What is corporate responsibility? Business and society What is corporate responsibility? Laura Olkkonen Lappeenranta University of Technology South Karelian Institute
Responsibility of business? United Nations: ”A company’s delivery of long-term value in financial, social, environmental and ethical terms.” Finnish Ministry of Employment and Economy: ”…responsibility for one’s own societal effects. These effects can deal with, for example, the rights of the local people, employees or customers, environmental protection, financial sustainability and human rights. 2 minute discussion with the person next to you: what responsibilities do companies have, to whom they should be responsible, what counts as irresponsibility? corporate responsibility, corporate social responsibility, corporate citizenship, sustainability, business ethics, environmental responsibility, social responsibility
Role of business in society production services research & development use resources, make products and offer services, employ people
Importance of business 43 of the 100 biggest economic entities of the world are companies (list from year 2011) Russia 10th on the list, Finland number 43 big companies can have international, even global impacts, but also small companies can have significant effects on peoples’ lives
Why business should care about responsibility? society and its members are bound not only by laws, but by moral and ethical rules moral is the sense of right and wrong, ethics explains or describes what moral should be companies are members of the society and the society defines what companies can or cannot do (law) what companies should or should not do (moral & ethics) being responsible is part of a company’s reputation that determines: if one wants to buy company’s products/services if one wants to work for a company if one wants to cooperate with a company - the same way as in personal relationships
Owners Customers Government Media Neighbors/ local community Employees different stakeholders, different responsibilities Associations Partners
Forms of corporate responsibility DOING A LITTLE DOING A LOT philantrophy social entrepreneurship
video: http://www.youtube.com/watch?v=dvp2cu2l0N0
How people can influence companies?
The responsible consumer influences by choosing carefully what she/he buys: buys durable products that use resources sparingly and includes as little amount of harmful ingredients as possible environmentally friendly products ethically produced products products for long-term use products that are necessary consuming as identity
Think of a company you know: what kind of responsibilities and effects it has?