Corporate Responsibility

1. Corporate Responsibility Chelsea Hulse David Furjanic Naomi Gunawardena

2. Introduction • Corporate responsibility – the ethics of a business • Business definition • Responsibility to the government and to general public • Go beyond requirements of regulators and environmental groups • Many groups monitor corporate responsibility • Social, economic, and environmental issues

3. Introduction (cont.) • Green practices – increasing efficiency of resource use; reducing impact on environment • Environment is one of the main focuses of corporate responsibility • As consumers become more environmentally aware, businesses are working to become “greener” – responsibility • Waste reduction and recycling, green building, energy and water conservation, use of green power, pollution prevention, etc.

4. Background • Term “corporate social responsibility” originated in 1970’s • Focus on corporate responsibility is still a relatively new area, but becoming “mainstream” • It has become a “multi-billion dollar public relations specialty” (http://www.sourcewatch.org/index.php?title=Corporate_Social_Responsibility)

5. Background (cont.) • Corporate responsibility reports for selected companies (2008): • Walt Disney Company • Starbucks Coffee Corporation • IBM • Coca-Cola Company

6. Benefits for the Business • Reduces resource use, waste and emissions: helps environment and saves money • Good reputation: easier to recruit customers and employees. • Helps the business comply with regulatory requirements. • Involvement with the local community generate positive press coverage. • Good relationships with local authorities make doing business easier. • Understanding the wider impact of the business can help it develop new products and services.

7. Benefits for Us • Builds trust between companies and stockholders, which is good for the market • The environment is protected • Consumers can express their views by choosing a company that has “green practices” Blackle is an example of a green practice. This black version of Google saves energy every time you use it!

8. Cons • Sometimes purely a marketing strategy • CSR not legally enforceable • Corporate citizenship vs. CSR • Fraud

10. Opinions • Good initiative but needs right motives • Is it manager’s duty?

11. Sources • http://www.cartoonstock.com/newscartoons/cartoonists/cca/lowres/ccan154l.jpg • http://www.delegatesource.com/images/corporate-social-responsibility.gif • http://crs.sagepub.com/cgi/reprint/34/1/51 • http://www.wisegeek.com/what-is-corporate-responsibility.htm • http://www.investopedia.com/terms/c/corp-social-responsibility.asp?&viewed=1 • http://en.wikipedia.org/wiki/Corporate_social_responsibility • http://dictionary.bnet.com • Eds. Kakabadse, Andrew and Mette Morsing. Corporate Social Responsibility. New York: Palgrave, 2006. • Orsato, Renato J. Sustainability Strategies. New York: Palgrave, 2009.