can note a fixed obligation.

They prefer such synonyms as social concern, social programmes, social challenge, social commitment or concern with public problems. However, the term SR has been widely recognized and its operational definition may be as follows:

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Unit 4. Corporate Social Responsibility

Social responsibility contends that management is responsible to the organization itself and to all the interest groups with which it interacts. Other interest groups such as workers, customers, creditors, suppliers, government and society in general are placed essentially equal with shareholders.

9. Text B. Read the text; summarize it and think which SR model is being used mostly nowadays.

Social Responsibility Models

Social responsibility of a firm is covering the following areas. These areas are to be fully looked after by the firm.

(1)Ecology and Environmental quality (avoiding pollution, distributive use

of land).

(2)Societal needs like health care facilities, education, voluntary service.

(3)Consumerism (product warranty and service chaste advertising and control of bad goods).

(4)Healthy governmental contacts.

(5)Providing equal employment opportunities, encouraging minority and weaker sections of the society through selection, training and placement.

(6)Healthy personnel relationship.

(7)Treating shareholders in an honorable way and giving them required information.

(8)Maintaining Corporate Philanthropy by encouraging art, culture, sports through sponsors, encouraging educational system of the society by giving donations, providing financial support to charitable works etc.

Social responsibilities are discharged by way of adopting certain policies and programmes. Social responsibility of business is not yet properly defined. But programmes are identified through certain works and they are termed as.

"Social Responsibility Models." Two models are identified, viz., (i) Classical model or shareholder model and (ii) Socio-economic model.

Classical model opines that the firm has only responsibility of looking huge profits. There should be maximisation of profit and that is the only responsibility that enterprise has. This was a traditional thinking. Profit making was the only objective, then, of the corporate enterprises. Business houses were not interested in societal needs. Firms thought that the shareholders have contributed capital

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and their interest has to be protected by giving regular dividends and work for the appreciation in the value of assets otherwise called "Wealth maximization." This traditional or classical concept or model did not last long. A thinking gradually developed. The new school of thought said that societal needs should also be looked after by the business houses.

Socio-Economic Model is a modern model which emphasizes the role of business houses in relation to society needs. According to this model, following responsibilities are to be discharged by the business houses.

(1)Society expects that the business houses should perform their duties for the betterment of the people at large. Profits should be made only after satisfying the needs of the society. If any firm fails to discharge this duty other firms may take the advantage and the failing firm will be relegated to back.

(2)If the societal needs are satisfied by the business houses, they develop a positive image in the eyes of public, congenial business environment will be created, government will have a soft corner for business houses, and too much government regulation will be avoided.

(3)With good response to social calls, business houses enjoy social power, develop business on sound lines, and avail all resources for the development of business.

(4)When society is satisfied by innovative services, firms enjoy the reputations and make good profits which will be distributed to shareholders in the form of dividend. Dividend maximisation takes place through societal satisfaction.

The traditional or classical model concentrates on production and profit making ignoring society needs and modern model or socio-economic model concentrates on satisfying the society needs and then makes profit.

(https://ebrary.net/7751/management/social_responsibility_models)

10. Read the text B again and answer the following questions.

1.What are the eight specific areas covered under the social responsibility of a firm as described in the text?

2.What are the two main Social Responsibility Models identified in the text?

3.According to the Classical (Shareholder) Model, what is the only responsibility of a business firm?

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Unit 4. Corporate Social Responsibility

4.What is the fundamental difference between the Classical Model and the Socio-Economic Model regarding profit and societal needs? (Use the text's specific phrasing if possible).

5.According to the Socio-Economic Model, what are two benefits a business gains from satisfying societal needs?

6.What does the text mean by "Corporate Philanthropy" under the areas of social responsibility? Give two examples mentioned.

7.A company focuses intensely on cost-cutting to maximize dividends for its investors, paying little attention to environmental regulations or community programs. Which Social Responsibility Model (Classical or Socio-Economic) does this company most closely align with? Justify your answer using concepts from the text.

8.A company launches a major initiative to fund local schools and healthcare clinics, believing this will build a positive reputation and lead to longterm customer loyalty and profit. Which Social Responsibility Model does this align with? Justify your answer using concepts from the text.

9.According to the Socio-Economic Model, what is the potential consequence for a firm that fails to perform its duties for the betterment of society?

10.How does the Classical Model's view on the purpose of profit-making differ fundamentally from the Socio-Economic Model's view? (Refer to the ultimate goal/recipient).

11.The text states that "Profit making was the only objective, then, of the corporate enterprises" (referring to the Classical era). What word implies a shift away from this view, and what model represents that shift?

12.Why might the Socio-Economic Model argue that satisfying societal needs leads to profit maximization (for shareholders) in the long run, whereas the Classical Model seeks profit maximization directly?

Rendering

11. Render the following extract from the article “Criticisms of Corporate Social Responsibility” by Claire Garcia from English into Russian.

Corporations Use CSR to Distract and Misdirect the Stakeholders.

One issue with corporate social responsibility is that it creates a principalagent problem. Some CSR programs reflect the personal interests or values of

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corporate executives or members of the top management and not the interests and values of its investors. Hence, they implement a CSR initiative at the expense of the shareholders.

An exploratory study by K. S. Jahdi and G. Acikdilli mentioned that CSR could harm the identity or brand of a company. Some philanthropic efforts have increased public cynicism because they seemed inauthentic. To be specific, there seems to be a disconnect between the nature of the operations of certain companies and their CSR policies or programs.

Some have argued that companies would resort to publicizing their CSR initiatives to distract the public from ethical problems emerging from their core operations. Others have asserted that the purpose of CSR is to justify the position of power held by large corporations and thus, redirect the public from the fact that they hold substantial affluence and influence.

Some companies allegedly use CSR as a mere publicity stunt. The study of S. C. Jones, A. Wyatt, and M. Daube noted that manufacturers of liquor or alcoholic beverages are using social marketing to direct criticisms away from the harmful practices of the entire alcohol industry. Hence, the seeming altruistic behaviors of businesses might have self-serving motives.

(https://www.konsyse.com/articles/criticisms- of-corporate-social-responsibility)

12. Render the following extract from the article “Social responsibility of business in Russia: opportunities and prospects” from Russian into English.

Еще пятнадцать-двадцать лет назад рассуждения о неуклонном росте «социально ответственного бизнеса» вызывали по большей части скепсис и иронию у представителей этого самого бизнеса. Было совершенно непонятно, зачем и с какой целью от прибыли, добытой в конкурентной борьбе, необходимо отчислять какие-то проценты на развитие социальных проектов, на содержание культурно-массовых учреждений, на социальную сферу в целом.

Такое отношение к понятию «социально ответственный бизнес» в среде российских предпринимателей конца ХХ – начала XXI в. вызывает удивление, ведь его традиции, истоки и корни восходят к XVIII в. К тем временам, когда указом Петра I «негоцианты, учредившие корабельные и пехотные школы для сирот и общинных выкормышей», освобождались от

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