Corporate Social Responsibility
Feedback Hours – 11:00 – 13:00 Monday’s Via Google Hangout
Lecture 1 – Introduction to CSR
Critical point in time for CSR to be so prominent.
Profits, how they make and spend profits in a company.
Migration and Brexit and the impact on businesses, farmers and industrial areas
failed to source labour.
Problems surrounding child labour. India, Ghana, Mexico and south America,
child labour is a way out from crime and is integrated into companies strategic
approaches to get them out of gang violence.
More include, gender recognition and rights, capitalism, and demographic
changes. Recent years = pro-socialist movement wave. Signifies growing
dissatisfaction towards capitalism.
CSR offers a remarkable opportunity to discuss the role of business in society
and potential directions for business decision making.
Repurposing businesses; aligning their resources, knowledge, and power for
good.
It is an important alternative to the extreme capitalism that possibly led
markets to financial crises and ethical meltdowns in recent years
Responding to signals from the market that companies are expected to be more
responsible in their entire value chain - effective pathways to meet these
expectations.
Assessments:
1. Online MCQ Test Week 8 (20%)
2. 6 Question Assessment, Answer 3 of these. 24 hours to complete. (80%). Use
case studies to reference answers.
Dilemma Section
Profits v Philanthropy
Sainsburys – Make profits and support local initiatives. However, supply chain
have found to be accommodating contamination, or stock foods that support
obesity conditions, does this work or is it counterproductive?
Vodaphone – tax avoidance – driven by the notion of capitalism, which is not
favourable to society, creating issues.
There are many different issues that have to be tackled and addressed in different
environments to allow lasting solutions to be reached. Businesses have a drastically
changing nature with a range of powerful stakeholders to be held accountable which
need to be addressed and analysed. Our generation will lead the future.
,Friedman Stakeholder Theory 1970 – The Role of Businesses to Make Profits.
ARGUMENT = only people have responsibilities, not businesses. A corporate
executive may have responsibility to his employers, to conduct the business in
accordance with their desires = to make as much money as possible while
conforming to the basic rules of societies, ethically and legally. The criterion of
performance is therefore straightforward. The executive himself has
responsibilities, to family, charities, conscience, and his country, which can be
denoted as social responsibilities. Acting here as a principal, not an agent.
In areas of conflict, the executive would have to spend someone else’s money for
a greater social interest.
Question of principal and consequence.
People have to be responsible for their own actions and it is difficult in such
circumstances to exploit others for selfish purposes- executives can do good, but
at their own expense.
Milton Friedman argued vehemently against spending shareholder's money for
anything that does not directly contribute to increasing shareholder wealth. ...
As socially responsible activities, in the opinion of Friedman, reduce wealth,
companies should not engage in any charitable activities. Increase profits but in
the rules of the game.
If he acts to reduce the returns of his enterprise in order to exercise his "social
responsibility," he is spending his own money, not someone else's. If he wishes to
spend his money on such purposes, that is his right, and I cannot see that there is
any objection to his doing so.
In the present climate of opinion, with its widespread aversion to "capitalism,"
"profits," the "soulless corporation" and so on, this is one way for a corporation
to generate goodwill as a by-product of expenditures that are entirely justified
on its own self-interest.
Seeks towards a free market, where no individual can coerce another. Only
shared values.
Conclusion of Lecture
Friedman – prioritisation of stakeholders and owners, with social responsibility
working in line with their interests.
It was an unequivocal attack on a social responsibility view of the firm. He
argued that to promote desirable social ends and to operate with a social
conscience as a business is to promote socialism and undermining the basis of
free society.
Friedman (2006) states that the organization itself should be thought of as
grouping of stakeholders and the purpose of the organization should be to
manage their interests, needs and viewpoints.
,Lecture 2 – Defining CSR & Business Ethics
Session outline:
Defining CSR and Business Ethics
Traditional v Contemporary CSR
Carroll’s Pyramid
Ethics – Morality in Business
Sustainability
CSR – What comes to mind.
Providing a duty to all stakeholders, promoting socially responsible practices for
all people involved in the business.
Be responsible for your actions and consider the consequences actions will have
on the environment, on individuals and groups in society.
REALITY – no universally accepted definition. Many definition and concepts that
aid our understanding. More varied than ever before with more advances and
stakeholders being involved – ever expanding busines environments.
Alternative concepts related to CSR
Business Ethics – the study of business decisions whereof right and wrong are
addressed (Carroll 1999). Moral right and wrongness of business decisions.
Beyond legal frameworks. Applying conscious decisions, people make decisions
relative to their moral standing. Individual viewpoints e.g. religion may come
into play. E.g. a Catholic making a decision to implement a policy relating to help
for same-sex couples or abortion, likely to dismiss these policies.
Sustainability – strategy on successful business survival without compromising
the ecological, social, and economic survival of its current and future
environment. links to the triple bottom line. (Elkington 1997). A business
strategy, looking at 3 P’s – People Planet Profits. Environment focused and global
responsibilities.
Corporate citizenship – business as a necessary contributor to community and
obeying legal requirements of society, including the responsibilities imposed by
stakeholders (Seechi 2007). Relative theorists.
Conscious business – business concept of being for a higher purpose of all
major stakeholders (Mackey and Sisodia 2014). Businesses and bigger
corporations should leverage resources to emphasize wellbeing of all
stakeholders.
Creating shared value – expanding links between societal and economic
progress (Porter and Kramer 2011). Challenge progress towards productivity.
Look towards businesses output – society and economic progress are
intertwined.
Social business – social enterprise, involving using business models to achieve
financial sustainability and social purpose (Dees 1998). Businesses recognise
they are critical to society, but driven by more social then economic benefits, less
about profit driving – similar to charity.
, Definitions and ideas surrounding CSR.
o Carroll – Pyramid – Economic, Legal, Ethical and Philanthropic expectations.
o Freeman – Beyond the pursuit of profits.
o Werther and Chandler – holistic and strategic approach to firms planning, pursuit
best outcome for a broad set of stakeholders.
o Carroll & Bucholtz – economic, legal, ethical, and philanthropic expectations
placed on an organisation by society at a given time.
o World Business Council for Sustainable Development – continuing commitment by
business, and improving quality of life of workforces. Economic development is
still at the core.
o Dahlsrund – social construct, very specific to context.
o Chinese Ministry of Commerce – implement political aspirations of the new
communist party collective leadership.
o Department for Innovation and Skills – the voluntary actions that businesses take
over and above legal requirements. Own competitive interests and interests of
wider society.
o European Commission – responsibility of enterprises for their impacts on society.
Business Ethics
Studying business situations, activities, and decisions where issue of right and
wrong are addressed.
Looks towards the grey areas of business, where law and morals are in conflict.
Issues of discrepancy. Law = obligation Ethics = discretionary
Laws and ethics are often in conflict and cannot occur simultaneously.
Outcomes, different supporting functions allowing businesses to survive.
Core Dimensions of Business Ethics
Relationships – which stakeholders will be focused upon.
Choices of firm – how far will we take our discretionary activities to help the
environment.
Behaviour – implementing the decisions and following through, e.g. global
pandemic, results to make teaching virtual, drive redundancies. How do you go
about choosing people?
Principles – how you make a rational action, what informs the decision. E.g. Uni
of Sheffield, long term survival, cash flow, viability. Justify the redundancies.
Reliability – consistency in principals, keep a theme in your efforts to ensure
ethics are being maintained, keep a stable viewpoint and vision in mind.
Trust - ensure everything is reliable so stakeholders are trusting and have a
positive perception. No action is 100% accepted by stakeholders, instil a level of
trust to help this process.
Morality – underlying norms beliefs and values of the firm, all of the above will
guide the management of a firm to show the underlying moral of a company.
Feedback Hours – 11:00 – 13:00 Monday’s Via Google Hangout
Lecture 1 – Introduction to CSR
Critical point in time for CSR to be so prominent.
Profits, how they make and spend profits in a company.
Migration and Brexit and the impact on businesses, farmers and industrial areas
failed to source labour.
Problems surrounding child labour. India, Ghana, Mexico and south America,
child labour is a way out from crime and is integrated into companies strategic
approaches to get them out of gang violence.
More include, gender recognition and rights, capitalism, and demographic
changes. Recent years = pro-socialist movement wave. Signifies growing
dissatisfaction towards capitalism.
CSR offers a remarkable opportunity to discuss the role of business in society
and potential directions for business decision making.
Repurposing businesses; aligning their resources, knowledge, and power for
good.
It is an important alternative to the extreme capitalism that possibly led
markets to financial crises and ethical meltdowns in recent years
Responding to signals from the market that companies are expected to be more
responsible in their entire value chain - effective pathways to meet these
expectations.
Assessments:
1. Online MCQ Test Week 8 (20%)
2. 6 Question Assessment, Answer 3 of these. 24 hours to complete. (80%). Use
case studies to reference answers.
Dilemma Section
Profits v Philanthropy
Sainsburys – Make profits and support local initiatives. However, supply chain
have found to be accommodating contamination, or stock foods that support
obesity conditions, does this work or is it counterproductive?
Vodaphone – tax avoidance – driven by the notion of capitalism, which is not
favourable to society, creating issues.
There are many different issues that have to be tackled and addressed in different
environments to allow lasting solutions to be reached. Businesses have a drastically
changing nature with a range of powerful stakeholders to be held accountable which
need to be addressed and analysed. Our generation will lead the future.
,Friedman Stakeholder Theory 1970 – The Role of Businesses to Make Profits.
ARGUMENT = only people have responsibilities, not businesses. A corporate
executive may have responsibility to his employers, to conduct the business in
accordance with their desires = to make as much money as possible while
conforming to the basic rules of societies, ethically and legally. The criterion of
performance is therefore straightforward. The executive himself has
responsibilities, to family, charities, conscience, and his country, which can be
denoted as social responsibilities. Acting here as a principal, not an agent.
In areas of conflict, the executive would have to spend someone else’s money for
a greater social interest.
Question of principal and consequence.
People have to be responsible for their own actions and it is difficult in such
circumstances to exploit others for selfish purposes- executives can do good, but
at their own expense.
Milton Friedman argued vehemently against spending shareholder's money for
anything that does not directly contribute to increasing shareholder wealth. ...
As socially responsible activities, in the opinion of Friedman, reduce wealth,
companies should not engage in any charitable activities. Increase profits but in
the rules of the game.
If he acts to reduce the returns of his enterprise in order to exercise his "social
responsibility," he is spending his own money, not someone else's. If he wishes to
spend his money on such purposes, that is his right, and I cannot see that there is
any objection to his doing so.
In the present climate of opinion, with its widespread aversion to "capitalism,"
"profits," the "soulless corporation" and so on, this is one way for a corporation
to generate goodwill as a by-product of expenditures that are entirely justified
on its own self-interest.
Seeks towards a free market, where no individual can coerce another. Only
shared values.
Conclusion of Lecture
Friedman – prioritisation of stakeholders and owners, with social responsibility
working in line with their interests.
It was an unequivocal attack on a social responsibility view of the firm. He
argued that to promote desirable social ends and to operate with a social
conscience as a business is to promote socialism and undermining the basis of
free society.
Friedman (2006) states that the organization itself should be thought of as
grouping of stakeholders and the purpose of the organization should be to
manage their interests, needs and viewpoints.
,Lecture 2 – Defining CSR & Business Ethics
Session outline:
Defining CSR and Business Ethics
Traditional v Contemporary CSR
Carroll’s Pyramid
Ethics – Morality in Business
Sustainability
CSR – What comes to mind.
Providing a duty to all stakeholders, promoting socially responsible practices for
all people involved in the business.
Be responsible for your actions and consider the consequences actions will have
on the environment, on individuals and groups in society.
REALITY – no universally accepted definition. Many definition and concepts that
aid our understanding. More varied than ever before with more advances and
stakeholders being involved – ever expanding busines environments.
Alternative concepts related to CSR
Business Ethics – the study of business decisions whereof right and wrong are
addressed (Carroll 1999). Moral right and wrongness of business decisions.
Beyond legal frameworks. Applying conscious decisions, people make decisions
relative to their moral standing. Individual viewpoints e.g. religion may come
into play. E.g. a Catholic making a decision to implement a policy relating to help
for same-sex couples or abortion, likely to dismiss these policies.
Sustainability – strategy on successful business survival without compromising
the ecological, social, and economic survival of its current and future
environment. links to the triple bottom line. (Elkington 1997). A business
strategy, looking at 3 P’s – People Planet Profits. Environment focused and global
responsibilities.
Corporate citizenship – business as a necessary contributor to community and
obeying legal requirements of society, including the responsibilities imposed by
stakeholders (Seechi 2007). Relative theorists.
Conscious business – business concept of being for a higher purpose of all
major stakeholders (Mackey and Sisodia 2014). Businesses and bigger
corporations should leverage resources to emphasize wellbeing of all
stakeholders.
Creating shared value – expanding links between societal and economic
progress (Porter and Kramer 2011). Challenge progress towards productivity.
Look towards businesses output – society and economic progress are
intertwined.
Social business – social enterprise, involving using business models to achieve
financial sustainability and social purpose (Dees 1998). Businesses recognise
they are critical to society, but driven by more social then economic benefits, less
about profit driving – similar to charity.
, Definitions and ideas surrounding CSR.
o Carroll – Pyramid – Economic, Legal, Ethical and Philanthropic expectations.
o Freeman – Beyond the pursuit of profits.
o Werther and Chandler – holistic and strategic approach to firms planning, pursuit
best outcome for a broad set of stakeholders.
o Carroll & Bucholtz – economic, legal, ethical, and philanthropic expectations
placed on an organisation by society at a given time.
o World Business Council for Sustainable Development – continuing commitment by
business, and improving quality of life of workforces. Economic development is
still at the core.
o Dahlsrund – social construct, very specific to context.
o Chinese Ministry of Commerce – implement political aspirations of the new
communist party collective leadership.
o Department for Innovation and Skills – the voluntary actions that businesses take
over and above legal requirements. Own competitive interests and interests of
wider society.
o European Commission – responsibility of enterprises for their impacts on society.
Business Ethics
Studying business situations, activities, and decisions where issue of right and
wrong are addressed.
Looks towards the grey areas of business, where law and morals are in conflict.
Issues of discrepancy. Law = obligation Ethics = discretionary
Laws and ethics are often in conflict and cannot occur simultaneously.
Outcomes, different supporting functions allowing businesses to survive.
Core Dimensions of Business Ethics
Relationships – which stakeholders will be focused upon.
Choices of firm – how far will we take our discretionary activities to help the
environment.
Behaviour – implementing the decisions and following through, e.g. global
pandemic, results to make teaching virtual, drive redundancies. How do you go
about choosing people?
Principles – how you make a rational action, what informs the decision. E.g. Uni
of Sheffield, long term survival, cash flow, viability. Justify the redundancies.
Reliability – consistency in principals, keep a theme in your efforts to ensure
ethics are being maintained, keep a stable viewpoint and vision in mind.
Trust - ensure everything is reliable so stakeholders are trusting and have a
positive perception. No action is 100% accepted by stakeholders, instil a level of
trust to help this process.
Morality – underlying norms beliefs and values of the firm, all of the above will
guide the management of a firm to show the underlying moral of a company.
