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