Independent Television (ITV) Organisation Name: ITV (Independent Television) Country Origin: United Kingdom Industry: Media Product: Broadcasting Revenue: £1,879 million (2009) Employees: 4,026

Potential benefits of CSR relative to costs for businesses & stakeholders Potential benefits for ITV of CSR: Meeting consumer preferences  As ITV have developed a CSR report, they are able to meet the needs of different consumers as ITV describes how they are responsibility for each of their stakeholders. (Increases trust over time) Greater staff retention  With ITV being socially responsible, its employees feel proud to be apart of the organisation. (good actions leads to positive thoughts) Potential costs for ITV of CSR: Monitoring and reporting costs  Annual CSR reports developed by ITV will incur high costs. (e.g. TV show competition responsibility audit) Loss of focus from profit-maximisation  ITV may become too focused upon its social responsibilities instead of other priorities. (e.g. TV show marketing)

Importance of CSR relative to other corporate objectives Arguments for CSR as a Corporate Objective: The long-term need to meet society’s needs  In order to retain a strong following of viewers, ITV will need to ensure that their needs are met through the publishing of regular CSR reports. Allow for the differentiation of ITV from other broadcasters  ITV can differentiation it’s brand image to one that shows responsibility for all its stakeholders. (increases competitiveness) Arguments against CSR as a Corporate Objective: Maximising shareholder return  Profitable businesses like ITV would want to ensure that shareholders are satisfied so share value is maintained. (valuable share price) CSR threatens cost competitiveness  With ITV competing against broadcasters like the BBC, keeping costs low is vital. (maintaining a competitive foothold in the market)

Influences determining which responsibilities are accepted by a business and which are not Arguments for taking on more responsibilities: NGOs exerting greater pressure  Non-government organisations may be able to identify unethical or immoral themes during ITV’s broadcasts. (e.g. unfair TV competition) Customers becoming more demanding  ITV viewers can be demanding in terms of wanting to find out CSR related answers. (e.g. the way in which their TV shows are planned) Arguments for taking on fewer responsibilities: Government intervention (legislation/regulations)  British government enforces specific legislation so that ITV ensures that key responsibilities (e.g. employee rights) are taken into account. Constantly changing responsibilities  ITV will find it difficult to separate key responsibilities from ones that aren’t as important. (key responsibilities are those valued by stakeholders)

Factors that determine the extent to which a business is socially responsible Factors increasing extent of social responsibility: Location of business  Countries within the EU have a tradition of greater adoption of CSR. ITV would therefore be more inclined to publish regular CSR reports. Strength of stakeholder pressure (e.g. NGOs)  Increasing pressures from NGO and the media has resulted in ITV having to act more responsible. (media uncovered TV show scandal in 2007) Factors reducing extent of social responsibility: Corporate culture  ITV focuses on profitability to a large extent (targeting as many TV viewers as possible), so therefore a need to enforce CSR isn’t as of much interest.

The value and limitations to businesses and stakeholders of social reporting Value of social reporting: Encourages a process of social auditing  ITV will be encouraged to audit its CSR reports so that the published reports are accurate and up to the requirements of the ITV stakeholders. Provides a way for stakeholders to monitor performance  ITV stakeholders will be able to see whether ITV is meeting its CSR aims and objectives. Limitations of social reporting: Social reporting can be unreliable  As there aren’t global CSR reporting standards in place, ITV’s CSR reports may not be up to a decent quality and relevance. CSR reports produced by marketing dept  ITV’s social relations or marketing department could potentially develop CSR reports as a from of PR.

Extent to which governments should influence CSR Arguments for greater Government influence: Encouraging CSR behaviour  ITV has been given incentives for producing regular CSR reports. (Financial incentives, allowing ITV to expand TV network) Government intervention  Government encourage firms to give back to society. ITV’s regular CSR reports have ensured stakeholder satisfaction. Arguments for less Government influence: NGOs and role of media  After ITV’s competition show scandal has resulted in a withdrawal of a few of its TV shows over ethical issues. Legislation  Many business responsibilities are covered by the law already, thus reducing the need for government influence.