CSR Business Ethics HEM 2015 2016

8/16/2019 CSR Business Ethics HEM 2015 2016

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Corporate Social Responsibility

and Business Ethics

Pr. Manal EL ABBOUBI, PhD



Who I am?

• Manal EL ABBOUBI, Associate Professor

• PhD, HEC Belgium

• Expertise area: diversity management, CSR,stakeholder management, leadership, Team

management

• Previous experiences: Louvain School ofManagement, HEC Management school of

management, UQAM, ESC La Rochelle.

03/02/2016 2©Manal EL ABBOUBI



Course objectives

1. Understand issues related to Business ethics

and corporate social responsibility2. Understand the basic features of stakeholder

management

3. Be able to build and use KPI related to CSR




Course Agenda


• 8 sessions of 3h

CM TD

- Corporate SocialResponsibility

- Stakeholder Management

- Diversity Management

- Ethical leadership- Ethical issues in

management

- Harvard Business reviewreading

- Group presentations

- Case study analysis



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Corporate Social

Responsibility

03/02/2016 ©Manal EL ABBOUBI 6

CSR



03/02/2016 © Manal EL ABBOUBI 7

Session 1: CSR introduction

Questions to answer

• What is the role of the firm?

• Corporate Social Responsibility: what

does it mean?

• Reasons why development of the CSR

field?

• What are CSR success factors?




What is the role

of the firm?




What are the criteria of a

responsible organization?

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Responsibility types Source: Carroll, A. B. (1991), ‘The pyramid of corporate social responsibility: toward the

moral management of organizational stakeholders,’ Business Horizons (Jul-Aug), 39-48.




“The term [CSR] is a brilliant one; it means

something, but not always the same thing, to

everybody” (Votaw, 1973)

“The corporate social responsibility field is not only

a landscape of theories but also a proliferation of

approaches, which are controversial, complex and

unclear” (Garriga and Melé, 2005)

“CSP, together with CSR, carry no clear meaning

and remain elusive constructs. They have defied

definition […]” Clarkson (1995: 92)

Numerous

meanings of

CSR

Numeroustheoretical

approaches

Lack of

theoretical

foundations

Corporate Social Responsibility:

what does it mean?




BusinessEthics

CSR

Corporate

citizenship

Corporate

Social

Responsiveness

Social issuesmanagement

Sustainable

Development

Corporate

SocialPerformance

Business

andSociety

Stakeholder

theory




“C orporate social responsibility

is the notion that corporations have an

obligation to constitute groups in society other than stockholders and

beyond that prescribed by law or union contract”

Jones

(1980) Act beyond economic,

contractual and legal

responsibilities

Definition Authors Type of approach

“The social responsibility of business encompasses the economic, legal,

ethical and discretionary expectations that society has of organisations

at a given point in time”

Carroll

(1979)Volontarily answer to

society’s expectations

Wood

(1991)Respect principles at

the institutional,

organizational and

managerial level

“ Corporate social performance is «a business organization’s

configuration of principles of social responsibility, processes of socialresponsiveness, and policies, programs and observanle outcomes as

they relate to the firm’s societal relationships”

Wartick &

Cochran(1985)

Corporate social

performance as anintegration of CSR

approaches

“ The meaning of CSR must be considered through the interaction of

three principles: legitimity (institutional level), public responsibility

(organizational level), managerial discretion (individual level)”

CSR is related to the company’s ability to manage and to satisfy the

concerns of its different stakeholders

Clarkson

(1995)Social performance as

a way to satisfy

stakeholders




• Financial, social and environmental scandals largely covered by the media

Reasons why?




• Financial, social and environmental scandals largely covered by the

media

• Increasing pressures from different stakeholders

Reasons why?
















































“2/3 of citizens ask for companies that go beyond their historical role ofmaking profit, paying taxes and obeying the law: they want companiesthat contribute to broader social goals, that realize charities investment,

and investment projects in community”

(results of a survey on 25000 citizens from 23 countries on the 5

continents, Nelson, 2000)

Pressures from citizens




Pressures from consumers

• Increasing desire to buy on other criteria than price, quality and availability

• ‘Frequent’ boycott of irresponsible companies (effects?…)

• 86% claimed to be more likely to buy products from a company whichengages in social actions (4000 respondents from Italy, Germany, France andUK, Ipsos, 1999)

• From 1998 to 1999, increase from 28% to 41% of English consumers who saythat social activities are very important to take into account in their buyingdecisions (1000 respondents, MORI)




• BEFORE investing, they try to find out information about company activities ondifferent aspects

– They want to invest according to their moral, philosophical or religiousconvictions

– They want to invest money where latent risks are clearly identified and

taken into account in company management

88% of financial analysts think that companies that are involved in CSR activitiesmanage better their environmental and social risks than others

(302 financial analysts from 9 European countries, SOFRES, 2001)

• AFTER investing, they can give their opinion about the management of the

company

Pressures from investors




• Pressure of a company on its suppliers, partners…

– Nike: application of American standards in its suppliers’

companies abroad

– French retailers: pressures on producers to incite them to

respect the rules of the International Labor Organization and to

help them understand the commercial interests to become

socially responsible

• Probably one of the strongest pressures

Pressures from other companies





• Increasing pressures from different stakeholders

• Evolution of the institutional framework:

– Laws that force companies to include social andenvironmental information in annual reports

– The European commission published in 2002 a

communication entitled « CSR of companies:companies’ contribution to sustainabledevelopment »

Reasons why?





• Increasing pressures from different stakeholders (NGOs, consumerassociations, environmentalist groups, consumers…)

• Evolution of the institutional framework:

– Laws that force companies to include social andenvironmental information in annual reports

– The European commission published in 2002 acommunication entitled « CSR of companies:

companies’ contribution to sustainabledevelopment »

Development of an enlarged conception of corporate responsibilities

Reasons why?



2-37

Best Corporate Citizens

1. Green Mountain Coffee

2. Hewlett-Packard

3. Advanced Micro Devices

4. Motorola

5. Agilent Technologies

6. Timberland

7. Salesforce.com

8. Cisco Systems

9. Dell

10. Texas Instruments

11. Intel

12. Johnson and Johnson

13. NIKE

14. General Mills

15. Pitney Bowes

16. Wells Fargo

17. Starbucks

18. Wainright Bank & Trust

19. St. Paul Travelers

20. Ecolab

Source: Philip Johansson, “The Best 100 Corporate Citizens,” Business Ethics, March/April 2006, p. 22.



2-38

Arguments for Social

Responsibility

1. Business helped to create many of the social

problems that exist today, so it should play a

significant role in solving them

2. Businesses should be more responsible becausethey have the financial and technical resources to

help solve social problems

3. As members of society, businesses should do theirfair share to help others



2-39

Arguments for Social

Responsibility

4. Socially responsible decision making by businesses

can prevent increased government regulation

5. Social responsibility is necessary to ensure

economic survival

– Businesses must take steps to help solve the social and

environmental problems that exist today



2-40

Arguments Against Social

Responsibility

1. Managers are sidetracked from the primary goal of

business

– Earning profits

2. Participation in social programs gives businessesgreater power, perhaps at the expense of particular

segments of society



2-41

Arguments Against Social

Responsibility

3. Some people question whether business has the

expertise needed to assess and make decisions

about social problems

4. Many people believe that social problems are the

responsibility of government agencies and officials



2-42

Social Responsibility Issues

• Organizational relationships with owners and

stockholders:

– Profit and ROI

• Employee relations: – Providing a safe workplace, adequate pay, information

about the company, listening to grievances, and treating

employees fairly

• Consumer relations: – Respecting the rights of customers and providing them

with safe and satisfying products



2-43

Social Responsibility Issues

• Environmental issues:

– Animal rights

– Pollution

– Global warming

• Community relations:

– Responsibility to the general welfare of the

community

Did You Know?

In one year, Americans generated 230 million tons of

trash and recycled 23.5 percent of it.



2-44

Responsibility of the Ethics

Officer

• Provide advice about ethics to employees and

management

• Distribute the company’s code of ethics

• Create and maintain an anonymous, confidential

service to answer questions about ethical issues

• Take action on ethics violations

• Review and modify the code of ethics as needed




CSR implementation




• The management involvement(charter, code of conduct, cleardirections, allocation of

resources, integration into thestrategy).

CSR- Key Sucess Factors -

• Vision / Mission

Vision: where to go?Mission: what do we have to do?

http://images.google.be/imgres?imgurl=http://www.sncf-international.net/upl/image/Thalys.jpg&imgrefurl=http://www.sncf-international.net/fr/page.php?id=21-BE&usg=__Oo9LkJDxjZecSFH3FixDO8QWGKU=&h=407&w=540&sz=44&hl=fr&start=70&um=1&tbnid=6sU_nBIjNVXzLM:&tbnh=99&tbnw=132&prev=/images?q=thalys&ndsp=18&hl=fr&sa=N&start=54&um=1




• Involvement and conviction ofemployees for a day to day

application• Integration into the strategy:

finance, marketing, supply chaine,

RH, techniques…etc.)

CSR - Key Sucess Factors -

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Example of a benchmark framework

Term used

Type

Signed/Forewordby

Values

Stakeholders

Scope

Lenght

Style used

Outline of content

http://images.google.be/imgres?imgurl=http://www.askyprint.com/images/hp_logo.jpg&imgrefurl=http://www.askyprint.com/catalogue/catalogue.html&usg=__xBrrjc4seGecT4XNhBeirqy8Edk=&h=461&w=559&sz=30&hl=fr&start=2&um=1&tbnid=YsgL2ik3VBkVPM:&tbnh=110&tbnw=133&prev=/images?q=hp&hl=fr&sa=N&um=1

http://images.google.be/imgres?imgurl=http://www.crc-amem.com/Novo%20Nordisk.jpg&imgrefurl=http://www.crc-amem.com/commanditaires.html&usg=__e0SjCKK-HZ9DsJNWUfRok8hWCuE=&h=1393&w=1686&sz=116&hl=fr&start=1&um=1&tbnid=lK8c41CeITH44M:&tbnh=124&tbnw=150&prev=/images?q=novo+nordisk&hl=fr&sa=N&um=1

http://www.orange.com/fr_FR/

http://www.vodafone.com/hub_page.html

http://info.telefonica.es/




CSR - Tools

• Networks: tools, good practices, practices to avoid, funding research

• CSR Europe Tool box

http://images.google.be/imgres?imgurl=http://www.uclouvain.be/cps/ucl/doc/ucl/images/banner.jpg&imgrefurl=http://www.uclouvain.be/csr-network.html&usg=__q9vm3ebjA3krffFJOGcd9sRmWSo=&h=769&w=1154&sz=377&hl=fr&start=2&um=1&tbnid=nWeCCTfxIGoJ9M:&tbnh=100&tbnw=150&prev=/images?q=louvain+csr+network&hl=fr&sa=N&um=1

http://images.google.be/imgres?imgurl=http://enews.vocommunication.com/bs/bs-top.jpg&imgrefurl=http://enews.vocommunication.com/bs/bandsfr.html&usg=__gFyC4Rl7D4hQ1qlvzJ3Yl4mqCIk=&h=276&w=595&sz=89&hl=fr&start=2&um=1&tbnid=dRFQNKyDfvf2UM:&tbnh=63&tbnw=135&prev=/images?q=business+and+society+belgium&hl=fr&sa=N&um=1

http://images.google.be/imgres?imgurl=http://www.fortisbank.com/fr/durable/images/csr_europe.jpg&imgrefurl=http://www.fortisbank.com/fr/durable/reseaux.asp&usg=__KE7sEaXPdGbNEOQX1oAVxIZ2WP4=&h=100&w=100&sz=11&hl=fr&start=1&um=1&tbnid=8dGzoxLVcpIjNM:&tbnh=82&tbnw=82&prev=/images?q=CSR+Europe&hl=fr&sa=N&um=1




p




CSR – Tools

• Labels and standards: a global approach, with or without certification,imply planning, implementation, follow up and sustainability

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http://images.google.be/imgres?imgurl=http://rabuteau.blog.ouestjob.com/public/iso.jpg&imgrefurl=http://rabuteau.blog.ouestjob.com/index.php/tag/iso%2026000;%20d%C3%A9veloppement%20durable;%20emploi&usg=__mbHay-wOC4SFv2Fi1KSWeuvLplI=&h=85&w=75&sz=9&hl=fr&start=11&um=1&tbnid=QpK3SU5xZ1rd8M:&tbnh=76&tbnw=67&prev=/images?q=iso+26000&hl=fr&sa=N&um=1

http://images.google.be/imgres?imgurl=http://www.ethias.be/upload/logos/diversiteFR1.jpg&imgrefurl=http://www.ethias.be/fr/prd/CPIF231/A_propos_d_Ethias/Nos_valeurs/Une_entreprise_responsable/Label_social.htm&usg=__5YetGVa3MzjJ7XQ_RDSgxlM8WGs=&h=160&w=157&sz=7&hl=fr&start=7&um=1&tbnid=yKWZassDSqvRZM:&tbnh=98&tbnw=96&prev=/images?q=label+%C3%A9galit%C3%A9+diversit%C3%A9&hl=fr&sa=N&um=1

http://images.google.be/imgres?imgurl=http://www.accountability21.net/uploadedImages/Issues/AA1000AS%20(2008).jpg&imgrefurl=http://www.accountability21.net/blogs.aspx?id=3944&blogid=42&usg=__TVi3TSVbU-p6iYecWJn8OYQCdu8=&h=131&w=360&sz=10&hl=fr&start=13&um=1&tbnid=G24It57OU4XfkM:&tbnh=44&tbnw=121&prev=/images?q=aa1000&hl=fr&um=1

http://images.google.be/imgres?imgurl=http://www.triscall.com/images/logo_sa8000.gif&imgrefurl=http://www.triscall.com/&usg=__kdZI-nat8vKRwbN3Lk6e_9gMcYg=&h=145&w=157&sz=5&hl=fr&start=13&um=1&tbnid=iLFyM1eHpYUJgM:&tbnh=90&tbnw=97&prev=/images?q=SA8000&hl=fr&sa=N&um=1




Example of a certification

SA8000

• Child Labour

• Forced Labour

• Health and Safety

• Freedom of Association & Right to Collective Bargaining

• Discrimination• Disciplinary practices

• Working Hours

• Remuneration

• Management Systems




CSR - Tools

• Code of conduct• Ethical charter• Social Audit

http://images.google.be/imgres?imgurl=http://www.bbl-transport.com/fr/images//600px-panneau_attention_svg.png&imgrefurl=http://www.bbl-transport.com/fr/index.php?option=com_content&task=view&id=99&Itemid=223&usg=__kYPP1R4rHfnI7YZLAkCoXXEyMs8=&h=500&w=600&sz=83&hl=fr&start=7&um=1&tbnid=P_uJkyfltj4msM:&tbnh=113&tbnw=135&prev=/images?q=attention&hl=fr&sa=N&um=1




CSR Tools

• Code of conduct Voluntary approach / involvement / behavior /

values

4 types• Organizational• Professional

• Industrial• Program

CSR Implementation




Board Management

Strategy finance marketing CRM HR

Where to place CSR?

CS p




Managing CSR

orManaging by CSR?

Le niveau de responsabilité

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Le niveau de responsabilité

Contexte

international

Contexte

national

Contexte

local

Fournisseurs-

Sous Traitants

Entreprise

DRH

D° de

MaîtriseCadrelégal

03/02/2016 58



Les enjeux sociaux selon ISO26000

03/02/2016 59



1

23

4

5

03/02/2016 60



03/02/2016 61



Formation des Business Partners

http://www.atlascopco.com/corporateresponsib

ility/videos/elearning/

03/02/2016 62

http://www.atlascopco.com/corporateresponsibility/videos/elearning/






Stakeholder

Management


Stakeholder

Management




Introduction to

the Stakeholder Theory




The stakeholder approach

• One way to understand theexpectations and often conflicting

interests and competition fromseveral stakeholders. Interests may beeconomic, social, legal or political




• To be responsible towards whom?

– One major challenge for an organization is to definetowards whom it is responsible.


Responsibility types




p y ypSource: Carroll, A. B. (1991), ‘The pyramid of corporate social responsibility: toward the

moral management of organizational stakeholders,’ Business Horizons (Jul-Aug), 39-48.



S k h ld Th




Firm Shareholders

Employees Suppliers

Customers

Civilsociety

Competitors Governmen

t

Stakeholder Theory

Stakeholder Theory




Firm

Shareholders

Supplierstakeholder

1

Suppliers

Customers

Civil society

Competitors Government

Employees

Civil society

stakeholder

2

Civil society

stakeholder

1

Employeestakeholder

2

Employee

stakeholder

1

Customer

stakeholder

1

Customer

stakeholder

3

Stakeholder Theory

A Network Model




1. Identification

2. Classification3. Management

The stakeholder approcah

What is astakeholder ?




A stakeholder?

-characteristics?

-Links with the organization?

-Type of request?

-Type of management?

Wh i k h ld ?




What is a stakeholder?





k d ?





Freeman (1984, p25)

“ A stakeholder in an organization is (by its definition) any group or individual who can affect or is affected by the

achievement of the organization's objective .”

Wh i k h ld ?





•Post, Preston et Sachs (2002)

•«all individuals and constituentelements which contribute deliberately

or otherwise to the firm’s capacity to

create value, who are its mainbeneficiaries and/or bear its risks. »

The company? A Stakeholder or




p y

not?

COMPANY

Suppliers

Investors

Local community

Regulators

Employees

Customers

Competitors

Pressure groups

…

…




You are a student in theMaster level. How do

you define yourstakeholders? Who arethey?

Brainstorming

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http://images.google.be/imgres?imgurl=http://beamma-design.fr/Amine/Travaux/Utilitaires/Post_it/Post_it.png&imgrefurl=http://beamma-design.fr/Amine/Travaux/Utilitaires/&usg=__yfhbM4jP69B3sPL9W6OVlU8Hibo=&h=512&w=512&sz=106&hl=fr&start=77&um=1&tbnid=o5G4UimM7vDdvM:&tbnh=131&tbnw=131&prev=/images?q=post+it&ndsp=18&hl=fr&sa=N&start=72&um=1




1. Identification

2. Classification

3. Management


What are stakeholder

types? What abouttheir salience?




• Stakeholders present / past / potential

• macro / micro perspective

Stakeholder typologies

S k h ld li ?




Stakeholder salience ?




• Henriques and Sadorsky (1999)

Organizational stakeholders (e.g., employees, customers, shareholders, suppliers)

Community stakeholders (e.g., local residents, special interest groups)

Regulatory stakeholders (e.g., municipalities, regulatory systems)

Media stakeholders

Existing typologies




Primary stakeholders : a direct link with the organisation survival

(Clarkson 1988)

• Secondary stakeholders = social and political actors

Essential role for the organization in gaining

approval of its activities and business credibility

Communities, governments and NGOs

Existing typologies

Existing typologies




Existing typologies

Author Categories Criteria

Freeman (1984) Important / Non important Strategic issue

Clarkson (1995) Primary / secondary Firm’s survival

Clarkson (1995) Voluntary / non voluntary Investment risk

Mitchell et al. (1997)

discretionary, dependant, dominant,dormant, urgent, definitive and

dangerousPower, legitimacy, urgency

Carroll et Nasi (1997) Internal / External relationship

Phillips (2003) Normative / derivative Moral obligations

Sobczak et Girard(2006)

Allied, committed, passive and militant. Organizationalcommitment, social

commitment

Existing typologies




Author Categories Criteria

Freeman (1984) Important / Non important Strategic issue

Clarkson (1995) Primary / secondary Firm’s survival

Clarkson (1995) Voluntary / non voluntary Investment risk

Mitchell et al. (1997)

discretionary, dependant, dominant,dormant, urgent, definitive and

dangerousPower, legitimacy, urgency

Carroll et Nasi (1997) Internal / External relationship

Phillips (2003) Normative / derivative Moral obligations

Sobczak et Girard(2006)

Allied, committed, passive and militant. Organizationalcommitment, social

commitment

Existing typologies

Group Paper to present Paper to challenge

l h d l k h ld l




Amine jazouli Shared value Stakeholder involvement

Taghy Yousra What is the matter withbusiness ethics Is the ethic of businesschanging

Bader khaladi Philantrophy agenda by

M.Porter

Michael porter

Fenjiro sarah Michael porter Philantrophy agenda by

M.Porter

Zahra jazouli Is the ethic of businesschanging

What is the matter withbusiness ethics

Samia erguig Stakeholder involvement Shared value

Group Paper to present Paper to challenge

id / h d l k h ld i l




Bensaid sara /

narjiss/ wahiba

Shared value Stakeholder involvement

Anass / Nidal /Taha What is the matter withbusiness ethics Is the ethic of businesschanging

Ibtissam :

Oumaima /

Sophia

Philantrophy agenda by

M.Porter

Michael porter

Soukaina/ Afaf/

Saifeddine

Michael porter Philantrophy agenda by

M.Porter

Nabila/Soukaina

EL MARDI

Is the ethic of business

changing

What is the matter with

business ethics

Anass / Saad Stakeholder involvement Shared value

Mitchell, Agle & Wood (1997)







The model specificities

• Dynamic model

• Based on the manager’s perception

The model application




DéfinitiveXXXGG

DiscrétionnaireXFournisseur FF

UrgenteXFournisseur EE

DangereuseXXFournisseurDD

DominanteXXFournisseurCC

DépendanteXXSous-traitantBB

DépendanteXXFournisseurAA

Client

Types

DéfinitiveXXXBD

Type de PPUrgenceLégitimitéPouvoirNoms des partiesprenantes

LEGITIMITY POWER



03/02/2016 © Manal EL ABBOUBI 91URGENCY

PP discretionnary

A B

V

P

RR

PP Dependant

IMP

Bq

Bq

PC

PP NE

PP Définitives

BD

LG

CP

EM

AU

ASS

PP Dominant

SC

PP Dangerous

TT

PP urgent

TLL

Sobzack & Girard (2006)




Orgnizational

commitment

Social

commitment

Allied

Passives

Commited

Militants

Engagementorganisationnel




Engagement dans

le processus RSE

allied

passive

commited

Militant

AA

Cg

BD

RGT

OMP EEMP ASS

UNI

TRD TDRF

UJ U intérim

RF

Tl

TE

RR

BQ1 BQ2

PP IMP

Nt





1. Identification

2. Classification3. Management


How to manage

stakeholders?

Double direction interaction




Double direction interaction

General case

Organisation Organisation

Reactive approach Proactive approach

A stakeholder Management




Step 1 : Initial Event

Step 2 : 1st actor’s positionning

Step 3 : 1st organizational answer

Step 4 : 2nd actor’s positionning

Step 5 : 2nd organizational answer

+

Legitimacy

Organizat

ional

com

mitm

ent

Allied Committed

Passives Militants

Social commitment

Positioning model of Sobzackand Girard (1997)

Power

Urgency

Positioning model of Mitchell

& al (1997)

Modified from Preble (2005)

CONTEXTUALIZATION

PROBLEMATISATION

OBLIGATORY PASSAGEPOINT

ENROLEMENT

INVOLVMENT

Akrich, Callon and Latour,

(1988)

Model

Source: EL ABBOUBI M, CORNET A, (2009), La mobilisation des parties prenantes dans les certifications liéesà la Responsabilité sociale de l’entreprise, Editions de l’Université de Liège, Liège.




Stakeholder dialogue




With all of them

?

What subject?

How to avoid

frustration?

What are their

expectations?

Are we ready to

answer to all their

requirement ?

Practically, who will

dialogue with what

stakeholder?

Stakeholder dialogue challenges




g g





g

challenges





challenges





g

challenges


h ll




challenges





challenges













g

The different form of dialogue :

strategies and actions





Th P l A h




The Pannel Approach



Responsible Communication

CSR communication



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1. CSR communication definition

2. The means of CSR communication

3. The reasons for CSR communication

4. The risks of CSR communication

5. Conclusion

CSR communicationD fi iti



112

Definition

« Communication that is designed and distributed by the company itself about

its CSR efforts » (Morsing, 2006, p.171)

Sustainable Marketing is « The process of planning, implementing, and

controlling the development, pricing, promotion and distribution of products in

a manner that satisfies the following three criteria :

1) Customer needs are met;

2) Organizational goals are attained; and

3) The process is compatible with ecosystems. » (Fuller, 1999)

Link the 4Ps of Marketing, including communication, to the 3Ps of

sustainable development (People, Planet, Profit)

CSR communicationis not limited to:



Cause-related marketing

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is not limited to:

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CSR communicationis not limited to:



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Social communication

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CSR communication means

Means of CSR communicationAnnual report



116

p

CSR report

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Means of CSR communicationCorporate website



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p

New « CSR » page

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Means of CSR communicationAdvertising



Chiquita

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g

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Means of CSR communicationAdvertising



Dove

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g

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Reasons for CSR communication

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Reasons for CSR communicationCSR communication debate



121

Should companies communicate about their CSR

initiatives (Tixier, 2004) and are the traditional marketing

tools appropriate to do so?(van de Ven, 2008)

• Use of environmental arguments on the increase

• Increased stakeholders’ expectations

• Fear of criticism• Once communicated, even the best intentions will be called

into question (Tixier, 2004)

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Reasons for CSR communicationCSR communication debate



122

Example :

• Product development

• « Products that are good for your health… and products that are good, period. »

• Social and environmental code of conduct

• Employee awareness

• Hybrid cars

• Offices

No direct communication about its CSR efforts

Reasons for CSR communicationImportance of CSR communication



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Used wisely, communication has an extraordinary power : notonly to inform, but to challenge and to inspire (Futerra & UNEP, 2005)

Communication is the fourth pillar of sustainable development(Libaert, 2004)

Avoiding the gap between stakeholders’ perceptions and reality

(van de Ven, 2008; Wicki & van der Kaaij, 2007)

Various research show that consumers hold more positiveattitudes towards companies that are positioning themselves as

socially responsible in their communications (e.g. Du, Bhattacharya, &

Sen, 2007)

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Reasons for CSR communicationAccording to the audience



124

2007 Ipsos survey, 1011 French respondents

62% think that it is legitimate for advertising to talk about

ecology

BUT only 9% are sure that the claims are accurate

2004 Cone Corporate Citizenship study, 1033 American

respondents

Want companies to communicate more about their CSR

initiatives

40% think that companies can do a better job to communicate

their CSR objectives and achievements



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Risks of CSR communication

« It takes 20 years to build a reputation and 5 minutes

to ruin it » (Warren Buffet)

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Risks of CSR communicationStakeholders’ skepticism



126

« Marketing perhaps more than other management disciplines is viewed with

a great deal of cynicism and suspicion when it attempts to convey a more

socially responsible message » (Jahdi & Acikdalli, 2009, p.104)

Various studies show that CSR can, in some circumstances,increase stakeholders’ skepticism and cynicism (Mohr, Webb, & Harris,

2001 ; Sen & Bhattacharya, 2001 ; Schlegelmilch & Pollach, 2005 ; Yoon, Guran-Canli,

& Schwarz, 2006)

Attribution of self-serving motives

Perceived credibility of the company

Industry in which the company operates

Etc.

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Risks of CSR communicationAttract criticism



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Companies that set themselves up as models are more

likely to be attacked by the media or advocacy groups(Schlegelmilch & Pollach, 2005)

« The more transparent we are, the more we get criticized, and it is

quite surprising to see that companies that are not doing anything in

the field [CSR] are also the ones that are the least criticized » (Tom

Delfgauw, former VP of Shell, SEE Newsletter, 2001)




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Example: Dove – Campaign for real beauty

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http://localhost/var/www/apps/conversion/tmp/scratch_4/Films/Dove.wmv










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Example: Dove – Campaign criticism by Rye Clifton

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Example: Dove – Reaction of Greenpeace

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Risks of CSR communicationGreenwashing



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What is it?

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Nuances

Where do we draw the line?

Predictive power of communication (Libaert, 2006)

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Conclusion

CSR communicationConclusion



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CSR communication debate

Many arguments in favor of CSR communication

However, there are risks associated to CSRcommunication

Stakeholders’ skepticism

Criticism Greenwashing

Lack of coherence

…

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CSR communicationConclusion



Tips for CSR communication

Must be based on facts

Avoid being vague and misleading the viewer

Avoid displaying too much information

Take into account the stakeholders

Assess all of the potential effects

Documents

CSR Business Ethics HEM 2015 2016