Question-1
Paypal’s decision regarding booksellers and online publishers dealing with obscene content is one example of corporate social responsibility (CSR). Their action is in line with the definition of CSR. CSR has been defined as an obligation of decision makers (in this case Paypal) to advance not only their own interests but also those of the society. Paypal’s policy is not to engage in or partner with other companies in business activities that are harmful to the society. Rather, its business activities and those of its partners should be in line with the values as well as objectives of the society. One of the activities that have been given as an example of CSR is the removal of products that contain toxic material that can cause the company to lose a huge amount of sales. In making their decision and policy, Paypal is implementing CSR responsibilities as indicated in the CSR pyramid: economic (being profitable), legal (obeying the law), ethical (being ethical), and philanthropic (being a good corporate citizen).
Question-2
Paypal’s policy and decisions concerning booksellers and publishers dealing with materials and books with obscene content are supported by four arguments. Business activities should be consistent with the expectations of the society. Although the books and materials sold by the publishers could be legal, there is a difference between what is legal and what is ethical. Certain business practices can be legal, but it might be against cultural beliefs of certain members of the society. It has been pointed out that business must acknowledge its network of stakeholders. In this context, Paypal’s stakeholders include partners, suppliers, society, shareholders, and so forth. Through their policy and decisions regarding materials and books with obscene content, Paypal is acknowledging one of its stakeholders, the society. CSR activities have long-term benefits to business. Organizations that engage in CSR develop good relations with its stakeholders. Such relationships can translate into trust and loyalty for their products and services. Business not only has resources but also power to do good. Society has certain expectations from business such as eradication of products and services with harmful contents. While some businesses are engaging in these activitiess, other firms like Paypal has the resources and power to minimize such activities. By asking the publishers and booksellers to remove their books and materials with obscene content from their website, it means no more buyers will use Paypal to pay or access the content, and in the process, Paypal has used its power as a CSR activity.
Question-3
Although Paypal’s actions amount to CSR, a critical analysis shows that it is not necessary. This is because ‘business is a business’. Paypal’s actions are not business activities, and therefore the company should stick to its core activity. The policies and decisions regarding harmful or toxic products are also unnecessary because business play by its rules which are independent of cultural norms in the society. Even if the action of dealing with obscene materials is bad for the society, organizations are not human beings to be judged and held accountable for perpetuating unethical activities which are against the cultural norms of the society. Companies like Paypal has no place in dictating what is moral and what is immoral. Morality is a controversial topic and businesses should keep away from it.
