Understanding Corporate Social Responsibility Principles and Theories
Corporate Social Responsibility (CSR)
: It is defined as a way by which a corporation maintains a balance among social, economic, and environmental responsibilities in its activities in order to address shareholder and other stakeholder expectations. Also, CSR gives an image that both business and society are inter-related and hence, it can be expressed via 3 principles: Legitimacy Public Responsibility Managerial Discretion..
.Legitimacy (The principle of public responsibility
Frank Knight’s Theory of Profit and Economic Risk
Frank H. Knight’s Employer Risk Theory (1885-1972)
The economist Frank H. Knight published his seminal work, Risk, Uncertainty and Profit, in 1921. This book explains his theory of the entrepreneur.
Key Distinctions in Knight’s Theory
Knight highlights the crucial distinction between:
- Risk: Randomness where probabilities are known.
- Uncertainty: Randomness where probabilities are unknown.
He underlines the critical role of entrepreneurs in the economy by assuming the risk associated with economic activity.
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Fundamentals of Management
Definition of Management
Management is the process of planning, organising, staffing, directing, and controlling to achieve organizational goals.
Objectives of Management
- Organisational: Profit and survival
- Social: Society welfare
- Personal: Employee needs
Importance of Management
- Achieving goals: Target fulfilment
- Efficiency: Cost reduction
- Development: Growth
Levels of Management
- Top: Policy making
- Middle: Implementation
- Lower: Supervision
Nature of Management
- Science: Systematic knowledge
- Art:
Engineering Ethics, Professionalism, and Social Responsibility
Fundamentals of Ethics
Meaning of Ethics
Ethics is the systematic study of moral values, principles, duties, and standards that guide human behavior. In engineering, ethics provides a framework for decision-making, ensuring that engineers act with honesty, integrity, fairness, and responsibility toward society, the environment, and stakeholders.
Characteristics of Ethical Behavior
- Universality – Ethical principles apply broadly to all situations and people.
- Impartiality – Decisions must not be biased
Core Concepts and Theories of Modern Management
Module 1: Fundamentals of Management
1. Management Definition
The process of planning, organizing, directing, and controlling resources efficiently and effectively to achieve organizational objectives.
2. Characteristics of Management
- Goal-oriented
- Universal
- Continuous
- Social
- Multidisciplinary
- Coordinated
3. Management: Science Versus Art
- Science: Based on systematic knowledge and cause-effect relationships.
- Art: Requires creativity, personal skill, and is practice-based.
4. Taylor’s Scientific Management
- Scientific
Foundational Concepts in Management and Business
Definition of Management
A process of assembling and using sets of resources, in a goal-directed manner, to accomplish tasks in an organizational setting.
- F.W. Taylor: “The art of knowing what is to be done and seeing that it is done in the best possible manner.”
- Mary Parker Follett: “The art of getting things done through people.”
The concept can be traced back to Sir Thomas More (1474-1535), who described the division of work in “Utopia”.
Key Challenges in the 2000s
Managing Change, Managing Resources,
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