Week 1-5 Flashcards
Define CSR
Voluntary activities undertaken by a company to operate in a economic, social and environmental manner
What is the significance of the 14th amendment?
Extended to businesses giving them human rights and seen as legal “persons”
When did PR and corporate philanthropy emerge?
The 70’s. Corporations started to implement CSR systems instead of putting out fires.
How did Theodore Roosevelt impact CSR?
Gave rise to new values:
- Conservation
- Urban sanitary conditions
- Labour Laws
- Protecting public interest
- Introduced legislation to regulate corporations
What is the two paradigm 80’s clash?
- 1981-1989 clash between stakeholders and stockholders
- Shift to favour less government involvement and more “pro business” agendas, favouring stakeholders.
How are corporations considered legal persons and what does this mean for CSR?
- Legal independence allows shareholders to escape legal repercussions that the company faces
- It is responsible and accountable like a person
- It is perpetual - surviving even when its founders pass away
What is the shareholder role in a public company?
-Shareholders elect the board of directors. The board is in charge of operations and management, influencing the company.
What happens when a company goes public?
- Shares increase
- Shareholders increase
- Original shareholders own less of the company
What are 3 approaches to CSR?
- Corporate Social Responsibility
- The triple bottom line
- Stakeholder Theory
What is Corporate Social Responsibility theory?
4 obligations:
- Economic, required to make money for survival.
- Legal, adhering to rules and regulations
- Ethical, doing whats right
- Philanthropic
The Triple Bottom Line
The sweet spot between: Environmental, social and economic
-Results individually reported
-All 3 need results
PEOPLE, PLANET, PROFIT
Stakeholder Theory
Mirror image of CSR - Starts with the world
-Lists those affected by the companies actions and believe they should direct and participate in the organization
What is the CSR Triangle?
Economic - Required to make money to survive
Legal - Adhering to rules and regulations
Ethical - Doing whats right, not required
Philanthropic - Company gives something away
Arguments in favour of CSR - Moral Requirement
- Corporations are involved in a social world
- They have an obligation to resolve social problems
- They rely on more than shareholders to be successful, so are responsible for the protection of those things
- When businesses cause problems, they’re obligated to participate in their solution
Arguments in favour of CSR - Externality argument
Externality: The cost of a good or service not accounted for in the price
- Corporation owning a polluting factory gets the full money of the sales but doesn’t pay for the full “cost”
- Externalities are not always negative
Arguments in favour of CSR - The enlightened self-interest argument
- Businesses take on broad responsibilities because public generosity benefits the company
- Corporations that are seen as socially engaged may be rewarded with more satisfied customers
- Can hire top-notch employees
- Organizations with strong regulations can hold off imposing government regulations
What makes a strong CSR vision?
- A compelling description of the future CSR position
- Inspirational and achievable
- How you see events unfolding over 10 - 20 years
- Contains aspirations that are broad and forward thinking
What isn’t a sustainability plan?
- “green strategy” (greenwashing)
- Sustainability is not philanthropy
What IS a sustainability plan?
- Focus on social change
- Long-term thinking
- 4 pillars: Economic, social, environmental, cultural
Sustainability is:
- A business strategy that is integrated with core business objectives and core competencies
- Designed to create business AND positive social change
- Embedded in day-to-day business culture and operations
Proven Benefits of CSR
- HR and Talent management
- Reputation and branding
- Operational and cost saving
What is STaR?
-Trends in Society, Technology and Respources
What is STaR mapping?
-Environmental Scan
Why is STaR mapping important?
- Builds strategy for sustainability
- Requires focus on external awareness and internal capacity
- Answers:
1. Do you what whats happening
2. Are you prepared to respond?
3 parts to STaR mapping research:
- Read as much as you can
- Investigate changes in your company
- Talk to outsiders to get different perspectives
4 common characteristics of society:
- A sense of place
- Common form of governance
- A common language
- A common culture
Mapping changes in society
Every business is in the boundaries of different societies
-Business must take actions to strengthen society
3 common characteristics of technology:
- Requires design
- Value dependent
- Shapes society, society innovates technology
Mapping resources
- Natural and human assets to accomplish tasks
- Makes society and technology work
- Limited
- Natural resources are depleting
