1. Business & Society ETLW 302
Tara Ceranic Salinas, PhD

2. What responsibilities do businesses have with regard to:
Local communities?
The environment?
Employees?

3. Iron Law of Responsibility:
In the long run, those who do not use power in ways society considers responsible will lose it.

4. Legal requirements vs. CSR
Laws and regulations are enacted to ensure socially responsible conduct by business
Businesses that comply with the laws are meeting MINIMUM levels of CSR
CSR is bringing corporate behavior up to a level where it is in congruence with currently prevailing social norms

5. Roots of CSR Turn of 20th century
Corporations were being accused of being too big, powerful, anticompetitive, and antisocial
Carnegie/Ford/Rockefeller
Shift in 1920s again
Community Chest movement

6. CSR pyramid

7. What about Corporate Responsibility?
Ethical Values underpin….
approach to Corporate Responsibility
doing things ethically
doing ethical things
Ethics Policy & Code
CSR Programme 7

8. Are there different approaches?
What is the right thing to do?
UK/Europe
USA
The decision is …..
Values based
Compliance with Rules
Test question:
Who deals with business conduct in the organisation?
Risk
Corporate Affairs
Company Secretary
Board committee
HR, CR
Internal audit
Ethics Officer
Legal dept
Compliance 8

9. Forms of CSR

10. Forms of CSR Stewardship Principle: Timberland Charity Principle
Shareholder view

11. CSR: All grown up
Multiple stakeholder view! Philanthropy and community involvement: Sophisticated partnerships

12. (Microfinance Monitor: September 21, 2011)
Who cares?
Stakeholders!
Especially in a down economy: consumers = risk averse
Risk averse consumers are 50 percent more likely to agree that companies have a duty to be socially responsible and support the communities in which they operate
(Microfinance Monitor: September 21, 2011)

13. How to do it well: The “sweet” spot
Capability
Imprudent
Irresponsible
Culture
Strategy
Idyllic

14. How does CSR get mismanaged?
Oxfam: Behind the Brands Focuses on international food and beverage companies

15. CSR programs tend to focus on specific projects and NOT the root causes of hunger and poverty because companies lack adequate policies to guide their own supply chain operations. Good, but not great…

16. CSR ROI
“You don’t do CSR for the sake of CSR. You do CSR as part of your reputation management strategy to drive business growth, customer loyalty, and employee alignment.” Only a few companies appear to get it right.

17. Companies with best CSR reputations
Microsoft
Google
Disney
BMW
Apple
6. Daimler (Mercedes-Benz)
7. Volkswagen
8. Sony
9. Colgate-Palmolive
10. LEGO Group

18. Who do you see doing a good job with CSR?

19. Triple bottom line

20. CSR as for-profit foundation

21. Does it matter why they do it?