CSR In OM

Question 1

What does corporate social responsibility focus on?

Answer 1

Responsibility focuses on the development and enactment of a core set of ethics and morals by which organisations make decisions and actions

Question 2

What does sustainability focus on?

Answer 2

Sustainability highlights how these decisions and actions influence the natural environment over time.

Question 3

What is Porter et al (2011) model of shared value?

Answer 3

The purpose of the corporation must be redefined as creating shared value, not just profit per se. Companies such as Google, IBM and J&J are taking the lead in this space.

Question 4

How can companies create shared value opportunities?

Answer 4

1) Reconceiving products and markets
2) Redefining productivity in the value chain
3) Enabling local cluster development

Question 5

What are the 2 most influential and most recognised standards for measuring CSR?

Answer 5

1) The International Organisation for Standardisation ISO 26,000 guidebook on developing/integrating and evaluating a social responsibility strategy
2) The global reporting initiative contributions to shaping/informing quality in sustainability reporting

Question 6

What are the primary channels to create shared value?

Answer 6

a) Reconcieve products and markets (for e.g. promote healthier food and environmentally friendly products)
b) Redefine productivity: Several facets here:

• Transport and Logistics (energy efficiency and reducing carbon footprint). Redesign systems to reduce distances for goods travelled.
• Resource Use - reduce/reuse/recycle - circular economy principles in production.
• Employee productivity - increased focus on employee wellbeing. flexible working. Living wage. Training, development and advancement.
• Procurement - using local procurement improvements to build local capacity (Nestle)
• Location - locating activities in developing countries and working to create viable local clusters (Olam International - cashew value added production sites in Tanzania, Nigeria, Mozambique and Cote D’Ivoire. 17,000 jobs - 95% women.