stakeholders and CSR Flashcards
fishing with dynamite documentary
company examples, how to address issues
shareholder primacy
maximizing shareholder value, focus resources and activities to increase its profits, place interests of shareholders above all others
stakeholder theory
firms should create value for all stakeholders, stakeholders are interconnected (includes customers, suppliers, employees, etc). coined by Ed Freeman, UVA Darden
corporate social responsibility
business views itself in a broader context w/ social obligation and environmental responsibilities
sustainability
maintain/improve state and availability of desirable materials or conditions over long term
triple bottom line
people, planet, profits
stakeholders
customers, government, NGOs place legal/social pressure on businesses to improve sustainability
greenwashing
superficial CSR, cover up systemic ethical problems for public relations
stakeholder mapping/analysis
org’s ethics and CSR is of concern to managers and organization’s scholars. good faith CSR can reshape org for their stakeholders –> sustainable business model
why is there disagreement on CSR?
politics, scope/magnitude, infrastructure, incentives
traditional CSR vs. creating shared value CSV
traditional: reduce negative impact, cost focused, redistribute value created by firms
–> creating shared value: make positive impact, profit focused, expand total pool of social/economic value
types of purpose
purpose as disguise: professed purpose covers up misconduct business
purpose on periphery: “doing good” separated from core business
purpose as win-win: economic + social benefits intersect
deep purpose: deep commitment to economic + social benefits
ESG
nonfinancial metrics, not required yet, no universal standard. investment options (mutual funds/ETFs), demand from investors, seen as necessary tool in shifting capitalism towards more sustainable models
