Corporate Social Responsibility BOH4M. Learning Goals 8. I will be able to explain what Corporate Social Responsibility (CSR) is and its key issues. 9.
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Corporate Social Responsibility
BOH4M
Learning Goals
8. I will be able to explain what Corporate Social Responsibility (CSR) is and its key issues.
9. I will be able to describe what and who are stakeholders
10. I will be able to explain why companies are socially responsible and the consequences of CSR.
11. I will be able to explain the 2 principles of CSR (charity and stewardship)
What is CSR ? – Fill in questionshttps://www.youtube.com/watch?v=BLUu262pmxU
What is CSR? Before CSR, what was the main goal of a company? Why is it annoying that she is drinking coke? Which company do you think is more socially
responsible? Why? How do customer’s feel toward companies who are
involved in CSR? Do their opinions match their buying trends?
The Positives
Good things businesses do?– Meet our needs/wants– Generate wealth– Create jobs– Innovate
The Negatives
Bad things businesses do?– Pollution– Sweatshops/child labour– Fraud– Consumerism
Key Issues in CSR Labour rights:
– child labour – forced labour – right to organize – safety and health
Environmental conditions– water & air emissions– climate change
Human rights– cooperation with paramilitary forces– complicity in extra-judicial killings
(someone killed by the government without legal process)
Poverty Alleviation– job creation– public revenues– skills and technology
LG 9: Stakeholders
Who is affected by the actions of a business?
Stakeholders
Stakeholders are groups or individuals with an interest
in a business. Stakeholders may affect or be affected
by the decisions of an organisation. Examples of
stakeholders include: Owners/shareholders Employees Customers Local community
Internal stakeholders
Internal stakeholders
Internal stakeholders are those that are considered
to be part of an organisation.
The main internal stakeholders are: Shareholders/owners Employees
Shareholders
Shareholders: own a part of a business do not get involved in the day-to-day running of
the business have a right to vote at the company’s AGM receive a share of the profits – this is called a
dividend
Shareholder interests
Each stakeholder group will have its own expectations
of the business.
Shareholders are likely to have an interest in: Increased profits and hence dividends through
such things as:– Growth – Enhanced reputation– Greater efficiency
Employee interests
Employees are likely to expect: fair pay decent working conditions job security access to training for additional qualifications
Manager interests
In addition to the usual employee interests, managers may expect to be able to make their own decisions and have the opportunity of promotion
External Stakeholders
External stakeholders
External stakeholders are outside an organisation.
The main external stakeholders are: Customers Government Suppliers The local community
Customer expectations
Customers are likely to expect such things as: a product range that meets their needs value for money good quality products and customer service a ready supply of goods and services
And possibly: ecologically sound/sustainable products
Government interests
The government has an interest in businesses because: it receives taxes from business profits, employee
incomes and customer purchases businesses provide jobs and therefore employment
levels and benefits payments are affected the economy is dependent on the operations of business it has a range of legislation and regulations that
businesses must comply with
Supplier expectations
Suppliers may provide a range of services to
businesses, as well as raw materials and finished
goods.
Suppliers may expect: to be paid in a timely fashion to receive regular orders
Local community
The local community may have expectations about a
company regarding: the availability of jobs the level of pollution and congestion created the support provided by a business regarding
community projects and concerns
Business expectations of stakeholders
Different stakeholders have their own interests and expectations of a firm, however, the business will also have expectations of the stakeholders e.g. suppliers may be expected to comply with ethical and environmental guidelines set down by the business.
How could CSR policies meet stakeholder interest?
How could they go against stakeholder interest?
Kellogg's Case Study
LG 10: Social Responsibility
Related to “corporate citizenship” and business ethics
Corporate social responsibility (CSR) means taking your duty to all stakeholders, especially the community as a whole, seriously
Social Responsibility
Doing good things– Donating goods, services, or money to charities– Sponsoring public service ads
Not doing bad things– Being environmentally responsible– Safe working conditions and fair wages– Transparency and accountability
Why CSR?
Owner(s) feel strongly about it Good publicity = good for business Tax deductions The right thing to do Companies should solve the problems they cause
– Ex: pollution
Keeps the government out of business Increased market share
The case against CSR
Improving the community should be the responsibility of the public sector
Diminishes profit to owners/shareholders Makes business less competitive Increases costs A company’s social obligations are discharged when
it pays taxes Businesses may exert too much influence over
charitable causes– Responses to these arguments?
Principles
Two key principles are at the heart of CSR:
– The Charity Principle– The Stewardship Principle
The Charity Principle
The wealthy have a responsibility to the poor Corporations are large, powerful, and
wealthy “citizens”, and should therefore take up social causes– Stems from early 1900s American tycoons
Andrew Carnegie and John D. Rockefeller who contributed large sums of money to charitable organizations
The Stewardship Principle
When business executives think of themselves as trustees of society
Company must ensure that society benefits from their actions, rather than being hurt by them
Recognize that company is not a closed system – if affects (and is affected by) its environment
Must balance the interests of multiple stakeholders
Fun Art Time - CSR Window Pane
You must choose one company that you think demonstrates CSR
You will receive a piece of paper. You need to split it into four sections.– Section 1 will have your companies name and logo– Section 2 will have a summarized version of your companies CSR
policy– Section 3 will have some of the policies that your companies uses to
ensure ethics in the workplace.– Any thoughts that you have about sections 2 and 3.
Make it beautiful (lots of colour) as it will be going on the wall!
Learning Goals
8. I will be able to explain what Corporate Social Responsibility (CSR) is and its key issues.
9. I will be able to describe what and who are stakeholders
10. I will be able to explain why companies are socially responsible and the consequences of CSR.
11. I will be able to explain the 2 principles of CSR (charity and stewardship)
Nike Video (20 min)
http://www.youtube.com/watch?v=M5uYCWVfuPQ&feature=c4-overview&list=UUnkiZ7W-zCpYOp41UVul5rA
Based on this video do you think Nike is being socially responsible? Why or why not?
Do you think it’s socially responsible to form an opinion based on one video? Why or why not?
Do you think it’s ethical to produce a video with such a heavy bias? Why or why not?
Honest Tea
http://www.youtube.com/watch?v=cDndc2iNz58
How is this company different from Nike? What are fair trade products? Why should
people purchase fair trade products? What is the problem with fair trade products? Why do you think companies like Nike do not
use the fair trade model?
Learning Goals
8. I will be able to explain what Corporate Social Responsibility (CSR) is and its key issues.
9. I will be able to describe what and who are stakeholders
10. I will be able to explain why companies are socially responsible and the consequences of CSR.
11. I will be able to explain the 2 principles of CSR (charity and stewardship)
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