csr Flashcards
CSR definition
promise that a business makes to society while making money. businesses should care about helping society rather than just focusing on making money
challenges of CSR
- managers face challenges in establishing effective processes to meet the company’s CSR
- balancing different responsibilities
define business social responsibility
obligation that every business must respect the interest of all its stakeholders
define business ethics
moral rules that should guide people working in businesses. it helps people and businesses decide whether a decision is right or wrong, regardless of profitability
principles of corporate citizenship
- ethical business behavior
- stakeholder commitment
- community
- consumer
- employees
- investors
- suppliers
- environment commitment
CSR concepts
- corporate social responsibility
- corporate social responsiveness
- corporate social performance
what does corporate social responsibility emphasize
obligation and accountability to society
what does corporate social responsiveness emphasize
action
what does corporate social performance emphasize
outcomes and results
phases of CSR
- corporate social stewardship
- corporate social responsiveness
- corporate/business ethics
- corporate/global citizenship
what did corporate social stewardship involve
- acts of charity
- managers as public trustees
drivers of corporate social stewardship
- executive conscience
- company image and reputation
policy instruments of corporate social stewardship
- philanthropic funding
- public relations
what did corporate social responsiveness involve
- social impact analysis
- stakeholder mapping and implementation
- strategic priority for social response
drivers of corporate social responsiveness
- social protest
- repeated corporate misbehavior
- stakeholder pressure
- public policy/government regulation
policy instruments of corporate social responsiveness
- stakeholder strategy
- regulatory compliance
when was corporate social stewardship
1950s-60s
when was corporate social stewardship
1960s-70s
when was corporate/business ethics
1980s-90s
what did corporate/business ethics involve
- foster an ethical corporate culture
- recognize common ethical principles
- establish an ethical organizational climate
drivers of corporate/business ethics
- technology-driven value changes
- human rights pressure
- code of ethics
policy instruments of corporate/business ethics
- mission, vision, value statement
- CEO leadership ethics
when was corporate/global citizenship
1990s- present
what did corporate/global citizenship involve
- stakeholder partnerships integrate financial, social, and environmental performance
- identifying that globalization impacts the sustainability of the company and the environment
drivers of corporate/global citizenship
- global economic trade
- high tech communication networks
policy instruments of corporate/global citizenship
- sustainability reports
- NGO dialogue
- intergovernmental compacts
arguments for corporate social responsibility
- balance corporate power with responsibility
- promote long-term profits for the business
- improve stakeholder relationships
- enhanced business reputation
arguments against corporate social responsibility
- lowers economic efficiency and profit
- impose unequal costs among competitors
- impose hidden costs on stakeholders
- requires skills that business may lack
how does CSR promote long-term profit
it fosters a positive reputation which leads to customer loyalty, attracting and retaining skilled employees, higher sales, and minimizes legal and reputational risk
how can CSR result in unequal costs among competitors
companies that prioritize social and environmental responsibility may have higher expenses compared to companies that prioritize profit
what are the 5 stages of global corporate citizenship
- elementary stage
- engages stage
- innovative stage
- integrated stage
- transforming stage
features of the elementary stage
- citizenship is undeveloped
- managers are uninterested and uninvolved in social issues
- communication with stakeholders is one way. from company to stakeholder
how does csr require skills businesses may lack
business people have the skills for marketing, accounting, and finance. however, they may lack the skills to address social issues
features of the engaged stage
- companies become more aware of changing public expectations
- interact with and listen to stakeholders
- top managers become involved
features of the innovative stage
- organizations become more aware that they cannot carry out new commitments
- departments begin to coordinate to launch new programs and start reporting their efforts to stakeholders
features of the integrated stage
- companies see the need to build more coherent initiatives
- integrated companies may adopt triple-line measures
features of the transforming stage
- highest stage
- companies at this stage have visionary leaderships
define corporate power
the capability of corporations to influence government, the economy, and society
define iron law of responsibility
in the long run, those who do not use power in a way society considers responsible tend to lose it
define social audit
a systematic evaluation of an organization’s social, ethical, and environmental performance
