The Business Case - Arthur Little 2002 Flashcards
Definition - “It is the justification and rationale, that is, the benefits to business in an economic sense that would flow from CSR activities”
Carroll and Shabana (2010)
Links to development of Balanced Scorecard - measure of performance opposed to bottom line ratios only
Kaplan and Norton (1993)
- Reputation Management
Positive relationship between reputation and financial performance
The higher the profile of a company or brand…
the greater the chance of reputational damage
- Risk profile and management
Companies with environmental management systems benefit in terms of risk profile
Example for Risk profile and Management
Felman et al (1996), survey of 300 PLCs, investment in environmental management leads to a reduction in risk and a 5% increase in stock price
- Employee Recruitment, Motivation and Retention
CSR activities attract and retain good employees
1997 Walker Information Survey
42% of respondents took into account a company’s ethics when deciding whether to accept a job
- Investor Relations and Access to Capital
Investors are screening out businesses that do not meet environmental or social standards
Dow Jones Group Sustainability Index (DJGSI)
Top 10% of companies in terms of sustainability performance, from the 2,500 biggest companies in the Dow Jones Global Index
FTSE4Good Indices
Includes companies with good policies concerning human rights, stakeholder management and environmental sustainability
Total level of socially/environmentally responsible spending in the US in 2001?
$2.34 trillion
- Learning and Innovation
Consultation and Participation can increase value perceptions and innovation
- Competitiveness and Market Positioning
More consumers form their opinion of a company on the basis of its csr activities
- Operational Efficiency
Recycling, Reusing, and repurposing can save money and improve processes
