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2013年12月26日

Legal Responsibility of CSR (revised)

Legal responsibility is a fundamental and essential responsibility not only for entrepreneurs but for all the citizen in the world. But law is inadequate in many ways especially in Taiwan.
First, “the law cannot possibly address all the topics or issues that business may face.” (Business & Society, p.41) Legislative Procedures are inextricable and time-consuming; its clauses cannot contain all the possible circumstances all the time, but that doesn’t mean we can exploit legal loopholes. This situation happens almost every time when a new technology or a new condition burst out and thus brings out the following problems that make law inadequate.
Second, “the law often lags behind more recent concepts of what is considered appropriate behavior.” (Business & Society, p.41) People’s values change over time, but the distinct of law mentioned above restrict it to respond accordingly to the problems, thus lead to in appropriate judgments.
Third, “laws are made by lawmakers and may reflect the personal interests and political motivations of legislators rather than appropriate ethical justifications.” (Business & Society, p.41) This is especially serious in Taiwan. “A sage once said: ‘Never go to see how sausages or laws are made.’ It may not be a pretty picture. Although we would like to believe that our lawmakers are focusing on ‘what is right,’ potential maneuvering often suggest otherwise.”(Business & Society, p.41) The officials and businessmen stand on the same front and formed the mutually beneficial bond, the law thence focus on their profits instead of people’s goods.
The collusion between government and enterprise has been a not-so-amazed issue for Taiwanese people, not because our judiciary can handle this situation at ease, but we already feel numb and disheartened for the predictable outcome. The law, the legislators, and the government do not stand in our side, but supporters of entrepreneurs, then how could they back up the impotent people, whom are stand on the opposite side from entrepreneurs?
Picture 1
Take Taiwan’s food scandal in 2011 for example, CFCT[1]brought up a lawsuit for the victims and sought compensation for 2400 million NT dollars, but the court eventually announced that Yu Shen Company and other companies should indemnify1200 thousand NT dollars, which is far less than the original request. The situation is entirely different for Uni-President Enterprises Corporation, it sought compensation for 8900 million NT dollars and the court sentenced Yu Shen Company to pay 1300 million NT dollars.
From the case above, we can reasonably refer that our judiciary is in fact the people’s enemy. The government, the judiciary, and the enterprise stand together as alliance, left the people stand on the other side alone. How can we expect enterprisers to fulfill their responsibility under this situation?
Last but not least, people in Taiwan should change our attitude toward things entirely. The law gives us enough freedom to fight for our right, but we didn’t use it in an effective way. If we need the law, we have to fight for the law; if the law is harmful to us, we should fight against it. If we can’t depend on the powerful people, we have to unit and form the power by ourselves, not just endure and complain on the internet.

[1]CFCT is the abbreviation of Consumers' Foundation, Chinese Taipei. It’s the major non-profit organization which fights for consumer’s right in Taiwan.

Reference

Caroll A. B. & Buchholtz A. K. (2008). Corporate citizenship: social responsibility, responsiveness, and performance: the corporate social responsibility concept. In M. Acuna (Ed.), Business & society: Ethics and stakeholder management, 7th edition (pp.41-45). Mason: South-Western

2011 Taiwan food scandal. (n.d.). Retrieved December18, 2013, from Wikipedia: http://en.wikipedia.org/wiki/2011_Taiwan_food_scandal 

Min Jou Wu (吳旻洲,2013). Ridiculous!39 companies in Taiwan whom sold the plasticizer only have to pay 1200 thousand NT dollars for 7800 million NT dollars! Retrieved December 18, 2013, from EpochTimes: http://www.epochtimes.com/b5/13/10/17/n3989112.htm



Philanthropic Responsibility of CSR (revised)

The dictionary defines philanthropy as “a desire to help mankind as indicated by acts of charity; love of mankind.” (Business &Society p.626)The philanthropic responsibility is desired of business by society, but when this desire become a pressure, a force, what will it be? Does our society turn out to promote hypocrisy?
picture 1
  In these days, entrepreneurs become more and more aware of public welfare. It’s not because businessmen finally learn that they’ve earned a lot of money plus brought much harm to society, but they have learned that the more they donate, the more they earn. Robert H. Lorsch, an entrepreneur in Los Angeles, admitted that every dollar he donate can turn into 1.01dollars to two dollars profit. Moreover, entrepreneurs build better corporate images through engaging in charitable activities which convinces consumers to believe that they are conscientious firms. Another shocking fact is that entrepreneurs can have tax credit by donating money: in Taiwan, if they give disaster relief to the government, they can have the deduction rate up to 100%!
  Some people would say that although corporation do charity to promote their image not because they are kind-hearted, it still bring good effects for our society. After all, it’s better than nothing! But the problem is that the moment when they show their charitable moves to us, their firms still do things that will harm our society; this brings out two problems: one is they don’t really pay responsibility for their harm, but donating their money to those issues that are more noticeable and more appealing, which will gain public notice more effectively. The other is that through doing charity, corporations can blur the point that they are the origin of these problems. Because we often see their benevolent moves but the wicked behavior is left unsaid, publics will gradually have false notions that businessmen may have conscience: good corporations can help government build a better society.
  For the company, the problem is that they have to pay extra expense to fulfill this responsibility. The profit is unclear but the expenses are real, especially for smaller companies.

Representative Paul Gillmor (R-Ohio) said that he introduced the disclosure bill, which was cosponsored by Representative Michael G. Oxley (R-Ohio) and Representative Thomas Manton (D-New York), because he had set on corporate boards and observed executives distributing corporate assets to their pet charities while ignoring shareholders.
Gillmor’s concern was shared by law professors such as Charles M. Elson of Stetson University, who argued that philanthropy often only serves to glorify corporate managers and that, unless the philanthropy clearly benefits the company, it represents a waste of corporate assets. (Business &Society p.628)

Plus, the more you devote on social responsibility, the more the public want you to do.
Executives increasingly see themselves in a no-win situation, caught between critics demanding ever higher levels of ‘corporate social responsibility’ and investors applying relentless pressure to maximize short-term profits. Giving more does not satisfy the critics—the more companies donate, the more is expected of them.
  All in all, philanthropic responsibility brings more disadvantages than benefits. To big corporations, it is the opportunities to promote the image but they have to take the risk of wasting money. To medium and small firms, it’s a big burden to fulfill this kind of responsibility. To the public, we only got facial benefits and their hypocrisy, but miss the chance to solve the basic problems.

Reference

Caroll A. B. & Buchholtz A. K. (2008). Corporate citizenship: social responsibility, responsiveness, and performance: the corporate social responsibility concept. In M. Acuna (Ed.), Business & society: Ethics and stakeholder management, 7th edition (pp.43-45). Mason: South-Western

Caroll A. B. & Buchholtz A. K. (2008). Business and community stakeholders: corporate philanthropy or business giving. In M. Acuna (Ed.), Business & society: Ethics and stakeholder management, 7th edition (pp.626-630). Mason: South-Western

Bo Yi Lin (林柏儀,2012). Facing Youths Impoverishment: The Limit of Corporate Social Responsibility. Retrieved November 28, 2013, from Lihpao: http://www.lihpao.com/?action-viewnews-itemid-117568

Porter M.E. and Kramer M.R. (2002). The competitive advantage of corporate philanthropy. Retrieved October 20, 2013, from Expert2business.com: http://www.expert2business.com/itson/Porter%20HBR%20Corporate%20philantropy.pdf

Mei Jen Chen (陳美珍,2011). Deduct Tax Through Public Interest Organization When Donating Abroad. Retrieved November 28, 2013, from Chihlee Institute of Technology: http://ai100.chihlee.edu.tw/files/16-1018-8021.php

Shau Chiang Yang(楊少強,2006). Rich people earn money and reputation through donating while poor people aren’t necessarily benefit. Retrieved November 28, 2013, from Business Weekly: http://www1.businessweekly.com.tw/article.php?id=22364

Picture 1: http://blog.zopim.com/2013/09/10/the-bottom-line-of-corporate-social-responsibility/


Legal Responsibility of CSR

Legal responsibility is a fundamental and essential responsibility not only for entrepreneurs but for all the citizen in the world. But law is inadequate in many ways especially in Taiwan.
First, “the law cannot possibly address all the topics or issues that business may face.” (Business & Society, p.41) Legislative Procedures are inextricable and time-consuming; its clauses cannot contain all the possible circumstances all the time, but that doesn’t mean we can exploit legal loopholes. This situation happens almost every time when a new technology or a new condition burst out and thus brings out the following problems that make law inadequate.
Second, “the law often lags behind more recent concepts of what is considered appropriate behavior.” (Business & Society, p.41) People’s values change over time, but the distinct of law mentioned above restrict it to respond accordingly to the problems, thus lead to in appropriate judgments.
Third, “laws are made by lawmakers and may reflect the personal interests and political motivations of legislators rather than appropriate ethical justifications.” (Business & Society, p.41) This is especially serious in Taiwan. “A sage once said: ‘Never go to see how sausages or laws are made.’ It may not be a pretty picture. Although we would like to believe that our lawmakers are focusing on ‘what is right,’ potential maneuvering often suggest otherwise.”(Business & Society, p.41) The officials and businessmen stand on the same front and formed the mutually beneficial bond, the law thence focus on their profits instead of people’s goods.
The collusion between government and enterprise has been a not-so-amazed issue for Taiwanese people, not because our judiciary can handle this situation at ease, but we already feel numb and disheartened for the predictable outcome. The law, the legislators, and the government do not stand in our side, but supporters of entrepreneurs, then how could they back up the impotent people, whom are stand on the opposite side from entrepreneurs?
Take Taiwan’s food scandal in 2011 for example, CFCT[1]brought up a lawsuit for the victims and sought compensation for 2400 million NT dollars, but the court eventually announced that Yu Shen Company and other companies should indemnify1200 thousand NT dollars, which is far less than the original request. The situation is entirely different for Uni-President Enterprises Corporation, it sought compensation for 8900 million NT dollars and the court sentenced Yu Shen Company to pay 1300 million NT dollars.
From the case above, we can reasonably refer that our judiciary is in fact the people’s enemy. The government, the judiciary, and the enterprise stand together as alliance, left the people stand on the other side alone. How can we expect enterprisers to fulfill their responsibility under this situation?
Last but not least, people in Taiwan should change our attitude toward things entirely. The law gives us enough freedom to fight for our right, but we didn’t use it in an effective way. If we need the law, we have to fight for the law; if the law is harmful to us, we should fight against it. If we can’t depend on the powerful people, we have to unit and form the power by ourselves, not just endure and complain on the internet.

[1]CFCT is the abbreviation of Consumers' Foundation, Chinese Taipei. It’s the major non-profit organization which fights for consumer’s right in Taiwan.

Reference

Caroll A. B. & Buchholtz A. K. (2008). Corporate citizenship: social responsibility, responsiveness, and performance: the corporate social responsibility concept. In M. Acuna (Ed.), Business & society: Ethics and stakeholder management, 7th edition (pp.41-45). Mason: South-Western

2011 Taiwan food scandal. (n.d.). Retrieved December18, 2013, from Wikipedia: http://en.wikipedia.org/wiki/2011_Taiwan_food_scandal

Min Jou Wu (吳旻洲,2013). Ridiculous!39 companies in Taiwan whom sold the plasticizer only have to pay 1200 thousand NT dollars for 7800 million NT dollars! Retrieved December 18, 2013, from EpochTimes: http://www.epochtimes.com/b5/13/10/17/n3989112.htm


2013年12月7日

Transcription 2

Vivien: Hi! Everyone! Welcome to our two o’clock live show: Understand Philanthropic Responsibility for Corporate in 8 minutes. I’m Vivien.

Lisa: I’m Lisa.

Vivien: First, what is philanthropic responsibility, Lisa?

Lisa: Umm… Philanthropic responsibility in Carroll’s pyra...pyramid of corporate social responsibility is umm…the highest level. It unlike the economic and legal responsibility, which are required by society, but if…but the society will...will be glad if you take it.

Vivien: Umm…The goal for philan, for this responsibility is to be a good corporate citizen. It asks you to give back. Provide programs to support your community and engage in volunteerism, volunteerism. For example, corporate can help local to build hospitals, or schools, or sponsor cultural affairs. And, all in all, the purpose is to improve the quality of life.

Lisa: I’m support...support the philanthropic responsibility. The…this responsibility reflects the current public expectations for entrepreneurs. Umm…Philanthropic responsibilities are voluntary and benevolent activities. Entrepreneurs will…are willing to help and improve the society, including civic activities and development, by…by their desire. Nowadays, these…these philanthropic responsibilities become a kind of strategies umm…for entrepreneurs. Entrepreneurs would think…would think about the profits, plan…make a plan which can balance…balance between financial and social goals, and manage it. Unquestionably, entrepreneurs want the si…win-win situation on the business. But they should refer philanthropy into actions, then they can really get what they want.

Lisa: Umm…then I want to talk about the idea of “community involvement.” Community involvement is a conception, which means that entrepreneurs and the general public is…are members of the community. That is, they are influenced by each other. Umm…This relationship is like jigsaw puzzle, which…which would be incomplete without only one piece. Therefore, entrepreneurs should make efforts with the general public umm…hand in hand. Having the philanthropic responsibilities not only benefit the society but also the companies. Because the healthier society can bring more profits to the companies.

Lisa: There are four points important in the philanthropic responsibility, including help, share, donate, and give back. The style of helping others is mostly the foundation or financial donation, people…which helps people who are disadvantaged minority in the society. If entrepreneurs can provide good systems, good facilities, and good programs to people, then the…the quality of people’s life can be promoted.

Lisa: Why entrepreneurs need to have the philanthropic responsibility? Of course they have advantages appealing to entrepreneurs. The first one is it is the effective advertising way that can promote companies’ images. Umm…Make more people see the companies. The second one is the companies can gain greater acceptance because most people would accept the have the…which companies have good images. They are more willing to work for the…for this kind of companies. The third one is well-being and quality of people and life. If people and life can be promoted higher, and they can pro…bring more profits to entrepreneurs. If entrepreneurs want business to grow bigger and stronger like this flourishing tree, they should cultivate it with corporate responsi…corporate social responsibility.

Vivien: And I’m on the against side. The dictionary defines philanthropy as “a desire to help mankind as indicated by acts of charity; love of mankind.” The philanthropy responsibility is desired of business by society, but when the desire becomes a force, or a pressure, what will it be? Or when an entrepreneur said “Why do I have to pretend to care when I don’t? I don’t!” Are we going to force him to take the responsibility? Umm…does our society turns out to promote hypocrisy?

Vivien: Well, there is some advantages for businessmen if they take this responsibility: umm…first, they can promote their corporate image. When you do charity, people will think that wow you’re a good man, and your company must be a conscientious company, and then people will think that your pro…that are…people are more willing to buy your product because they think you are a good person. And…umm…second, do…do charity can deduct tax! In Taiwan, if businessmen give disaster relief to the government, their tax, their deduction rates can...umm… up to 100%! That means they don’t have to pay any tax.

Vivien: But there’s also some disadvantages for entrepreneurs. If you take this responsibility, it is for sure that you will have extra expenses. But maybe you’ll say extra expenses is not a big deal, because it’s just like another investment! But the problem is, umm… doing charity is not like buying shares or open another company, its profit is unclear. And, I think when you think…when you think of how much profit you will earn when doing charity, you…you’re already turn aside from the original spirit of corporate social responsibility. Umm… besides, this notion is conscienceless! So why force corporation to do things that the…ok! will against their basic goal to gain profit?

Vivien: To the public, maybe you’ll say I don’t care they are umm…kind-hearted or not, whatever their intention are, it’s better to…it’s better than nothing! Some people do, do get the sub…subvention! But the problem is that they show their charitable, charitable moves to us, but their firms still do things that will harm our society! This brings out two, two problems, first is that they do not really pay responsibility for their harm…for the harm they cause, and…but donate money to umm…more noticeable and more appealing issues to, in order to catch our attention. The second problem is that businessmen can blur the point that they are the origin of the problem. We always see them doing good things, but the wicked part are left unsaid. So, this will gradually make public think that corporations may have conscience—they can help the, help government build a better society! But is that really so?

Lisa: The conclusion of approving the philanthropic responsibility is that business has a responsibility to give back to the community, and besides, although the contribution is so small, it also can change the society.

Vivien: As for, for my conclusion, philan…I think philanthropy responsibility brings more disadvantages than advantages. Umm…for big company, they can, it’s the opportunity for them to improve their image, but they also have to take the risk of wasting money. To smaller company, this, this…umm…responsibility is a big burden for them. And for the public, we only get facial benefits and their hypocrisy, but the real basic pro, problems is left unsolved. And… this is our presentation, thank you for listening.

Question time:
Alice: Umm, I want to ask Vivien. Do you have any examples that, umm…some entrepreneurs umm… they do, they look like they are doing good things but they’re actually having bad intentions?

Vivien: Do you mean the thing it, itself have bad intentions?

Alice: Yes.

Vivien: I don’t know if there’re, if there has examples like this. But what I mean before is they do good things but they…the…umm…they show to public that they are doing good things. But, umm…the problem in their company that will harm our society is still… they still do this kind of things. So, the two things is different.

2013年12月4日

Philanthropy Responsibility of CSR

  The dictionary defines philanthropy as “a desire to help mankind as indicated by acts of charity; love of mankind.” (Business &Society p.626)The philanthropy responsibility is desired of business by society, but when this desire become a pressure, a force, what will it be? Does our society turn out to promote hypocrisy?

Picture1
  In these days, entrepreneurs become more and more aware of public welfare. It’s not because businessmen finally learned that they’ve earned a lot of money plus brought much harm to society, but they have learned that the more they donate, the more they earn. Robert H. Lorsch, an entrepreneur in Los Angeles, admitted that every dollar he donate can turn into 1.01dollars to two dollars profit. Moreover, entrepreneurs build better corporate image through engage in charitable activities thus convincing consumers to believe that they are conscientious firms. Another shocking fact is that entrepreneurs can have tax credit by donating money: in Taiwan, if they give disaster relief to the government, they can have the deduction rate up to 100%!

  Some people would say that although corporation do charity to promote their image not because they are kind-hearted, it still bring good effects for our society. After all, it’s better than nothing! But the problem is that the moment when they show their charitable moves to us, their firms still do things that will harm our society; this brings out two problems: one is they don’t really pay responsibility for their harm, but donating their money to those issues that are more noticeable and more appealing, which will gain public notice more effectively. The other is that through doing charity, corporations can blurred the point that they are the origin of these problems. Because we often see them doing benevolent moves but the wicked conduct was left unsaid, publics will gradually think that businessmen may have conscience; good corporations can help government build a better society.

  For the company, the problem is that they have to pay extra expense to fulfill this responsibility. The profit is unclear but the expenses are real, especially for smaller companies.

Representative Paul Gillmor (R-Ohio) said that he introduced the disclosure bill, which was cosponsored by Representative Michael G. Oxley (R-Ohio) and Representative Thomas Manton (D-New York), because he had set on corporate boards and observed executives distributing corporate assets to their pet charities while ignoring shareholders.
Gillmor’s concern was shared by law professors such as Charles M. Elson of Stetson University, who argued that philanthropy often only serves to glorify corporate managers and that, unless the philanthropy clearly benefits the company, it represents a waste of corporate assets. (Business &Society p.628)

Plus, the more you devote on social responsibility, the more the public want you to do.

Executives increasingly see themselves in a no-win situation, caught between critics demanding ever higher levels of ‘corporate social responsibility’ and investors applying relentless pressure to maximize short-term profits. Giving more does not satisfy the critics—the more companies donate, the more is expected of them.

  All in all, philanthropy responsibility brings more disadvantages than benefits. To big corporations, it is the opportunities to promote the image but they have to take the risk of wasting money. To medium and small firms, it’s a big burden to fulfill this kind of responsibility. To the public, we only got facial benefits and their hypocrisy, but miss the chance to solve the basic problems.

Reference

Caroll A. B. & Buchholtz A. K. (2008). Corporate citizenship: social responsibility, responsiveness, and performance: the corporate social responsibility concept. In M. Acuna (Ed.), Business & society: Ethics and stakeholder management, 7th edition (pp.43-45). Mason: South-Western

Caroll A. B. & Buchholtz A. K. (2008). Business and community stakeholders: corporate philanthropy or business giving. In M. Acuna (Ed.), Business & society: Ethics and stakeholder management, 7th edition (pp.626-630). Mason: South-Western

Bo Yi Lin (林柏儀,2012). Facing Youth’s Impoverishment: The Limit of Corporate Social Responsibility. Retrieved November 28, 2013, from Lihpao: http://www.lihpao.com/?action-viewnews-itemid-117568

Porter M.E. and Kramer M.R. (2002). The competitive advantage of corporate philanthropy. Retrieved October 20, 2013, from Expert2business.com: http://www.expert2business.com/itson/Porter%20HBR%20Corporate%20philantropy.pdf

Mei Jen Chen (陳美珍,2011). Deduct Tax Through Public Interest Organization When Donating Abroad. Retrieved November 28, 2013, from Chihlee Institute of Technology: http://ai100.chihlee.edu.tw/files/16-1018-8021.php

Shau Chiang Yang(楊少強,2006). Rich people earn money and reputation through donating while poor people aren’t necessarily benefit. Retrieved November 28, 2013, from Business Weekly: http://www1.businessweekly.com.tw/article.php?id=22364

Picture 1: http://blog.zopim.com/2013/09/10/the-bottom-line-of-corporate-social-responsibility/

Reflection 1

  Lisa and I already make out the direction of our essay in the beginning, but our essay is still not convincing enough. In our first and second annotation, we mainly use the materials from Carroll, whom is a professor of business and economics, so we decide to find more materials to support our contention.
  The trunk of our essay still based on the pyramid of CSR by Carroll, which included economics, legal, ethical, and philanthropic responsibilities, and we will add other related theories in the later essays and revised version.
  When hearing other groups’ problem, we have come up with questions about questions like why corporate social responsibility become a popular trend through the capitalistic world? Why would people want firms to take responsibilities on the environment or even the humanitarian issues? What is the initial purpose of CSR? Does every entrepreneurs who “seem” to fulfill the expectation really appreciate the theory?
Maybe our article can not only focus on the theory itself but also how scholars, businessmen, governments, publics think about CSR.

As for other groups, I think:
1.    Robert & Knot: About your second annotation, since ECFA has many aspects that will do harm or bring advantages to Taiwan’s society, maybe you can discuss more issues about ECFA, not just focused on one problem. Apart from this, I think you’re doing very fine, not many people in our generation would want to discuss this kind of issue. I’m looking forward to your final essay.

2.  Tim C & Tim K: Actually I quite not understand your topic, but after your report and reading your annotation, I think your point is clear and it’s good to link your topic to some social issues. But maybe you can come up with more examples and quote other scholars articles to strengthen your point.

3.    Tony & Alison: Human Flesh Search is really a dilemmatic issue, it help us to find the target more quickly but inevitably harm the target’s right at the same time. The normal procedure in Taiwan can protect the suspect, but the efficiency is not very good. If we accept Human Flesh Search as a legal method to find the suspect, how will it effects our society? Can you come up with some ideas to modify Human Flesh Search to let it become more acceptable?

4.    Phoebe & Niki: The topic about show girls is really novel! Why do people think show girl is not a proper occupation? And why do people pay more respect on models? Some models can become super-models which is highly paid and have worldwide reputation, but there isn’t any show girl have the same status like that, why? Because we see the clothes on the model but see the body of the show girl? I think to some extent, both of them have been materialized, but why the situation is worsen in the work of show girl? Can you find the problem and tell us how they can do to stop this situation?


2013年11月14日

Ethical Responsibilities of CSR (revised)

  In Carroll’s theory, the third level of the pyramid of CSR is ethical responsibilities. Entrepreneurs have to be ethical, and have “obligation to do what is right, just, and fair” in order to avoid harm.

Avoid questionable practices. Assume law is a floor on behavior, operate above minimum required. Respond to spirit as well as letter of law. Do what is right, fair, and just. Assert ethical leadership.

  There is not an explicit definition about corporation’s ethical responsibilities. It is a vague conception about what is right for corporate to do. One of the theories divided ethical responsibilities into four parts based on the process of social reproduction: first is production, companies have to ensure the quality of their products, and make sure that their products are eco-friendly. Second is exchange, companies have to hold the spirit of fair trade. Third is distribution, entrepreneurs have to blend the idea of justice into their distribute process. Last is consumption, companies have to fulfill customer’s need and put people in the first place. Most of all, companies have to help consumers live a safe and healthy life through the process of reasonable consumption.
  That is not all the ethical responsibilities which the companies have to take, the relationships between companies and their employees, customers, stockholders, the relationships with same trade, society and government…it’s all about ethics.
  Perhaps only Nordic and Swiss can do it.

The public’s view of business ethics has never been very high. Anecdotal evidence suggests that many citizens see business ethics as essentially a contradiction in terms, an oxymoron, and think that there is only a fine line between a business executive and a crook


  But public’s expectation to business ethics is still higher than actual business ethics. As we can see from figure 1, there is always a gap between society’s expectation and actual situations of business ethics. In Taiwan, I think most of the people know what the right value is. We always criticize people for not doing the right thing or didn’t devote enough effort to the society. But when we are in the position, most of the people tend to take the money and do nothing, just like the person we criticized at.
  The problem is not people don’t know what is right for them to do, but they always put their own profit in the first place and act differently according to the position they’re in.
  However, sometimes the problem is that we don’t know whether we are doing the good things or the bad things.

A good number of what we are now called unethical practices were at one time considered acceptable. Or, it may be that the practices never really acceptable to the public but that, because they were not known, they were tolerated, thus causing no moral dilemma in the mind of public.

  Top-echelon executive lack of careful oversight, corporate boards fell down their duties to keep an eye on top executive’s behavior…ethical scandals are not one man’s fault, but the problem of the whole system.
  So what happened to Taiwan’s society?
  The concept of entrepreneurs should be ethical is good, undoubted. But Taiwan is still inadequate to apply this concept. “Ethics is the discipline that deals with what is good and bad and with moral duty and obligation.” The state of ego trip doesn't surpass the moral standard in our mind.


Reference

Archie B. Caroll&Ann K. Buchholtz (2008). Business, society, and stakeholders: Corporate citizenship: social responsibility, responsiveness, and performance. In Melissa Acuna (Ed.), Business & society: Ethics and stakeholder management, 7th edition (pp.41-45). Mason: South-Western

Archie B. Caroll&Ann K. Buchholtz (2008). Business ethics and management: the public’s opinion of business ethics, business ethics: what does it really mean? In Melissa Acuna (Ed.), Business & society: Ethics and stakeholder management, 7th edition (pp.237-249). Mason: South-Western

Corporate social responsibility from the economics and ethics’ point of view. Retrieved October 30, 2013, from China.com.cn: http://big5.china.com.cn/gate/big5/www1.china.com.cn/economic/txt/2010-01/20/content_19271204.htm


Lynch, T. (1996). Enterprise ethics. Retrieved October 30, 2013, from Heng Chang: Information about the Test on Business Management and Marketing: http://blog.sina.com.tw/examservice/article.php?pbgid=33715&entryid=252772

Economic Responsibilities of CSR (revised)

A scholar called Carroll divided CSR into four parts: economic responsibilities, legal responsibilities, ethical responsibilities, and philanthropic responsibilities. In this part, I will focus on the economic responsibilities.

figure 1: Carroll's pyramid of CSR


The main goal of this responsibility is to be profitable, which means entrepreneurs should make good and deliberate decisions in order to make profit for the company. Thus give their investors plentiful pleasing profit.

An institution whose objective is to produce goods and services that society wants and to sell them at fair prices—prices that society thinks represent the true value of the goods and services delivered and that provide business with profits adequate to ensues its survival and growth and to reward its investors.

Yes, entrepreneurs’ goal is to maximize sales, minimize costs. In a selfish point of view, not only businessmen but also most of the people in this world care about our own profit. The reason why businessmen establish a company is to make profit for himself, not for the investors, publics, or their own country. Entrepreneurs will do their best to promote growth rate and investors will have their share. However, the outcome may be the same, the motivation is different: in CSR’s point of view, businessmen make profit for investors, but actually, they make profit for themselves.

Another question is that what actually is a good’s “fair price”? One may say that it is the price that is a little higher than costs, which can “represent the true value of the goods and services” and let businessmen earn profit simultaneously. But the price of the goods and services should depend on the invisible hand of the market. We’re now in an era of free market economy, the economic activities should base on the mechanism of supply and demand; that is to say, when the supply is unable to meet the demand, the price will get higher. In this situation, the price may be very high, but the quality of the goods or services didn’t become better, and is very likely to become lower.

In conclusion, although the economic responsibility of CSR is a basic responsibility for companies, the expectation and the standard in the theory are kind of departing for the conception of business management and the economic theory.


Reference
Archie B. Caroll&Ann K. Buchholtz (2008). Business, society, and stakeholders: Corporate citizenship: social responsibility, responsiveness, and performance. In Melissa Acuna (Ed.), Business & society: Ethics and stakeholder management, 7th edition (pp.40-49). Mason: South-Western



2013年11月8日

Are Entrepreneurs Responsible for Taiwan’s Society? (revised)

In Taiwan, students have learned the concept of Corporate Social Responsibility (CSR) since junior high school. According to EU, the definition of CSR is the concept of coing entrepreneurs’ concern to the society and environment to their company’s commercial activities and the relationships with shareholders. But in Taiwan, it become a restriction to demand corporation paying the price for harming the environment or other things that aren’t good for society.

The prerequisite of CSR is that entrepreneurs volunteer to do this, but the problem is enterprisers are not very happy about this inexplicable burden, whereas the public want them to take charge of more responsibility.

Entrepreneurs are like all the other jobs, what’s different is that they probably earn much more money, or their factories are distributed over the world. Enterprisers are humans, they are not great men. Publics should not add responsibility that have nothing to do with them.

There are four reasons why I reject to apply corporate social responsibility in Taiwan’s society.

First, the purpose of establishing a company is to earn money, and what managers should care is the interests of their shareholders. Social responsibility is not their purpose to establish a company, and when companies have financial problems, the society tend to leave them alone and run their course.

Second, entrepreneurs are not professionals that know how to solve social problems. It is not important that whether managers have the ability to deal with social problems.  The government is the one who is responsible for social problems. Instead of asking enterprisers to take social responsibility, governments should increase their taxes. Then the money will distribute to different departments that in charge of different problems.

Third, corporate social responsibility is a very vague concept now. Although there are some compacts or disciplines that have relations with this, these are just codes that we can cite from. If the government does want entrepreneurs to take social responsibility, then the legislature should legislate for this duty.

Fourth, if enterprisers focus on social responsibility actively and invest in too much capital on it, there are possibilities to dilute the main purpose of profit-seeking business. To make matters worse, it will weaken the nation’s competitiveness on economy.

To sum up, corporations are not responsible for government’s social problems, and they do not have related professions. What businessman have to do is to seek profits for stockholders and staffs. If they spend too much capital on corporate social responsibility, it might weaken the competitiveness of the company.

Another problem is that we shouldn’t see social responsibility as a reward measure for entrepreneurs. It is because they get nearly everything they want from society that people start to think about this new duty. Then why should they get rewards from fulfilling their obligation?

The main point of this article is not to deny the concept of this responsibility, but how we think about it and how government have to react about it. Everyone is responsible for this society. The point is how to manage it well.


Reference

The Reject Perspective on Corporate Social Responsibility. Retrieved October 20, 2013, from Docin: http://www.docin.com/p-501053900.html


Corporation’s Social Responsibility and their reactions. Retrieved October 20, 2013, from A-Kong’s classroom: http://tw.myblog.yahoo.com/jw!b17nxUGRGB5rcCdttdRaqC8-/article?mid=183


2013年10月31日

Ethical Responsibilities of CSR

  In Carroll’s theory, the third level of the pyramid of CSR is ethical responsibilities. Entrepreneurs have to be ethical, and have “obligation to do what is right, just, and fair” in order to avoid harm.

Avoid questionable practices. Assume law is a floor on behavior, operate above minimum required. Respond to spirit as well as letter of law. Do what is right, fair, and just. Assert ethical leadership.

  There is not an explicit definition about corporate’s ethical responsibilities. It is a vague conception about what is right for corporate to do. One of the theory divided ethical responsibilities into four parts based on the process of social reproduction: first is production, companies have to ensure the quality of their product, and make sure that their products are eco-friendly. Second is exchange, companies have to hold the spirit of fair trade. Third is distribution, entrepreneurs have to blend the idea of justice into their distribute process. Last is consumption, companies have to fulfill customer’s need and put people in the first place. Most of all, companies have to help consumers live a safe and healthy life through the process of reasonable consumption.
  That is not all the ethical responsibilities which the companies have to take, the relationships between companies and their employees, customers, stockholders, the relationships with same trade, society and government…it’s all about ethics.
  Perhaps only Nordic and Swiss can do it.
[figure 1]

The public’s view of business ethics has never been very high. Anecdotal evidence suggests that many citizens see business ethics as essentially a contradiction in terms, an oxymoron, and think that there is only a fine line between a business executive and a crook

  But public’s expectation to business ethics is still higher than actual business ethics. As we can see from figure 2, there is always a gap between society’s expectation and actual situations of business ethics. In Taiwan, I think most of the people know what the right value is. We always criticize people for not doing the right thing or didn’t devote enough effort to the society. But when we are in the position, most of the people tend to take the money and do nothing, just like the person we criticized at.
Figure 2: Society's Expectations vs. Actual Business Ethics

  The problem is not people don’t know what is right for them to do, but they always put their own profit in the first place and act differently according to the position they’re in.
However, sometimes the problem is that we don’t know whether we are doing the good things or the bad things.


A good number of what we are now called unethical practices were at one time considered acceptable. Or, it may be that the practices never really acceptable to the public but that, because they were not known, they were tolerated, thus causing no moral dilemma in the mind of public.

  Top-echelon executive lack of careful oversight, corporate boards fell down their duties to keep an eye on top executive’s behavior…ethical scandals are not one man’s fault, but the problem of the whole system.
  So what happened to Taiwan’s society?
  The concept of entrepreneurs should be ethical is good, undoubted. But Taiwan is still inadequate to apply this concept. “Ethics is the discipline that deals with what is good and bad and with moral duty and obligation.” The state of ego trip shouldn't surpass the moral standard in our mind.


Reference

Archie B. Caroll&Ann K. Buchholtz (2008). Business, society, and stakeholders: Corporate citizenship: social responsibility, responsiveness, and performance. In Melissa Acuna (Ed.), Business & society: Ethics and stakeholder management, 7th edition (pp.41-45). Mason: South-Western

Archie B. Caroll&Ann K. Buchholtz (2008). Business ethics and management: the public’s opinion of business ethics, business ethics: what does it really mean? In Melissa Acuna (Ed.), Business & society: Ethics and stakeholder management, 7th edition (pp.237-249). Mason: South-Western

Corporate social responsibility from the economics and ethics’ point of view. Retrieved October 30, 2013, from China.com.cn: http://big5.china.com.cn/gate/big5/www1.china.com.cn/economic/txt/2010-01/20/content_19271204.htm

Lynch, T. (1996). Enterprise ethics. Retrieved October 30, 2013, from Heng Chang: Information about the Test on Business Management and Marketing: http://blog.sina.com.tw/examservice/article.php?pbgid=33715&entryid=252772


2013年10月27日

First Annotation Representation's Transcript

Vivien: Umm…our topic is “Are Entrepreneurs responsible for Taiwan’s Society?”
And…according to Europe Union, the definition of corporate social responsibility is the concept of combining entrepreneurs’ concern to the society and environment to their company’s commercial activities and the relationships with their shareholders.
And…according to Carroll’s theory, he divided corporate social responsibility into four levels. The first level is economic responsibilities.

Lisa: The company has to be profitable.

Vivien: And the second level is legal responsibilities.

Lisa: The company has to obey the law.

Vivien: The third level is ethical responsibilities.

Lisa: The company has to be ethical.

Vivien: The fourth level is philanthropic responsibilities.

Lisa: The company has to be a good corporate citizen.

Vivien: And today we will focus on the economic responsibilities.

Lisa: From the book, Business & Society, the definition of economic responsibilities is: “An institution whose objective is to produce goods and services that society wants and to sell them at fair prices­prices that society thinks represent the true value of the goods and services delivered and that provide business with profits adequate to ensues its survival and growth and reward its investors.” And we think that there are three kinds of people in the society playing the important roles in the economic responsibilities of corporate social responsibility. First, I want to talk about the investors. They are closely related to the business. The major purpose is to gain profit from the successful companies. Therefore, the entrepreneurs’ responsibility to them is maintaining the regular function of the companies, and making them keep getting the adequate returns on their investments. If investors are not benefited from the business, the society will be in a state of chaos. The failure on business causes the collapse of the com…the economy, which also males the public feel afraid.

Vivien: Umm…yes, I think entrepreneurs’ goal is to maximize sales and minimize costs. But…of course entrepreneurs will do their best to…to promote growth rate and let their company gain profit. But…in the corporate social responsibility’s point of view, businessmen make their effort to let their investors gain profit. But I think not only businessmen but also most of the people in the world care about our own profit. But…umm…and so under the realistic circumstances, entrepreneurs make money for themselves, not for the investors.

Lisa: The second part is the general public. The entrepreneurs’ responsibility to the general public is making the products safe and selling them at the fair prices. According to the news in the recent years, there are many tainted foods reported on TV, which makes the general public nervous and scared. The perfect quality of products has to be guaranteed by the businessmen. Besides, the commercials cannot be exaggerated. Although the entrepreneurs want to make a profit, they cannot still deceive the general public and sacrifice the people’s health.

Vivien: Umm…as Lisa has mentioned, uh, company has to sell their pro…sell their products at fair price. But what is actua…what actually is “fair price”? Maybe you’ll say that it is the price a little higher than their costs. And, a definition said that fair price can represent the true value of the goods and services, and let businessmen earn profit simultaneously. But, the price of the goods and services should depend on the invisible hand of the market. Umm…we’re now in an era of capitalism, so…umm…the economic activities should base on supply and demand. So, for example, when the supply can’t meet the demand, the price will get higher, but the quality of the goods or services…umm, won’t become better, and is very likely to become lower. In this situation, how can entrepreneurs meet the corporate social responsibility’s expectation?

Lisa: Umm…not only the investors and the general public, employees are also the important part in the development of the business. They also need cares from entrepreneurs. The company is like a machine, and the employees are like screws, which are necessary in the operation of the machine. The entrepreneurs need employees to work for them, and employees’ living expenses depend on works. When employees are paid good salary, they will devote their hearts to works. The entrepreneurs’ responsibility to employees is giving the steady salary which corresponds with their works. Umm…in conclusion, the…the operation of the business influences the society. The healthy environment of the society is a decisive element of economic development. Therefore, the entrepreneurs have the responsibility to maintain and protect the resource and people of the society. Thank you.

2013年10月20日

Economic and Legal Responsibilities of CSR

  A scholar called Carroll divided CSR into four parts: economic responsibilities, legal responsibilities, ethical responsibilities, and philanthropic responsibilities. In this part, I will focus on the economic and legal responsibilities.
Figure 1:The pyramid of  corporate social responsibility
  First is economic responsibilities. The main goal of this part is to be profitable, which means entrepreneurs should make good and deliberate decisions in order to make profit for the company. Thus give their investors plentiful pleasing profit.

An institution whose objective is to produce goods and services that society wants and to sell them at fair pricesprices that society thinks represent the true value of the goods and services delivered and that provide business with profits adequate to ensues its survival and growth and to reward its investors.

  Yes, entrepreneurs’ goal is to maximize sales, minimize costs. In a selfish point of view, not only businessmen but also most of the people in this world care about our own profit. The reason why businessmen establish a company is to make profit for himself, not for the investors, publics, or their own country. Entrepreneurs will do their best to promote growth rate and investors will have their share. However, the outcome may be the same, the motivation is different.
  Another question is that what actually is a good’s “fair price”? One may say that it is the price that is a little higher than costs, which can “represent the true value of the goods and services” and let businessmen earn profit simultaneously. But the price of the goods and services should depend on the invisible hand of the market. We’re now in an era of free market economy, the economic activities should base on the mechanism of supply and demand; that is to say, when the supply is unable to meet the demand, the price will get higher. In this situation, the price may be very high, but the quality of the goods or services didn’t become better, and is very likely to become lower.
  Friedman’s word somewhat can be a conclusion: “(management is) to make as much money as possible while conforming to the basic rules of society, both those embodied in the law and those embodied in ethical customs.”
  Second is legal responsibilities. Businessmen have to obey the law and regulations. Although this responsibility is very fundamental, Taiwan didn’t have related laws so far. The only relevant regulation is the Corporate Social Responsibility Best Practice Principles for TWSE/GTSM-Listed Companies.

In order to assist companies listed on the Taiwan Stock Exchange Corporation ("TWSE") and GreTai Securities Market ("GTSM") (collectively referred to as "TWSE/GTSM listed companies") to fulfill their corporate social responsibility initiatives and to promote economic, social and environmental balance and sustainable development, the TWSE and GTSM hereby jointly adopt the Principles to be followed by TWSE/GTSM listed companies.

  The principle aims to help companies exercising corporate governance, fostering a sustainable environment, preserving public welfare, and enhancing disclosure of corporate social responsibility information. The conception is good, but it doesn’t have any compulsion, which means the company which didn’t follow the rules won’t get any punishment.
 Generally speaking, if Taiwan didn’t have laws about CSR, why would we expect entrepreneurs to accomplish CSR?


Reference
Archie B. Caroll&Ann K. Buchholtz (2008). Business, society, and stakeholders: Corporate citizenship: social responsibility, responsiveness, and performance. In Melissa Acuna (Ed.), Business & society: Ethics and stakeholder management, 7th edition (pp.40-49). Mason: South-Western

Corporate Social Responsibility Best Practice Principles for TWSE/GTSM-Listed Companies. Announced on February 2nd, 2010. Amended on August 22, 2011. Retrieved October 20, 2013, from Law Source Retrieving System of Stock Exchange and Futures Trading: http://eng.selaw.com.tw/FLAWDAT0201.asp