HC 2

Question 1

Pyramid of CSR (Carrol 1979, 1991)

Answer 1

Economic-, Legal-, Ethical- and Philanthropic responsibilities

Question 2

Economic perspective:

Answer 2

The pyramid of CSR

Question 3

Triple Bottom Line

Answer 3

Planet, Profit, People

Question 4

Impact perspective

Answer 4

TBL

Question 5

Interlinked perspective

Answer 5

TBL

Question 6

CSR (European commission, Green Paper, 2001)

Answer 6

a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis.”

Question 7

Voluntariness dimension

Answer 7

CSR (European Comission, Green paper 2001)

Question 8

Sustainbability

Answer 8

meeting the needs of the present without compromising the ability of future generations to meet their own needs

Question 9

Intergenerational Perspective

Answer 9

Sustainability (Paris Agreement)

Question 10

CSR (european commission, 2011)

Answer 10

the responsibility of enterprises for their impacts on society and outlines what an enterprise should do to meet that responsibility.”

Question 11

normative dimension

Answer 11

CSR (European Comission, 2011)

Question 12

CSR (vs ESG)

Answer 12

CSR a business model (strategy) that affects organizational processes and company culture.

• Broad societal and environmental focus
• Value creation
• Stakeholder-Centric

Question 13

ESG (vs CSR)

Answer 13

ESG a model used by investors to examine the sustainability of a company including a set of (quantifiable) criteria.

• Financial materiality focus
• Risk management
• Investor-Centric

Question 14

Shareholder Primacy view

Answer 14

Main principle:
* Profit maximization

Argumentation:
* Shareholders as company owners should decide what to do (to do good) with their share of company
profits.

Principal-agent view:
* Manager (agent) is accountable to shareholders (principals) that provide capital to the company → agent should conduct business in the principal’s interest (Jensen/Meckling, 1976)

Question 15

Shareholder primacy assumptions (3)

Answer 15

1. A company has no competitive advantage over other individuals in socially responsible actions.
2. Governments are well-functioning.
3. The impact of socially responsible investment on profit is calculable.

Question 16

Stakeholder view

Answer 16

Main principle:
* Corporate strategy should be aligned with stakeholders’ interests.

Argumentation:
* Companies must take responsibility for the positive and negative external effects of their business.

Stakeholders:
* Any group or individual that can affect of is affected by the achievement of a corporation’s purpose.

Question 17

Shareholder & stakeholder view aligned

Answer 17

Required assumption: Actions in favor of stakeholders ultimately resonate positively with profitability, and/or actions against stakeholders are eventually punished by decreases in the bottom line. (Smith, 2003)

Question 18

having a good CSR performance could increasse revenues and decrease costs by…

Answer 18

1. saving on resources and streamlining processes
2. Attracting/binding customers/ avoiding being punished by critical cosnumers.
3. motivating and attracting certain employees
4. preventing stricter governmental intervention
5. decreasing risks of catastrophic events
6. having lower costs of equity and debt

Question 19

Catergorizations of link between CSP and CFP

Answer 19

1. Cost and risk reduction
2. Gaining competitive advantage: justify benefits over costs.
3. Developing reputation and legitimacy
4. Seeking win-win outcomes: strategy integration. learning and innovation

Question 20

Creating Shared Value (CSV)

Answer 20

1. Creating Shared Value involves creating economic value in a way that also creates value for society by addressing its needs and challenges.
2. Competitiveness of a company and the health of the communities around it are mutually dependent.
3. Recognizing and capitalizing on these connections between societal and economic progress has the power to unleash the next wave of global growth and to redefine capitalism.

Question 21

How can CSV be done?

Answer 21

Reconceiving products and markets
Redefining productivity
Enabling local cluster development