lecture 2 csr %28bp%29-2
Post on 06-Apr-2018
220 Views
Preview:
TRANSCRIPT
-
8/3/2019 Lecture 2 CSR %28Bp%29-2
1/38
Management of InternationalManagement of International
BusinessBusiness
Lecture 2Lecture 2
Corporate Social ResponsibilityCorporate Social Responsibility
-
8/3/2019 Lecture 2 CSR %28Bp%29-2
2/38
Management of InternationalManagement of International
BusinessBusinessAim of presentationAim of presentation
Explore the concept of ethics and ethicalExplore the concept of ethics and ethical
behaviourbehaviour Examine the relationship between business andExamine the relationship between business and
ethicsethics
Define Corporate Social responsibility (CSR)Define Corporate Social responsibility (CSR)
Outline the theoretical debate that underpin theOutline the theoretical debate that underpin the
varying CSR strategies of international businessvarying CSR strategies of international business
Identify regulatory environment for CSRIdentify regulatory environment for CSR
compliancecompliance
-
8/3/2019 Lecture 2 CSR %28Bp%29-2
3/38
Questions of Ethics are increasingly salient for
International Business
For example:
Child sweatshop shame threatens Gap's ethical image
An Observer investigation into children making clothes has shocked the retail giant and may cause it to withdraw apparelordered for Christmas
Dan McDougall
Sunday 28 October 2007
The Observer
A Gap worker straightens up clothing. Photograph: Paul Sakuma/AP
Management of InternationalManagement of International
BusinessBusiness
-
8/3/2019 Lecture 2 CSR %28Bp%29-2
4/38
What constitutes Ethics andWhat constitutes Ethics and
Ethical Behaviour?Ethical Behaviour?
-
8/3/2019 Lecture 2 CSR %28Bp%29-2
5/38
Management of InternationalManagement of International
BusinessBusinessDefining Ethics:Defining Ethics:
EthicsEthics are an individual'sare an individual's
beliefs about whetherbeliefs about whether
a decision, behavior, or actiona decision, behavior, or action
is right or wrongis right or wrong (Griffin and Pustay)(Griffin and Pustay)
-
8/3/2019 Lecture 2 CSR %28Bp%29-2
6/38
Management of InternationalManagement of International
BusinessBusinessEthical Behaviour:Ethical Behaviour:
Behavior that conforms to generally acceptedBehavior that conforms to generally acceptedsocial norms, guidelines for good conduct orsocial norms, guidelines for good conduct or
morality.morality. Varies between people, therefore pose dilemmasVaries between people, therefore pose dilemmas
for international business and ideas offor international business and ideas ofglobalisationglobalisation
The idea of global ethics is normative (an idea ofThe idea of global ethics is normative (an idea ofwhat should be)what should be)
Ethical dilemmas are not automatically questionsEthical dilemmas are not automatically questionsof legalityof legality
-
8/3/2019 Lecture 2 CSR %28Bp%29-2
7/38
Management of InternationalManagement of International
BusinessBusinessEthical Behaviour is shaped by:Ethical Behaviour is shaped by:
Individuals and group belief systemsIndividuals and group belief systems
Cultural context shapes individual and groupCultural context shapes individual and groupbeliefsbeliefs
National culture or global cultureNational culture or global culture
Ability to rationaliseAbility to rationalise behavioursbehaviours
Circumstances that affect adherence toCircumstances that affect adherence tobelief systemsbelief systems
Questions of homogeneity problematise theQuestions of homogeneity problematise the
concept of globalisationconcept of globalisation
-
8/3/2019 Lecture 2 CSR %28Bp%29-2
8/38
Whats the relationship betweenWhats the relationship between
International Business and Ethics?International Business and Ethics?
-
8/3/2019 Lecture 2 CSR %28Bp%29-2
9/38
Management of InternationalManagement of International
BusinessBusinessEthics and BusinessEthics and Business
Organizations face ethical dilemmasOrganizations face ethical dilemmas Decisions by organizations create ethicalDecisions by organizations create ethical
dilemmasdilemmas
-
8/3/2019 Lecture 2 CSR %28Bp%29-2
10/38
Management of InternationalManagement of International
BusinessBusinessThe relationship between business and ethicsThe relationship between business and ethics
is central tois central to ::
How Organizations Treat EmployeesHow Organizations Treat Employees
How Employees Treat the OrganizationHow Employees Treat the Organization
How Employees and Organizations TreatHow Employees and Organizations Treatother Stakeholders.other Stakeholders.
-
8/3/2019 Lecture 2 CSR %28Bp%29-2
11/38
Management of InternationalManagement of International
BusinessBusiness
Ethics and
Culture
Behaviour of
Organization
Toward Employees
Behaviour of
Employees
Toward Organization
Behaviour of Employees
and Organization
Toward Other Stakeholders
-
8/3/2019 Lecture 2 CSR %28Bp%29-2
12/38
Corporate Social ResponsibilityCorporate Social Responsibility
-
8/3/2019 Lecture 2 CSR %28Bp%29-2
13/38
Management of International BusinessManagement of International Business
Stakeholders
General social
welfare
Natural
environment
Areas of Social ResponsibilityAreas of Social Responsibility
-
8/3/2019 Lecture 2 CSR %28Bp%29-2
14/38
Management of InternationalManagement of International
BusinessBusinessStakeholder can be defined as :Stakeholder can be defined as :
Stakeholder is any individual or group whoStakeholder is any individual or group whocan affect or is affected by the actions,can affect or is affected by the actions,
decisions, policies, practices or goals of thedecisions, policies, practices or goals of the
organisation ( Carroll and Buchholtz, 2000)organisation ( Carroll and Buchholtz, 2000)
-
8/3/2019 Lecture 2 CSR %28Bp%29-2
15/38
Management of InternationalManagement of International
BusinessBusinessCorporate Social ResponsibilityCorporate Social Responsibility isisthe set of obligations anthe set of obligations anorganization undertakes to protectorganization undertakes to protect
and enhance the society in which itand enhance the society in which itfunctionsfunctions (Griffin and Pustay)(Griffin and Pustay)
Beyond legal obligations to balanceBeyond legal obligations to balance
commitment to investors, customers,commitment to investors, customers,other companies and communitiesother companies and communities(Wild, Wild and Han)(Wild, Wild and Han)
-
8/3/2019 Lecture 2 CSR %28Bp%29-2
16/38
Management of InternationalManagement of International
BusinessBusiness
Philanthropic
Responsibility
Ethical
Responsibility
Legal responsibility
Economic responsibility
Source: Carroll 1991
Carroll (1991) : CSR comprises of 4 layers
Desired by Society
Expected by Society
Required by Society:
Required by Society:
-
8/3/2019 Lecture 2 CSR %28Bp%29-2
17/38
Management of InternationalManagement of International
BusinessBusinessIssuesIssues
Bribery and corruptionBribery and corruption
Labour conditions and human rightsLabour conditions and human rights Fair trade practicesFair trade practices
EnvironmentEnvironment
-
8/3/2019 Lecture 2 CSR %28Bp%29-2
18/38
Management of InternationalManagement of International
BusinessBusiness
Guidelines or
codes of ethics
Organizational practices
Corporate culture
Ethics training
Managing Ethical Behaviour Across BordersManaging Ethical Behaviour Across Borders
-
8/3/2019 Lecture 2 CSR %28Bp%29-2
19/38
Which theoretical debatesWhich theoretical debates
underpin choice of approach tounderpin choice of approach toCSR?CSR?
-
8/3/2019 Lecture 2 CSR %28Bp%29-2
20/38
Management of InternationalManagement of International
BusinessBusiness4 main philosophies of business ethics and4 main philosophies of business ethics and
social responsibilitysocial responsibility (Wild,Wild and Han)(Wild,Wild and Han)
The Friedman ViewThe Friedman View The cultural relativist viewThe cultural relativist view
The righteous moralist viewThe righteous moralist view
The utilitarian viewThe utilitarian view
-
8/3/2019 Lecture 2 CSR %28Bp%29-2
21/38
Management of InternationalManagement of International
BusinessBusinessFriedman ViewFriedman View
Profit maximisation for the ownersProfit maximisation for the owners
(Shareholders) is the sole responsibility(Shareholders) is the sole responsibility Reliant on a very narrow definition ofReliant on a very narrow definition of
stakeholderstakeholder
-
8/3/2019 Lecture 2 CSR %28Bp%29-2
22/38
Management of InternationalManagement of International
BusinessBusinessCultural Relativist ViewCultural Relativist View
A company should adopt the local ethicsA company should adopt the local ethics
wherever it operates ( as belief systems arewherever it operates ( as belief systems areshaped within the specific cultural context)shaped within the specific cultural context)
-
8/3/2019 Lecture 2 CSR %28Bp%29-2
23/38
Management of InternationalManagement of International
BusinessBusinessThe righteous moralist viewThe righteous moralist view
A company should maintain its homeA company should maintain its home
country ethics wherever it operates ( as thatcountry ethics wherever it operates ( as thatbelief system is regarded as right/superior )belief system is regarded as right/superior )
-
8/3/2019 Lecture 2 CSR %28Bp%29-2
24/38
Management of InternationalManagement of International
BusinessBusinessUtilitarian ViewUtilitarian View
The right behaviour produces greatest goodThe right behaviour produces greatest good
for the greatest number of peoplefor the greatest number of people A company should maximise goodA company should maximise good
outcomes and minimise bad outcomes.outcomes and minimise bad outcomes.
-
8/3/2019 Lecture 2 CSR %28Bp%29-2
25/38
Management of InternationalManagement of International
BusinessBusiness
Obstructionist
Defensive
Accommodative
Proactive
These philosophies of business ethics and socialThese philosophies of business ethics and socialresponsibility shape approaches of firms to CSRresponsibility shape approaches of firms to CSR
-
8/3/2019 Lecture 2 CSR %28Bp%29-2
26/38
Management of InternationalManagement of International
BusinessBusiness
Least
Responsible
Most
Responsible
Obstructionist Defensive Accommodative Proactive
Approaches to Social ResponsibilityApproaches to Social Responsibility
-
8/3/2019 Lecture 2 CSR %28Bp%29-2
27/38
Management of InternationalManagement of International
BusinessBusinessObstructionist StanceObstructionist Stance
Do as little as possible to address social orDo as little as possible to address social orenvironmental problemsenvironmental problems
Deny or avoid responsibilityDeny or avoid responsibility
ExampleExample
NestleNestle
-
8/3/2019 Lecture 2 CSR %28Bp%29-2
28/38
Management of InternationalManagement of International
BusinessBusinessDefensive StanceDefensive Stance
Do what is required legally, but nothingDo what is required legally, but nothing
moremore Corporate responsibility is to generateCorporate responsibility is to generate
profitsprofits
ExampleExample Philip MorrisPhilip Morris
-
8/3/2019 Lecture 2 CSR %28Bp%29-2
29/38
Management of InternationalManagement of International
BusinessBusinessAccommodative StanceAccommodative Stance
Meet ethical and legal requirements and moreMeet ethical and legal requirements and more
Agree to participate in social programsAgree to participate in social programs
Respond to requests (NGOs)Respond to requests (NGOs)
No proactive behavior to seek such opportunitiesNo proactive behavior to seek such opportunities
-
8/3/2019 Lecture 2 CSR %28Bp%29-2
30/38
Management of InternationalManagement of International
BusinessBusinessProactive StanceProactive Stance
Strong support of social responsibilityStrong support of social responsibility
Viewed as citizens of societyViewed as citizens of society
Seek opportunities to contributeSeek opportunities to contribute
ExamplesExamples The Body ShopThe Body Shop
Ben & JerrysBen & Jerrys Green and BlacksGreen and Blacks
-
8/3/2019 Lecture 2 CSR %28Bp%29-2
31/38
Management of InternationalManagement of International
BusinessBusinessStance on CSR conditioned byStance on CSR conditioned by
Internal organisationInternal organisation -- leadership and cultureleadership and culture
External EnvironmentExternal Environment Political/Legal (national, regional, international)Political/Legal (national, regional, international)
EconomicEconomic
SocioSocio--culturalcultural
TechnologicalTechnological
-
8/3/2019 Lecture 2 CSR %28Bp%29-2
32/38
The Regulatory Environment forThe Regulatory Environment for
Corporate Social ResponsibilityCorporate Social Responsibility
-
8/3/2019 Lecture 2 CSR %28Bp%29-2
33/38
Management of InternationalManagement of International
BusinessBusiness
InternallyInternally
corporate social auditcorporate social audit--
a formal analysis ofa formal analysis ofthe effectiveness of the firms socialthe effectiveness of the firms social
performance.performance.
ExternallyExternally
Governments ( national and regional)Governments ( national and regional)
Whistle blowing (often NGO)Whistle blowing (often NGO)
Evaluating Social ResponsibilityEvaluating Social Responsibility
-
8/3/2019 Lecture 2 CSR %28Bp%29-2
34/38
Management of InternationalManagement of International
BusinessBusiness
The state
Civil societyThe market
The tripartite relationship that shapes the
regulatory environment
This relationship differs in different countries and
regions of the world
-
8/3/2019 Lecture 2 CSR %28Bp%29-2
35/38
Management of International BusinessManagement of International Business
Regulation of Ethics and Social ResponsibilityRegulation of Ethics and Social Responsibility SelfSelf--regulationregulation
National regulationNational regulation
Eg US Alien Tort Claims ActEg US Alien Tort Claims Act International Agreements andInternational Agreements and
OrganisationsOrganisations
Eg. AntiEg. Anti--Bribery Convention of the OrganizationBribery Convention of the Organizationfor Economic Cooperation and Developmentfor Economic Cooperation and Development
United Nations Declaration of Human RightsUnited Nations Declaration of Human Rights
International Labor Organization (ILO)International Labor Organization (ILO)
-
8/3/2019 Lecture 2 CSR %28Bp%29-2
36/38
Management of International BusinessManagement of International Business
ConclusionsConclusions
CSR an increasingly salient issue forCSR an increasingly salient issue forinternational businessinternational business
What constitutes ethical behaviour and theWhat constitutes ethical behaviour and the
appropriate strategies of business isappropriate strategies of business iscontestedcontested
Corporate social responsibility strategiesCorporate social responsibility strategiesreflect both the internal and externalreflect both the internal and externalenvironment in which international businessenvironment in which international businessoperates.operates.
-
8/3/2019 Lecture 2 CSR %28Bp%29-2
37/38
CSR and Your AssignmentCSR and Your Assignment
Written assignment (60%)Written assignment (60%)
--CSR approach of companyCSR approach of company
--How CSR approach shapes expansionHow CSR approach shapes expansionstrategystrategy egeg Nestles in Africa,Nestles in Africa,
Philip Morris in ChinaPhilip Morris in China
Vodafone in AfricaVodafone in AfricaBen & Jerrys in EUBen & Jerrys in EU
-
8/3/2019 Lecture 2 CSR %28Bp%29-2
38/38
ThisWeekThisWeek
Tutorial 2 : preparation work on MTVTutorial 2 : preparation work on MTV
Tutorial 3 : preparation work on ShellTutorial 3 : preparation work on Shell
Group workGroup work -- first meeting with the groupfirst meeting with the groupmembers?members?
top related