Chapter 8 Corporate Social Responsibility

Question 1

Corporate Social Responsibility:

Answer 1

aka CSR - doing well by doing good. “The voluntary actions that a corporation implements as it pursues its mission and fulfills its perceived obligations to stakeholders, including employees, communities, environment, society. Aka, profit with purpose, conscious capitalism, operating responsibly, going beyond minimum standards required by law

Question 2

What is CSR:

Answer 2

Employee health, safety, advancement, diversity
Ethical, diverse supply chains
Philanthropic & charitable giving
Community development, empowerment
Climate change, environmental management
Organizational ethics/governance
Sustainable, responsible investing
Product & service quality, safety

Question 3

Strategic comms and CSR

Answer 3

Seen as ethical and social conscience of the organization
Create alignment with organization’s character, mission, & values
Gain support from stakeholders
Communicate value of efforts
Tell story behind organization’s efforts

Question 4

Triple bottom line -

Answer 4

CSR
People, planet, profit

Question 5

Environmental, Social, Governance (ESG):

Answer 5

a set of practices taht can be measured to evaluate corporate performance beyond financials

Question 6

Environment:

Answer 6

energy efficiency & responsibility, greenhouse gas emissions, water efficiency, pollution management, waste reduction, encroachment on nature

Question 7

Social:

Answer 7

diversity, equity, inclusion / health & safety, human rights, community investment & empowerment, product responsibility

Question 8

Governance (corporate):

Answer 8

management compensation, board structure, ethical business practices, transparency & reporting, risk & compliance

Question 9

Purpose of CSR:

Answer 9

prioritize a company’s contribution to community to enhance reputation byond core business operations

Question 10

Benefit of CSR:

Answer 10

enhance reputation among major stakeholders

Question 11

Purpose of ESG:

Answer 11

originally designed for shareholders to surface non-financial issues taht could have long-term financial impact

Question 12

Benefit of ESG:

Answer 12

assure investors/stakeholders risk is being mitigated and company is adapting to changing world

Question 13

Purpose of Sustainability:

Answer 13

general business approach balancing economic, social and environmental considerations for the benefit of future generations

Question 14

Benefit of sustainability:

Answer 14

demonstrate that business strategy takes environmental, social, and economic factors into consideration

Question 15

Pressure to meet business goals:

Answer 15

CSR challenge - goals and strategies need to align with business goals and strategies to make case for resources and organizational focus

Question 16

Greenwashing:

Answer 16

CSR challenge - make sure you’re walking the walk, not just talking the talk

Question 17

Mis-stepping:

Answer 17

CSR challenge - reporting standards help guid focus areas based on industry standards. Still need to manage in line with societal tones/needs

Question 18

Maintaining harmony among stakeholders:

Answer 18

CSR challenge - strategic communicators can provide “glue” that helps maintain stakeholder relationships through open/authentic communication

Question 19

Shareholder theory:

Answer 19

focus is maximizing the benefit to investors; the financial benefits to the organization, bottom line profit - that creates jobs and profit for investors

Question 20

Stakeholder theory:

Answer 20

aligns to social responsibility - variety of stakeholders are the rightful owners of a business, should have a right to a vote in the strategies/decisions of an organization - creates value for ALL stakeholders, reputation

Question 21

Standards for CSR reporting:

Answer 21

Non profit bodies who provide global sustainability reporting frameworks –
Ceres
Global Reporting Initiative
Dow Jones Sustainability Index (DJSI)
Carbon Disclosure Project
United Nations Global Impact
Sustainability Accounting Standards boards

Question 22

Carnegie:

Answer 22

wrote “The Gospel of Wealth” which implored business people to contribute to the public good in 1901

Question 23

Page:

Answer 23

advised AT&T to run its business for its shareholders and to benefit the public (60 years ago)

Question 24

Golin:

Answer 24

encouraged McDonald’s CEO Ray Kroc to give back to communities that contributed ito company’s success (Ronald McDonald House was formed) - 50 years ago

Question 25

Mackey/Sisodia:

Answer 25

concept of the virtue of “conscious capitalism”

Question 26

Social responsibility (Coombs/Holladay):

Answer 26

the voluntary actions that a corporation implements as it pursues its mission and fulfills its perceived obligations to stakeholders, including employees, communities, the environment, and society as a whole.

Question 27

“Triple bottom line approach”:

Answer 27

concern for people, planet, profits

Question 28

Sustainability:

Answer 28

often viewed as extension of social responsibility and broader than simply concern for the environment

Question 29

Global Reporting Initiative (GRI):

Answer 29

a leader in triple bottom-line reporting standards, which deines sustainability for organizations as covering the four areas of performance and impact - economic, environmental, social, and governance.

Question 30

ESG:

Answer 30

Environmental, social, Governance performance

Question 31

CSP:

Answer 31

Corporate social performance

Question 32

Shareholder Theory:

Answer 32

Friedman et al - business creates the most value for society by concentrating on maximizing profits for shareholders while conforming to basic rules of society. Focus on bottom-line profit - creates value through making of products/services that satisfy customers and fulfill market demand, creates jobs for employees, profit for investors. A free market-centric shareholder perspective

Question 33

Strategic communication function:

Answer 33

the ethical/social conscience of an organization - frequently on the front lines of helping to create and implement CSR programs and initiatives that align ith the organization’s character, mission, values / gain internal/external support from stakeholders for such efforts / communicate the value of these efforts internally/externally, / evaluate success of such programs

Question 34

Shareholder primacy:

Answer 34

that a corporate executive as an agent/employee of shareholder, the principles or employers of the business and its management. Can engage in social responsibility BUT only if it contributes to long-term financial performance of the organization

Question 35

Stakeholder theory:

Answer 35

Freeman introduced concept of stakeholders. This theory purports that satisfying shareholders is as critical as satisfying stakeholder interests - those of customers, employees, suppliers, communities, all of whom are “owners” of a business. They should get meaningful voices in firm decisions. There is a moral obligation to create value for ALL stakeholders while engaging in socially responsible behavior - “profit with purpose”

Question 36

Johnson and Johnson credo:

Answer 36

first responsibility to doctors, nurses, patients, then to employees, then to communities, then to stockholders

Question 37

Costco:

Answer 37

obey the law, take care of members, take care of employees, respect our suppliers - if we do all these then we will reward our shareholders

Question 38

Sustainability reporting frameworks:

Answer 38

Global Reporting Initiative (GRI), the Carbon Disclosure Project (CDP), Dow Jones Sustainability Index (DJSI), the United Nations Global Compact, and Ceres

Question 39

Databases:

Answer 39

GRI Sustainability Disclosure database and United Nations Global Compact