CSR

CSRCSRSecond Class

Source (pic) - http://www.flickr.com/photos/metatron1050/1400813198/sizes/o//

Put the cards in order…

Most like you is the first card

and least like you is the bottom card

Move to the side of the room that most represents you

Discuss with your friends and provide examples that prove that your top card

is correct

Your bottom two cards represent your biggest opportunity for growth

The perfect team would have a member who has a top card that is different from yours

Do you have the resources?

1st presentation (January 24) The 10-15 minute presentation should be followed by a lively discussion. The PPT should summarize the assigned social initiatives and prepare a short presentation that includes the following;

Introduction Examples of initiatives Benefits &Concerns Keys to Success When to considerIdeas for Assumption University Conclusion and Discussion

Pair work OK for next week?

Generation Trends

Short Lecture

The “Six Options for Doing Good” (Corporate Social Initiatives)

Marketing Related

Cause PromotionsCause-Related MarketingCorporate Social

Marketing

Not typically Marketing RelatedCorporate PhilanthropyCommunity VolunteeringSocially Responsible

Practices

Business Ethics MagazineList of 100 Best Corporate Citizens (only publicly traded companies)

No Lodging Companies On This List

3 Restaurant Companies Listed

1 Airline Listed

*No Other Firm From T&T Listed

What is “good”?

SustainabilityCorporate CitizenshipCommunity Relations

Community DevelopmentGlobal Citizenship

Corporate Social Responsibility

CSR is a commitment to improve community well-being through

discretionary business practices and contributions of corporate

resources

-Kotler,Lee

Corporate Social Initiatives

Activities undertaken by a corporation to support social

causes and to fulfill commitments to CSR.

-Kotler, Lee

If we can’t define “tourism” by now a definitive CSR definition is

a long way off.

WTOWorld Business Council

Defining CSR, Redefining CSR, The evolving definition of CSR

What are the trends?

Increased GivingIncreased ReportingEstablishment of a Corporate Norm to

Do GoodA shift from Obligation to Strategy

The Traditional ApproachFulfilling an Obligation

The New ApproachSupporting Corporate Objectives

Why Do Good

Increased Sales and Market ShareStrengthened Brand PositionImproved Corporate Image and CloutIncreased Ability to Attract, Motivate and

Retain EmployeesDecreased Operating CostsIncreased Appeal to Investors and

Financial Analysts

Challenges to Doing Good

Choosing a Social IssueSelecting an Initiative to Address the

IssueDeveloping and Implementing Program

PlansEvaluation and Measurement

And that’s Chapter 1

any Questions?

Social Responsibility:…..more definitions

Corporate Social ResponsibilityThe idea that business has social obligations

above and beyond making a profit.Business has an obligation to groups in

society other than stockholders and beyond that prescribed by law.

A Continuum of Social Responsibility Strategies (extra)

Social Responsibility Strategies

Reactive StrategyDenying responsibility while striving to

maintain the status quo by resisting change.

Defensive StrategyResisting additional social responsibilities

with legal and public relations tactics.

Social Responsibility Strategies (cont’d)

Accommodation StrategyAssuming social responsibility only in

response to pressure from interest groups or the government.

Proactive StrategyTaking the initiative in formulating and

putting in place new programs that serve as role models for industry.

Who Benefits from Corporate Social Responsibility?

Altruism “Are you being altruisticaltruistic?”The unselfish devotion to the interests of others.

Research FindingsThere is a positive correlation between industry

leadership on a socially responsible issue (pollution control) and profitability.

Corporate social responsibility is a competitive advantage in recruiting talented people.

Who Benefits from Corporate Social Responsibility? (cont’d)

Enlightened Self-InterestA business ultimately helps itself by helping solve

social problems.An Array of Benefits for the Organization

Retention of talented employees.Help in recruiting the talented and socially

conscious.Help in swaying public opinion.Improved community living standards.…Others.

The Social Responsibility of Business Is to Increase Its Profits

Please read

Source - http://www.flickr.com/photos/tatianacardeal/36956189/

CSR?CSR?

Economist, Milton Friedman says:

“The social responsibility of business is to increase its profits.”

“What does it mean to say that "business" has responsibilities? Only people can have responsibilities.”

“…in a free society there is one and only one social responsibility of business – to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud."

Milton Friedman

1976 Nobel Prize Winner in Economics One of the most effective advocates of

economic freedoms and free enterpriseAn advocate of limited governmentHis theory asserts a corporation's

primary and perhaps sole purpose is to maximize profits for the stockholder.

Milton FriedmanTwo main supporting arguments:

Stockholders are the owners of the corporation, and hence corporate profits belong to them.Corporate executives are the stockholder's agents and must

operate in the interests of their principle (stockholders).This does not allow donations to charity by the corporation

(corporate executives) because the income belongs to the stockholders, not the corporate executives.

Individual proprietors are different in that if they choose to spend the income generated by their business they are spending their own money, not the money of other people.

Milton FriedmanStockholders/Stakeholders

Stockholders are entitled to their profits as a result of a contract among the corporate stakeholders.A stakeholder in this context refers to employees,

managers, customers, suppliers, the local community, and the stockholders.

Each stakeholder group has a contractual relationship with the firm, since they receive the remuneration they freely agreed to in a pre-established agreement (contract).

Encouraging Ethical Conduct

Code of EthicsPublished statement of moral expectations

for employee conductRequirements for an effective ethics code

Must describe specific practices as unethical (e.g., kickbacks, payoffs, gifts, falsification of records, and misleading product claims).

Must be firmly supported and fairly enforced by top management.

Millennium Development Goals

What are they?

Introduction

Agreed during the 2000 session of the United Nations General Assembly

Every UN Member State made the same commitment to meet the Goals by 2015

7th July 2007 marked the official “half-way” point

Goal 1

1. Eradicate extreme poverty and hunger

Reduce by half the proportion of people living on less than a dollar a day

Reduce by half the proportion of people who suffer from hunger

Goal 2

2. Achieve universal primary education

Ensure that all boys and girls complete a full course of primary schooling

Goal 3

3. Promote gender equality and empower women

Eliminate gender disparity in primary and secondary education preferably by 2005, and at all levels by 2015

Goal 4

4. Reduce child mortality

Reduce by two thirds (2/3) the mortality rate among children under five

Goal 5

5. Improve maternal health

Reduce by three quarters the maternal mortality ratio

Goal 6

6. Combat HIV/AIDS, malaria and other diseases

Halt and begin to reverse the spread of HIV/AIDS

Halt and begin to reverse the incidence of malaria and other major diseases

Goal 77. Ensure environmental sustainability

Integrate the principles of sustainable development into country policies and programmes; reverse loss of environmental resources

Reduce by half the proportion of people without sustainable access to safe drinking water

Achieve significant improvement in lives of at least 100 million slum dwellers, by 2020

Goal 8

8. Develop a global partnership for development

Address the least developed countries' special needs

Develop further an open trading and financial system that is rule-based, predictable and non-discriminatory, includes a commitment to good governance, development and poverty reduction - nationally and internationally

United Nations, Tourism and

Blue Washing

10 articles in the UN WTO Code of Ethics

Take a break

What are Uni’s

doing?

CSR and/or sustainability

www.cpi.cam.ac.uk/

Brainstorm with a partner for 10 minutes

Org name

Mission, Vision, Objective

Ideas for CSR projects

Ideas for Resources

-Activity (5% of Final Grade)-CSR Journal Article Search at the

Library

Print/Copy the article and prepare a one page summary in your own words for the next class