Forelæsning 9

Question 1

Why should companies care for CSR?

Answer 1

Moral arguments:

• Because they are an integral part of society
• Because they are powerful actors
• Because their activities affect others

Rational arguments:
- Because they are forced – legitimacy & “license to operate”
- Because it pays off – business care for CSR
Attracting consumers, employees, investors etc.

Question 2

Key CSR challenges of MNCs

Answer 2

• Diversity challenges
• Ethical challenges
• Sustainability challenges
• Citizenship challenges

Question 3

Company approaches to CSR

Answer 3

Reactive compliance:
- Limited to satisfying shareholders, incl. company activities that meet governmental regulations.

Proactive, strategic approach: - Take-the-lead approach to societal interests.

Question 4

Global vs Local CSR Approach

Answer 4

Global:

• Human rights
• Environmental protection
• UN Global Compact

Local: Deals with the firms obligations based on the norms/stakeholder demands of the local context:

• Local/country-specific issues vary between communities.
• There is little global consensus whether firms must deal with these issues.

Question 5

Global vs Local Approach Model

Answer 5

Y: Emphasis on global integration/standardization
X: Emphasis on local responsiveness/flexibility

3 Quadrants: Transnational CSR approach, Global CSR approach, Local CSR approach.

Question 6

Open Strategy

Answer 6

• Firms increasingly develop “open strategy”: Involving external stakeholders into strategy processes, as well as subsidiaries etc.
• “Opening strategy” is one way to build support to firm strategy (and e.g. integrate diverse demands)
• Strategy work is today less the accomplishment of a small corporate elite, but often engages a multitude of internal and external stakeholders.
• How to do open strategy? Strategy workshops with internal/external stakeholders, social media, digital tools for dialogue etc.