HC 14: Corporate Social Responsibility 1 Flashcards
Consequences of corporate irresponsible behaviour
- Law suits
- Criminal charges
- Loss of credibility
- Loss of consumer trust
- Loss of HR (motivation, attractiveness)
- Loss of stock value
- Personal consequences
Etc.
Corporate social responsibility: definition
Corporate social responsibility is “international private business self-regulation”
Also known ascorporate sustainability, sustainable business, corporate conscience,corporate citizenshiporresponsible business
Corporate social responsibility: Perspectives off..
- Business person
- NGO’s
- Government official
- Business person: CSR is a business strategy
- NGO’s (Niet-gouvernementele organisatie): CSR is ‘greenwash’
- Government official: CSR is voluntary regulation
Carroll’s (1991) pyramid of corporate responsibilities
- Philanthropic
3. Ethical- Legal
- Economic
(^ bottum-up ^)
Example of Corporate philanthropy
Eg. Company donations to charity
> including cash, goods, and services
Example of Community volunteering
Eg. Company-organized volunteer activities employee receives pay for pro-bono work on behalf of a non-profit organization
Example of Socially-responsible business practices
Eg. Ethically produced products which appeal to a customer segment
Example of Cause promotions
Eg. Company-funded advocacy campaigns
Example of Cause-related marketing
Eg. donations to charity based on product sales
Example of Corporate social marketing
eg. Company-funded behavior-change campaigns
The leadership skills theory (3)
Technical, People and Conceptual Skills
The leadership style theory (e.g.)
The Managerial Grid both concern for people and for performance
The contingency theory
Effective leadership is contingent on matching the leader’s style to the setting
(The leadership style theory & The situational leadership theory combined)
- Transactional leadership
- Transformational leadership
- Leader-member exchange theory
- Servant leadership theory
Transactional leadership
Offering the right rewards and punishments and monitoring
Transformational leadership
Encouraging people to follow by inspiring with a vision
Leader-member exchange theory
Transactional leadership, but taking the ‘outgroup’ into account
Servant leadership theory
Serving followers leads to more trust, cooperation, reciprocal service and performance
1970’s: Milton Friedman: Profit maximization is the only social responsibility of companies (for the owners / share holders). (3)
- Property rights are fundamental human rights (neo-liberalism vs communism)
- The invisible hand of the free market (Adam Smith) will lead to greater welfare for the whole society
- Humans are naturally egoistic (Homo economicus).
