Business Ethics
Carbon Dioxide levels
"350 ppm" (parts per million) is a way of measuring the ratio of carbon dioxide molecules to all of the other molecules in the atmosphere. Climate experts agree that 350 ppm is the "safe" level of carbon dioxide. Since the beginning of human civilization, our atmosphere contained about 275 ppm of carbon dioxide. That is the planet "on which civilization developed and to which life on earth is adapted."
Extreme poverty pay is
$1.25/day
Poverty pay is
$1.90/day
Summary on Sustainable Investing
- A growing number of investors want to see their money go toward stocks or funds that are both profitable and reflective of their values. - Three styles of investing fulfill this: Environmental, social, and governance (ESG), socially responsible investing (SRI) and impact investing. - ESG looks at the company's environmental, social and governance practices, alongside more traditional financial measures. - Socially responsible investing involves actively removing or choosing investments based on specific ethical guidelines. - Impact investing looks to help a business or organization complete a project or develop a program or do something positive to benefit society.
Characteristics of Social Entrepreneurship
- A mission that seeks to create and sustain social value - through innovation, adaption, and learning. - Attracting the resources necessary to achieve the mission and sustain the organization while driving efficiency and leveraging existing resources to expand the scope of their service. - A clear focus on the needs of those being served.
Working conditions: Rana Plaza (video)( when clothing factory in Bangladesh collapsed and many people died)
- April 24, 2013: 1,100 deaths and 2,500 injuries - No one knows their story - 4 million employed. Significant benefits. - But there is a cost from lack of oversight - consumers don't want to pay more - it all comes down to the laborer - people have "been lost." who will take the responsibility?
ESG Integration
ESG refers to the environmental, social, and governance practices of an investment that may have a material impact on the performance of that investment. The integration of ESG factors is used to enhance traditional financial analysis by identifying potential risks and opportunities beyond technical valuations. While there is an overlay of social consciousness, the main objective of ESG valuation remains financial performance. ESG is about financial performance but takes into consideration a broader set of due diligence questions on how environmental, social and governance facts drive or inhibit performance. In this category, financial performance is still considered, but the ultimate goal is to produce optimal results with the money that is invested. Can look at ESG score to see if they are doing good or bad. Are there any risks that may stop you from buying the stock.
If every lived as Americans, we would need
FIVE earths For Europeans 3 earths
Who does impact investing? Private equity funds
Private equity funds: - pools of committed capital from pension funds, insurance companies, endowments, and from other institutional investors.
ESG (Environmental, Social, Governance)
Provides information about environmental, social, and governance of companies and also about corporate behavior (including business ethics, anti competitive practices, tax transparency, corruption and instability). - investors want this information - independent entities are evaluating firms - corporations are increasingly providing ESG data These factors may not impact financial statements "today" but could seriously jeopardize future financials.
The World Economic Forum surveys experts about risks facing society. As disclosed in one of your videos, there has been a shift in the type of risks that predominate. What is that trend?
Risks associated with environmental issues replaced economic risks as most potentially severe.
Modern Slavery
Situations where someone is forced to work or marry and cannot refuse or leave because of threats, coercion, violence, deception, etc.
Social Responsible Investing
Socially responsible investing goes one step further than ESG by actively ELIMINATING OR SELECTING INVESTMENTS according to specific ethical guidelines. The underlying motive could be religion, personal values, or political beliefs. SRI uses ESG factors to apply negative or positive screens investment universe. For example, an investor may wish to avoid any mutual fund that invests in companies engaged in the sale of alcohol, tobacco, or other addictive substances. For clients engaged in socially responsible investing, making a profit is still important, but must be balanced against principles. The goal is to generate returns without violating one's social conscience. Ex: you want to invest in funds that support Climate change, women's rights, etc.
The Business Case for Sustainable Practices
Sustainability is a prudent long term strategy because... 1.competitive advantages exist for sustainable businesses. 2.Significant cost savings can be achieved through sustainable practices. 3.Sustainability reduces risk exposure. •Macro: Huge unmet market potential among the world's developing economies can only be met in sustainable ways. •Micro: Sustainability is a good (firm-based) risk management strategy.
The downside of corporate (or executive) philanthropy
Tom's received feedback about how giving their shoes away to the poor is just stopping a symptom but not the real problem. The real problem is many of them do not have jobs in these poor countries. Tom's decided to start factories in these developing countries in order to give people jobs to help this problem instead of just providing these people with shoes. "strategic CSR"- goes beyond philanthropy. Companies need to think about how to build CSR into the company in order to be sustainable.
Summary: Black Lives Matter
What are the things that companies can do? 1. Recognize this is a moral issue. Racial injustice, and particularly economic injustice, that Black Americans face singularly is a moral issue. This is a deontological argument. 2. However, we also need to consider utilitarianism. We are talking about companies and the bottom line must be considered. You therefore do have to make an economic argument to justify a deontological position.
Reduced Inequalities
What's the goal here? To reduce inequalities within and among countries. Why? Inequalities based on income, sex, age, disability, sexual orientation, race, class, ethnicity, religion and opportunity continue to persist across the world. Inequality threatens longterm social and economic development, harms poverty reduction and destroys people's sense of fulfilment and selfworth. This, in turn, can breed crime, disease and environmental degradation. We cannot achieve sustainable development and make the planet better for all if people are excluded from the chance for a better life.
There is a contradiction with sustainable investing
64% people agrree sustainability and financial gains are a trade-off. But also 86% people agree ESG practices can potentially lead to higher profitability and may be better long-term investments. contradiction provides a learning opportunity. Investors believe they will sacrifice returns, however they believe firms with strong ESG practices evidence lower risk and higher returns.
The Business case (part two)
A. Not taking action can harm a firm's reputation Although CSR will always be grounded in business operations, the stakes have gotten a lot higher. Companies must now share not only what they stand FOR but what they stand UP for. 70% of Americans believe companies have an obligation to take actions to improve issues that may not be directly relevant to their everyday business. (tension between utilitarianism and deontology) Americans are willing to find out for themselves if your efforts are authentic.
The Business Case
A. Not taking action will increase risk: ESG Environmental social and governance refers to the risks associated with a firm's operations that traditionally are not part of financial analysis, yet may have financial relevance. This might include: •how corporations respond to climate change •how good they are with water management •how effective their health and safety policies are in the protection against accidents •how they treat their workers •whether they have a corporate culture that builds trust and fosters innovation.
Who does impact investing? Philanthropists
Acumen has invested more than $125 million of patient capital into nearly 130 companies impacting the lives of 308 million poor customers and built a global community of more than 500,000 moral leaders who together are driving solutions enabling millions of low-income people to change their lives.
Sustainable Investing varies by market but
Americans lag behind. BUT while few Americans invest sustainably (12%), those who do are committed to the approach (49% of their portfolio).
Risky Business Project
Among their conclusions if the status quo persisted: Climate change would increase energy demand in Texas by between 3.4 and 9.2 percent by midcentury. Crop yields in Missouri and Illinois would face a 15% decline over the next 25 years. And in the Northeast, annual property damage from severe storms- from hurricanes to blizzards - would likely increase $11.1 billion, to a total of $15.8 billion by the end of the century.
Forced Labor
- Coffee is often produced by smallholder farms or grown on plantations. Harvesting is labor-intensive. - The holders of these small farms or plantations, especially in countries such as Guatemala, recruit workers via labor brokers, leaving workers vulnerable to debt bondage. - Also, many who work on these farms are to be paid every 15 days but are only paid at the end of the (coffee) harvest. This leaves many in debt to their employer, encouraging the workers to stay on the estates until the harvest season is over. - Forced labor generates annual profits over U.S. $150 billion. Includes modern slavery Also: in the fishing industry
Extreme Poverty in the United States (news video)
- Extreme poverty in NY: $2/day - 1.5 mil households in U.S. with no cash income - Developing economies: - barter is an option - Plasma (can donate plasma for money) - Trading food stamps for cash - Tradeoff: Hunger to keep the lights on
Why is ending poverty relevant to business? (video)
- allow societies that are trapped in poverty be able to stand on their own two feet. - be able to withstand the pressures of terrorism - be able to achieve economic development. - Make those societies that are trapped in poverty vigorous. - There can also be a strategic motivation to address poverty.
The social pillar: why does business need a strategy?
- cost: $381 billion was transferred from developed countries to the developing world through private sector investment and philanthropy. -There is some regulatory pressure to continue to invest in social programs. E.g. India is the first country in the world to mandate spending on CSR through its 2013 companies act. It is possible other countries may follow. - Within companies, there is growing pressure to demonstrate that investment one effective. Outcomes?
"performance with purpose" vs. corporate social responsibility pepsi video From CSR to CR
- employees look for a purpose (we don't make life-saving drugs when you make pepsi but why where is the value and purpose in that?) - to help employees identify with purpose is they Shifted their portfolio- shift the strategy for pepsi to more nutritional food offerings to provide better products than just pepsi unhealthy foods/drinks - If we don't transform our portfolio, we can't make profits. - If we're not environmentally sustainable, we won't get a license to open a plant and we won't reduce the cost of our packaging. - If we don't create a phenomenal workplace for our people, we won't be able to hire the best and the brightest "you want to bring your whole self into work, you will be more satisfied and productive"
Ethical issues in globalization: Indicators of lax governance associated with the race to the bottom
- forced labor - human trafficking - child labor - working conditions
Race to the Bottom: Solutions
- government regulations - Intergovernmental actions: United Nations SDGs - NGOs (Non-Governmental Organizations/non-profits) Each of these groups is working hard, yet we still can't ensure human rights in the global supply chain.
Race to the bottom: solutions
- government regulations - intergovernmental actions: United Nations SDGs - NGOs (non-governmental organizations/non-profits) each of these groups is working hard, yet we still can't ensure human rights in the global supply chain.
Sustainability: a lens to drive growth video
- old wine in a new bottle? (no, not true. This is new. this is a whole new concept of sustainability and is changing the way companies think) - Social, environmental, and economic value creating opportunities for stakeholders. - unique opportunity to improve conditions.
Resilience is the capacity to
- overcome unexpected problems (how prepared were companies for unexpected problems to happen. Ex: coronavirus) - adopt to change (e.g. sea level rise) - prepare for and survive catastrophes ( How prepared were companies for unexpected problems to happen like coronavirus? were they resilient as a result?) (Sustainable development calls for concerted efforts towards building an inclusive, sustainable, and RESILIENT FUTURE for people and planet. For sustainable development to be achieved, it is crucial to harmonize three core elements: economic growth, social inclusion and environmental protection. These ELEMENTS ARE INTERCONNECTED and all are crucial for the well-being of individuals and societies.)
Does business have a role to play in solving stubbornly tough environmental and social challenges?
- yes businesses should do more than just giving away money. - It's about helping solving problems while making your company more successful Why should businesses get involved? - right thing to do? (deontology) - brings positive outcomes (utilitarianism)
Social pillar refers to the three pillars
1. social (people) 2. environmental (Planet) 3. Economic (profit)
The business case for sustainable practices
2.Significant cost savings can be achieved through sustainable practices (bottom line).
3 Forms of Sustainable Investing
1. ESG Integration 2. Socially Responsible Investing 3. Impact Investing
What Can Business Do? (1 out of 5) (Categories of corporate action that fall under the banner of "doing something" about carbon (Natural Capitalism))
1. Ecoefficiency: •The productivity of natural resources must and can be dramatically increased. •slashing energy and material use in production, packaging, distribution and business operations • Redesigning products and encouraging customers to reduce their energy draw.
Sustainability's Three Pillars Triple Bottom Line
1. Environmental (planet) (air quality, water quality, energy usage, waste produced) 2. Social (people) (labor practices, community impacts, human rights, product responsibility) 3. Economic (profit) (sales, profits, ROI, taxes paid, monetary flows, jobs created) -What are the big issues businesses can address -what is the impact the business will face -what are the companies actually doing Synergies (interconnected): - environmental-economic e.g. energy efficiency - economic-social e.g. fair trade - social-environmental e.g. environmental stewardship Not independent pillars but are all connected
Firm participation in socially responsible activities was the least percentage in
1. Monitor global fair labor standards/practices (14% in 2012) 2. Track sources of global raw materials/suppliers (10% in 2010) This means that companies don't pay as much attention to these working standards or where they are receiving their raw materials because it is too complicated to keep track of and understand.
How should firms respond to social challenges?
1. Stand up. Be willing to take a stand 2. Speak out. Stakeholders expect you to be vocal. But this is not enough - what are we doing to build inclusive companies that are welcoming to diverse populations? - what are we doing strategically in our hiring to make sure our workforce reflects the diversity of the marketplace that we are trying to attract? - " A man without words but without deeds"
Two implications of the brundtland's definition of sustainability
1. The concept of needs. Who's needs? broad range of stakeholders - Intragenerational: "meeting the needs of the present" - Intergenerational: "Without jeopardizing future generations" 2. The idea of limitations imposed by the environment's ability to meet present and future needs. Development as we know it must be limited because nature is FINITE (limited resources)
Edelman "Goodpurpose" Survey (picture): What social causes do consumers care about? (Important problems from consumers perspective)
1. improving the quality of healthcare 2. Protecting the environment 3. ensuring access to safe drinking water 4. equal opportunity to education 5. stopping relationship violence and abuse
The American Dream is
A national ethos of the United States, the set of ideals (democracy, rights, liberty, opportunity and equality) in which freedom includes the opportunity for prosperity and success, as well as an upward social mobility for the family and children, achieved through hard work in a society with few barriers. "Life should be better and richer and fuller for everyone, with opportunity for each according to ability, or achievement" regardless of social class or circumstances of birth.
Social Enterprises
A social enterprise is an organization created to further a social purpose in a financially sustainable way. It uses business strategies for the purpose in a financially sustainable way. It uses business strategies for the purpose of improving human and environmental well-being. Three components to a social enterprises: 1. Are sustainable. Earned income from sales is reinvested in their mission. They do not depend on philanthropy and can sustain themselves over the long-term. 2. Are scalable. Their models can be expanded or replicated to other communities to generate more impact. 3. May take the form of a nonprofit (NGO), for-profit, or hybrid organization.
In 2019, using the World Bank definition of $1.25 a day, equivalent to 22% of the population of the developing world.
This is the lowest prevalence of extreme poverty ever recorded in human history- less than 8%.
Examples of Wicked problems
By the year 2040: - 3 billion new middle-class consumers - 50% to 100% increased need for food, water, and energy - 9 billion people on the earth OR Impact of Covid in Michigan (led in water in flint) Challenges and Opportunities on a global and local levels
Why should companies respond to Social Challenges?
Companies have the ability to "do more good" for more people carries intrinsic value and tremendous appeal. Yet there are other significant business benefits that arise out of doing more good. There are several ways it can give you a competitive advantage: •Building a reputation •Setting your company apart •Attracting investment •Reducing costs and risks •Attracting better talent •Increasing motivation and retention These benefits are way beyond branding
Corporate Social Responsibility (CSR)
Companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis. Business has become the most powerful institution on the planet. The dominant institution in any society needs to take responsibility for the whole. The root term of responsibility: "to pledge back" •Things a firm does to "do good" in society: •Volunteerism •Community relations activities •Philanthropy • "Tee shirts and balloons" Controversial because: - "corporate"- applies to all business, not just corporations - "social" - "responsibility"- Milton Friedman - Presumes corporate charity- giving away money
From Corporate social responsibility (CSR) to Corporate Responsibility (CR)
Corporate social responsibility: •Things a firm does to "do good" in society: •Volunteerism •Community relations activities •Philanthropy • "Tee shirts and balloons" (ex: earth day volunteering with 1 day event and party afterwards) Corporate responsibility: - An integral part of corporate activity - your responsibilities to employees, customers, communities, shareholders - looks forward: what can we and should we do for our stakeholders? - focus on entire value chain CR is integrated through the organization. CSR tends to reside in one particular functional area like Marketing or HR.
Why are women paid less than men? Why is the uncontrolled pay gap so much larger?
Factors that are likely to impact the gender pay gap but are difficult to measure include unconscious bias and discrimination against women, including assumptions that women will leave the workforce to have children or that women with children should earn less than men. In a 2017 survey, the Pew Research Center found that 42 percent of women said they have experienced gender discrimination at work compared to 20 percent of men who said the same. One of the most commonly reported forms of discrimination is earning inequality. Indeed, 25 percent of women said that they have earned less than a man doing the same job while just 5 percent of men said they have earned less than a woman doing the same job. Women with children also make less than men with children or women without children. This is often called the motherhood penantly or the childbearing penalty. The research also shows that women occupy more lower paying positions than men.
UN's Sustainable Development Goals: Goal 1
Goal 1: - By 2030, eradicate extreme poverty for all people everywhere, currently measured as people living on less than $1.25 a day. - By 2030, reduce at least by half the proportion of men, women, and children of all ages living in poverty in all its dimensions according to national definitions.
STG has 17 total goals- Goal 8 is
Goal 8: - take immediate and effective measures to eradicate forced labour, end modern slavery and human trafficking and secure the prohibition and eliminate of the worst forms of child labour, including recruitment and use of child soldiers, and by 2025 end child labour in all its forms
CSR has become much more STRATEGIC. Moves CSR to CR
Goes much beyond philanthropy
Transportation is the top source of greenhouse gases
In November 2017 carbon dioxide emissions from transportation surpassed emissions from electricity generation as the top source of greenhouse gases. Why? Electricity generation is shifting away from the use of cool to more renewable sources and natural gas.
What can executives do about social challenges?
In the United States, the idea of CSR through philanthropy appeared around the start of the 20th century. Corporations at that time came under attack for being too big, too powerful, and guilty of antisocial and anticompetitive practices. Today's equivalent: The Giving Pledge
Corporate Responsibility and the Environment
In the economic model, business's only responsibility is to maximize profit within the law. By doing this, business fills it role within a market system that serves the greater overall good of optimally satisfying consumer preferences and the rights of business owners. However, a variety of market failures point to the inadequacy of market solutions. Because the "costs" of such things as greenhouse gas emissions, air pollution, groundwater contamination and depletion, soil erosion, and nuclear waste disposal are typically borne by parties "external" (externalities) to the economic exchange (e.g., people downwind), free market exchanges cannot guarantee optimal results.
Corporate Social Responsibility and the Environment
In the economic model, business's only responsibility is to maximize profit within the law. By doing this, business fills it role within a market system that serves the greater overall good of optimally satisfying consumer preferences and the rights of business owners. However, a variety of market failures point to the inadequacy of market solutions. •Externalities A second type of market failure occurs when no markets exist to create a price for important social goods. Endangered species, scenic vistas, rare plants and animals, and biodiversity are just some environmental goods that typically are not traded on open markets. Public goods such as a stable climate, clean air, and ocean fisheries also have no established market price
What can Firms do about Social Challenges?Philanthropy
Inflation- adjusted global cost of natural disasters has increased sharply. Over 300 million people affected. But traditional sources of funding for disaster recovery, from governments, nonprofits, and NGOs, have not kept pace. Although corporations have stepped in to take up the slack, companies contributing went from 20% in 1990s to more than 95% in 2014. Companies that donated money stepped it up from 1990s of 33% to 2014 of 90% better donations.
The social enterprise: hybrid organizations AKA: L3C
L3C stands for Low profit, Limited Liability Companies The notable feature of an L3C is their use as Program Related Investments (PRIs) to keep their tax-exempt status, foundations have to direct 5% of their assets annually to charitable purposes. We usually assume they're doing this through grants. But they can also turn to PRIs, or investments in an entity with a charitable or educational purpose-and an L3C can serve as a PRI investment. - low-profit limited liability companies- or L3Cs- are social enterprises. - They're businesses (rather than nonprofits) that place a higher priority an achieving a social mission than on making profits. - because they're businesses, they enjoy increased access to capital and can potentially offer their funders some return on their investments. - Companies that from the start say to investment community "we never intend to make a lot of money, that's not our purpose. Invest with us because you want to make an big impact, not expecting big returns." - Hybrid between nonprofit and for profit companies
Saw-tooth pattern and the Keeling curve
Mauna Loa is where the first continuous carbon dioxide measurements were started by C. David Keeling of the Scripps Institute of Oceanography in 1958 at the NOAA facility there. The annual Saw-tooth Pattern in the carbon dioxide graph is produced by growing vegetation that consumes carbon dioxide in the spring and summer, and releases it in the fall and winter. The often reference long-term upward trend of CO2, known as the Keeling curve, is the result of carbon dioxide that is released by the combustion of fossil fuels. The Keeling curve has two trends: 1. upward slope 2. variation around the slope
Purpose is not CSR, it's just good business (Forbes stated)
Most companies get purpose all wrong. - they think about it as a one-time corporate social responsibility (CSR) program or, worse, PR campaign: well packaged with good optics but lacking substance. They are shallow. - Instead, purpose is an authentic expression of what your company and your customers can do together to build a brighter future. - Purpose creates meaningful relationships that shift the customer dialogue from "give ME what I want" to "support the ideals WE believe in."
If we reduce carbon emissions, can we reverse the damage?
NO (if only) the best we can do is to start to slow it down but we can't reverse it. People believe that climate change will harm Americans, but they don't think it will happen to them. This means it will effect our future generations.
Social business model
Originally developed in the context of poor countries. Social businesses have four key characteristics: 1. Seek to alleviate social problems, including all forms of poverty. 2. Must be run sustainably, that is, it should not lose money. 3. Profits, when they exist, are reinvested in the business rather than funneled back to shareholders. - Investors eventually get back only the money they initially invested- impact investment? - However, social returns are not the only benefit (learning to innovate, motivating employees, enhancing reputation) 4. Are frequently embedded within existing organizations. Ex: The case of Danone yogurt is fighting against malnutrition in Bangladesh. Danone is acting to promote inclusive growth, and to create opportunity for all segments of the population to share in increased presperity. " we need a new type of business that pursues goals other than making personal profit- a business that is totally dedicated to solving social and environmental problems."- Muhammad Yunus
In signing the Outdoor Industry CEO Diversity Pledge, I will help craft a specific set of actions for my company which will: 1. Hire and support a diverse workforce and executive leadership. 2. Present representative marketing and advertising in our media. 3. Engage and support broadly representative ambassador and athlete teams. 4. Finally, we will share our experiences with other leading brands
People of color are subject to stubborn inequities around the world. This lack of equity is especially pronounced in the United States. We have a valuable opportunity to take on racial, ethnic and other divides by promoting diversity, equity and inclusion within our outdoor communities. Outdoor CEOs hold influence over the future of the outdoors. As representatives of some of America's largest outdoor brands, they invite the types of people who choose to recreate outside and shape how they behave. Day-to-day, they manage countless employees who do the same. In the way they manage, they can elevate inclusion to the front of our workplace culture. Advocating for inclusion isn't just for social good, it's also good for the economy: it improves corporate performance, drives growth and enhances employee engagement. Outdoor organizations with diverse groups of employees, athletes/ambassadors, and media representation perform better and leave our outdoor spaces in better hands for the next generation. If business leaders are willing to advance diversity, equity and inclusion holistically across their businesses, they more effectively engage and support all underrepresented groups. To do this, they must address honestly and head-on the concerns and needs of their diverse employees to increase equity for all.
The business case for sustainable practices
Sustainability is a prudent long term strategy because... 3.Sustainability reduces risk exposure. a. Macro: Huge unmet market potential among the world's developing economies can only be met in sustainable ways. b.Micro: Sustainability is a good (firm-based) risk management strategy. 3.Sustainability Reduces Risk Exposure •Macro: Ours is a planet in crisis. The huge unmet market potential among the world's developing economies can only be met in sustainable ways.
The Business case for Sustainable practices (B)
Taking action is prudent (a good ling term strategy): top line /bottom line top line= sales/revenue (top line) sales- costs= bottom line 1. Do customers care? top line percent willing to pay extra for products and services from companies committed to positive social and environmental impact. 2. Do they care enough to impact their purchase decisions? top line
California Transparency in Supply Chains Act
The California Transparency in Supply Chains Act requires companies to report on their specific actions to eradicate slavery and human trafficking in their supply chains. Aimed at mid-size and large retailers and manufacturing companies with worldwide annual revenues of $100 million or more, the law's chief goal is to ensure companies provide consumers with information that enables them to understand which ones manage their supply chains responsibly.
Can big business sell nutritious food to poor people? The Danone yogurt case
The case of Danone yogurt is fighting against malnutrition in Bangladesh. Danone is acting to promote inclusive growth, and to create opportunity for all segments of the population to share in increased presperity. Despite its innovative features, Grameen Danone struggled both to earn a profit and to deliver nutrition to those who needed it. The venture was unable to secure a reliable supply of cheap milk. When fresh milk prices doubled in Bangladesh in 2008, Grameen Danone was forced to raise the price of Shokti, and sales plummeted. Grameen Danone responded to low sales by beginning to sell the product to wealthier urban consumers, alongside those in rural areas. It used conventional marketing techniques to promote the yogurt's health benefits and the fact that it was a social business. Urban sales grew quickly. While re-orienting sales had kept the company afloat, it had diverted it from its original purpose of providing nutrition to the rural poor.
Considerations for Covid-19
The coronavirus pandemic of 2020 has forced a large portion of the population to work remotely, with layoffs on the horizon for some occupations and industries. Women have a higher risk of suffering greater penalties in earnings as result. Women make up a larger percentage of occupations in Community & Social Services, Education, Library & Training, Office & Administrative Support, and Personal Care & Services, which are more likely to be suspended, laid off, or forced to work reduced hours. Women are also more likely to have to take time off work, or even resign their positions, in order to care for children who are no longer in school as well as other family members. Previous research from PayScale also found that women often incur a pay penalty upon returning to work after an absence—7 percent less on average for the same position.
Spanx Billionaire Sara Blakely on Giving Her Fortune Away Forbes (giving pledge video)
The giving pledge is an effort to help address society's most pressing problems by inviting the world's wealthiest individuals and families to commit more than half of their wealth to philanthropy or charitable causes either during their lifetime or in their will. - Learn from philanthropic "thought leaders" - giving back comes from a source of gratitude - "Intractable" problem: Gender equality - Individuals, in addition to the collective, can have an impact
True Gen: Generation Z and its implications for companies
The point is not to have a politically correct position on a broad range of topics. It is to choose the specific topics (or causes) that make sense for a brand.. And to have something clear to say about those particular issues.
Managerial capitalism
The primary obligation of business managers is to serve the interests of stockholders by maximizing profits. This is the primary responsibility and thinking for CSR companies
Social Entrepreneurship
The social entrepreneur harnesses entrepreneurship skills to do social good. They combine the passion of a social mission with an image of business-like discipline, innovation, and determination commonly associated with the high-tech pioneers of silicon valley. - The social entrepreneur's philanthropic energies are channeled into business ventures whereby they earn a profit which is invested in the social ventures. - Aims: Large scale, transformational benefit that accrues to a significant segment of society that is underserved or neglected. -All about innovation
Aligning CR with strategy
These days CR programs are increasingly positioned as PART of corporate strategy. Having recognized that business can do well by doing good, many corporations are designing projects that work on multiple levels- helping the broader community while also providing opportunities for the company to develop new skills, new products, new connections, and new markets.
Impact investing
With impact investing, POSITIVE OUTCOMES are of the UTMOST IMPORTANCE- meaning the investments need to have a positive impact in some way. So the objective of impact investing is to help a business or organization accomplish specific goals that are beneficial to society or the environment. FINANCIAL performance is SECONDARY to the investment's social theme or impact. The main objective here is to accomplish the goals of the companies in which the client invests. The investor may still seek to generate an investment return, but this is unconditionally subordinate to the social aspect of the investment. To create social impact with your excess resources, you could: - donate to nonprofit organizations (NGOs)/ philanthropy - invest in social enterprises Millennials have been leading the way in impact investing: "an investment approach intentionally seeking to create both financial return and positive social and/or environmental impact that is actively measured" This is, you have to intend to do good, and you have to measure whether you're succeeding. - A way to achieve a financial return but also to have a positive social and/or environmental outcome as well. - a new way to solve old problems. Investing with intent to deliver social impact alongside financial return. - Social entrepreneurs: key to solving the world's most pressing problems. - way for investors to use their capital to make positive change in the world and it doesn't just have to be on the philanthropic side. - Not just an asset class- really thinking about how you are the change you want to see in the world.
Just for purses and shoes: the myth of the secondary income
Women's labor force participation matters to everyone — regardless of gender. Since 1970, women have added $2 trillion to the U.S. economy by increasing their paid labor force participation. This increase has spurred "major economic growth" in recent decades. Ex: People often asked me if I intended to stay home after my son was born. It was my first pregnancy and the question caught me off guard. I didn't have a choice whether or not I was going to stay home with him. Even if I wanted to, it was not economically feasible for me to do so because I was the primary breadwinner of my family. Besides, we depended on my job for health insurance.
Wicked Problem
difficult to explain, seemingly impossible to solve. (very challenging problems that are very hard to try to solve)
There are different competing views of CSR:
economic model: profit, maximization, only ethical constraints are defined by law. Utilitarianism view (only focused on money) Philanthropic model: a gift we can choose to give. Benefits received. (there is not obligation to contribute to social causes, it is our choice to help people and we recognize it is a good thing when we do and there are benefits) Stakeholder model: must consider wide range of stakeholder interests. (consider everyone involved in the community) Strategic model: CSR is who we are. Our aims are "the right thing to do" Deontology view
Strategic model of CR
social responsibility is woven into the fabric of the firm. One serves the ends of shareholders by serving social ends. This is the opposite of the economic model which held that one serves social ends by serving shareholders. Called the "strategic model" because social goals are integrated into the firm's CORE STRATEGY.
86% of the U.S. think
that businesses should do more than just make money, they should help society and help solve wicked problems.
Footprints
the damage we do as we go about our business (the waste we leave behind us. we should try to reduce negative impact and be more aware of our actions)
Handprints
the good we can do as we go about our business (the good we can spread. try to have a positive impact and help society)
CSR
voluntarily taking actions that go beyond compliance with laws and regulations on environmental and social issues CSR primary responsibility of management for their company is to try to maximize profits within the ethical constraints of the law (utilitarianism). "managerial capitalism"
Seventh Generation (video) (plant based soap companies that are not filled with bad chemicals)
•seventh Generation was created as a socially responsible company •This informs and influences all of the decisions we make •I decided to dedicate my life and the work I do to something I can feel good about •Sustainability is a journey •It starts with me, with my family
