Corporate Social Responsibility (Steiner. P.

120)
Corporate duty, to Create wealth, and Protect social assets
Avoid harm Preserve Enhance

CSR

History of Corporate Social Responsibility (CSR)

Corporate lesson in the Rodney King Riots?
McDonalds Shell Corporation

CSR

Justification for CSR--Bowen

Ethical duty to consider broad social impacts of decisions Reservoirs of skill and energy Power in keeping with a broad social contract Enligtened self-interest to improve society Voluntary action will head off negative reactions?
CSR 3

Case Against CSR--Friedman

Use its resources for profit Engage in activities for profit Increase its profits Within rules of the game

CSR

Case Against CSR (cont.)

CSR money reduces shareholder profit Is it what stockholders want? Consumers paying for it Separation
church/state corporate/state

CSR

General Principles for Strategic CSR

Law: corporate and stakeholder regulations Primarily by economic criteria: Address the adverse social impacts they cause Varies by corporate characteristics Meet legitimate shareholder needs Guided by winds of social direction
CSR 6

CSR and Profit Related?

Investing on CSR is noble but less profitable p. 139 Scholars and profit no conclusions Local programs examples that work?

CSR

IMPLEMENTING CORPORATE SOCIAL PROGRAMS

Steiner & Steiner, Ch. 6 Business Environment

CSR

Royal Dutch Shell

Responsible corporate member Observe county laws Support human rights Proper regard or health, safety, & environment Sustainable development
CSR 9

Six Patterns of Social Response

Rejection Adversary strategy Resistance strategy Compliance Accommodation Proactive strategy
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Pressures for Undertaking Programs

Government jaw boning Community interests & demands Environmental concerns Competitive responses Stockholder/investor pressures Philanthropy Crises
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Implementation Procedures (SKILL SETS)

Issues Management Crisis management Corporate philanthropy Business in education

CSR

12

Issues management
What is it?
Identify important social issues Potential of concern to the company Develop responses

CSR

13

Corporate philanthropic allocations

Priorities: education, health, 10% of pre-tax profits vs 1-2% actual Buffett & Gates are significant contributors How will you give?

CSR

14

Philanthropic Programs
Community Economic Development
Target and Home Depot at Habitat

Strategic philanthropic self-interest Cause related marketing

Current web sites

Business in Education
How much is OK?
CSR 15