B100 Day School Three Blocks 6 and 7. Your Tutor: Chris Green

Transcription

1 B100 Day School Three Blocks 6 and 7 Your Tutor: Chris Green

2 Overview of Day School 3 Demonstrate some knowledge of the main features of CSR as it relates to business and regulation/legislation. Discuss the main features of Carroll s pyramid of CSR Activity: Case study: the Qatar 2022 football world cup. Introduce Ethical Concepts Break Introduce Globalisation Drivers Activity: Case study: Bremont Watches Final questions and conclusion

3 What is corporate social responsibility (CSR)? CSR is a concept that deals with the ethical and social responsibilities businesses have over and above the law. It seeks to provide a framework to enable businesses to think about and prioritise their responsibilities. CSR expresses the belief that a business has responsibilities to society beyond its legal responsibilities CSR is also about the manner in which a business follows through on such obligations.

4 Carroll s pyramid of CSR Be a good corporate citizen Discretionary Responsibilities Contribute resources to the community: improve quality of life. Be ethical Ethical Responsibilities Obligation to do what is right, just and fair. Avoid harm. Obey the law Legal Responsibilities Law is society s codification of right and wrong. Play by the rules of the game. Be profitable Economic Responsibilities The foundation upon which all others rest. Source: adapted from Carroll (1991)

5 Carroll s pyramid of CSR 2 Economic responsibilities: a business is ethically obliged to make money: to generate wealth, pay its employees and provide a return on investment for shareholders. Legal responsibilities: societies expect businesses to abide by the law this is not optional. Ethical responsibilities: businesses are expected to abide by societal norms of proper and decent behaviour, over and above following the letter of the law. Philanthropic responsibilities: philanthropy exceeds social expectations; businesses or their owners privately give to what they consider good causes.

6 Fifa: question 1 Based on what you know of the case study, where would you place FIFA within Carroll s pyramid of CSR?

7 Fifa: question 2 Imagine that you work as an executive for Visa, an official corporate partner of FIFA. Your chief executive is concerned that being associated with the Qatar world cup will cause the company reputational and financial harm. Make three recommendations of practical actions that could place your company within the top-tier of Carroll s pyramid (discretionary responsibility) in relation to the world cup.

8 Feedback CSR activity involves balancing perceived ethical responsibilities with responsibilities towards shareholders and/or company owners. CSR has its critics, as was/will be made clear in reading 47 notably Milton Friedman s argument that the only responsibility of a business is to its shareholders. CSR activity is multi-dimensional. In other words, any business will have a broad choice of the kinds of activities it chooses to pursue. Successful businesses usually approach CSR with some intentionality.

9 Feedback 2 Examples of the advantages of pursuing CSR with intentionality include: Using CSR strategically in order to gain an advantage over competitors: perhaps today s ethical stance over and above the law, may set a precedent that other competitors will be forced to follow in the future. Perhaps aligning the business with certain charitable causes will be beneficial in business, as well as ethical terms. CSR activity can offer possibilities for innovation. Most importantly, perhaps we all hold an ethical duty to pursue effective and meaningful CSR activity it s good to be good, isn t it?

10 Important ethical considerations The most important ethical consideration relating to the Qatar world cup is: The welfare of the workers building the infrastructure. Spreading football to new audiences and people. The enjoyment of fans. The honesty and personality traits of FIFA executives, Qatari tournament executives and corporate sponsors.

11 Ethical Frameworks Overview Outlines each view and its limitations Subjectivism Relativism Ethical egoism Hedonistic egoism Virtue Care ethics Consequentialist - Utilitarianism Deontological - Categorical imperative Rights Contracts based Theory of justice Social contracts theory watch?v=bdeepbk_ak8 11

12 Session 3, p 22 Table 3.1 Overview of ethical frameworks

13 Questions

14 Let s have a break

15 What is theory? Good theory is always based upon people s observations of the world i.e. theory comes from practice and therefore good theory can improve practice. Theory comes in different shapes and sizes and often disagrees. This is a source of strength because it allows us to take a number of different views of the world around us. Such a breadth of theoretical perspective is useful for business ethics because this is a complex area, one in which there is rarely definitive agreement about what constitutes right and wrong.

16 Key Ethics and CSR and Globalisation stakeholders in the Qatar World Cup case Football Fans Executives Sponsors Workers FIFA employees Families of workers

17 How would you apply deontological ethics to explain the importance of one key stakeholder in the Qatar World Cup case?

18 Possible answers The tournament cannot be justified on the basis of harm caused to certain individuals (workers). Unless one is happy to accept a certain amount of bribery and/or shady practice in relation to the bidding process for all future world cups, perhaps the bidding should be re-staged, or at least some firmer rules and policing procedures put in place for future tournaments. Perhaps some form of financial compensation and/or formal apology for the families of those affected by the deaths of workers should be considered.

19 How would you apply consequentialist ethics to explain the importance of one key stakeholder in the Qatar World Cup case?

20 Possible answers An extreme view might state that the happiness and benefits of the majority is of prime importance. In this case, millions of football fans gain huge pleasure from the world cup. Likewise, new fans discover watching football via the world cup. Perhaps there is a health argument to be made if more people start playing football after discovering the world cup, then they will benefit from more exercise. There is a wealth argument. The world cup generates large amounts of income for the host country, for leisure industries globally (supermarkets, pubs) and for corporate sponsors in the long-term. A very crude consequentialist argument would state that these concerns outweigh the harm caused to individual workers because more people benefit from the tournament than those harmed.

21 How would you apply justice ethics to explain the importance of one key stakeholder in the Qatar World Cup case?

22 Possible answers If the world cup can be made financially viable and vibrant, concern should then spread to welfare issues. Given that the world cup generates huge amounts of revenue almost regardless of where it is staged, then it would be regarded as unacceptable for workers to be exploited for even further financial gain. Opportunities to participate in the tournament should be spread even indirectly via television/radio access, viewing events, amenities for playing football.

23 How would you apply virtue ethics to explain the importance of one key stakeholder in the Qatar World Cup case?

24 Possible answers Fix the traits of the leaders in FIFA, national football bodies, companies employed to build the infrastructure and corporate sponsors, fix the problem. Investigation and prosecution of people who have broken the law. Design and implementation of codes of ethics describing how one expects executives and employees to behave. Design of ethics training for executives and employees. Design on-the-job training for employees and executives so that they can experience ethical dilemmas in practice (experiencebased wisdom). Write ethics into job descriptions and recruitment specifications so that future employees and executives are considered as much for their ethical competency as their business competency.

25 Block 7 The global context

26 Block 7 - Introduction The over-arching theme is economic globalisation and its consequences for business. The material falls into three sections: Session 25. Economic globalisation (includes Readings 56-57) Session 26: Transnational practices (includes Readings 58-59) Session 27: International business ethics (includes Readings 60-61) The final session (28) offers advice on completing the EMA (well worth reading!) There is no TMA for this Unit. However, this material will be in the EMA.

27 Where do items in this room come from? Consider Where did the raw materials come from? Where did all the components come from? Where was the item manufactured? Where was the product designed? Which business designed the product and which manufactured it (are they different)? Where did you buy it, where is this business located (where is it run from? Is it a global business?)? How did it get here?

28 Drivers of Globalisation Cost drivers reducing the cost of inputs (such as a raw materials or partially finished goods) that the firm consumes reducing the direct cost of wages, i.e. the cost of employing workers, through offshoring reducing spending on wages through outsourcing Government drivers increasing the number of market-based economies and increasing market orientation in planned economies increasing commitment to reduce barriers to trade rise of co-operative organisations of global governance

29 Drivers of Globalisation 2 Technological drivers Information and communication technologies (ICT) Technologies of transportation Market drivers global products global structuring of demand

30 Discussion question How do the four drivers of globalisation impact on Bremont s business? Which of the four drivers do you think is the strongest for Bremont and why?

31 Points to note Not all drivers are equally relevant to the case (or any case given) it s okay to say that you think a driver does not apply as long as you argue your point. Use what is in the case to give answer, making reasonable assumptions from the case is okay, wild assertions not so. Not all will agree on the answer, that s okay, just give reasons for your view. When asked to say which driver is the strongest and why, don t miss this out and, once again, the need to give reasons for your answer. If this question was in an EMA, underline the need to use module material to inform answers.

32 Next steps TMA05 submission deadline 30 th March 2017 EMA due by NOON on Thursday 1st June 2017 no extensions. Check your TGF for TMA05 and EMA prep sessions

33 Questions and Evaluation