IB Business and Management 1.3 Corporate Social Responsibility

Learning Outcomes Explain different views that firms may take of their social responsibility in an international context Analyse the value of environmental audits to different stakeholders Higher Level: Discuss why a firms view of their social responsibilities might change over time Analyse how changing societal norms have impacted firms both nationally and internationally? Analyse the reasons why firms may choose different strategies towards their social responsibilities?

CSR – What is it and Why?

CSR (Corporate Social Responsibility) is… About how a company manages its business to produce an overall positive impact on society An obligation, beyond that required by the law, for a business to pursue long term goals that are good for society

So CSR involves…. Conducting business in an ethical way and in the interests of the wider community A willingness to act ahead of regulatory confrontation Balancing shareholder interests against the interests of the wider community Being a good citizen in the community Is CSR the same as Ethics?

Ethics & CSR – The difference Ethics concern actions which can be assessed as right or wrong by reference to moral principles CSR is about the organisation’s obligations to all stakeholders – and not just shareholders

Question What could businesses do to make a positive impact on: The environment? The communities in which it operates? It’s workers

Some Examples….. McDonalds KPMG Coca Cola Marks and Spencer Watch and Enjoy….

Winners and Losers? How might each of these groups gain from CSR? Are there any potential losses?

Question…. Is CSR more important for Multinational firms?

Different Views of CSR

Task On the next slide there are 3 different views of CSR. In pairs you should look at each of them carefully. Discuss them and decide which one you agree with most. You must write an evaluative paragraph justifying why you agree with this view and why you rejected the other two.

"Corporate social responsibility is a hard-edged business decision "Corporate social responsibility is a hard-edged business decision. Not because it is a nice thing to do or because people are forcing us to do it... because it is good for our business“ – Niall Fitzgerald (ex-CEO Unilever) “There is one and only one social responsibility of business — to use its resources and engage in activities designed to increase its profits. So long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud. – Milton Friedman 1 2 “The business of business should not be about money, it should be about responsibility. It should be about public good, not private greed” - Anita Roddick 3

Higher Level Questions…. Why might a firms view of their social responsibilities change over time? How have changing societal norms impacted firms both nationally and internationally? Why might firms choose different strategies towards their social responsibilities?

Implementing CSR - Environmental Auditing

Environmental Auditing - What is it??? A scrutiny of a company’s activities, products and or services in order to determine in what way they impact the environment Water Air Soil flora and fauna

The Audit Process – Where are we now? How could a company benefit from this auditing process? How might it’s stakeholders benefit from this process?

The END!!!!!