1.

Executive summary
2. Introduction
- What is CSR
- Carroll’s pyramid (fulfil all?)

- Hartman et al’s model (4 ways)

- Environmental effect: reduce any damaging effects on the environment

from your business' processes. Activities may focus on: energy use, water
use, waste management, recycling, emissions, eco-friendly office and
business travel policies.
[https://www.nibusinessinfo.co.uk/content/corporate-social-
responsibility-environmental-impact ]

- Societal effect: Research has shown how engagement in CSR can benefit
business performance by encouraging new customer acquisition,
enhanced customer loyalty, and stronger brand recognition. However,
the cynical view is that many firms publicise CSR solely to reap the
financial benefits that come from such a public commitment, regardless
of the social benefits. Consequently, CSR activities fall short of their full
potential societal impact, because helping society was not really the firm’s
strategic objective to begin with. [ https://www.iedp.com/articles/csr-
what-s-in-it-for-society/ ]
3. Support article’s view (Narrow view / classical view)
- The basic reason why a business is formulated is to make a profit.
- Company should focus on profits and let government & non-profit
organization deal with social and environmental issues.
- It is a cost to the business to handle social issues in the society.
- Milton Friedman: The only responsibility of business is to make money for
its owners (within the law)
- The invisible-hand argument (Adam Smith): Corporation should not be
held accountable for non-economic matters
- According to “The Benefits and Costs of Corporate Social Responsibility”,
by Geoffrey B. Sprinkle and Lauren A. Maines of the Kelley School of
Business, Indiana University, three costs associated with CSR activities
were identified: opportunity costs, sunk costs and recurrent costs.

- Opportunity costs include any activity that could not have been
undertaken due to capital and labour being bound to the CSR activity,
which might result in lost revenues.
- Sunk costs include all initial investments in new equipment (e.g.,
environmental health and safety system, waste-water systems, upgrades
such as machine guards), buildings and infrastructure.
- Recurrent costs are labour costs for increased wages and overtime
payments, an increase in management time (i.e. for CSR steering meetings,
etc.), all forms of social insurance, trainings, benefits for workers (i.e. free
meals, dormitories, medical expenses), monitoring and reporting, and
equipment update and maintenance.
- For example, KPMG employees volunteered 32,000 hours of their time
to charitable endeavours (Murray, 2007). Assuming a hypothetical
average billing rate of $150per hour, this translates to $4.8 million
in lost revenues.
[ https://www.academia.edu/8459306/The_Benefits_and_Costs_of_Cor
porate_Social_Responsibility_PDF ]
4. Against article’s view (Broader view/ stakeholder view/contemporary
view)
- It’s the right thing to do
- Prosper and build shareholder value
- Responsible business reputation: Corporate social investment can help
you to build a reputation as a responsible business, which can, lead
to competitive advantage. Companies often favour suppliers who have
responsible policies, since this can reflect on how their customers see
them. Some customers don't just prefer to deal with responsible
companies - they insist on it.
- 87% will purchase a product because a company advocated for an
issue they cared about. [https://benojo.com/reference/csr-research/]
- Finding and keeping talented staff: Being a responsible, sustainable
business may make it easier to recruit new employees or retain existing
ones. Employees may be motivated to stay longer, thus reducing the costs
and disruption of recruitment and retraining.
- 50% reduction in employee turnover when employees are engaged in CSR
program. [https://solutions.yourcause.com/csr-stats-infographic/]
- Access finance: Investors are more likely to back a reputable business
- Attract positive media attention: e.g. when taking part in community
activities
- Reduce regulatory burden: good relationships with local authorities can
often make doing business easier
[https://www.nibusinessinfo.co.uk/content/business-benefits-
corporate-social-responsibility]
- Konosuke Matsushita: Business should make the service to society as its
objective.
- Sir Adrian Cadbury
- Kenneth Dayton
5. Conclusion
- CSR is important
6. Recommendation
- As a company established in the 1970s, Starbucks has always operated
with a sensitivity to social responsibility — committed to sustainability
and strengthening communities.

- For example, the company has committed to providing one million

coffee trees to farmers as a partner in Conservation International’s
“Sustainable Coffee Challenge.” In addition, the company plans to hire
10,000 refugees across 75 countries in the next five years, plus, hire
25,000 veterans by 2025.

(Canon, Coca cola)