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Master of Arts in Communication : Corporate Communication Studies
elearning.lspr.edu
Course : Corporate Social Responsibility (1508CSR03)
Session Topic : Stakeholder Approach
Course: Corporate Social Responsibility
By Ida M. Bayuni, M.M.
LSPR eLearning Program
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• Part 1 Shareholders & Employees
• Part 2 Customers, Suppliers, Governments & Unions
• Part 3 Competitors et al
Content
Part1: Shareholders & Employees
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Stakeholder Approach: Overview
Stakeholder Approach
1. Identification of stakeholders
2. Understand specific claims
3. Reconciliation of claims,
• assignments of priorities
4. Coordination of claims with other elements
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Stakeholder: Shareholders
Shareholders
Appropriate returns on their investment,
1. Participation in,
a) Distribution of profits,
b) Additional stock offerings,
c) Assets on liquidation,
2. Vote of stock,
3. Inspection of company books,
4. Transfer of stock,
5. Election of board of directors,
6. Additional rights as have been established in the contract with the
corporation
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Stakeholder: Employees
Employees
Seek broadly defined job satisfactions,
1. Economic, social, & psychological satisfaction in the place of
employment,
2. Freedom from arbitrary & capricious behavior on the part of
company officials,
3. Share in fringe benefits,
• Freedom to join union
• Participate in collective bargaining
4. Individual freedom in offering up their services through an
employment contract
5. Adequate working conditions.
Part2: Customers, Suppliers, Governments & Unions
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Stakeholder: Customers & Suppliers
Customers
Want what they pay for,
1. Service provided with the
product,
2. Technical data to use the
product,
3. Suitable warranties,
4. Spare parts to support the
product during use,
5. R&D leading to product
improvement,
6. Facilitation of credit.
Suppliers
Seek dependable buyers,
1. Continuing source of
business,
2. Timely consummation of
trade credit obligations,
3. Professional relationship in
contracting for…
a. Purchasing &
b. Receiving goods &
services.
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Stakeholder: Governments & Unions
Governments
Want adherence to legislation,
1. Taxes
• Income,
• Property, &
• So on
2. Adherence to,
• the letter & intent of public policy
dealing with…
• the requirements of fair & free
competition
3. Discharge of legal obligations of business,
a. …people &
b. …organizations
4. Adherence to antitrust laws.
Unions
Seek benefit for their members,
1. Recognition as the
negotiating agent for
employees;
2. Opportunity to
perpetuate the union as a
participant in the business
organization.
Part3: Competitors et al
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Stakeholder: Competitors & Local Communities
Competitors
Want fair competition,
1. Observation of the norms of
competitive conduct established
by,
a) Society &
b) The industry
2. Business statesmanship on the
part of peers.
Local Communities
Want the company to be a responsible
citizen,
1. Place of productive & healthful
environment in the community,
2. Participation of company officials in
community affairs,
3. Provision of regular employment,
4. Fair play,
• Reasonable portion of purchases...
• …made in the local community,
5. Interest in & support of local
government, support of…
a) Cultural &
b) Charitable projects.
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Stakeholder: General Public
General public
Expects the company’s existence to improve the quality of life,
1. Participation in & contribution to society as a whole,
2. Creative communications between,
• governmental & business units…
• …designed for reciprocal understanding,
3. Assumption of fair proportion of the burden of,
a) Government &
b) Society,
4. Fair price for,
• products & advancement of the state-of-the-art technology that…
• …the product line involves.
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Stakeholder Approach: Level of Social Commitment
No
SocialResponsiveness
HighObligation
Low
Responsibility
Intermediate
1 Reactive Proscriptive Proactive
2 Proscriptive*Does more than required
by law
Anticipates &
prevents problems
3Adheres to legal
requirements
Does more than required
by economic considerations
Searches for society
responsible acts
4Adheres to economic
considerations
Avoids public stands on
issues
Takes public stands
on issue
*Proscriptive means,
• the firm reacts when its action is called,
• (or threatened to be called) to the public’s attention.
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Stakeholder Approach: From CSR to CSV
No CSR CSV
1 Values: doing goodValue: economic & societal
benefits relative to cost
2 Citizenship, philanthropy, sustainabilityJoint company & community value
creation
3Discretionary or in response to
external pressureIntegral to competing
4 Separate from profit maximization Integral to profit maximization
5Agenda is determined by external
reporting & personal preferences
Agenda is company specific &
internally generated
6Impact limited by corporate footprint
& CSR budget
Realigns the entire company
budget
7 Example: Fair trade purchasingExample: transforming procurement
to increase quality & yield.
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Course : Corporate Social Responsibility (1508CSR03)