11/27/2011 Corporate Conscience ! … is it real ?4
11/27/2011 Legitimacy of Corporates “The traditional potency of the family, the church, and the local community suddenly seemed dwarfed by the sway of the giant corporations. This momentous shift in the balance of social forces created a crisis of legitimacy for the large corporation.” Roland Marchand (1998)5 GP Confidential
Economist, Milton Friedman• “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."
11/27/2011 From Shareholder to Stakeholder Society Reinvestment Shareholder Bonus8
Why CSR?• Consumers & Investors – Growing expectation for organisations to behave responsibly• Consumer Awareness – ‘Green’ and ‘Ethical’ consumerism• Legislation – H&S, EPA, Sustainability, Codes of Practice• Globalisation – Adoption of ‘Best Practice’, Consumer & Legal Acceptance.
Business advantages of CSR• Human Resources – Recruitment, retention and morale of Staff• Risk Management – Investment in „ethical brand equity‟ – „Greenwash‟ effect?• Brand Differentiation – As USP – Build brand loyalty – Reputation and brand attractiveness
Business advantages of CSR (continued)• Business Development – New markets, products and services• Resources Management – Better management and conservation of strategic assets• Stakeholder Management – Better internal and external relationships – Freedom of operation: reduce government, public, NGO intervention in organisation
11/27/2011 CSR – View of Grameenphone Ethical Ethical corporate behavior Responsible Responsible corporate actions Creating shared value for Value the community through economic, environmental Creation and social actions using our core competence13
11/27/2011 Grameenphone CR DNA Core Business (Connectivity) Internal External Responsible Social EH&S Business Products / Tradition al CSR Social Business Philanthropy Services Practice Tackling Social Health / Issues Health & Equal Code of Law & Health line / Sustainability Safety Opportunity Conduct Regulatory Transparency Study line Education / with Scholarship Relief Shelter Environment sustaina ble Business14 GP Confidential