CSR Flashcards
What Are the CSR Learning Objectives?
LO1: What is the Importance of CSR
LO2: What are the Two Frameworks of CSR
LO3: What are the Two Theories of CSR
LO4: Importance with Integratity codes within Purchasing
What is the definition of CS
CSR is about contributing to a better world, a
better environment, and better labor conditions.
The idea is to develop business solutions so that
the current world population’s requirements are
met without harming the needs of future
generations. Therefore, companies need to
balance customers, employees, the environment,
and its stakeholders
What are the negatives of CSR?
- Restricts the classic economic goal of profit maximization
- Business is not equipped to handle social activities
- Dilutes the primary purpose of business
However it could increase business power but could limit its ability to compete in the global market
What is Carrols Pyramid (1991)?
Pilantrophic Resonsibilities: This responsibility is regarding how the business can be a good corporate citizen. Contributing Resources to the community to improve overal impact of life
Ethical Resonsibilities: Obligation to do what is right and fair
Legal Responsibilities: Obeying the law and the rules that society have in place
Economic Responsibilities: Be proftiable
What are the Stengths and Weakness of this Model?
+ The model is easy to understand
+ Simple message – CSR has more than one element
+ Emphasises importance of profit
- Perhaps too simplistic?
- Should ethics be at the top?
- Businesses don’t always do what they claim when it comes to CSR
What is the the triple bottom line model?
People: providing good labour conditions + allowing skill improvement
character —) Company —) Community
Planet: Efficent use of materials
Reduse —) Reuse —) Recycle
Profit: Sustainable financial development of company culture
Sales —) service —) strategy
CSR EXAMPLES
UNILEVER - Value Chain
Building partnerships with suppliers and consumers to reduce environmental impact of everystage of the production process.
Northface
Using plastic water bottles to create fleece then using scraps
Resource Based View Theory
This theory is the traditional form magangement practice. The purpose was to capatilse on making as much profit as possible by maximising the businesses resources.
Internally oriented and only embeds supplier resources and capabilities when
structuring, bundling and leveraging resources to obtain competitiveness.
Resource dependence theory
This theory considers financial, human, material, non-material resources.
Stakeholder theory
- Each stakeholder represents different values that the focal firm should try to
realize.
– Aims to satisfy a broad array of stakeholder groups based on their specific
demands.
– Results in firm competitiveness, increase innovation and deal with the changing
environment better.
The different views of CSR
Academic Perspective:
Archie Carroll references Bowden’s early definition: businessmen’s obligations to pursue policies and actions aligning with societal objectives and values.
Evolution of CSR concept in academic literature.
Other Perspectives:
Views from governments, businesses, agencies, and intermediaries.
Reflect specific interests of these entities.
These points highlight the multifaceted nature of CSR and how its definition varies based on different stakeholder perspectives.
English Governments view on CSR
The UK government views Corporate Social Responsibility (CSR) as an integral aspect of sustainable and ethical business practices. The government’s approach emphasizes the importance of companies contributing positively to society while maintaining environmental and economic sustainability. Here are some key elements of the UK government’s perspective on CSR:
Environmental Responsibility: The UK government encourages businesses to reduce their environmental impact by managing waste, emissions, and resource consumption. Companies are urged to adopt practices that promote sustainability and environmental stewardship (Gov UK).
Social and Economic Contributions: The government sees CSR as a means for businesses to support their communities and employees. This includes promoting diversity, providing equal opportunities, and supporting local community projects through volunteering and fundraising activities. For example, government bodies like Companies House have initiatives to increase volunteer days for employees and support local charities (Gov UK) (Emerald Insight).
Sustainable Procurement: There is a strong focus on sustainable and responsible procurement practices. The UK government advocates for businesses to choose suppliers that meet high standards of financial stability, environmental compliance, and ethical practices (Gov UK).
Alignment with Sustainable Development Goals (SDGs): The UK government encourages businesses to align their CSR activities with the United Nations’ Sustainable Development Goals. This broader framework helps companies integrate CSR into their overall business strategy, focusing on long-term sustainability and global development targets (MDPI).
Support for SMEs: The government recognizes the importance of CSR for small and medium-sized enterprises (SMEs) and encourages larger companies to share knowledge and best practices with smaller businesses. This collaborative approach aims to enhance the overall impact of CSR across the business ecosystem (MDPI).
The UK government’s approach to CSR reflects a blend of promoting ethical business practices, environmental sustainability, and community engagement, aligning corporate goals with broader societal objectives.
Welsh Governments View on CSR
The Welsh Government views Corporate Social Responsibility (CSR) as a vital component of building a sustainable, fair, and innovative economy. Their perspective on CSR encompasses several key areas:
Sustainability and Environmental Responsibility:
The Welsh Government places a strong emphasis on environmental sustainability, encouraging businesses to adopt practices that reduce their environmental impact. This includes initiatives for local renewable energy generation and energy efficiency projects (Local Partnerships).
Economic and Social Development:
CSR in Wales is also seen as a means to support social and economic development. The government promotes fair work practices, supports skills improvement, and encourages innovation that delivers real benefits to both people and the environment. This holistic approach aims to foster an economy that is not only competitive but also inclusive and equitable (Business Wales).
Community Engagement and Volunteerism:
The Welsh Government actively supports community engagement and volunteerism as part of CSR efforts. This includes organizing events like the Welsh Government Treasury CSR day, where volunteers participate in activities that benefit local communities, such as conservation efforts at local nature reserves (Local Partnerships).
Innovation and Collaboration:
Through programs like SMART Flexible Innovation Support (SMART FIS), the Welsh Government facilitates research, development, and innovation (RD&I) across various sectors. These initiatives help businesses and other organizations in Wales to innovate and create new products and services, thereby driving economic growth and sustainability (Business Wales).
Overall, the Welsh Government’s approach to CSR is comprehensive, integrating environmental stewardship, social responsibility, and economic innovation to build a stronger, fairer, and greener Wales.
General Electrics View on CSR
General Electric (GE) CSR Flash Card
Social Responsibility:
Promotes safe, equitable working conditions.
Community engagement in health and education.
Environmental Responsibility:
Focus on decarbonization and renewable energy.
28% reduction in emissions since 2019, aiming for net-zero by 2050.
Governance:
Ethical leadership and strategic management.
Aligns CSR with business strategies for innovation and sustainability.
Sources: Panmore Institute (Panmore Institute), GE Vernova Sustainability Strategy (Gevernova), GE 2022 Sustainability Report (MarketScreener).
The Body Shop
1989 eu wanted all cosmentic products to be tested by animals
Body shop however had a beleief that no anaimal shoul dbe tested in the making of their products but thewhole idustry. They then in 2017 campaigned against the world to stop this as 80% of governments still allow this.
What is responsible buying?
Company buying practices and management of production schedules have a major influence on suppliers’ ability to comply with CSR and labour standards.
M&S- ‘As part of this we will train our buyers to further understand the part they paly in helping suppliers maintain labour standard in the
production of our goods’. M&S:Plan A.
*The Co-operative group operates a ‘sound sourcing code of conduct’ for suppliers. ‘Our aim is to develop an effective working partnership with our suppliers to secure safe and decent working and living conditions for anybody involved in the production of own brand product’.
What are the steps of Responsible buying?
1) Establish good relationships with suppliers to ensure long-term, stable, risk-sharing connections.
2) Make sure your communications are clear and timely, so suppliers know the terms of the trade, have information about expectations and are able to give feedback.
3) Establish sustainable pricing so the supplier, buyer and those further down the chain benefit from the relationship.
4) Give clear lead times and payments.
5) Show respect for human rights in the supply chain. Buyers should give preference to suppliers who demonstrate they are improving social and
environmental conditions.
6) Offer continued support for small-scale producers and home workers. Buyers should find out who their suppliers are and if they include smallholders, home workers and those in disadvantaged areas, they should be careful not to
change that.
Product-specific regulations and
Voluntary schemes
Numerous regulations in the EU are designed to protect the environment
through product-specific regulations:
* Conflict minerals
* EU Timber regulation
* Palm oil-RSPO
* Biocides
* Reach-Chemical
* Eco-design requirements
* Equipment noise for outdoor use
The International Labour Organization
(ILO)
The International Labour Organisation (ILO) main task:
The adoption of international labour standards-
Conventions and Recommendations (contain guidelines on child labour, protection of women workers, hours of work, rest and holidays with pay, labour inspection, vocational guidance and training, social security protection, workers’ housing,
occupational health and safety, conditions of work at sea and protection of migrant workers).
Mattern Moon 2004
There is a narrow focus in business education that does not teach CSR and focuses soley on profit. Only 25% of higher education teaches CSR.
