Corporate Social Responsibility Chapter 4 Corporate Social Responsibility © 2018 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

Learning Outcomes Describe and explain corporate social responsibility (CSR) Distinguish between instrumental and social contract approaches to CSR Explain the business argument for “doing well by doing good” © 2018 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

Learning Outcomes (continued) Summarize the five driving forces behind CSR Explain the triple bottom-line approach to corporate performance measurement Discuss the relative merits of carbon-offset credits © 2018 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

Corporate Social Responsibility (CSR) Actions of an organization targeted toward the achievement of a social benefit over and above maximizing profits for its shareholders and meeting all its legal obligations Also known as corporate citizenship and corporate conscience © 2018 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

Approaches to CSR Instrumental approach: Perspective that the only obligation of a corporation is to maximize profits for its shareholders in providing goods and services that meet the needs of its customers Social contract approach: Perspective that a corporation has an obligation to society over and above the expectations of its shareholders © 2018 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

Impact of Corporation Actions Actions of corporations impact: Customers Employees Suppliers Communities Can be positive or negative depending on the actions taken by the corporation © 2018 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

Management by Inclusion Going beyond generating profit attracts a lot of attention Example - Alcohol manufacturers have a long-term perspective and spread awareness about drinking responsibly © 2018 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

The Driving Forces behind CSR Transparency Knowledge Sustainability Globalization Failure of the public sector © 2018 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

CSR Risks Corporations experimenting with CSR initiatives run the risk of creating adverse results Employees feel that they are working for an insincere organization Public sees little more than a token action concerned with publicity rather than community Organization does not perceive much benefit from CSR and sees no need to develop the concept © 2018 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

Triple Bottom Line Adaptation of annual reports to reflect a triple bottom-line approach is a testament of how seriously companies are taking CSR They provide social and environmental updates alongside their primary bottom-line financial performance © 2018 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

Types of CSR Organizations pursue a defined sense of social conscience in managing their: Financial responsibilities to shareholders Legal responsibilities to local community and society as a whole Ethical responsibilities to do the right thing for all their stakeholders © 2018 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

Carbon Footprint Total carbon dioxide emissions on an annual basis Kyoto Protocol requires developed nations to reduce their greenhouse gas emissions by funding projects in developing countries in return for carbon credits Purchasing credits from carbon-positive projects can result in operations being made carbon neutral © 2018 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.