Week 6 - Lectorial

Week 6:
Corporate Social
Responsibility
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Week 6: Activities
• 8:00 – 8:15: Review groups’ presentations
• 8:15 – 9:00: Lectorial (session 1)
• 9:00 – 9:10: Break
• 9:10 – 10:25: Case discussion (session 2)
• 10:25 – 10:30: Q & A
Learning Outcomes
• Describe and explain corporate social responsibility (CSR).
• Distinguish between instrumental and social contract
approaches to CSR.
• Explain the business argument for “doing well by doing good.”
• Summarize the five driving forces behind CSR.
• Explain the triple bottom-line approach to corporate
performance measurement.
• Discuss the relative merits of carbon-offset trading.
Corporate Social Responsibility (CSR)
https://www.youtube.com/watch?v=l9IyDvkxADU
• Actions of an organization that are targeted toward achieving

a social benefit over and above maximizing profits for its
shareholders and meeting all its legal obligations.
• Also known as corporate citizenship and corporate
consciences.
Approaches to CSR
• Shareholders vs stakeholders:
https://www.youtube.com/watch?v=JGZJjqhA9wY
• Instrumental approach: Perspective that the only obligation
of a corporation is to maximize profits for its shareholders in
providing goods and services that meet the needs of its
customers.
• Social contract approach: Perspective that a corporation has
an obligation to society over and above the expectations of its
shareholders.
Impact of Corporation Actions
Actions of corporations impact:
• Customers.
• Employees.
• Suppliers.
• Communities.
Can be positive or negative depending on the actions taken by

the corporation.
Could you provide an example of negative impact of CSR
campaigns of a company on its customers?
Management by Inclusion
Going beyond generating profit attracts a lot of attention.
• Example: Alcohol manufacturers have a long-term perspective and spread
awareness about drinking responsibly.
Inclusion management: https://www.youtube.com/watch?v=uHYuDDHvU64
The Driving Forces behind CSR
Transparency Knowledge Sustainability
Failure of the
Globalization
public sector
CSR Risks
Corporations experimenting with CSR initiatives run the risk of
creating adverse results.
• Employees feel that they are working for an insincere, uncaring
organization.
• Public sees little more than a token action concerned with publicity rather
than community.
• Organization does not perceive much benefit from CSR and so sees no
need to develop the concept.
Triple Bottom Line
Adaptation of annual reports to reflect a triple bottom-line
approach is a testament of how seriously companies are taking
CSR.
• They provide social and environmental updates alongside their primary
bottom-line financial performance.
Ethical CSR
Purest or most legitimate type of CSR in which organizations
pursue a defined sense of social conscience in managing their:
• Financial responsibilities to shareholders.
• Legal responsibilities to their local community and society as a whole.
• Ethical responsibilities to do the right thing for all their stakeholders.
E.g., caring for the environment, and engaging in philanthropic

endeavors
Altruistic CSR
• Philanthropic approach to CSR in which organizations
underwrite specific initiatives to give back to the company’s
local community or to designated national or international
programs.
• Philanthropy is defined as promoting and attempting to bring
about social change by majorly making generous financial
contributions
• Altruistic CSR is going beyond preventing possible
harms (ethical CSR) to helping alleviate public welfare
deficiencies, regardless of whether or not this will benefit the
business itself
Strategic CSR
• Philanthropic approach to CSR
• Organizations target programs that will generate the most positive
publicity or goodwill for the organization, but that runs the greatest
risk of being perceived as self-serving behavior on the part of the
organization.
• Strategic CSR benefits stakeholders while meeting fiduciary
obligations to the company’s shareholders. However, the
question remains: Without a win–win payoff, would such CSR
initiatives be authorized?
Carbon Footprint
Total carbon dioxide emissions on an annual basis.
Kyoto Protocol requires developed nations to reduce their

greenhouse gas emissions by:
• Modifying their domestic industries.

• Funding projects in developing countries in return for carbon credits.
• Purchasing credits from carbon-positive projects can result in operations being
made carbon neutral.
• https://tuoitre.vn/cac-thanh-pho-lon-se-the-nao-neu-trai-dat-tang-them-3-do-
c-20211013113606372.htm
Case discussion
• You have 30 minutes of independent reading the case 4.3
(page 89): ‘Monosanto’s mystery wheat’, and then answering
the questions below:

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Week 6:

• Actions of an organization that are targeted toward achieving

Can be positive or negative depending on the actions taken by

Transparency Knowledge Sustainability

E.g., caring for the environment, and engaging in philanthropic

Kyoto Protocol requires developed nations to reduce their

• Modifying their domestic industries.

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