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Corporate Governance and Social Responsibility - Coggle Diagram
Corporate Governance and Social Responsibility
Corporate Social Responsibility
Four Corporate Social Responsibility
Economic Responsibility
Is about producing goods and services that society needs and making money
Legal Responsibility
Is about complying with the minimum rules that have been set
Ethical Responsibility
Is beyond societies expectations laws and regulations.
Philantropic Responsibility
Includes voluntary or discretionary activities and practices of business
CSR from a Historical Perspective
A. The 1800s and the birth of Responsible Organization
In the mid-to late 1800s, there was growing concern about worker well being and productivity among industrialists.
In the late 1800s was the rise of philanthropy.
B. The Catalyst for Modern Corporate Social Responsibility
The term Corporate Social Responsibility was officially coined in 1953 by American economist Howard Bowen in his publication Social Responsibilities of the businessman. Bowen is often referred to as the father of CSR
1970s CSR truly began to take flight in the United States. 1971 the concept of the "social contract" between businesses and society was introduced by the committee for Economic Development
Early 1980s CSR continued to evolve as more organization began incorporating social interests in their business practices while becoming more responsive to stakeholders
C. Universal Acceptance of Corporate Social Responsibility
1990s marked the beginning of widespread approval of CSR
1991, the University of Pittsburgh prof. Donna J. Wood published Corporate Social Performance Revisited which expanded and improved on early CSR models by providing a framework for assessing CSR programs impacts and outcomes
Early 2000s CSR had become an essential strategy for many organizations with multi-million dollar companies
Corporate Governance
4P's of Corporate Governance
People
People come first in the Four Ps because people exist on every side of the business equation. They are the founders, the board, the stakeholder and consumer and impartial observer.
Purpose
Purpose is the next step. Every piece of governance exists for a purpose and to achieve a purpose. The ‘for’ is the guiding principles of the organisation. Their mission statement. Every one of their policies and projects should exist to further this agenda.
Process
Governance is the process by which people achieve their company’s purpose, and that process is developed by analysing performance. Processes are refined over time in order to consistently achieve their purpose, and it’s always smart to take a critical eye to your governance processes.
Performance
Performance analysis is a key skill in any industry. The ability to look at the results of a process and determine whether it was successful (or successful enough), and then apply those findings to the rest of your organisation, is one of the primary functions of the governance process.