Corporate Social Responsibility

The 3 major categories of socially responsible firms

-social entrepreneurship firms(develop CSR initially) -social entrepreneurship firms(develop CSR through time) -mainstream adopters(all other firms recognized for CSR excellence)

Who philanthropic responsibilities effect most

-the community

-Classical economics of maximizing shareholder wealth -Business is not equipped -It dilutes a businesses purpose -Businesses have too much power already -It hurts global competitiveness

Historical arguments against CSR

-It promotes long-term(enlightened) self-interest -It wards off government regulations -"Businesses have the resources" so "let's try" -Proaction is better than reaction -There's already a lot of public support

Historical arguments in supports of CSR

1. Innovation 2. Cost Savings 3. Brand differentiation 4. Long-term thinking 5. Customer engagement 6. Employee engagement

The 6 Business reasons for engaging in CSR

Corporate citizenship

Thinking of companies as "citizens" of the countries they reside in, and that they have certain duties or responsibilities they must fulfill in order to be perceived as a good corporate citizen

create a foundation that helps to delineate and frame businesses' responsibilities to society

What the four major responsibilities do

Global corporate citizenship

a business enterprise that responsibly exercises its rights and implements its duties to individuals, stakeholder, and socities within and across national and cultural borders

Legal responsibility

a businesses responsibility to comply with the laws of fair practices that are established by lawmakers

Creating Shared Value(CSV)

a concept that businesses must generate economic value in a way that also produces value for society by addressing its challanges

The stages of corporate citizenship model

a model that helps illustrate that the essence of corporate citizenship is how companies deliver on their core values in a way that minimizes harm, maximizes benefits, is accountable and responsive to key stakeholders and supports strong financial results

Carrol's corporate social performance(CSP) model

a model that provides a template for managers to systematically think through major stakeholder issues

Corporate social responsibility (CSR)

requires the individual to consider his acts in terms of a whole social system, and holds him responsible for the effects of his acts anywhere in that system

The Pyramid of Corporate Social Responsibility

the conceptual framework that includes the economic, legal, ethical, and philanthropic expectations society places on organizations at any given point in time

Ethical responsibility

the full scope of norms, standards, values, and expectations that reflects what consumers, employees, shareholders, and the community regard as fair, just, and consistent with respect for or protection of stakeholders' moral rights

Corporate Sustainability

the goal to create long-term shareholder value by taking advantage of opportunities and managing risks related to profits, people, and planet (the triple bottom line)

Corporate Citizenship(CC)

the idea that a business is a citizen of the world; embraces the facets of corporate social responsibility/responsiveness

Socially responsible, sustainable, or ethical investing

the method of investing based upon the CSR of a corporation

Social screening

the process of screening done by investors based upon the CSR of a company

The Business Case

the reasons why businesspeople believe that CSR brings distinct benefits/advantages to their organizations and the business community

Economic responsibility

the responsibility of a business to produce goods and services that society needs and wants and to sell them at a fair price

Philanthropic responsibility

the responsibility of a company to give back to the community to meet current expectations of a company by the public

Political CSR

the responsible business activities that turn corporations into polictal actors, by engaging in public deliberations, collective decisions and the provision of public goods in cases where public authorities are unable or unwilling to fulfill this role

Corporate social responsibility (CSR)

the social responsibility of business to encompass the economic, legal, ethical, and philanthropic expectations that society has of organizations at a given point in time.

CSR Greenwashing

when a firm intentionally seeks to convey the image of social responsibility when the evidence of their practices doesn't support this conclusion

Positive social screening

when investors screen in those firms they believe to be socially responsible or sustainable

Negative social screening

when investors screen out those firms they consider socially irresponsible

The 4 ways in which businesses respond to CSR pressure

-Defensive approach -Cost-benefit approach -Strategic approach -Innovation & Learning approach

Carrol's four-part definition of CSR

-Economic (profit) -Legal (follow the laws) -Ethical (do what's right, just, and fair) -Philanthropic (give back)

The required responsibilities of a business

-Economic responsibility -Legal responsibility

The expected/desired responsibilities of a business

-Ethical responsibility -Philanthropic responsibility

The 3 main spheres of sustainability

-Profits -People -Planet

How CSV is accomplished

-Reconceiving products and markets -Redefining productivity in the value chain -Building supportive industry clusters

Who legal responsibilities effect

-employees -consumers

Who ethical responsibilities effect most

-employees -consumers -the environments

The four aspects of conscious capitalism

-higher purpose -stakeholder orientation -conscious capitalism -create a conscious culture

What socially responsible firms should strive to do

-make a profit -obey the law -be ethical -be a good corporate citizen

Who economic responsibilities effect most

-owners -shareholders

The Ages/Stages of CSR

1. Age of Greed(Defensive CSR) 2. Age of Philanthropy(Charitable CSR) 3. Age of Marketing(Promotional CSR) 4. Age of Management(Strategic CSR) 5. Age of Responsibility(Systematic CSR)

The four major responsibilities of a business

1. Economic 2. Legal 3. Ethical 4. Philanthropic

The four basic pillars of conscious capitalism

1. Higher Purpose 2. Stakeholder orientation 3. Conscious leadership 4. Conscious culture

3 major dimensions of Carrol's CSP model

1. Social responsibility categories 2. Philosophy(or mode) of social responsiveness 3. Social(or stakeholder) issues involved

The 3-part view of corporate citizenship

1. a reflection of shared moral and ethical principles 2. A vehicle for integrating individuals into the communities in which they work 3. A form of enlightened self-interest that balances all stakeholder's claims and enhances a company's long-term value

How CSR rose

Due to pressure from criticism of business that it wasn't caring about society

Carrol's corporate social performance(CSP) model

a model that suggests that what really matters is what companies are able to achieve - the results or outcomes of their acceptance of social responsibility and the adoption of a responsive viewpoint

Conscious Capitalism

a more complex form of capitalism that reflects and leverages the interdependent nature of life and all of the stakeholders in business

Sustainable development

a pattern of resource use that aims to meet human needs while preserving the environment so these needs can be met now and for future generations

The stakeholder bottom line

a perspective that argues that the impact or benefit of social performance cannot be fully measured or appreciated by considering only the impact on the firm's financial bottom line

Corporate social responsiveness

a variant of CSR that implies a dynamic, action oriented condition of business

The triple bottom-line concept

an idea that seeks to encapsulate for business the three key spheres of sustainability that it must attend to -Profits(economic) -People(social) -Planet(environmental)

Creating Shared Value (CSV)

companies generating economic value in a way that product value for society as well

The corporate citizenship model

contains 7 dimensions over 5 stages ranking from least to most sophisticated in a companies approach to corporate citizenship

What Political CSR does

emphasizes activities that have an intended or unintended political impact

How businesses accomplish their economic responsibilities

employing management concepts that are directed toward financial effectiveness

CSR Exemplar firms

firms that have tended to go well beyond the typical and established patterns for business firms in terms of their social responsibility excellence, serving as a model of social responsibility

A CSR perspective

focuses on the total CSR pyramid as a unified whole and how the firm should engage in simultaneously fulfilling all four components