Lectures 6 & 8 Flashcards
Corporate Social Responsibility (CSR)
conscious capitalism
profit with purpose
operate responsibly above minimum legal standards
CSR Categories
CHARITABLE giving
COMMUNITY development/empowerment
EMPLOYEE health, safety, advancement, diversity, etc
ENVIRONMENT management/climate change
GOVERNANCE & organizational ethics
INVESTING sustainably/responsibly
PRODUCTS and services w quality, made safely
SUPPLY CHAINS - ethical/diverse
Strategic Communications & CSR
Important to align organization actions w mission/values, be the organizations conscious, provide stakeholder support, tell the story of CSR
Triple Bottom Line
People, planet, profit
Environment, Social, Governance
E - energy & greenhouse gas & water efficiency // pollution & waste reduction // encroachment on nature
S - people - diversity, equity, inclusion, health/safety, community invention AND product responsibility
G - management compensation/board structure, ethical business practices w transparent/reporting, risk & compliance
CSR Purpose & Benefit
prioritize giving to community to enhance reputation beyond core business practices LEADS TO better reputation among major stakeholders
ESG Purpose & Benefit
first made to tell shareholders about non-financial issues w/ long-term financial impacts LEADS TO assuring ShH that risk is mitigated and company is adapting to world
Sustainability Purpose & Benefit
business approach balancing economic/social/environmental for benefit of future generations LEADS TO demonstration of business strategy that takes all into consideration
CSR Challenges
Business Pressures - to meet goals
Greenwashing
Maintaining Harmony w various stakeholders
Mis-Stepping
Shareholder Theory
all about bottom line - that maximizing financial success for shareholders is the priority, will lead to jobs and profits
Stakeholder Theory
all about social responsibility - that all stakeholders are rightful owners of a business, should have a vote and receive benefits, leads to higher value of company and better reputation
CSR Reporting Standards
CARBON disclosure project
DOW jones sustainability index
GLOBAL reporting initiative
SASB Sustainability Accounting Standards Board
UN Global Impact
Economics
Study of cause-and-effect relationships in an economy - consequences of decisions made about use of resources
economy
total sum of all goods/services produced among market participants - global, national, regional, local
macro and micro economics
macro - economy as whole, actions of governments/countries to influence broader economy
micro - concerned w actions of individual businesses/households
Economic Indicators
CONSUMER confidence (measures public opinion toward economy - act how they feel)
EMPLOYMENT reports - data on employment/unemployment
EXCHANGE rates - rate at which one currency exchanged for another
GDP - gross domestic product - market value of all Goods/services produced w/I country over a set period of time
INFLATION/DEFLATION - inflation decreases value of money, reduces purchasing power
INTEREST RATES - rate at which interest paid by borrowers to lenders, affects price/availability of credit for large purchases
Consumer Price Index (CPI)
most widely followed measure of inflation - average prices paid for a basket of goods
Bank of Canada
exists to regulate credit/currency in the best interests of the economic life of nation BY monetary policies, financial system, currency, funds management, retail payments supervision
Supply and Demand
in free markets - influence pricing of products/services
Supply = production costs, technology, competition, future pricing expectations
Demand = income levels, consumer preference, prices of related goods/products, future pricing expectation
Behavioural economics
study of the effect of emotional / irrational economic decisions made by individuals/organizations
Bounded Rationality
decisions based on what we know, can have issues based on lack of expertise / available information
Cognitive Bias and Discrimination
personal filters bias decision making - leads to discrimination against others
Herd Mentality
being swayed by others actions/behaviours
Choice architecture
offers designed to steer someone into making a specific decision
economy and comms
anticipate business decisions
understand stakeholders concerns
explain to employees
recommend comms programs to match business environment
