11. Corporate social responsibility BUSINESS ECONOMICS 5 / 6 Copyright Mark Van Couwenberghe, 2017-2018

B 11 / 2 11.0 OVERVIEW 11.1 STAKEHOLDERS AND SHAREHOLDERS MODELS page B 11 / 3 11.2 CORPORATE SOCIAL RESPONSIBILITY: WHAT? page B 11 / 4 11.3 THREE P’S page B 11 / 5 11.4 CORPORATE SOCIAL RESPONSIBILITY: EXAMPLES page B 11 / 8 11.5 EXERCISES page B 11 / 10 11.6 VOCABULARY page B 11 / 12 Copyright Mark Van Couwenberghe, 2017-2018

11.1 STAKEHOLDERS & SHAREHOLDERS MODELS B 11 / 3 11.1 STAKEHOLDERS & SHAREHOLDERS MODELS SHAREHOLDERS MODEL STAKEHOLDERS MODEL A company is owned by shareholders A company is a network of relations: Financial relation (with shareholders) Other relations (mutual rights and obligations between company and customers, suppliers, banks, government, … = stakeholders) Main role of the company is to satisfy the shareholders = making maximum profit Main role of the company is to act with responsibility towards all stakeholders TRADITIONAL MODEL ACTUAL MODEL Copyright Mark Van Couwenberghe, 2017-2018

11.2 CORPORATE SOCIAL RESPONSIBILITY: WHAT? Corporate social responsibility (CSR) is a way for the company to take responsibility at 3 levels: Social level = people’s well-being PEOPLE Ecological level = interests of planet, nature PLANET Economic level = wealth, profit, shareholders value PROFIT In a way, it is no longer sufficient for a company to make good products and high profits; companies have broader responsibilities Copyright Mark Van Couwenberghe, 2017-2018

11.3 THREE P’s B 11 / 5 PEOPLE Social responsibility Stakeholders = staff, neighborhood, customers, community, … Social themes: employee participation, diversity, … Copyright Mark Van Couwenberghe, 2017-2018

B 11 / 6 PLANET Ecological responsibility Companies have an impact on the planet, nature, … Ecological themes: renewable energy, waste management, … Copyright Mark Van Couwenberghe, 2017-2018

B 11 / 7 PROFIT Economic responsibility Making profit is primary target for each company: ensures continuity, ensures means to work on the other P’s Economic themes: cost management, marketing mix, R&D, … Copyright Mark Van Couwenberghe, 2017-2018

11.4 CORPORATE SOCIAL RESPONSIBILITY: EXAMPLES Discuss following examples of CSR 1 TOMS Shoes - One for One Campaign TOMS founder, Blake Mycoskie’s story must be widely known by now. Touched by witnessing the hardships of Argentinian children having to grow up without shoes, Mycoskie launched TOMS with a simple idea - to match every pair of shoes sold with a new pair for a child in need. But what started as just a shoe company has grown into an amazing, socially responsible organization that, as the company describes themselves: “[...] helps address need and advance health, education and economic opportunity for children and their communities around the world.” Since their launch, TOMS has given 60 million shoes to children. Copyright Mark Van Couwenberghe, 2017-2018

2 3 B 11 / 9 Starbucks - C.A.F.E. Practices The acronym for Starbuck’s CSR initiative stands for Coffee and Farmer Equity (C.A.F.E.) In its simplest form, C.A.F.E. is a set of buying guidelines that ensure that: - All coffee purchased by the company meets their standards of quality, - It must be sustainably grown. - Support the farmers. The company requires suppliers to submit evidence of payments made throughout the coffee supply chain to demonstrate how much of the price Starbucks pays for green (unroasted) coffee gets to the farmer. - Ensures safe, fair and humane working conditions for workers and providing adequate living conditions. B 11 / 9 3 Disney Disney is a name known around the world, and though the company has been around for a long time, its reputation is still a glowing one. The Walt Disney Company largely focuses on a few areas of social responsibility, namely community, the environment, and volunteerism. Disney has been a major provider of aid after natural disasters, such as the 2010 earthquake in Haiti. The company also takes an interest in protecting the environment, giving proceeds from nature films to plant trees in the rain forest and protect thousands of acres of coral reef. Copyright Mark Van Couwenberghe, 2017-2018

B 11 / 10 11.5 EXERCISES Evaluate how these companies implement CSR through their advertising campaigns: 1 Copyright Mark Van Couwenberghe, 2017-2018

B 11 / 11 2 3 Copyright Mark Van Couwenberghe, 2017-2018

B 11 / 12 11.6 VOCABULARY EN NL Copyright Mark Van Couwenberghe, 2017-2018

B 11 / 13 EN NL Copyright Mark Van Couwenberghe, 2017-2018

B 11 / 14 EN NL Copyright Mark Van Couwenberghe, 2017-2018