CSR midterm Flashcards
What’s the definition of CSR?
CSR defines society in it’s widest sense and on many levels, to include all stakeholders and constituent groups that maintain an ongoing interest in the organization operations.
What’s a CSR Company?
A company linking ethical values, transparency, employee good relations, compliance with legal requirements and overall respect for the communities in which they operate.
What are the 3 different arguments for CSR?
- Economic Argument: CSR for economic self-interest, brand image, competitive advantage can increase sales.
- Rational Argument: CSR for minimizing restrictions on operations. Follow the law, no need to adapt.
- Moral Argument: What’S the right thing to do? Why does a firm exist?
What are the 2 different approach to Ethic?
- Utilitarian Approach, moral judgement based on the consequences of acts. How many people will it impact, badly or goodly? If there is a greater amount of people that will benefit from it then we go forward.
- Deontological Approach: Moral judgement based on the human duty to do the right thing. Every human being are ends and should never be considered as means.
What’s the difference between the Friedman shareholder theory and the Freeman Stakeholder Theory?
Friedman shareholders theory thinks that the social responsability of a business is to generate profits and maximise the value for their owners, all resources shall lead to profit and the happiness of the shareholder.
Freeman stakeholder theory believes that the firm should take into consideration all the stakeholders that are impacted by the company’s activities. In fact the economy needs to be put at the service of the society and not the other way around.
What’s the difference between the theory of business and the neo-classical theories?
The theory of business wants to optimise collective value and takes into account all the business participants. (collective business)
While, the neo-classical theories opted to maximise firm value and shareholder’s wealth by taking into account the law and the firm’s owners. (single firm)
What are the 3 pillars of sustainability?
Environment, society and economy
Why is time such a central concept to sustainability?
Because sustainable development is the development that meets the needs of the present without compromising the ability of future generations to meet their owns.
Sustainability creates a temporal trade-off.
What’s short-termism?
Short-termism is when you favorise the short-term, always taking decisions leading to benificial outcomes in the short-term even though it can damage the long-term. While sustainability tries to guide firm to make long-term decisions, shareholders tend to don’t car about the future.
What is consumerism?
It’s when consumption is a central aspect of your daily life, it’s an attribute the society, consumption is a central engine for society.
What are the alternative paths to consumerism?
Recycle
Repair
Reuse
Reduce
Refuse
Rethink
What are 3 steps to integrate business and society?
- Identifying the point of intersection (inside-out, outside-in)
-Priorising, choosing which issues to address - Creating a corporate social agenda
What are the inside-out linkage and the outside-in linkages?
Inside-out linkages: Activities in the value chain touches the community = negative or positive impact of the support activities (infrastructures, HR, IT, Procurement)
and the primary activities (Logistics, Operations, Marketing&sales, after-sales service).
Outside-in linkages: Competitive context which significantly affects it’s abilities to carry out it’s strategy. Including the local demand conditions, the related and supporting industries, the factors conditions and the context for firm strategy and rivalry.
What are the different Social Issues?
Generic Social Issue: Important for the society but not affected by the company’s operations.
Value Chain Social Impacts: Social issue that is significantly affected by a company’s activities.
Social Dimensions of competitive context: Social issues in the external environment that affects the drivers of a company’s competitiveness.
What is the difference between responsive CSR and Strategic CSR?
Responsive CSR is about mitigating the adverse effects of business activities and caring about the societal concerns of the stakeholders. While strategic CSR is about transforming the value-chain activities to benefit society and do things differently while integrating the in and out dimensions.
