9 Relevance of CSR

Question 1

Possible Motivations behind the Label CSR (Baron 2001)

Answer 1

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following the idea of CSR means a redistribution between the owners of the firm and other groups or the society as a whole

He identifies several basic motivations:
-Moral principles, e.g. altruistic reasons
-Aiming at increasing profits by
 preventing government actions
 preventing activists’ actions which may lead to boycotts  hoping for rewards by the market place

Question 2

Business Case (Blowfield & Murray 2019, ch. 6)

Answer 2

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-CSR is beneficial to business

CSR as instrument for corporations, business may enhance performance by:

• using CSR as a means of avoiding financial losses (e.g., as a shield against a negative reputation in the market)
• implementing to increase tangible financial gains (e.g., by driving product innovation, improving the workforce).
• having CSR as an integral element of the company‘s strategic approach to long-term business performance (e.g., installing technologies to become independent of non-renewable resources).

Question 3

Shared Value (Porter & Kramer 2011)

Answer 3

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-CSR may bring capitalism to the next level by having companies benefit from CSR

CSR may create a shared value by:

• serving markets better (meeting the demand for CSR, having innovative products)
• improving the quality, efficiency and cost effectiveness of the supply chain
• enabling the communities to prosper (mutual dependence with regard to infrastructure, environment, employees…)

although trade-offs in the short run the creation of shared value contributes favourably to the competitive advantage

Question 4

Costs and Risks of CSR (Henderson 2001)

Answer 4

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• notion of sustainable development is neither well defined nor fully agreed.
• higher costs and loss of revenues to companies that follow the CSR movement
• general expectations or demands from businesses of people are overstated
• Managing a company is made into a much more complex and difficult task
• Economic freedom is eroded if laws follow

Question 5

Criticism towards CSR (Blowfield & Murray 2019, ch. 13)

Answer 5

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• CSR is harmful to the primary purpose of business and erodes free markets
• favours the interest of business over the concerns and expectations of the wider society
• too narrow and does not sufficiently address the business- society relationship
• fails to achieve its objectives and needs new approaches to succeed

Question 6

Research Paper: Tonin & Vlassopoulos (2015)

Answer 6

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