Please enable JavaScript.
Coggle requires JavaScript to display documents.
Week 4 Corporate social responsibility - Coggle Diagram
Week 4 Corporate social responsibility
Shareholder vs Stakholders
interests of its shareholders
Profit maximisation
Stakeholders
anyone invovled in business- customer or employees
Internal
External
Hill et al. (2017) says stakeholders (1) provides the firm with important resources and (2) expects the firm to meet its demands.
ORG = "actors within a broader network of interrelated actors and organisations"
" firms have limited resources and they may engage in stakeholder prioritisation"
Carroll’s pyramid of CSR
Economic Responsibilities
baseline: attract invests and generate profit
Legal Responsibilities’
rules, laws and regulations shaping business operations and conduct
reflect society’s perceptions of ‘codified ethics’ (Carroll, 2016)
Obey the law
evolution of the law and the requirements of actors and organisations surrounding them; in some ways these actions enhance the law (Stark, 1993). Carroll’s (1991) work supports that,
is this out of date CSR is just greenwashing nowadays
Ethical Responsibilities
be ethical
"duty of care" eg if a business conducts itself approiraitely abroad too?
act in ways that honour the values,
Philanthropic Responsibilities
be a good corporate citizen
CSR
‘context-specific organizational actions and policies that take into account stakeholders’ (Aguinis 2011, p. 855).
suggests three areas are an essential requirement of firms
Two aspects
stakeholders
performance
Aguinis say CSR statement should have clear link between PErformance and stakeholders
non-market strategy
of firms
socio-political actions to imrpove performance (Barron 1995)
corporate political activity (CPA)
Triple bottom Line (Elkington, 1994)
People, Planet, Profit
CSR-washing’ (Mattis, 2008)
misleads its customers by overstating the environmental performance of its products
CSR
‘Value: doing good’.
Row 3: ‘Citizenship, philanthropy, sustainability’.
Row 4: ‘Discretionary or in response to external pressure’.
Row 5: ‘Separate from profit maximisation’.
Row 6: ‘Agenda is determined by external reporting and personal preferences’.
Row 7: ‘Impact limited by corporate footprint and CSR budget’.
Row 8: ‘Example: Fair-trade purchasing.
proved influential and companies have started to implement CSV initiatives.
Flaws?
Creating shared value
Graphical representation of CSV
Porter and Kramer argue that firms should rely on CSV rather than CSR to guide their investments in the community
Porter and Kramer (2011) societal problems provide business opportunities that firms can capture by redefining their products and markets, such as the development of
microfinance
for developing countries
CSV
‘Value: economic and societal benefits relative to cost’.
Row 3: ‘Joint company and community value creation’.
Row 4: ‘Integral to competing’.
Row 5: ‘Integral to profit maximisation’.
Row 6: ‘Agenda is company specific and internally generated’.
Row 7: ‘Realigns the entire company budget’.
Row 8: ‘Example: Transforming procurement to increase quality and yield’.
flaws?
Crane et al. (2014) published in California Management Review. they argue that Porter and Kramer (2011) ignore the tensions between social and economic goals
Crain et al. (2014)" fails to consider the raison d'etre of business or to offer a holistic approach"
Strengths & weaknesses CSV Crane et al. (2014).
Strengths
‘CSV successfully appeals to practitioners and scholars’.
Row 3: ‘CSV elevates social goals to a strategic level’.
Row 4: ‘CSV articulates a clear role for governments in responsible behaviour’.
Row 5: ‘CSV adds rigour to ideas of “conscious capitalism” and provides an umbrella construct for loosely connected concepts’.
The right hand column labelled ‘Weaknesses’ contains the following information:
Weaknesses
CSV is unoriginal’.
Row 3: ‘CSV ignores the tensions between social and economic goals’.
Row 4: ‘CSV is naïve about the challenges of business compliance’.
Row 5: ‘CSV is based on a shallow conception of the corporation’s role in society’.
UN sustainable development goals
17 sustainable development goals (SDGs)
"Critics argue that it is almost impossible for firms to implement all SDGS and integrate them in their strategy"
United Nations Global Compact (UNGC)
ten guiding principles,
Labour
Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;
Principle 4: the elimination of all forms of forced and compulsory labour;
Principle 5: the effective abolition of child labour; and
Principle 6: the elimination of discrimination in respect of employment and occupation.
Environment
Principle 7: Businesses should support a precautionary approach to environmental challenges;
Principle 8: undertake initiatives to promote greater environmental responsibility; and
Principle 9: encourage the development and diffusion of environmentally friendly technologies.
Anti corrpution
Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.
Human rights
Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights; and
Principle 2: make sure that they are not complicit in human rights abuses.