CSR

Triple Bottom Line seeks to achieve __________.

Corporate sustainability.

CSV

Creating Shared Value, Michael Porter Businesses can achieve economic success if you figure out a way to give back to society.

Business Case for CSR: Defense Approach

Designed to alleviate negative consequences, and not incur costs = do CSR.

CSR exemplar firms

Different socially responsible firms that are models for other firms.

Paternalism

Dominant authority figure acting as a patriarch, treating employees as if they are a big extended family.

Economic: __________ Legal: ___________ Ethical: __________ Philanthropic: _________

Economic: Required Legal: Required Ethical: Expected Philanthropic: Desired/ expected

Corporate Citizenship

Embraces facets of corporate social responsibility, responsiveness, and sustainability. Serves variety of stakeholders, and must try to serve all and balance their interests. Elementary, Engaged, Innovated, Integrated, Transformed.

Corporate Social Responsiveness

Emphasizes action, activity addresses basic obligations and decides on strategies on how to deal with these obligations.

Corporate Social Performance, CSP

Emphasizes outcomes, results

_______ impacts all levels of the CSR pyramid

Ethics

Social entrepreneurship

Firms that began CSR initiatives at the beginning of their founding. Ex: Body Shop, Ben and Jerry's, Tom Shoes

Social intrapreneurship

Firms that didn't have a specific social agenda initially, but later developed a highly visible social agenda program.

Business Case for CSR: Strategic Approach

Firms will recognize the environment and engage in CSR as a corporate strategy to achieve competitive positioning.

Business Case for CSR: Cost Benefit Approach

Firms will undertake CSR activities if costs don't exceed benefits.

Social Screening

Technique used to screen firms for socially responsible investment purposes.

Sustainability

(SUS) Emphasizes long term concern for profits, people, and planet.

Positive Screening

Actively screening in socially responsible firms.

Philanthropic companies

Aflac Chick fil A General Mills Timberland

Edward Freeman

introduces stakeholder theory.

Social responsibility supposes that the corporation has not only economic and legal obligations, but:

to improve welfare of society and own interests. Certain responsibilities to society which extend beyond economic and legal obligations.

CSV is about the ________ that creating value gives you.

Long term investment. Won't happen overnight, and may take years until you get your "return"

Age of Greed

#1 Stage of CSR Defensive CSR. CSR practices are only undertaken when shareholder value needs to be protected.

Age of Philanthropy

#2 Stage of CSR Charitable CSR when companies support social issues through donations. -One of the earliest forms of CSR.

Age of Marketing

#3 Stage of CSR CSR used as public relations approach to enhance brand.

Age of Management

#4 Stage of CSR Strategic CSR. CSR activities linked to company's core businesses

Age of Responsibility

#5 Stage CSR Systemic CSR. Focuses on identifying root causes of irresponsibility.

CSR emphasizes ________ from companies

accountability/ obligation

Ages/ Stages of CSR

1.) Age of Greed 2.) Age of Philanthropy 3.) Age of Marketing 4.) Age of Management 5.) Age of Responsibility

How to achieve CSV/Observe CSV

1.) Buy locally 2.) Look at supply chain (processes) 3.) Look at product

CSR encompasses the:

1.) Economic 2.) Legal 3.) Ethical 4.) Philanthropic expectations that society has of organizations at a given point in time.

Embracing CSR, Positives:

1.) Innovation 2.) Cost Savings 3.) Brand differentiation 4.) Long term thinking 5.) Engagement from customers/ employees

Companies achieving CSR:

1.) Make safe products 2.) Protect employees/ stakeholders 3.) Protect environment

Why has SRI grown?

1.) More reliable research on CSP 2.) Investment firms using social criteria have a solid track record. 3.) Socially conscious 1960's generation making investment decisions.

3 P's of Triple Bottom Line

1.) Profits: economic 2.) People: social 3.) Planet: Environmental All to achieve corporate sustainability.

3 main categories of CSR exemplar firms:

1.) Social entrepreneurship 2.) Social intrapreneurship 3.) Mainstream adopters

Carrol's CSP Model

1.) Social responsibility (economic, legal, ethical, philanthropic). 2.) Philosophy (mode) of social responsiveness 3.) Social (stakeholder) issues

Social-Financial-Reputation: Perspective 2

A firms financial performance is a driver of its social performance.

Mainstream adopters

All other businesses that have adopted some degree of excellence for social responsible policies, practices.

Corporate Citizen

Broadly focuses on all categories of responsibility. Want to be a good corporate citizen.

Arguments for CSR

Businesses must take actions to long term view Ward off government variation Businesses have resources and expertise: let them try Pro-action is better than reaction, and less costly Public support

Business Case for CSR: Innovation + Learning Approach

CSR offers opportunities to understand the marketplace, provide innovative products and services, and gain a competitive advantage.

Arguments against CSR

Classic business: A businesses only goal should be to maximize profit. Businesses are not equipped to handle social activities Dilutes primary purpose of being a business Businesses already have too much power. Limits ability to compete globally

CSR started by

Companies wanting to challenge the thought that they don't help society, from being strictly profit driven

CSR Greenwashing

Companies who convey image of responsibility when in reality are only operating normally. Ex: Volkswagen

BSR, Businesses for Social Responsibility

Formed to fill an urgent need for a national business alliance fostering socially responsible corporate policies. "Work with businesses to create a just and sustainable world."

Political CSR

Gaining attention, turning corporations as political actors through engaging in public deliberations, decisions, etc. When other public authorities are unable/unwilling to fill the role.

Total $ in SRI has:

Grown exponentially in the last 20 years.

Stakeholder/Triple Bottom Line

Impacts of benefits can't just meet a firms economic bottom line. Must include other measures for the community, employees and others. Sustainability, Profits, People, Planet

Conscious Capitalism

John Mackey A more complex form of capitalism that reflects lives of stakeholders. Seek a higher purpose Stakeholder orientation Conscious leadership Conscious culture

Managerial Capitalism

Only responsibility for a company is to create profit and please shareholders by Milton Friedman.

CSR Pyramid

Philanthropic Ethical Legal Economic

Early on, variations of the classical economic model were seen in practice in:

Philanthropy, community obligations, and paternalism. (early variations of the classical economic model)

Socially Responsible Investing

SRI Emerged in 1970's. Nearly $7 trillion responsible investments in the U.S. Investing in companies who are socially responsible.

Negative Screening

Screening out/avoiding socially irresponsible firms like tobacco.

CSR Definition

Seriously considering the impact of a company's actions on society

Social-Financial-Reputation: Perspective 1

Socially responsible firms are more profitable. Still inconclusive relationship

CSR pyramid is a __________ model.

Stakeholder

Growth of CSR has meant:

Stakeholders have been more pleased with businesses but More criticism for the business community with these now higher expectations.

Social-Financial-Reputation: Perspective 3

There is an interactive relationship between social performance, financial performance, and corporate reputation. They all influence each other.

CSP for Managers

To understand social responsibility is not separate from economic performance. -A template to think through stakeholder issues. Ex: CVS stopping the sale of tobacco.