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The Evolution of Corporate Social Responsibility: Balancing Profit with Ethical Obligations

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gino
28 diapositives · 507 Views · Aug 14, 2014

Over the last half-century, business has emerged as a key institution wielding immense power and responsibility. As highlighted by D.C. Korten, corporations must act in socially responsible ways, recognizing that their decisions impact society, communities, and the environment. CSR (Corporate Social Responsibility) has evolved from minimal legal compliance to a broader commitment aligned with community values. This article discusses the roots, the challenges, and the contemporary practices of CSR while emphasizing the importance of ethical decision-making in fostering sustainable business growth.

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  1. Globalization Sustainability CSR

  2. “Business has become, in the last half century, the most powerful institution on the planet. The dominant institution in any society needs to take responsibility for the whole…Every decision that is made, every action that is taken, must be viewed in light of that kind of responsibility.” -D.C. Korten

  3. Iron Law of Responsibility: In the long run, those who do not use power in ways society considers responsible will lose

  4. CSR vs. Citizenship • Corporations should be held accountable for any actions that affect people, their communities, and the environment: Academic • The corporation recaptures its rightful place in society, next to other “citizens” with whom the corporation forms a community: Practitioner-driven

  5. Legal requirements vs. CSR/CC • Laws and regulations are enacted to ensure socially responsible conduct by business • Businesses that comply with the laws are meeting MINIMUM levels of CSR • CSR is bringing corporate behavior up to a level where it is in congruence with currently prevailing social norms

  6. Roots of CSR • Turn of 20th century • Corporations were being accused of being too big, powerful, anticompetitive, and antisocial • Carnegie/Ford/Rockefeller • Shift in 1920s again • Community Chest movement

  7. CSR pyramid

  8. What about Corporate Responsibility? doing ethical things doing things ethically Ethical Values underpin…. approach to Corporate Responsibility Ethics Policy & Code CSR Programme

  9. Forms of CSR • Stewardship Principle: Timberland • Charity Principle • Shareholder view

  10. CSR: All grown up • Multiple stakeholder view! • Philanthropy and community involvement: Sophisticated partnerships • Social auditing

  11. Current hallmarks of CSR • Rapid development • Gradual regulatory support • Growing corporate enthusiasm, right?

  12. Who cares? • Stakeholders! • Especially in a down economy: consumers = risk averse Risk averse consumers are 50 percent more likely to agree that companies have a duty to be socially responsible and support the communities in which they operate (Microfinance Monitor: September 21, 2011)

  13. Companies spend millions of dollars every year on corporate social responsibility; they invest in programs to support local communities, give away products to support people in need, invest in clean technology to lower their environmental footprint, donate money from sales, and engage their employees in nonprofit work. But many are mismanaging their CSR investments.

  14. CSR Sweet Spot

  15. Triple bottom line

  16. Companies need to reassess how to spend their money if they want to improve their return on investment. “You don’t do CSR for the sake of CSR. You do CSR as part of your reputation management strategy to drive business growth, customer loyalty, and employee alignment.” Only a few companies get it right.

  17. How to enact CSR/CC • Social performance audits • Benchmarks: mission statement + other organizations • Global benchmarks are available • Social/environmental reports

  18. Who’s best @ CSR?

  19. # 6-10 • Daimler (Mercedes-Benz) • Volkswagen • Sony • Colgate-Palmolive • LEGO Group

  20. Who do you see doing a good job with CSR?

  21. CSR as for-profit foundation

  22. Should consumers have to do something for the CSR to happen?

  23. Does it matter why they do it?