In this chapter we will discuss the ethical foundations of CSR.
The chapter consists of three major parts. First, we discuss three different approaches
to CSR, namely (a) an instrumental approach,
(b) an ethical approach and (c) a hybrid approach, attempting to combine the instrumental and the ethical approach.
We will conclude that the ethical approach to CSR is the most reasonable of the
three alternatives.
Second, we introduce some of the most influential ethical theories and their key principles, namely (a) the utilitarian principle of maximizing well-being, (b) theories of rights, and
(c) social contract principles concerning fairness, and discuss how they might relate to CSR in general. Third, we present and discuss some specific ethical challenges characteristic for CSR including whether companies should focus solely on avoiding harmful actions or whether
they also have obligations to actively do good.