Creating a strong business and building a better world

are not conflicting goals they are both essential ingredients for long-term success William Clay Ford Jr. Executive Chairman, Ford Motor Company.

CORPORATE SOCIAL RESPONSIBILITY???

Responsible Citizenship Justice worldwide

Philanthropic Donations Environmental protection Service to Community

Sustainable Development

Promotion of Social welfare

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WHAT IS CORPORATE SOCIAL RESPONSIBILITY?

Corporate Social Responsibility is the continuing commitment by business to contribute to economic development while improving the quality of life of the workforce and their families as well as of the community and society at large -- World Business Council for sustainable Development

ARGUMENTS FOR AND AGAINST CSR

FOUR PREVAILING JUSTIFICATIONS FOR CSR

Moral Appeal Sustainability

License-to-Operate
Reputation Argument

CARROLLS FOUR-PART MODEL OF CSR

IS CORPORATE SUCCESS AND SOCIAL WELFARE A ZERO SUM GAME?

Corporations need healthy society: productive workforce reduction in internal costs of accidents efficiency and innovation expanded demand for business A healthy society needs successful companies: creation of welfare creation of jobs improvement in standard of living

social progress

VALUE CHAIN

CORPORATE ACCOUNTABILITY
shareholders competitors government

Corporation Customers employees

Civil society

Suppliers

THE RECENT TREND: FIRM AS A POLITICAL ACTOR

Corporations are involved in numerous social activities and function taken up by government previously. -Why? Governmental failure Failure to protect society from self-imposed consequences of industrialization, e.g. nuclear power; industrial agriculture; genetic engineering etc.

Increasing power and influence of corporation

Liberalization and deregulation of market

A huge privatization of major public services Employment control Globalization

Setting their regulation

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THE PROBLEM OF DEMOCRATIC ACCOUNTABILITY

In Friedmans argument: corporations are responsible only to shareholders

Corporation gain more power in public activity

Democratic right of an individual can be effected Solution :

Corporation have to be more accountable to society

Transparency (the degree to which corporate decisions, policies, activities, and impact are acknowledged and made

visible to relevant stakeholders)

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GLOBAL CORPORATE CITIZENSHIP

It is the conviction that companies not only must be engaged with their stakeholders but are themselves stakeholders alongside governments and civil society.

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VIEWS ON THE CORPORATE CITIZENSHIP

A limited view of CC- this equates CC with corporate philanthropy. An equivalent view of CC - this equates CC with CSR.

An extended view of CC - this acknowledges the extended political

role of the corporation society. Corporate citizenship describes the corporation function for

governing citizenship rights for individual.

Social rights: corporation as provider/ignorer Civil rights :corporation as dis-/enabler Political rights: corporation as channel/blockage

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ASSESSING CC FOR BUSINESS ETHICS ( IN EXTENDED VIEW) See better the political role of corporation and clarified the demand of Corporate Accountability. Provide a way to understand business in relation to common rights of citizenship Show the strong link between the rights of citizenship and new goal for business ethics of sustainability Provide more critical perspective on the social role of business

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JUMP IN CSR

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OUTCOMES OF CORPORATE SOCIAL PERFORMANCE FOR SOCIETY

Social rights Social programmes Social impacts Leadership

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OUTCOMES OF CORPORATE SOCIAL PERFORMANCE FOR CORPORATIONS Innovation Cost savings Brand differentiation Long-term thinking Customer engagement Employee engagement

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ETHICS IN CSR
.

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ETHICS CRITERIA
There are several classifications of CSR approach, we will look at two of them: I. CSR approach Defensive Offensive: 2. Reasons for CSR implementing Must do Good and benefits Benefits 3. Do what is needed Monologue Dialogue 4. CSR Responsiveness acting as a good corporate citizen, attuned to the evolving social concerns of society; bearing responsibility of its business impact at society.

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GREENWASHING
When a company, government or other group promotes green-based environmental initiatives or images but actually operates in a way that is damaging to the environment or in an opposite manner to the goal of the announced initiatives. What's wrong with greenwashing? Misleading. Consumer and regulator complacency Cynicism engendering

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CRS DEVELOPMENT STAGES

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MAIN SOCIAL ORGANIZATIONS INVOLVED IN CSR

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. United nations Greenpeace Friends of the Earth Red Cross Corpwatch Witness International justice mission Equality now Human Rights Watch Polaris project Wateraid The WI (women international) Helpage international Act!onaid Amnesty International

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CORPORATIONS AND CSR

Global Analysis of 43060 transnational companies >> 737 corporations control 80% of global wealth flow >> 147 corporations control 40% of global wealth flow 20 top companies were analyzed for supporting and promoting CSR principles and activity. Sources: 100 most socially responsible companies ranking and companies websites.

http://www.forbes.com/sites/bruceupbin/2011/10/22/the-147-companies-that-control-everything/ http://www.ranker.com/list/top-100-socially-responsible-companies/business-and-company-info

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THE BEST AND WORST

The most socially responsible companies
Apple Google Nike

The least socially responsible companies

Kirin Holdings Carlsberg Asahi Breweries

Amazon.com
Charles Schwab 3M Statoil Exxon Mobil Walt Disney Whole Foods Market

Heineken
China South Industries Group Dongfeng Motor Pernod Ricard China FAW Group Shanghai Automotive AbitibiBowater

http://money.cnn.com/magazines/fortune/mostadmired/2011/best_worst/best1.html

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Thank you!
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