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Palgrave Studies in Governance, Leadership and Responsibility
Corporate Social
Responsibility in the
Post-Financial
Crisis Era
CSR Conceptualisations and International
Practices in Times of Uncertainty
EDITED BY
ANASTASIOS THEOFILOU
GEORGIANA GRIGORE
ALIN STANCU
Palgrave Studies in Governance, Leadership
and Responsibility
Series Editors
Simon Robinson
Leeds Beckett University
Leeds Business School
Leeds, United Kingdom
Jim Parry
Charles University
Prague 1, Czech Republic
William Sun
Leeds Beckett University
Leeds Business School
Leeds, United Kingdom
Aim of the Series
The fall-out from many high profile crises in governance and leadership in
recent decades, from banking to healthcare, continues to be felt around the
world. Major reports have questioned the values and behaviour, not just
of individual organizations but of professionals, industries and political
leadership. These reports raise questions about business corporations and
also public service institutions. In response this new series aims to explore
the broad principles of governance and leadership and how these are
embodied in different contexts, opening up the possibility of developing
new theories and approaches that are fuelled by interdisciplinary
approaches. The purpose of the series is to highlight critical reflection and
empirical research which can enable dialogue across sectors, focusing on
theory, value and the practice of governance, leadership and responsibility.
Written from a global context, the series is unique in bringing lead-
ership and governance together.The King III report connects these two
fields by identifying leadership as one of the three principles of effective
governance however most courses in business schools have traditionally
treated these as separate subjects. Increasingly, and in particular with the
case of executive education, business schools are recognizing the need to
develop and produce responsible leaders. The series will therefore encour-
age critical exploration between these two areas and as such explore socio-
logical and philosophical perspectives.
Corporate Social
Responsibility in
the Post-Financial
Crisis Era
CSR Conceptualisations and International
Practices in Times of Uncertainty
Editors
Anastasios Theofilou Georgiana Grigore
Bournemouth University Bournemouth University
Poole, Dorset, United Kingdom Poole, Dorset, United Kingdom
Alin Stancu
Bucharest University of Economic Studies
Bucharest, Romania
v
vi Contents
Index263
Notes on Contributors
ix
x Notes on Contributors
xiii
List of Tables
1.1 Introduction
Corporate social responsibility (CSR) is a politically, morally, economi-
cally and culturally loaded concept, not simply a niche area of contempo-
rary business practice. This chapter will consider the implications of CSR
for the design and delivery of advertising, marketing communications and
public relations programs, including the opportunities and challenges for
fostering ethical corporate behavior. We suggest that there are two main
issues: How we can enhance our students’ knowledge and u nderstanding of
CSR and how we can engender their commitment to the application of its
objectives, principles and practices.
A big part of the problem lies with companies themselves, which remain
trapped in an outdated approach to value creation […] optimizing short-
term financial performance in a bubble while missing the most important
customer needs and ignoring the broader influences that determine their
longer-term success [including] the well-being of their customers, the
depletion of natural resources [and] the economic distress of the communi-
ties in which they produce and sell […]. (Porter and Kramer 2011)
[A]ccording to a survey of the British public […] four out of five people
agreed that tax avoidance by multinationals made them “feel angry” [and]
that a third of Britons say that they are boycotting companies which do not
pay their “fair share” of tax in the UK. In a 2012 IBE survey carried out by
Ipsos MORI, ‘tax avoidance’ was the second most important ethics issue
that the British public think business needs to address. (Institute of Business
Ethics 2013)
[T]he tide of public opinion is visibly turning. Even 10 years ago, news of
a company minimising its corporation tax would have been more likely to
be inside the business pages than on the front page. In September 2009,
the Observer ran with the headline: “Avoiding tax robs our public services,
declares minister”. (Barford and Holt 2013)
6 Rutherford and R. Scullion
for popularity, worthiness and success, thereby subtly influencing the way
in which audiences define their desires and ‘mentally picture’ their fulfill-
ment. As a result, despite the contribution of advertising, marketing com-
munications and public relations agencies to constructive social change
through pro bono work on campaigns to reduce smoking, domestic vio-
lence and climate change, the corporate communications industry is
often associated in the public consciousness with less positive influences.
The effect of making men think in accordance with dogmas, perhaps in the
form of certain graphic propositions, will be very peculiar: I am not think-
ing of these dogmas as determining men’s opinions but rather as com-
pletely controlling the expression of all opinions. People will live under an
absolute, palpable tyranny, though without being able to say they are not
free. (Wittgenstein 1937)
have got them ‘stuck’ in policies and practices which, by damaging the
environment and the social and economic well-being of the communities
in which they operate, threatens to undermine their continued viability.
But of course, in preparing to undertake such an ontological task (Help
us to become something else … something better …), the corporate com-
munication industry must ask its own ‘raison d’être’ questions. Thus,
just as the rise of social media fundamentally changed both the purpose
and practices of advertising, branding, marketing communications and
public relations (from creating persuasive messages and visual materials
for defined target markets—to engaging diverse audiences in meaning-
ful conversations and relationships), the demand for socially responsible
practices and ‘corporate citizenship’ is once again obliging communica-
tions agencies to comprehensively re-evaluate the nature of the relation-
ships between brands and their customers, including what and how they
communicate, to whom—and for what purpose.
In his 1964 manifesto First Things First, British designer Ken Garland
spoke for many corporate communications professionals who had grown
increasingly uneasy with supporting—and thereby implicitly endors-
ing—their influence on the ways in which ‘citizen-consumers speak,
think, feel, respond and interact’, arguing that this had led to ‘a reductive
and immeasurably harmful code of public discourse’ (Garland 1964).
Revised by Barnbrook et al. in 1999, 33 visual communicators renewed
the call for an urgent change of priorities:
[E]thics and corporate social sensitivity is not just a core curriculum issue.
[The] ethical culture of a business school is pervasive. It is reflected in the
context of courses, in expectations of ethical student conduct (and repercus-
sions for unethical behaviors) […] and in the projects and programs to which
the school devotes its energies and resources. (Nicholson and DeMoss 2009)
We argue therefore that those who teach the corporate leaders of tomor-
row have a responsibility, not only to our students and their future
employers, but to the broader communities whose lives will be affected
by their values and behaviors. Embedding the values of social and envi-
ronmental responsibility within the teaching and learning environment
is therefore essential, not only to improve our graduates’ career prospects
but also to encourage ‘business students to critically evaluate, analyse and
question the basic premises underlying contemporary business practices’
(García-Rosell 2012) and their impact on the lives of those who will be
affected by the policies and practices they will help to shape. This, in
turn, will both encourage and enable our students to redefine the concept
of ‘successful business practices’ and what it means to engage in these.
The question is no longer whether CSR should have a place in the business
curricula, but how it should be incorporated and what role business schools
play within the wider “business in society” debate. Students, the marketplace,
the community, government and civil society are increasingly demanding
that business schools rethink their traditional role. (Haski-Leventhal 2014)
The oft-cited argument is that higher education has educated the politi-
cians, managers, teachers, scientists and engineers who have taken us to our
current and generally unsustainable position, and it is the education of
future groups of these folk that will enable us to step up to new levels of
sustainability. On this basis, curriculum change towards sustainability, for
all students and not just those who choose to study sustainability-related
topics, is the next critical stage. (Shepard 2015)
1 Embedding Social Responsibility in HE Corporate... 11
[W]e are bound to take a view of […] higher education, whether or not we
articulate it and whether or not we are conscious of it. In that case, the
models and approaches that we develop […] will take on the form of an
ideology [that] contain hidden interests, bound up with our assumptions
about the fundamental purposes of higher education. (Barnett 1992, p. 15)
tax payers, but as human beings and citizens with a responsibility to con-
tribute to the well-being of the communities in which they will live and
work. In our efforts to foster this attitude among students, we submit that
advertising, marketing communications and public relations programs
have a clear positional advantage over many other business disciples.
If we are to help our students to understand how to use communi-
cations to influence the ways in which audiences imagine or ‘mentally
picture’ brands, products, services, ideas and events, it is necessary to
encourage (and assist) them in identifying—and in reflecting critically
upon—how the narratives implicit within commercial messages have
influenced their perceptions. In other words, if we are to teach students
How We (as advertisers) Do It to Audiences, it is necessary to lead them
to consider How They (advertisers) Do It to Us (Rutherford 2012). If our
students are unable to recognize how and why they have been affected by
certain campaigns, we argue that they will be at a significant disadvantage
in being able to make informed and appropriate decisions in the concep-
tion and execution of materials that will likewise affect others.
In designing our programs to foster, or even require, such on-going reflec-
tion and analysis on the part of students, we must encourage (and equip)
our students to ‘look around the frame’ of the current neoliberal dogma
in order to recognize—and question the implications of—the values and
assumptions reflected by, and implicit within, corporate campaigns and
messages. In this way, we not only encourage and validate the integration
of professional and civic objectives, but simultaneously assist our students
in developing the critical, imaginative and creative problem-solving skills
upon which the future of their employers and clients will depend.
In the effort to achieve this, there are two inter-related issues: How we
can enhance our students’ knowledge and understanding of CSR and how we
can engender their commitment to the application of its objectives, principles
and practices.
1.3.1 E
nhancing Students’ Knowledge
and Understanding of CSR
1.3.2 E
ngendering Students’ Commitment
to the Objectives, Principles and Practices
of CSR
It was the night before the funeral, and Sir Ronald sat in his study
alone. His servants spoke of him in lowered voices, for since the
terrible day of the murder the master of Aldenmere had hardly tasted
food. More than once he had rung the bell, and, when it was
answered, with white lips and stone-cold face, he had asked for a
tumbler of brandy.
It was past ten o’clock now, and the silent gloom seemed to
gather in intensity, when suddenly there came a fierce ring at the hall
door, so fierce, so imperative, so vehement that one and all the
frightened servants sprang up, and the old housekeeper, with folded
hands, prayed, “Lord have mercy on us!”
Two of the men went, wondering who it was, and what was
wanted.
“Not a very decent way to ring, with one lying dead in the house,”
said one to the other; but, even before they reached the hall door, it
was repeated more imperatively than before.
They opened it quickly. There stood a gentleman who had
evidently ridden hard, for his horse was covered with foam; he had
dismounted in order to ring.
“Is this horrible, accursed story true?” he asked, in a loud, ringing
voice. “Is Lady Alden dead?”
“It is quite true, sir,” replied one of the men, quick to recognize the
true aristocrat.
“Where is Sir Ronald?” he asked, quickly.
“He cannot see any one.”
“Nonsense!” interrupted the stranger, “he must see me; I insist
upon seeing him. Take my card and tell him I am waiting. You send a
groom to attend to my horse; I have ridden hard.”
Both obeyed him, and the gentleman sat down in the entrance
hall while the card was taken to Sir Ronald. The servant rapped
many times, but no answer came; at length he opened the door.
There sat Sir Ronald, just as he had done the night before—his head
bent, his eyes closed, his face bearing most terrible marks of
suffering.
The man went up to him gently.
“Sir Ronald,” he asked, “will you pardon me? The gentleman who
brought this card insists upon seeing you, and will not leave the
house until he has done so. I would not have intruded, Sir Ronald,
but we thought perhaps it might be important.”
Sir Ronald took the card and looked at the name. As he did so a
red flush covered his pale face, and his lips trembled.
“I will see him,” he said, in a faint, hoarse voice.
“May I bring you some wine or brandy, Sir Ronald?” asked the
man.
“No, nothing. Ask Mr. Eyrle to come here.”
He stood quite still until the stranger entered the room; then he
raised his haggard face, and the two men looked at each other.
“You have suffered,” said Kenelm Eyrle; “I can see that. I never
thought to meet you thus, Sir Ronald.”
“No,” said the faint voice.
“We both loved her. You won her, and she sent me away. But, by
heaven! if she had been mine, I would have taken better care of her
than you have done.”
“I did not fail in care or kindness,” was the meek reply.
“Perhaps I am harsh,” he said, more gently. “You look very ill, Sir
Ronald; forgive me if I am abrupt; my heart is broken with this terrible
story.”
“Do you think it is less terrible for me?” said Sir Ronald, with a
sick shudder. “Do you understand how awful even the word murder
is?”
“Yes; it is because I understand so well that I am here. Ronald,”
he added, “there has been ill feeling between us since you won the
prize I would have died for. We were like brothers when we were
boys; even now, if you were prosperous and happy, as I have seen
you in my dreams, I would shun, avoid and hate you, if I could.”
His voice grew sweet and musical with the deep feelings stirred
in his heart.
“Now that you are in trouble that few men know; now that the
bitterest blow the hand of fate can give has fallen on you, let me be
your true friend, comrade and brother again.”
He held out his hand and clasped the cold, unyielding one of his
friend.
“I will help you as far as one man can help another, Ronald. We
will bury the old feud and forget everything except that we have a
wrong to avenge, a crime to punish, a murderer to bring to justice!”
“You are very good to me, Kenelm,” said the broken voice; “you
see that I have hardly any strength or energy.”
“I have plenty,” said Kenelm Eyrle, “and it shall be used for one
purpose. Ronald, will you let me see her? She is to be buried to-
morrow—the fairest face the sun ever shone on will be taken away
forever. Let me see her; do not refuse me. For the memory of the
boy’s love so strong between us once—for the memory of the man’s
love and the man’s sorrow that has laid my life bare and waste, let
me see her, Ronald?”
“I will go with you,” said Sir Ronald Alden; and, for the first time
since the tragedy in its full horror had been known to him, Sir Ronald
left the library and went to the room where his dead wife lay.
CHAPTER V.
WHICH LOVED HER BEST?