Week 10 CSR Flashcards
Define corporate social responsibility.
The deliberate actions a firm takes to protect, enhance, and promote the welfare and well-being of society.
What three levels of motives stakeholders care about?
Rational, social, personal
Define social license to operate.
Stakeholder perceptions of the acceptability of a company and its local operations at a moment in time.
Value protection
Protecting social license so that bad things become less likely to happen.
Value creation
Strengthening social license so that good things are more likely to happen.
Define shared value.
Creating economic value in a way that also create value for society by addressing its needs and challenges.
How can a firm create shared value?
Social entrepreneurship/Innovation, overcoming institutional voids, and grand challenges.
What are some characteristics of CSR portfolios?
Number, thematic areas, and geographic areas.
What two ways can a firm implement CSR projects?
NGOs and direct/firm.
What are some pros/cons of NGO involvement?
Less control, collaborative challenges, overcomes the liability of privateness, more knowledge of the society, better understanding of the stakeholders.
What are some pros/cons of direct involvement?
More control, greater efficiency, good when the country has stable market institutions, or when the firm has a local presence.
