CSR

Question 1

Why CSR?

Answer 1

Helps recruit and keep good employees

Can help differentiate firm and enhance its brands

Helps cut costs e.g minimise packaging, economise energy, recuse waste

Help firm avoid increased tax, regulation or Eldon actions by government

Question 2

Ethics are

Answer 2

Moral principles and values that govern behaviour regarding right and wrong

Question 3

Variation in ethical standards

Answer 3

Relativism

Normativism

Question 4

Relativism

Answer 4

Contextual based standard

Question 5

Normativism

Answer 5

Uniform standard

Question 6

CSR is

Answer 6

Manner of operating business that meets or exceeds the ethical, legal, commercial and public expectations

Question 7

Sustainability

Answer 7

Meeting humanity’s needs without harming future generations

Economic
Social
Environmental

Question 8

Coordinated market economies CSR and sustainability

Answer 8

Implicit elements of the institutional framework

France
UK
Germany

Question 9

Liberal market economies CSR and sustainability

Answer 9

Explicit elements of corporate policies

USA

Question 10

Matter and Moon (2008)

Answer 10

Liberal market economies

Coordinated market economies

Question 11

4 Strategic responses to institutional pressure to engage in CSR and sustainability

Answer 11

Reactive

Responsive

Accommodative

Proactive

Question 12

Reactive strategic behaviours

Answer 12

Deny responsibility

Do less than requires

E.g Ford Pinto fire 1970s

Question 13

Responsive strategic behaviours

Answer 13

Admit responsibility but fight to do the least that is required

Nike early 1990s

Question 14

Accommodative strategic behaviours

Answer 14

Accept responsibility, do all that is required

E.g Ford Explorer rollovers 2000s

Question 15

Proactive strategic behaviours

Answer 15

Anticipate responsibility, do more than is required

E.g BMW 1990s

Question 16

What strategy to use in implicit and explicitly CSR and sustainability countries?

Answer 16

Implicit
Accommodative
Should use proactive also? Yes

Explicit
Proactive

Do all companies benefit from CSR and sustainability?
Size of company
Type of industry

Question 17

Does CSR relate to COMPETITIVE ADVANTAGE?

Answer 17

Aldi Walmart McDonalds competing in price minimisation sector
- Less likely to benefit from proactive CSR strategy

Waitrose M&S compete on basis of brand image
More likely to benefit

Question 18

Are ethical behaviour, CSR and sustainability good for MNE’s financial performance?

Answer 18

YES

• reduce costs associated like packaging
• attract and retain employees
• positive brand image in mind of target customers
• great revenues
• if successful

NO

• it is expensive
• resource intensive
• time consuming
• outcome is uncertain
• short term

Only benefits a company if it can build a credible reputation as a socially responsible firm but this doesn’t happen overnight