W12: Corporate Social Responsibility Across Countries Flashcards
CSR Definition, Key issues CSR
Actions of a firm to benefit society beyond requirements of law and interest of the firm.
Stakeholders give and take away support so they have to be managed to in that regards
CSR in Local and Global Markets as well as Strategic vs Moral
Key issues CSR: Environment, Eco-Efficiency, Responsible Sourcing, Stakeholder engagement, Labour Standards, Social Equity, gender, …
Views from Ghana and Thailand, US and Europe
CSR Impact on Business
> Positively influence the quantity of innovation
Reduce financing costs
Create a highly loyal and more price inelastic customer base
Increase trust between employees and managers
Increase productivity of employees
Non-market strategy
Strategy for building relationships with non-market stakeholders
The non-market strategy recognizes that businesses are social, political, and ethical entities, not just economic agents
The non-market strategy considers how managers anticipate, preempt and respond to actors, influences, issues, and actions emanating from cultural, social, political and regulatory arenas
Framework with the non-market environment: NGO, Social Issues, Natural Resources, Climate Change, Political system, Government officials, Communities, Cultures, and Values
Purpose of the firm and how to go beyond that
Only purpose to generate profit or maybe moral responsibility to the world
How to contribute socially: Philantrophy, Serving customer, taxes, CSR iniatives, creating wealth for business owner
Establishing CSR while while taking advantage of cross–national differences: Minimum wages etc.
Why fo firms engage in CSR
> Unmet market needs > Long-term survival > License to operate > Reputation > Internal culture
Management Gurus
> Porter - Companies should engage in CSR because it’s good for business - CSR initiatives can maximize “shared value” for the firm and for society
> Nidumolu - Sustainability as the key driver of innovations that improve firms’ financial performance
> Rangan - Some CSR initiatives create “shared value” for society and the firm, while other CSR initiatives may create more value for society than for the firm
Shared value debate
Can you always do good (create social value) and at the same time do well (create business value) ?
Profitabilty-enhancing potential of green business
> Charging premium prices for green products
> Reducing costs by consumung less resources
> Facilitating access to resources like financial resources or safed by the government
Companies’ paths to sustainability
> Some companies born green and continue so
> Some companies born green but gradually switched to focus on more conventional business goals
> Some companies initially driven by conventional goals but gradually embraced importance of sustainability
Proactive vs. regulation-imposed sustainability practices
What to do if using more sustainably practices actually associated with higher costs - tragedy of commons occurs
Government regulation can raise costs of using unsustainable business practices
When profitability and sustainability goals are in conflict
> maybe enough to survive
making money is not the only goal
social enterprises with non-profit approach
