Beruflich Dokumente
Kultur Dokumente
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Content
• The Emergence of Corporate Social Responsibility
(CSR)
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Content
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preface
• Governments, activists, and the media have become
adept at holding companies to account for the social
consequences of their activities
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The Emergence of Corporate Social
Responsibility (CSR)
• Awoke after being surprised by public
responses to issues they had not previously
thought
• Nike
• Shell
• Pharmaceutical companies
• Fast-food
• Nestle’ bottled water
• Debates about CSR have moved all the way
into corporate boardrooms. (Issues ranging
from labor conditions to global warming).
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The Emergence of Corporate Social
Responsibility (CSR)
• Government regulation increasing mandates CSR.
• UK. Require every listed company to disclose ethical,
social and environmental risk in their annual report.
• Business have awakened to these risk
• Less clear on What to do
• Most common corporate responses: neither
strategic nor operational but cosmetic.
• 64% of 250 largest MNC published CSR reports in
2005.
• Rarely offer a coherent framework for CSR
activities.
• Typically described in terms of dollars or volunteer hours
spent but never in terms of impact.
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Four Prevailing Justifications for CSR
– Sustainability
– Reputation
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Moral obligation
• duty to be good citizens and to ‘do the
right thing’
• “achieve commercial success in ways
that honor ethical values and respect
people communities, and the natural
environment”
• eg. filing financial statement, operating within
the law.
• case google
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Sustainability
• Emphasizes environmental and community
stewardship
Need
Healthy
Successful Society
create
corporation
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Create jobs
ate Wealth and innovation
cr e
needs
Education Productive workforce
Health care
Equal opportunity Customers
Safe products
Working condition
Lower accident
Efficient utilization of
Land/ water/ energy More production
/natural resources
good government
Protect customer
Rule of law
And company
Property right
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innovation
Identifying the point of intersection
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-Relationship with -Financial reporting
university practices -Education and job training -Procurement & supply
-Ethics research practices -Government -Safe working condition chain
practices -Diversity & discrimination
-Product safety -Uses of particular inputs
-Health care & other benefit
-Transparency -Compensation policies -Utilization of natural
-Conservation of raw mat.
-Use of lobbying -Layoff policies resources
-Recycling
-Sophistication of
Related and Local demand
-Availability of local suppliers Supporting -Demanding regulatory
-Access to firms in related fields Industries standards
-Presence of clusters instead of The local availability -Unusual needs that
Isolated industries Of supporting can be served
industries nationally
and globally
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Choosing which social issues to address
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Creating a corporate social agenda
Mitigating Advancing
• CSR moves from harm Social
condition
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Corporate Involvement in Society :
A Strategic Approach
Strategic
Good Mitigate harm philanthropy
Citizenship from value Chain that leverages
activities capabilities to
improve
Salient areas of
Competitive
Transform value Context
Responsive Chain activities to
CSR benefit society while Strategic
reinforcing strategy CSR
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Responsive CSR : two elements
• 1) Acting as a good corporate citizen,
attuned to the evolving social concerns of
stakeholder
– case GE
• Good citizenship initiatives goodwill, improve
relations with local governments and other
constituencies, employees feel great pride in
participation
• Effect on GE’s recruiting and retention is modest
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Responsive CSR : two elements
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Strategic CSR
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Strategic CSR
• The more closely tied a social issue is to the
company’s business, the greater the
opportunity to leverage the firm’s resources
and capabilities, and benefit society
– Case Toyota - hybrid car
– Urbi construction - flexible mortgage to
disadvantage buyers
– Credit Agricole - finance package for energy-
saving home improvement and for audits to certify
farms as organic
– Microsoft
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Integrating Inside-out
and Outside-in practices
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Case
• Whole Foods Market: nearly every aspect of the
company’s value chain reinforces the social
dimensions of its value proposition
distinguishing whole foods from its competitor
• Sysco: initiative to preserve small, family-owned
farms and offer locally grown produce to its
customers as a source of competitive
differentiation
• GE: “ecomagination” initiative that focus on
developing water purification technology and
other “green” businesses
• Unilever: pioneer new product, packaging to
meet the needs of the poorest
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Organizing for CSR
1. Integrating business and social requires adjustments in
organization, reporting relationships and incentives
2. Operating Mgrs must understand the importance of the
outside-in
3. People with responsibility for CSR imitation must have a
granular understanding of every activity in the value chain
4. Incorporate CSR into performance measure of managers
with P&L responsibility
5. Organizations that make the right choices and build
focused, proactive, and integrated social initiative in
concert with their core strategies will increasingly distance
themselves from the pack
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The Moral purpose of Business
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The Moral purpose of Business
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