Here is a comprehensive set of questions and answers based on the full syllabus covered

in the uploaded PowerPoint (CSR 2.pptx) titled Ethics & Corporate Social Responsibility
– MBA 21303. These questions span definitions, theories, models, frameworks, and practical
applications of CSR.

✅ SECTION 1: INTRODUCTION TO CSR

1. What is Corporate Social Responsibility (CSR)?

Answer: CSR is a company's commitment to manage the social, environmental, and

economic effects of its operations responsibly, ethically, and in alignment with public
expectations. It goes beyond legal compliance to include stakeholder engagement and
sustainable value creation.

2. Why does CSR matter in today’s business landscape?

Answer:

 Builds reputation and public trust

 Helps with risk management
 Improves employee engagement
 Supports long-term profitability
 Meets regulatory expectations

✅ SECTION 2: EVOLUTION OF CSR

3. Explain the key milestones in the evolution of CSR.

Answer:

 Pre-1900s: Philanthropy by industrialists (e.g., Carnegie)

 1920s–30s: Emergence of business ethics
 1950s: Howard Bowen's "Social Responsibilities of the
Businessman"
 1960s: Civil rights and stakeholder concerns
 1970s: Milton Friedman’s profit-centered view
 1980s–90s: Strategic CSR and Triple Bottom Line
 2000s–Present: Globalization, ESG, sustainability reporting
✅ SECTION 3: TYPES OF CSR
4. Compare Traditional CSR vs. Transformative CSR.

Answer:

Traditional CSR Transformative CSR

Reactive & philanthropic Proactive & strategic

Not core to strategy Core to business operations

Focus on donations Focus on systemic change

Example: Donating to Example: Redesigning supply chain for social

charity impact

✅ SECTION 4: PERSPECTIVES OF CSR

5. Explain the following CSR perspectives with examples:

 Corporate Citizenship:
Company acts as a responsible “citizen” contributing to societal well-being.
E.g., environmental protection and ethical sourcing.
 Creating Shared Value (CSV):
Aligns business success with societal progress.
E.g., Nestlé improving nutrition while expanding in health markets.
 Conscious Capitalism:
Business with a higher purpose beyond profit.
E.g., prioritizing employee well-being and customer loyalty.
 Corporate Social Responsiveness:
The ability to respond to social issues effectively.
E.g., stopping a harmful product after public backlash.

✅ SECTION 5: SUSTAINABILITY
6. Define sustainability as per the Brundtland Report.

Answer:
“Sustainability is development that meets the needs of the present without compromising the
ability of future generations to meet their own needs.”

7. What are the 3 Ps of sustainability?

Answer: People, Planet, Profit.

✅ SECTION 6: THEORETICAL PERSPECTIVES OF CSR
8. Explain five key CSR theories:

 Institutional Theory:
CSR is adopted to conform to norms, rules, and policies (e.g., industry standards).
 Legitimacy Theory:
CSR helps firms maintain societal approval, especially in times of crisis.
 Resource Dependence Theory:
CSR builds access to vital resources like capital, labor, and partnerships.
 Stakeholder Theory:
CSR balances the interests of all stakeholders (not just shareholders).
 Social Contract Theory:
Firms have ethical and social obligations to society in exchange for operating rights.

✅ SECTION 7: PRINCIPLES OF CSR

9. List and explain the main principles of CSR.

Answer:

 Accountability: Answering for decisions and actions

 Transparency: Openness in operations and reporting
 Sustainability: Long-term focus on society and environment
 Ethical Behavior: Acting beyond legal minimum
 Respect for Stakeholders: Considering their needs and interests

✅ SECTION 8: CSR CONTEXT, DRIVERS & ACTORS

10. What are the context, drivers, and actors of CSR?

 Context: Globalization, climate change, stakeholder pressure

 Drivers: Legal compliance, reputation, investor demands
 Actors: Governments, NGOs, businesses, civil society
 Subjects: Labor rights, human rights, environment, community
development
✅ SECTION 9: CSR MODELS
11. Explain Carroll’s CSR Pyramid.

Answer:

1. Economic – Be profitable
2. Legal – Obey the law
3. Ethical – Do what is right
4. Philanthropic – Be a good corporate citizen

12. What is the Three-Dimensional Model of CSP?

Answer:

1. CSR categories – economic, legal, ethical, discretionary

2. Social issues – e.g., consumer protection, environment
3. Response strategies – proactive, reactive, accommodative,
defensive

✅ SECTION 10: GLOBAL STANDARDS & FRAMEWORKS

13. What is ISO 14001?

Answer:
An international standard for Environmental Management Systems (EMS) to help
organizations manage environmental responsibilities.

14. What is SA 8000?

Answer:
A social accountability standard based on ILO and UN conventions. Focuses on child labor,
safe working conditions, fair wages, and non-discrimination.

15. What is the purpose of Fairtrade & Rainforest Alliance

Certifications?

Answer:
To ensure ethical sourcing, environmental protection, and better trading conditions for
producers in developing countries.
✅ SECTION 11: CSR INTEGRATION
16. How can CSR be integrated into business strategy?

Answer:

1. Align CSR with mission and vision

2. Engage stakeholders
3. Identify material issues
4. Set measurable (SMART) CSR goals
5. Assign CSR oversight to leadership
6. Embed CSR into operations
7. Report transparently
8. Promote responsible culture and leadership

✅ SECTION 12: CSR CULTURE

17. How to foster a CSR-supportive organizational culture?

Answer:

 Lead by example
 Communicate CSR values
 Train employees
 Recognize responsible behavior
 Integrate CSR into daily operations
 Promote diversity and inclusion
 Build a feedback-driven environment

✅ BONUS: SAMPLE ESSAY QUESTIONS

Q1: Evaluate the evolution of CSR from philanthropy to
strategic integration.
Q2: Compare stakeholder theory and legitimacy theory in the
context of CSR.
Q3: Discuss how CSR supports long-term business success.
Q4: How can companies use CSR to gain competitive
advantage?
Let me know if you want flashcards, quiz-style questions, or model answers for essay-
type questions!

Here is a complete set of essay-type questions and model answers that cover all key topics
and symbols from the uploaded "CSR 2.pptx" presentation for your exam preparation in
Ethics & Corporate Social Responsibility (MBA 21303):

✅ 1. Explain the evolution of Corporate Social Responsibility

(CSR) from traditional philanthropy to modern strategic
integration.

Answer:

The concept of CSR has significantly evolved over the past century.

 Pre-1900s, CSR was mainly philanthropic, with business leaders

like Carnegie and Rockefeller giving to charity.
 During the 1920s–30s, the idea of business ethics emerged, and
the belief that companies have duties beyond profit began to take
root.
 In 1953, Howard Bowen’s book "Social Responsibilities of the
Businessman” formally introduced CSR as a business concept.
 The 1960s brought civil rights movements and growing pressure on
businesses to address racial, labor, and consumer concerns.
 In the 1970s, economist Milton Friedman claimed that a business’s
sole responsibility is to increase profits, sparking debate.
 In the 1980s–90s, CSR became strategic through models like the
Triple Bottom Line (People, Planet, Profit), linking social value with
business strategy.
 By the 2000s, globalization and reporting standards (GRI, UNGC)
drove transparency, environmental concerns, and ethical
governance.
 In the 2010s–present, CSR is embedded in ESG (Environmental,
Social, Governance) frameworks, emphasizing shared value,
sustainability, and long-term business performance.

✅ 2. Compare and contrast Traditional CSR and Transformative

CSR with examples.

Answer:
 Traditional CSR Transformative CSR

Focuses on philanthropy, Integrates CSR into core business

donations, or compliance operations

Reactive and short-term Proactive and strategic

Not embedded in the

Embedded in strategy and operations
business model

Focuses on reputation Focuses on system-level change and

management innovation

Example: Donating to a Example: Redesigning supply chains to

charity after profits empower women and reduce emissions

Traditional CSR is limited to social goodwill activities, while Transformative CSR aligns
with long-term goals and shared value creation.

✅ 3. Discuss five theoretical perspectives of CSR and explain

how they influence corporate behavior.

Answer:

1. Institutional Theory – Companies conform to social norms and industry standards to

maintain legitimacy.
E.g., Adopting sustainability reporting because it’s expected in the industry.
2. Legitimacy Theory – CSR is used to gain or restore societal approval, especially
during crises.
E.g., A company facing a scandal increases its social responsibility efforts to rebuild
trust.
3. Resource Dependence Theory – CSR helps firms secure access to critical resources
like capital, labor, or goodwill.
E.g., Firms use CSR to attract top talent and investors.
4. Stakeholder Theory – Firms must balance the interests of all stakeholders (not just
shareholders).
E.g., Consulting local communities before launching operations.
5. Social Contract Theory – Businesses have implicit obligations to society; failure to
meet these may lead to social sanctions.
E.g., A company adopts ethical labor practices beyond legal requirements.

These theories guide firms in understanding the motivations, expectations, and legitimacy of
CSR practices.
✅ 4. Analyze Carroll’s CSR Pyramid and its significance in
evaluating corporate responsibility.

Answer:

Carroll’s Pyramid of CSR outlines four levels of responsibility:

1. Economic Responsibility – The foundation: businesses must be

profitable.
2. Legal Responsibility – Obeying laws and regulations.
3. Ethical Responsibility – Doing what is right, fair, and just beyond
legal compliance.
4. Philanthropic Responsibility – Voluntary contributions to society
and community development.

This model is significant because it prioritizes the foundational responsibilities (economic,

legal) and then builds toward ethical and philanthropic activities. It helps organizations assess
whether they are truly balancing profit-making with broader societal obligations.

✅ 5. Explain how a company can integrate CSR into its core

business strategy.

Answer:

To strategically embed CSR, a company should:

1. Align CSR with business objectives – Ensure CSR supports

mission, vision, and competitive advantage.
2. Engage stakeholders – Understand the needs and expectations of
employees, customers, communities, and investors.
3. Identify material issues – Use assessments like GRI to focus on
key social and environmental priorities.
4. Set measurable goals – Use SMART goals tied to sustainability
and ethics.
5. Incorporate CSR into governance – Assign leadership
responsibility to the board or a dedicated team.
6. Integrate into operations – Apply CSR principles to HR,
procurement, supply chains, and R&D.
7. Communicate transparently – Publish CSR reports using global
frameworks like UNGC or SDGs.
8. Build a responsible culture – Promote ethical leadership,
employee training, and recognition programs.

This holistic approach ensures CSR is not just an add-on but a core driver of sustainable
success.
✅ 6. Discuss the role of global CSR standards like ISO 14001 and
SA 8000 in ensuring corporate accountability.

Answer:

 ISO 14001 is a standard for Environmental Management Systems (EMS). It helps

companies manage their environmental impact systematically by identifying risks,
setting goals, and complying with laws.
Example: A manufacturing firm reducing its carbon footprint.
 SA 8000 is a social accountability standard based on ILO and UN conventions. It
ensures decent workplace conditions by focusing on child labor, forced labor,
discrimination, health, safety, and fair wages.
Example: Apparel companies using SA 8000 to ensure supplier compliance.

These certifications build trust with stakeholders, improve efficiency, and signal a company’s
commitment to ethical practices, sustainability, and global responsibility.

✅ 7. Evaluate the importance of fostering a CSR-supportive

organizational culture.

Answer:

A CSR-supportive culture ensures that social and environmental values are embedded in
everyday operations. It is essential because:

 Leadership by example builds trust and alignment.

 CSR vision and values help guide ethical decision-making.
 Employee education and involvement promote ownership and
innovation in CSR activities.
 Recognition and incentives motivate employees to engage in
socially responsible behavior.
 Inclusivity and diversity promote fairness and equality.
 Feedback-driven culture ensures responsiveness to stakeholder
concerns.

Without a supportive culture, CSR risks becoming superficial or disconnected from core
business goals.

✅ 8. Describe the components and significance of the Three-

Dimensional Model of Corporate Social Performance (CSP).

Answer:
The Three-Dimensional CSP Model includes:

1. CSR Categories – Economic, Legal, Ethical, Discretionary.

2. Social Issues – Areas like consumer protection, environment, labor
rights.
3. Response Strategies – Proactive, reactive, defensive, or
accommodative actions.

This model emphasizes that CSR performance depends not only on what companies do but
also how and why they respond to social concerns. It provides a comprehensive framework
for evaluating a company’s approach to CSR.

Let me know if you'd like these formatted into a printable PDF, translated into
Sinhala/Tamil, or converted into flashcards for easier study!

Here are case study type questions and detailed model answers based on the full content of
your uploaded CSR 2.pptx. These case studies help you apply Corporate Social
Responsibility (CSR) and Ethics concepts to real-world business situations. Each case is
followed by structured questions and suggested answers.

✅ Case Study 1: EcoFresh Beverages and Environmental

Responsibility

Scenario:
EcoFresh Beverages, a Sri Lankan soft drink manufacturer, faced public backlash after
reports revealed excessive water consumption near rural villages during a drought. Villagers
protested, claiming that the factory depleted their groundwater. The company had followed
the legal requirements but had not engaged with the community or conducted environmental
assessments.

Questions:

1. What type of CSR responsibility did EcoFresh fail to uphold according

to Carroll’s Pyramid?
2. How can EcoFresh apply the concept of Corporate Social
Responsiveness now?
3. Suggest two steps EcoFresh can take to embed CSR into their future
operations.

Answers:

1. EcoFresh failed at the ethical and philanthropic levels of Carroll’s

CSR Pyramid. Although they met legal obligations, they did not act
ethically or as a good corporate citizen.
 2. Using Corporate Social Responsiveness, EcoFresh should now
take accommodative or proactive measures to address
community concerns (e.g., providing clean water or reducing
usage).
3.
o Conduct stakeholder engagement with affected
communities.
o Integrate sustainability practices into water usage and
publish transparent CSR reports.

✅ Case Study 2: StyleNest Garments and Labor Standards

Scenario:
StyleNest is a Sri Lankan apparel exporter certified under ISO 14001 but recently discovered
that one of its subcontractors used underage workers. Although StyleNest did not directly
employ these workers, global buyers have threatened to cut contracts due to reputational
concerns.

Questions:

1. Which global CSR standard is most appropriate to address this

issue?
2. How does Stakeholder Theory apply in this case?
3. What immediate action should StyleNest take to maintain
legitimacy?

Answers:

1. SA 8000 is the most relevant standard here, as it focuses on decent

working conditions, child labor prohibition, and social accountability.
2. Stakeholder Theory emphasizes that firms must consider the
interests of all stakeholders, including suppliers, buyers, and
affected workers. Neglecting subcontractor practices violates this
responsibility.
3.
o Conduct a supplier audit and terminate non-compliant
contracts.
o Implement CSR training and certification for all suppliers.
o Issue a public statement on corrective action and
commitment to ethical labor practices.
✅ Case Study 3: CleanTech Energy and Strategic CSR

Scenario:
CleanTech Energy is a growing solar panel company in South Asia. The CEO wants to adopt
a Transformative CSR strategy and align business growth with environmental and
community impact.

Questions:

1. What are two CSR actions CleanTech could take that align with a
Transformative CSR strategy?
2. How could CleanTech implement the concept of Creating Shared
Value (CSV)?
3. Identify one long-term benefit of CSR integration for CleanTech’s
operations.

Answers:
1.

 Partner with local training institutes to upskill youth in solar

technology.
 Redesign production to reduce carbon footprint and use recyclable
materials.

2. CSV could be implemented by offering low-cost solar units to

underserved rural areas, improving living conditions while
expanding the customer base.
3. A long-term benefit would be enhanced brand reputation and
stakeholder trust, which can lead to greater investor
confidence and market expansion.

✅ Case Study 4: GreenFoods Ltd. and Reporting Transparency

Scenario:
GreenFoods Ltd., an organic food company, has received investor pressure to improve
transparency in CSR reporting. They currently have no official sustainability or CSR report,
although they participate in community health initiatives and use eco-friendly packaging.

Questions:

1. Which international reporting frameworks can GreenFoods adopt?

2. How does Legitimacy Theory relate to this situation?
3. Suggest a CSR reporting process GreenFoods can follow.

Answers:
 1. They can adopt GRI (Global Reporting Initiative) standards or
align with the UN Global Compact (UNGC) and SDG
(Sustainable Development Goals) frameworks.
2. Legitimacy Theory applies as investors expect transparency. To
maintain their “license to operate,” GreenFoods must align public
perception with actual CSR actions.
3.
o Conduct a materiality assessment to identify key impact
areas.
o Set SMART goals for sustainability and community
involvement.
o Publish an annual CSR/sustainability report and update
stakeholders regularly.

✅ Case Study 5: BuildRight Construction and Ethical Dilemmas

Scenario:
BuildRight Construction is offered a major government contract in a foreign country, but
only if they pay an unofficial "facilitation fee" to a local official. The senior manager is under
pressure to accept the deal due to company profit targets.

Questions:

1. What ethical issue is present in this case?

2. How should the company apply the principles of CSR to make a
decision?
3. Which CSR principle from the presentation is most violated here?

Answers:

1. The issue is corruption and bribery, violating ethical business

conduct.
2. The company should uphold the ethical behavior and
transparency principles from CSR. Accepting the bribe would
damage its reputation and violate stakeholder trust.
3. The principle most violated is ethical behavior – CSR requires
going beyond legal compliance to do what is morally right.

Let me know if you'd like more case studies based on Sri Lankan companies, specific
industries (healthcare, apparel, FMCG), or government vs. private sectors!