Topic 4 (b) CORPORATE SOCIAL RESPONSIBILITY (CSR)

Transcription

1 Topic 4 (b) CORPORATE SOCIAL RESPONSIBILITY (CSR)

2 Stakeholder theory Introduction to strategy Vision/Mission The Resource Based View of Strategy Ethics CSR Management By Objectives D I S C U S S I O N Governance External Analysis PESTEL Industry Competitor Expectation and Power Generic Strategy Strategic Analysis Value Chain Position Audit/Situational Analysis Internal Analysis Financial Analysis Portfolio Analysis Scale and experience R E A D I N G S Balanced Scorecard Strengths Opportunities Weaknesses Threats Critical Success Factors

3 CSR are grounded by opposing objectives and views (Maximize Profits to Balance Profits with Social Responsibility) The Business of Business is Business. Milton Friedman Satisficing shareholders? Baumol Build a technostructure? J.K. Galbraith William Meaney - MBA, BSc, ACMA 3

4 The consideration of, and response to, issues beyond the narrow economic, technical, and legal requirements of the firm to accomplish social benefits along with the traditional economic gains which the firm seeks. William Meaney - MBA, BSc, ACMA 4

5 Definitions and Relationships Corporate social responsibility (CSR) is the process by which businesses negotiate their role in society In the business world, ethics is the study of morally appropriate behaviors and decisions, examining what "should be done Although the two are linked in most firms, CSR activities are no guarantee of ethical behavior William Meaney - MBA, BSc, ACMA 5

6 Social responsibility Corporate executives sole responsibility to shareholders is to conduct the business in accordance with their desires, which generally will be to make as much money as possible while conforming to the basic rules of the society, both those embodied in law and those embodied in ethical custom. Milton Friedman The Social Responsibility of Business Is to Increase Its Profits New York Times Magazine The business of business is business Business is permitted and encouraged by the law because it is of service to the community rather than because it is a source of profits to its owners. William Meaney - MBA, BSc, ACMA 6

7 Recent Evidence of CSR Interest An Internet search turns up 15,000 plus response to corporate citizenship Journals increasingly rate businesses (and NGOs) on socially responsive criteria: Best place to work Most admired Best (and worst) corporate reputation William Meaney - MBA, BSc, ACMA 7

8 Some questions of corporate social responsibility Johnson Scholes and Whittington William Meaney - MBA, BSc, ACMA 8

9 Some questions of corporate social responsibility Johnson Scholes and Whittington William Meaney - MBA, BSc, ACMA 9

10 Reasons for CSR Activities CSR activities are important to and even expected by the public And they are easily monitored worldwide CSR activities help organizations hire and retain the people they want CSR activities contribute to business performance or do they? William Meaney - MBA, BSc, ACMA 10

11 Corporate Social Responsibility Continuum Fight social responsibility initiatives Articulate social values and objectives Lead the industry and others in best practice Maximise profits to the exclusion of all else Balance profits and social objectives A social contract? Do what it takes to make a profit; skirt the law; fly below the social radar Comply; do what is legally required Integrate social objectives and business goals William Meaney - MBA, BSc, ACMA 11

12 Position Responsible to therefore Minimalist Self interested Stockholders/ owners Stockholders/ owners/ cost controllers Maximizing profit Do good when furthers quest for growth and profit Social contract Those with social and legal contract Goes beyond law to spirit of commitment Stakeholder Management Those who influence direction and fortunes Develop responsive strategies Stakeholder stewardship Society as whole / future Solutions for social problems William Meaney - MBA, BSc, ACMA 12

13 CSR actions Giving back! Or setting up to take more? Sponsorship AIB, Ethiad Charitable donations Philanthropy give money or time or in kind to charity Integrative philanthropy select beneficiaries aligned with company interests William Meaney - MBA, BSc, ACMA 13

14 Integrate CSR Globally Incorporate values to make it part of an articulated belief system Act worldwide on those values Cause-related marketing Cause-based cross sector partnerships Engage with stakeholders Primary stakeholders Secondary stakeholders William Meaney - MBA, BSc, ACMA 14

15 William Meaney - MBA, BSc, ACMA 15

16 How will this be helpful for your exam? Knowing the theory and a model will give you a perspective of the challenges facing management particularly in Question 1 of the Strategy and Leadership exam. William Meaney - MBA, BSc, ACMA 16