CSR

Question 1

what is CSR?

Answer 1

Corporate Social Responsibility

Question 2

What are the two ways to look at CSR?

Answer 2

-Corporate strategy: we do CSR to get people to like us, it means +10-20% profit increase
-Risk Management: we do CSR to get ahead any future problems (pl. hire women so that later they do not get into trouble, Ubisoft scandal)

Question 3

What are the 3 types of CSR?

Answer 3

-Environmentalism: the idea that we can care about the environment while still making profit (Sustainable Development: we can develop the business or the country with less waste)
-Human Rights: Child labor, Fair pay, Gender issues, Racial/ethnicity issues
-Ethical Business:
Fair trade: they promise that they don’t use slavery, child labor for higher price(pl. costa coffee)
Bribery: corruption
Insider Trading: sell insider informations, like private company information or stocks

Question 4

What are the arguments against CSR?

why do some companies refuse to do it

Answer 4

-practical argument: no money for it (expensive)
-Cynic’s argument - greenwashing: just doing CSR to make people like you, you actually don’t care, you might also make things worse
-Friedman’s argument:
Milton Friedman is a famous economist,
“the business of business is business”
->business is already do good, they do not need to do anything else (you already follow the law, you employ people, stb.)