1. School of Economics Shanghai University
CSR and Strategy
Instructor: Wang Hong
School of Economics Shanghai University
Supported by
2015 English Teaching of Corporate Social Responsibility Course Construction Project for Foreign Students in Shanghai Universities

2. Explain the role of a manager. Critique the objectives of a business.
Learning objectives
Explain the role of a manager.
Critique the objectives of a business.
Explain the decision-making process.
Describe the principal features of a governance system.
Understand the dimensions of risk and their implications.
Construct a typology of risk.
Where we have come from to our present CSR context
economic history
Governance/CSR gap
Gaps for both US producers abroad and foreign producers selling in US
But gap in expecations not just US or foeign market issue; domestic issues in China as well – local relevance of CSR
Gap between CSR expectations and firm behavior

3. The tasks of a business manager

4. The objectives of a business
A business manager must be concerned not just with the internal running of the business but also with the external environment in which the business operates - that is with customers and suppliers, with competitors, and with the market for the products or services supplied by the business.
Where we have come from to our present CSR context
economic history
Governance/CSR gap
Gaps for both US producers abroad and foreign producers selling in US
But gap in expecations not just US or foeign market issue; domestic issues in China as well – local relevance of CSR
Gap between CSR expectations and firm behavior

6. The role of a manager Decision making Performance evaluation
Communication
Control
Planning

7. The decision making process
Identify objectives
Search for alternative courses of action
Gather data about alternatives and evaluate
Select course of action
Implement decision
Compare actual and planned outcomes
Respond to divergence from plan

8. Corporate governance principles
Transparency
Accountability
Responsibility
Fairness
Because we can’t accomplish objectives unilaterally

9. What is good corporate governance?
Creating sustainable value
Ways of achieving the firm’s goals
Increasing shareholders’ satisfaction
Efficient and effective management
Increasing credibility
Ensuring efficient risk management
Providing an early warning system against all risk

10. Ensuring a responsive and accountable corporation
Describing the role of a firm’s units
Developing control and internal auditing
Keeping a balance between economic and social benefit
Ensuring efficient use of resources
Controlling performance
Distributing responsibility fairly
Producing all necessary information for stakeholders
Keeping the board independent from management
Facilitating sustainable performance

11. Some long-term benefit of good governance
Increasing the firm’s market value
Increasing the firm’s rating
Increasing competitive power
Attracting new investors, shareholders and more equity
More or higher credibility
Enhancing flexible borrowing condition/facilities from financial institutions
Decreasing credit interest rate and cost of capital
New investment opportunities
Attracting better personnel/employees
Reaching new markets
Relevant for same reasons but also may have direct impact on firms as they participate or are expected to participate

12. Risk management, governance and CSR
Risk management has become an important aspect of business management and CSR has a role to play in this because a full understanding of CSR and its implications can reduce risk.

13. Three steps in dealing with risk
Risk assessment
Risk analysis
Risk management

14. Risk management
Risk avoidance Risk reduction Risk protection

15. A typology of risk

16. Risk, CSR and strategy
The identification and management of risk is an important topic for managers at the present time and a great deal of time and effort is being devoted to developing risk management plans. Good governance reduces the exposure of a firm to a whole variety of risks. This is clearly recognized by investors and potential investors and so the cost of capital is lower if a firm has good procedures for its governance.

17. Conclusions
CSR is now generally considered to be an integral part of strategy for any organization and built into the strategic planning process. There are many perceived benefits to an organization from this. Governance is also an integral part of this process. Increasingly, these have been built into both the strategic planning process and the risk management systems of an organization because it is clearly recognized that this will lower exposure to risk and therefore help to improve the performance of the organization. It is an area which is still developing.

18. Summary of key points
There are a number of aspects to the role of a manager they involve making decisions and interacting with others.
There are a number of objectives of a business that can be equally as important as maximizing profit; which of these takes priority depends upon the business and changes as circumstances change.

19. There are a number of steps in the decision-making process.
Any governance system is based upon the same four principles and will address a range of points.
There are a number of dimensions of risk and they have significant implications for a company.
A typology of risk can be constructed which categories the risks as a precursor to addressing them.

20. Definitions of key terms and theories
C____________ involves both the sender of information and its recipient and for the information to be of value it needs to be understood by the recipient as intended by the sender.
C__________ _________ can be highly influential for firm performance, and is based upon four corporate governance principles.
R____ can be evaluated and therefore planned for there are three steps in its treatment.
R___ __________ has become an important aspect of business management and CSR has a role to play in this.