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Week 2

Week 2. The principles of CSR.

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Week 2

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  1. Week 2 The principles of CSR

  2. ‘Our environmental performance throughout this year is described in detail in this Environmental Review. The following are key achievements of which we are particularly proud.·Best ever compliance with drinking water quality standards at 98.9%·Avoided a hosepipe ban and maintained drinking water supplies to customers despite extreme summer drought and harsh winter·Certificate of Endorsement for contribution to improvements in the quality of the River Thames·Significant improvement in sewage effluent consent compliance, rising to 98.5%·Best ever compliance with sewage biosolids recycling to agricultural land·100% compliance with sewage biosolids dispersal at sea·Won eight environmental awards·Achieved and exceeded policy target to improve energy efficiency by 10% by 1996, against projected levels from 1992 baseline’ Thames Water Environmental Review 1996

  3. A historiography of CSR • 1970’s • Employees; environment • 1980’s • Stakeholder theory v shareholder value • 1990’s onwards • Citizenship • 2000’s • sustainability

  4. Ethics v rules • Regulation of corporations • Sanctions for misbehaviour • Or • Ethical understanding • Culture of responsibility

  5. Network society • The global village • McLuhan, 1967 • Collapse of the nation state • Rise of the MNC • IT changing power structures

  6. The social context • Rights & responsibilities decoupled • A culture of greed • Risk & rewards decoupled • The consumer society • Globalisation (Americanisation) of culture • Semiotic society

  7. The political context • The New Right • New Public Management • The End of History thesis • De-regulation

  8. The economic context • The cult of shareholder value • Short-termism • The Free Market • Globalisation and the global corporation

  9. Accounting • Value creation or expropriation • Profit • Short termism • Internal focus – for shareholders only

  10. There is no reason to think that shareholders are willing to tolerate an amount of corporate non-profit activity which appreciably reduces either dividends or the market performance of the stock. Hetherington (1973) 

  11. The principles of CSR • Accountability • Sustainability • Transparency • Disclosure • The Social Contract

  12. Alternative principles of CSR • Enlightened self-interest • Utilitarianism • Citizenship • Being in society

  13. Some questions • What is socially responsible behaviour? • How can we define CSR? • Can CSR be applied to non profit-seeking organisations? • Is CSR in opposition to financial success?

  14. Accountability • Concerned with an organisation recognising that its actions affect the external environment • Implies the assuming of responsibility for the effects of those actions • Implies a reporting of to all parties affected • Implies a reporting to external stakeholders • Implies a recognition that the organisation is part of a wider societal network

  15. Characteristics of accountability • Understandability to all parties concerned • Relevance to the users of the information provided • Reliability in terms of accuracy of measurement, representation of impact and freedom from bias • Comparability, which implies consistency, both over time and between different organisations

  16. Transparency • The reporting of the external impact of the actions of the organisation can be ascertained from that organisation’s reporting • Pertinent facts are not disguised within that reporting • Of particular importance to external users of such information

  17. Some more questions • How to we decide if any action is socially responsible? • How do we measure CSR? • Do we need to regulate corporations to ensure CSR? • Can we devise a framework for CSR?

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