corporate social responsibility (1).pptx

7/22/2019 Corporate Social responsibility (1).pptx

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Creating a strong business and building a better world

are not conflicting goals they are both essential

ingredients for long-term success William Clay Ford Jr.

Executive Chairman, Ford Motor Company.


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CORPORATE SOCIAL RESPONSIBILITY???

Philanthropic Donations

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Responsible Citizenship

Sustainable Development

Environmental protection

Promotion of Social

welfare

Justice worldwide

Service to Community


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WHAT IS CORPORATE SOCIAL RESPONSIBILITY?

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Corporate Social Responsibility is the continuing commitment by business to

contribute to economic development while improving the quality of life of theworkforce and their families as well as of the community and society at large

-- World Business Council for sustainable Development


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ARGUMENTS FOR AND AGAINST CSR

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FOUR PREVAILING JUSTIFICATIONS FOR CSR

Moral Appeal

Sustainability

License-to-Operate

Reputation Argument

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CARROLLS FOUR-PART MODEL OF CSR

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IS CORPORATE SUCCESS AND SOCIAL WELFARE A

ZERO SUM GAME?

Corporations need healthy society:

productive workforce reduction in internal costs of accidents efficiency and innovation expanded demand for business

A healthy society needs successful companies:

creation of welfare creation of jobs

improvement in standard of living social progress

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VALUE CHAIN

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CORPORATE ACCOUNTABILITY

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Corporation

shareholders

government

employees

SuppliersCivil

society

Customers

competitors


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THE RECENT TREND: FIRM AS A POLITICAL ACTOR

Corporations are involved in numerous social activities and

function taken up by government previously.-Why?

Governmental failure

Failure to protect society from self-imposed consequences of

industrialization, e.g. nuclear power; industrial agriculture; genetic

engineering etc. Increasing power and influence of corporation

Liberalization and deregulation of market

A huge privatization of major public services

Employment control

Globalization

Setting their regulation

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THE PROBLEM OF DEMOCRATIC ACCOUNTABILITY

In Friedmans argument: corporations are responsible only to

shareholders

Corporation gain more power in public activity

Democratic right of an individual can be effected

Solution :

Corporation have to be more accountable to society

Transparency (the degree to which corporate decisions,

policies, activities, and impact are acknowledged and madevisible to relevant stakeholders)

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GLOBAL CORPORATE CITIZENSHIP

It is the conviction that companies not only must be

engaged with their stakeholders but are themselvesstakeholders alongside governments and civil society.

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VIEWS ON THE CORPORATE CITIZENSHIP

A limited view of CC- this equates CC with corporate philanthropy.

An equivalent view of CC - this equates CC with CSR.

An extended view of CC - this acknowledges the extended political

role of the corporation society.

Corporate citizenship describes the corporation function for

governing citizenship rights for individual.

Social rights: corporation as provider/ignorer

Civil rights :corporation as dis-/enabler

Political rights: corporation as channel/blockage

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ASSESSING CC FOR BUSINESS ETHICS

( IN EXTENDED VIEW)

See better the political role of corporation andclarified the demand of Corporate Accountability.

Provide a way to understand business in relation tocommon rights of citizenship

Show the strong link between the rights ofcitizenship and new goal for business ethics ofsustainability

Provide more critical perspective on the social roleof business

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JUMP IN CSR

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OUTCOMES OF CORPORATE SOCIAL PERFORMANCE

FOR SOCIETY

Social rights

Social programmes

Social impacts

Leadership

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OUTCOMES OF CORPORATE SOCIAL PERFORMANCE

FOR CORPORATIONS

Innovation

Cost savings

Brand differentiation

Long-term thinking

Customer engagement

Employee engagement

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ETHICS IN CSR

.

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ETHICS CRITERIA

There are several classifications of CSR approach, we will look at two of them:

I. CSR approach

Defensive

Offensive:

2. Reasons for CSR implementing

Mustdo

Good and benefits

Benefits

3. Do what is needed

Monologue

Dialogue

4. CSR Responsiveness

acting as a good corporate citizen, attuned to the evolving social concerns of society;

bearing responsibility of its business impact at society.

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GREENWASHING

When a company, government or other group promotes green-based

environmental initiatives or images but actually operates in a way that is

damaging to the environment or in an opposite manner to the goal of the

announced initiatives.

What's wrong with greenwashing?

Misleading.

Consumer and regulator complacency

Cynicism engendering

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CRS DEVELOPMENT STAGES

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MAIN SOCIAL ORGANIZATIONS INVOLVED IN CSR

1. United nations

2. Greenpeace

3. Friends of the Earth

4. Red Cross

5. Corpwatch

6. Witness

7. International justice mission

8. Equality now9. Human Rights Watch

10. Polaris project

11. Wateraid

12. The WI (women international)

13. Helpage international

14. Act!onaid

15. Amnesty International

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CORPORATIONS AND CSR

Global Analysis of 43060 transnational companies >> 737 corporations control 80% of global

wealth flow >> 147 corporations control 40% of global wealth flow

20 top companies were analyzed for supporting and promoting CSR principles and activity.

Sources: 100 most socially responsible companies ranking and companies websites.

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http://www.forbes.com/sites/bruceupbin/2011/10/22/the-147-companies-that-control-everything/

http://www.ranker.com/list/top-100-socially-responsible-companies/business-and-company-info
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THE BEST AND WORST

The most socially responsible

companies

The least socially responsible

companies

Apple Kirin Holdings

Google Carlsberg

Nike Asahi Breweries

Amazon.com Heineken

Charles Schwab China South Industries Group

3M Dongfeng Motor

Statoil Pernod Ricard

Exxon Mobil China FAW Group

Walt Disney Shanghai Automotive

Whole Foods Market AbitibiBowater

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http://money.cnn.com/magazines/fortune/mostadmired/2011/best_worst/best1.html
http://money.cnn.com/magazines/fortune/mostadmired/2011/best_worst/best1.htmlhttp://money.cnn.com/magazines/fortune/mostadmired/2011/best_worst/best1.html


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Thank you!

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