Organisational objectives 3 On completing this chapter you should be able to: Know and understand

corporate social responsibility
(CSR).
One important measure of a 
fi
rm’s attitude to its social responsibility is the way in 
which it deals with environmental issues. Our environment can be greatly a
ff
ected by 
business activity. Air and noise pollution from manufacturing processes, road congestion 
caused by heavy trucks, business expansion into country areas, emissions of gases that 
can lead to global warming and the use of scarce non-renewable natural resources are 
all environmental issues that are of increasing concern to people and governments all 
over the world. How should business managers react to these concerns? Should they 
respond by adopting environmentally safe or green policies, even if these are expensive, 
or should they always take the cheapest option no matter what the consequences for the 
environment might be?
stakeholders:
people or 
groups of people who 
can be affected by, and 
therefore have an interest 
in, any action by an 
organisation
corporate social 
responsibility:
this 
concept applies to those 
businesses that consider 
the interests of society by 
taking responsibility for the 
impact of their decisions 
and activities on customers, 
employees, communities 
and the environment
ACTIVITY 1.3.3
SIAM CEMENT GROUP (SCG)
The SCG has a strict ethical code of conduct. Its key features are shown in the 
table
below.
Business ethics
Code of conduct
• Fairness to all who have business 
relationships with the company, 
including society and environment
• Making business gains in a proper 
manner
• No alliances with political parties
• Non-discriminatory treatment of all staff 
and stakeholder groups
• Upholding the principles of honesty and 
fairness
• Protecting the properties and reputation 
of SCG
• Conducting business in the best 
interests of SCG and its stakeholders
• Behaving appropriately at all times 
towards others
According to a report by Judith Ross, as SCG expanded beyond Thailand managers came 
under pressure to compromise on its corporate code of ethics. The company’s standards 
on bribes and other improper payments, for example, made it difficult to compete in 
places where such unethical payments are a way of life. This example demonstrates the 
classic problem: should firms conform to the standards of the country they operate in or 
should they try to export their own high moral principles to
other lands?