Está en la página 1de 22

CORPORATE SOCIAL

RESPONSIBILITY
CLASS: INTRODUCTION TO BUSINESS
UNIT: ECONOMIC PRINCIPLES

MS. KIMBERLY TRUONG, MBA


2019
LESSON OBJECTIVES - CA CONTENT STANDARDS

Principles of Economics

12.1 Students understand common economic terms and concepts and economic reasoning.
12.5 Students analyze the aggregate economic behavior of the U.S. economy.

https://www.cde.ca.gov/be/st/ss/documents/histsocscistnd.pdf
Lecture Objectives
SOMETHING TO THINK ABOUT

Think of the goods and services you buy.

Are there any companies you choose to do business with because of


the good they do?

Are there any companies you avoid because you don’t believe in their
contributions or lack thereof to the community?

Educational hook
WHAT IS CORPORATE SOCIAL RESPONSIBILITY?

Corporate Social Responsibility (CSR) is the continuing commitment by business to


behave ethically and contribute to economic development while improving the
quality of life of the workforce and their families as well as of the local community
and society at large

(Making Good Business Sense by Lord Holme and Richard Watts)


WHY IS CSR IMPORTANT TO ORGANIZATIONS?

 CSR is essential to brand strategy


 CSR are the concerns a company has for society’s welfare.
 CSR is not just about preventing bad practices, it is also about contributing to a good
society through good business practices.
THE FIRST STEPS TO CSR

1. Companies should develop a company mission statement. What is the societal


purpose of their business activity? What bad practices are not acceptable for the
company?
2. Identify social and ecological issues in exchange with the stakeholders of the company.

Corporate Social Responsibility is not a blueprint. It can be defined differently from


company to company.
BUSINESS ETHICS: CORPORATE SOCIAL
RESPONSIBILITY

https://www.youtube.com/watch?v=xoE8XlcDUI8#action=share
Visual Aid
CONCEPT CHECK– LET’S TALK!

What companies are you aware of that actively campaign corporate responsibility?
How do they do it?
To get the ball rolling—
Google: The largest corporate renewable energy purchaser

Progressive monitoring
Smart Art
CONCEPT CHECK

Corporate Social Responsibility plans must be:

1. Long-term 4. Responsible 7. Resourceful


2. Sincere 5. Ethical 8. Goal-Achieving
3. Marketable 6. Sustainable

How are each essential to corporate social responsibility?

Progressive monitoring
WHAT IS PUSHING BUSINESSES TOWARDS CSR?

1. The shrinking role of government: In the past, the government has had a hands-on
policy in the private sector. However, as they have less resources to distribute, they
have less power, even with regulations.
2. Demands for greater disclosure: There is a growing demand for transparency and
corporate disclosure to a company’s stakeholders– such as employees, customers,
suppliers, investors, communities, and activist organizations
WHAT IS PUSHING BUSINESSES TOWARDS CSR?
CONTD.

3. Increased customer Interest: More than one in five consumers reported having either
rewarded or punished companies based on their perceived social performance.
4. Growing investor pressure: Investors are changing the way they assess companies'
performance, and are making decisions based on criteria that include ethical concerns.
more than a quarter of share-owning Americans took into account ethical
considerations when buying and selling stocks.
WHAT IS PUSHING BUSINESSES TOWARDS CSR?
CONTD.

5. Competitive labor markets: Employees are looking beyond paychecks and benefits, and
seeking out employers whose ethics and operating practices match their own
principles. Companies must appeal to skilled employees and align with the majorities
ethics.
6. Supplier relations: companies are taking steps to ensure that their partners conduct
themselves in a socially responsible manner. Companies are introducing codes of
conduct for their suppliers, to ensure that other companies' policies or practices do
not tarnish their reputation.
COMPANY BENEFITS OF CSR

1. Innovation: Without sustainability, the company’s research and development efforts


possibly wouldn’t have led to such a product.
2. Cost savings – One of the easiest places for a company to start engaging in
sustainability is to use it as a way to cut costs. Whether it’s using less packaging or less
energy, these savings add up quickly.
3. Brand differentiation – CSR has become more commonplace, using it to
differentiate your brand is getting harder to do. Therefore, it is important to properly
research and implement CSR.
COMPANY BENEFITS OF CSR CONTD.

4. Long-term thinking: CSR is an effort to look at the company’s long-term interest and
ensuring that the company’s future is… well… sustainable. It is a shift from worrying about
the next fiscal quarter’s financial results to the impact business decisions today have on
financial (and social) results ten years from now.
5. Customer engagement –Using CSR can help you engage with your customers in new
ways. This is an underused tool for business-to-business company communication.
6. Employee engagement – Along similar lines, if your own employees don’t know what’s
going on within your organization, you’re missing an opportunity. You must create a network
of activate employees in community service focused on the company’s CSR priorities.
COMMUNITY AND GENERAL PUBLIC BENEFITS OF CSR

1. Charitable contributions
2. Employee volunteer programs
3. Corporate involvement in community education, employment and homelessness
programs
4. Product safety and quality
ENVIRONMENTAL BENEFITS OF CSR

Environmental CSR aims to reduce any damaging effects on the environment from your
business' processes. Activities may focus on:

1. Energy use: What type of energy does your company use? Wind, water, solar, coal? Do
not just examine the energy you are using by not using energy saving lightbulbs in your
office. What about the type of gas you use in your fleet? What about the type of energy
you use to run your factory?
ENVIRONMENTAL BENEFITS OF CSR CONTD.

2. Water use: How is your company using water in its production? Is your company using
water responsibly. For example, using recycled water safely?

3. Waste management: Is your company responsibly disposing of waste and hazardous


material?

4. Curving global warming: Not only should companies be aware of their CO2 emissions–
but are they doing anything to undo global warming effects?
ENVIRONMENTAL BENEFITS OF CSR CONTD.

4. Recycling: The company should not only have recycling program internally, but also have
community outreach programs to educate others on recycling.

5. Emissions: The company needs to be aware of harmful emissions their production


releases into the atmosphere. Being aware of this, they can look for cleaner sources of
energy and cleaner production methods.

6. Eco-friendly office and business travel policies: Companies that require their employees
to travel should be aware of clean-air modes of transportation.
ENVIRONMENTAL BENEFITS OF CSR CONTD.

8. Greater material recyclability;


9. Better product durability and functionality;
10. Greater use of renewable resources;
11. Integration of environmental management tools into business plans, including life-cycle
assessment and costing, environmental management standards, and eco-labelling.
CULMINATING ACTIVITY

1. Get into your business groups*


2. Recall the small business you have started with your groups and the products and/or
services you offer.
3. How can you change your production line to continue to produce quality products in a
sustainable manner.

Remember! This is business! Think about corporate responsibility but don’t


sacrafice your profits.
REFERENCES

CA Content Standards https://www.cde.ca.gov/be/st/ss/documents/histsocscistnd.pdf


Making Good Business Sense by Lord Holme and Richard Watts
Business Ethics: Corporate Social Responsibility
https://www.youtube.com/watch?v=xoE8XlcDUI8#action=share
International Institute for Sustainable Development https://www.iisd.org/business/issues/sr.aspx
Forbes. Six Reasons Companies Should Embrace CSR
https://www.forbes.com/sites/csr/2012/02/21/six-reasons-companies-should-embrace-
csr/#3479b88c3495