corporate social responsibility. csr a) emphasis on fairness b) historical overview c) political...
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Corporate Social Responsibility
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CSR
a) EMPHASIS ON FAIRNESS b) HISTORICAL OVERVIEW
c) POLITICAL CONTINUUM: stakeholder---------------------------------------------minimalist[left] [right]
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Isn’t this what we have laws for?
THE LAW IS NECESSARY BUT INSUFFICIENT
a) THE LAW IS REACTIVE
b) THE LAW IS SLOW
c) BUSINESS IS CHANGE-ORIENTED &
FASTER
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Economic Responsibilities
Legal Responsibilities
Social Responsibilities
Ethical Responsibilities
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In Context
Community in a pre-modern, modern and postmodern worldOr… why we expect more from business and how “the game is
played”
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Pre-modern
TRADITIONAL ENTREPENEURIAL Power goes to those who succeed in “the
jungle” Authority resides in those with legitimacy–
size; wealth; longevity confers authority Ethics based on individual responsibility
and programs minimized
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Modern
COMMUNITY OF RATIONAL RULESi) BUREAUCRATICii) SCIENTIFIC MANAGEMENTiii) RELIANCE ON "EXPERTS"iv) COMPREHENSIVE RULESPower goes to those who make the rules. Relies on
expertiseAuthority goes to those who can enforce their rules Reach
for the topEthics are based on “fairness’ and programs based on
rules
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Postmodern
COMMUNITY OF FLEETING EXCHANGES i) NEED TO INTERPRETii) NEED TO BUILD CONSENSUSiii) LOOSE CONNECTIONSiv) SUSPICION OF AUTHORITYPower goes to those who can “make the deal” through
networking and can handle uncertaintyAuthority goes to those who see and can sell coalitions and
deals regardless of other levels of authorityEthics are situational; programs emerge to be responsive
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Take a guess…
This is from the "Ottawa Citizen":
Can you imagine working for a company that has a little more than 300employees, and has the following statistics:
30 have been accused of spousal abuse9 have been arrested for fraud24 have been accused of writing bad cheques95 have directly or indirectly bankrupted at least 2 businesses4 have done time for assault55 cannot get a credit card due to bad credit12 have been arrested on drug related charges4 have been arrested for shoplifting16 are currently defendants in lawsuits 62 have been arrested for drunk driving in the last year aloneCan you guess which organization this is?
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CSR Models
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Position Responsible to therefore…
Minimalist Stockholders/
owners
Maximizing profit
Self interested Stockholders/ owners/ cost “controllers”
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
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The Case for the Minimalist
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Minimalist CSR
a.k.a.- traditional stockholders model, fundamentalism, Libertarian
Friedman
PREMISES
-Shareholders 1st
-Obey the law
-Private vs Public [MINIMAL STATE]
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Minimalist critiques of other models
THEY DISTRACT FROM PROFIT MOTIVE THEY ARE SOCIALISTIC "PUBLIC GOOD" IS SUSPECT
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Self-interest
Defining “Me”
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Self-Interested CSR
PREMISES
GOOD MOTIVES NOT ENOUGH PROFITS & COMMUNITY CULTIVATING PHILANTHROPY REPUTATION
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Critiques of other perspectives
MINIMALIST IS TOO RIGID
ALL OTHERS IGNORE PROFIT
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Ford:“we endeavor to become a leading contributor to a
more sustainable world”…”The Ford Motor Company Fund supports many local and national programs to affect change, provide for those in need, and improve quality of life.”
“Are consumers, especially in North America, truly interested in and willing to pay for new technology?”
http://www.ford.com/en/ourCompany/corporateCitizenship/ourLearningJourney/strategicIssuesUpdate/climateChange.htm
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Social Contract
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SOCIAL CONTRACT CSR
PREMISES CORPORATION AS "MORALPERSON" IMPLICIT & EXPLICIT CONTRACT WITH
SOCIETY WITH POWER COMES
RESPONSIBILITY
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Critique of alternate
1ST 2 MODELS FOCUS TOO MUCH ON PROFIT
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Example
LEAKY" CONDO PLAYERS LACKED A SENSE OF "IMPLICIT" CONTRACT WITH SOCIETY
… developers “put a lot of money into marble countertops and fancy kitchens because that’s what sells the product. And consequently they don’t spend a lot of time thinking about how it looks [and functions] from the outside. It’s designing inside out.”
http://www.myleakycondo.com/com020601.htm
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Stakeholder Management
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3 STAKEHOLDER GROUPS:
*PRIMARY [ECONOMIC]
*SECONDARY [SOCIO POLITICAL]
* TERTIARY [POWERLESS]
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Critiques of alternatives
1ST 2 MODELS TOO PROFIT-FOCUSED
-S-C MODEL IS TOO VAGUE
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Examples
CITIZENSBANK SHELL
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STAKEHOLDER STEWARDSHIP
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Stakeholder Stewardship
PREMISES -CARING FOR TERTIARY -HELP NON-BENEFICIAL PARTIES -HOLD IN TRUST -ASPIRE TO HIGH IDEALS
*ALL OF THIS PRESUPPOSES TIME & MONEY
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Critiques of alternate
-1ST 2 MODELS TOO PROFIT-FOCUSED
-S-C MODEL TOO VAGUE STAKEHOLDER MODEL NOT
AMBITIOUS ENOUGH
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Example
Ben and Jerrys “Ben & Jerry’s Head of Social
Mission has returned from a two-week mission in Cote d’Ivoire and Mali on the subject of alleged child trafficking in West Africa”
http://www.benjerry.com
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Issues of trust and change: Minimalist
Participants Investors/
stockholders Owners /
managers
Change Issues Hyper
competition globalization
Trust
Trust grows when performance meets expectation;
Distrust if fails to meet expectation
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Issues of trust and change: Self Interested Model
Participants Program
advocates Owners /
managers
Change Issues Competition Reputation
enhancement
Trust
Trust grows when program advocates deliver enhanced corporate reputation;
Distrust if do not
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Issues of trust and change: Social Contract
Participants Those with
contracts with firm
Owners / managers
Change Issues Need for
flexibility internationaliz
ation
Trust
Trust grows when keeps legal and social contracts over time;
Distrust if do willing to violate them
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Issues of trust and change: Stakeholder Management
Participants Primary and
secondary Owners /
managers
Change Issues Information
access to firm increases
Systems open to scrutiny
Trust
Trust grows when stakeholders feel included in decision making
Distrust if feel excluded
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Issues of trust and change: Stakeholder Stewardship
Participants
Spokespersons for tertiary
Owners / managers
Change Issues Pressure to
include tertiary
Worry about environment
Trust
Trust grows when firm willing to negotiate with spokespersons for tertiary
Distrust if feel excluded
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Modeling the context
Premodern Minimalist Self Interested
Modern The social contract
Postmodern Stakeholder (management and stewardship)
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Economic Responsibilities
Legal Responsibilities
Social Responsibilities
Ethical Responsibilities