1. Corporate Social Responsibility
BOH4M

2. Learning Goals
8. I will be able to explain what Corporate Social Responsibility (CSR) is and its key issues. 9. I will be able to describe what and who are stakeholders 10. I will be able to explain why companies are socially responsible and the consequences of CSR. 11. I will be able to explain the 2 principles of CSR (charity and stewardship)

3. What is CSR ? – Fill in questions
What is CSR?
Before CSR, what was the main goal of a company?
Why is it annoying that she is drinking coke?
Which company do you think is more socially responsible? Why?
How do customer’s feel toward companies who are involved in CSR?
Do their opinions match their buying trends?

4. The Positives Good things businesses do? Meet our needs/wants
Generate wealth
Create jobs
Innovate

5. The Negatives Bad things businesses do? Pollution
Sweatshops/child labour
Fraud
Consumerism

6. Key Issues in CSR Labour rights: child labour forced labour
right to organize
safety and health
Environmental conditions
water & air emissions
climate change
Human rights
cooperation with paramilitary forces
complicity in extra-judicial killings (someone killed by the government without legal process)
Poverty Alleviation
job creation
public revenues
skills and technology

7. LG 9: Stakeholders
Who is affected by the actions of a business?

8. Stakeholders Stakeholders are groups or individuals with an interest
in a business. Stakeholders may affect or be affected
by the decisions of an organisation. Examples of
stakeholders include:
Owners/shareholders
Employees
Customers
Local community

9. Internal stakeholders

10. Internal stakeholders
Internal stakeholders are those that are considered
to be part of an organisation.
The main internal stakeholders are:
Shareholders/owners
Employees

11. Shareholders Shareholders: own a part of a business
do not get involved in the day-to-day running of the business
have a right to vote at the company’s AGM
receive a share of the profits – this is called a dividend

12. Shareholder interests
Each stakeholder group will have its own expectations
of the business.
Shareholders are likely to have an interest in:
Increased profits and hence dividends through such things as:
Growth
Enhanced reputation
Greater efficiency

13. Employee interests Employees are likely to expect: fair pay
decent working conditions
job security
access to training for additional qualifications

14. Manager interests
In addition to the usual employee interests, managers may expect to be able to make their own decisions and have the opportunity of promotion

15. External Stakeholders

16. External stakeholders
External stakeholders are outside an organisation.
The main external stakeholders are:
Customers
Government
Suppliers
The local community

17. Customer expectations
Customers are likely to expect such things as:
a product range that meets their needs
value for money
good quality products and customer service
a ready supply of goods and services
And possibly:
ecologically sound/sustainable products

18. Government interests
The government has an interest in businesses because:
it receives taxes from business profits, employee incomes and customer purchases
businesses provide jobs and therefore employment levels and benefits payments are affected
the economy is dependent on the operations of business
it has a range of legislation and regulations that businesses must comply with

19. Supplier expectations
Suppliers may provide a range of services to
businesses, as well as raw materials and finished
goods.
Suppliers may expect:
to be paid in a timely fashion
to receive regular orders

20. Local community The local community may have expectations about a
company regarding:
the availability of jobs
the level of pollution and congestion created
the support provided by a business regarding community projects and concerns

21. Business expectations of stakeholders
Different stakeholders have their own interests and expectations of a firm, however, the business will also have expectations of the stakeholders e.g. suppliers may be expected to comply with ethical and environmental guidelines set down by the business.

22. How could CSR policies meet stakeholder interest
How could CSR policies meet stakeholder interest? How could they go against stakeholder interest?
Kellogg's Case Study

23. LG 10: Social Responsibility
Related to “corporate citizenship” and business ethics
Corporate social responsibility (CSR) means taking your duty to all stakeholders, especially the community as a whole, seriously

24. Social Responsibility
Doing good things
Donating goods, services, or money to charities
Sponsoring public service ads
Not doing bad things
Being environmentally responsible
Safe working conditions and fair wages
Transparency and accountability

25. Why CSR? Owner(s) feel strongly about it
Good publicity = good for business
Tax deductions
The right thing to do
Companies should solve the problems they cause
Ex: pollution
Keeps the government out of business
Increased market share

26. The case against CSR
Improving the community should be the responsibility of the public sector
Diminishes profit to owners/shareholders
Makes business less competitive
Increases costs
A company’s social obligations are discharged when it pays taxes
Businesses may exert too much influence over charitable causes
Responses to these arguments?

27. Principles The Charity Principle The Stewardship Principle
Two key principles are at the heart of CSR:
The Charity Principle
The Stewardship Principle

28. The Charity Principle The wealthy have a responsibility to the poor
Corporations are large, powerful, and wealthy “citizens”, and should therefore take up social causes
Stems from early 1900s American tycoons Andrew Carnegie and John D. Rockefeller who contributed large sums of money to charitable organizations

29. The Stewardship Principle
When business executives think of themselves as trustees of society
Company must ensure that society benefits from their actions, rather than being hurt by them
Recognize that company is not a closed system – if affects (and is affected by) its environment
Must balance the interests of multiple stakeholders

30. Fun Art Time - CSR Window Pane
You must choose one company that you think demonstrates CSR
You will receive a piece of paper. You need to split it into four sections.
Section 1 will have your companies name and logo
Section 2 will have a summarized version of your companies CSR policy
Section 3 will have some of the policies that your companies uses to ensure ethics in the workplace.
Any thoughts that you have about sections 2 and 3.
Make it beautiful (lots of colour) as it will be going on the wall!

31. Learning Goals
8. I will be able to explain what Corporate Social Responsibility (CSR) is and its key issues. 9. I will be able to describe what and who are stakeholders 10. I will be able to explain why companies are socially responsible and the consequences of CSR. 11. I will be able to explain the 2 principles of CSR (charity and stewardship)

32. Nike Video (20 min)
Based on this video do you think Nike is being socially responsible? Why or why not?
Do you think it’s socially responsible to form an opinion based on one video? Why or why not?
Do you think it’s ethical to produce a video with such a heavy bias? Why or why not?

33. Honest Tea http://www.youtube.com/watch?v=cDndc2iNz58
How is this company different from Nike?
What are fair trade products? Why should people purchase fair trade products?
What is the problem with fair trade products?
Why do you think companies like Nike do not use the fair trade model?

34. Learning Goals
8. I will be able to explain what Corporate Social Responsibility (CSR) is and its key issues. 9. I will be able to describe what and who are stakeholders 10. I will be able to explain why companies are socially responsible and the consequences of CSR. 11. I will be able to explain the 2 principles of CSR (charity and stewardship)