Issue Monitoring and Identification

Corporate Social Responsibility

A trend or unsettled matter that, if continues, could have a significant impact on how a company operates and succeeds.

A contestable point, difference of opinion regarding fact, value, or policy, which has consequences for the organization’s plan and future success or failure.

Issue:

Fairness Equality Security Environmental

Strategic Issues Management Process

Identification of Issue

Analysis of Issue

Prioritization of Issue

Formulation of Issue Response

Implementation of Issue Response

Evaluation, Monitoring, and Control of Results

Scanning, Monitoring of Issue1.

3.

2.

4.

5.

6.

7.

5 Leading Forces as Predictors of Social Change/Issues

Leading Authorities/AdvocatesLeading Literature

Leading Organizations

Leading Events

Leading Political Actions

Examples of Leading Forces

Example Issue

Fannie Mae/Freddie Mac Governance, Fraud

9-11 Security – terrorism

BP Oil spill Environment

Leading Events

Example Issue

Ralph Nader Safety

Ghandi World Peace

Mother Teresa Compassion

Leading Authorities/Advocates

Example Issue

Sierra Club Environment

MADD Driving, Drinking

PETA Animal rights

Leading Organizations

Example Issue

An Inconvenient Truth Global Warming

Hotel Rwanda Genocide

Literature

Ranking of Issues:

Four Filter Criteria

Relevance

Actionabili

ty

Criticality

Urgency

Issue Ranking Techniques

Polls/Survey

Delphi Technique – panel experts in structure

Trend Extrapolation – current data to predict future trends

Scenario Building – analyzing future, alternative outcomes

Use of Precursor Events or Bellwethers – precedes, predicts

Organizations must agree on a clear definitionuse exact wording to name or position the issuebe clear, precise, and focused

 

Anti-choice/anti-abortion vs. Pro-life/Pro-choice Some have tried euphemisms:

 

Correctional facility - Prison

Waste chemical storage facility - Toxic dump

Biosolids - sewage sludge

Say one thing, and say it well.

Corporate Social Responsibility is the continuing

commitment by business to behave ethically and

contribute to economic development while

improving the quality of life of the workforce and

their families as well as of the local community and

society at large

CSR-Corporate Social Responsibility

corporate citizenship,

corporate philanthropy,

corporate giving,

corporate community involvement,

community relations,

community affairs,

community development,

corporate responsibility,

global citizenship

corporate social marketing.

Renowned economist Milton Friedman:

“The only responsibility of business is to make money for shareholders (period), and that any corporate investment in social programs is a misuse of shareholder money.”

From the 1950s-1980s, many executives believed that it was the government’s responsibility alone to tackle social issues.

Legitimacy Gap: What an organization does (or is believed to do) compared to the expectations of the general public and stakeholders.

consider a company’s ethical stance when buying a product

believed companies should attach at least as much importance to social responsibility as profitability when making business decision

67%

80%

Legal vs. Ethical

Most Generous Corporations

Kroger2010 profits: $589 millionGave 10.9% to charity ($64 million)

Macy’sGave 8.1% to charity ($41 million)

SafewayGave 7.6% to charity ($76.5 million)

What are your perceptions of these amounts? Were you aware of these gifts? Does these number influence your perceptions of the corporations?

CSR

Economic

Legal

Ethical

Philanthropic

Breaking the law?

Balancing profits with market interests?

Giving back time and money to community?

Fair to people and doing good for all?

Difficulty Defining & Implementing CSR

Stakeholders may have different expectations of how an organization should operate.

No absolute standards of corporate social responsibility exist: generational differences and stakeholder perspectives.

Organizational leaders must understand that ethical standards are linked to operations/effectiveness.

Operations managers fear issue managers will interfere with performance of jobs.

Steps to achieving CSR:

Integrate CSR into company’s business plan

Conduct a Social Audit (charity, volunteerism, transparency)

Self-regulation (industry-wide)

Develop a Code of Ethics

Ways for organizations to communicate CSR:

Media relations

Paid advertising

Financial documents (annual report, etc.)

Internal documents to employees

Product placement

Social media marketinghttp://www.youtube.com/watch?v=CcMe1NZoddg

http://www.youtube.com/watch?v=ZnIccnEyUyA

Six Strategies to achieve CSR

Be realistic, don’t promise more than you can deliver

Encourage public input on operations and practices

Allow and encourage diversity

Allow whistle-blowing

Provide ethics training

Avoid pyramidal management – strive to be flat

TuitionCosts

For-profit Public

Associate’s $38,000 $5,000

Bachelor’s $61,000 $36,000

University of Phoenix graduation rate: 15%

Ethical Corporate Communication

PRSAFive Principles of Ethical Communication

HONESTY: Professional communicators are honest, accurate and candid in all communications.

CONFIDENTIALITY: Protecting the confidences and privacy rights of employees and customers

CREDIT: Professional communicators give credit and identify that source.

FREE SPEECH: Professional communicators support the principles of free speech and free ideas.

COURTESY: Sensitivity to cultural values and beliefs are crucial for the professional communicator.

http://www.pbs.org/wgbh/pages/frontline/collegeinc/view/

Ethical vs. Moral

Frames: It’s easyFocus on pain/fear/urgency