Icebreaker   this will Mess With Your  Head… 3 MEN GO INTO A HOTEL. THE MAN BEHIND THE DESK  SAID THE ROOM IS £30 SO EACH ...
CORPORATE SOCIAL RESPONSIBILITY MA in Human Resource Management Oliver Parker, MBA 5th December 2007
Contents
We All Want A Better World Pertamina.com Pertamina.com telkomsel.com
What is ‘CSR’ Corporate social responsibility is a commitment to improve  community well-being  through discretionary busi...
Why?  Drivers for Change… <ul><li>Increased sales and market share </li></ul><ul><li>Strengthen brand positioning </li></u...
Drivers for Change, or… <ul><li>Preserving the ‘license to operate’ </li></ul><ul><li>Building a valid reputation </li></u...
CSR: Three schools of thought <ul><ul><li>CSR product market demand </li></ul></ul><ul><ul><li>Labour market demand </li><...
CSR: Three possible critiques <ul><ul><li>Distortions in the firm  </li></ul></ul><ul><ul><li>Distortion in the economy </...
NO! <ul><li>Agency Theory </li></ul><ul><li>“ the social responsibility of business is to make as much money as possible f...
Yes <ul><li>Stakeholder Theory </li></ul><ul><li>“ There exists an implicit or explixcit contract between business and the...
Organisational Developments
Features of CSR <ul><li>“ companies integrate social and environmental concerns in their business operations and in their ...
What forms does CSR take? <ul><li>Community involvement </li></ul><ul><li>Socially responsible investment </li></ul><ul><l...
CSR & HR…   <ul><li>Who should be responsible? </li></ul><ul><li>Marketing & PR  – a marketing tool & customer relationshi...
HR Role in Ethics & CSR <ul><li>Identify the values of the organisation </li></ul><ul><li>Drawing up a Code of Ethics </li...
Codes of Practice <ul><li>Declaration of Interest </li></ul><ul><li>Confidentiality & Accuracy of Information </li></ul><u...
“ Whistleblowing” why not! <ul><li>Public Interest Disclosure Act 1998 </li></ul><ul><li>Example:  Piper Alpha Oil Platfor...
Bristol-Myers Squibb
Best CSR Practices Evaluating Efforts Develop  & Implement Plans Select initiatives  to support  issues Choosing  Social I...
So what is… THE BOTTOM LINE! <ul><li>Build trust of stakeholders </li></ul><ul><li>More effective management of risk </li>...
Coca-Cola
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Bcu Op Mahrm (Corporate Social Responsibility)

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corporate social responsibility...some chance!

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Bcu Op Mahrm (Corporate Social Responsibility)

  1. 1. Icebreaker this will Mess With Your  Head… 3 MEN GO INTO A HOTEL. THE MAN BEHIND THE DESK  SAID THE ROOM IS £30 SO EACH MAN PAID £10 AND WENT TO THE  ROOM. A WHILE LATER THE MAN BEHIND THE DESK REALIZED THE ROOM WAS  ONLY £25 SO HE SENT THE BELLBOY TO THE 3 GUYS' ROOM WITH  £5. ON THE WAY THE BELLBOY COULDN'T FIGURE OUT HOW TO SPLIT £5  EVENLY BETWEEN 3 MEN, SO HE GAVE EACH MAN A £1 AND KEPT THE  OTHER £2 FOR HIMSELF. THIS MEANT THAT THE 3 MEN EACH PAID £9 FOR  THE ROOM, WHICH IS A TOTAL OF £27 ADD THE £2 THAT THE BELLBOY KEPT  = £29. WHERE IS THE OTHER DOLLAR?
  2. 2. CORPORATE SOCIAL RESPONSIBILITY MA in Human Resource Management Oliver Parker, MBA 5th December 2007
  3. 3. Contents
  4. 4. We All Want A Better World Pertamina.com Pertamina.com telkomsel.com
  5. 5. What is ‘CSR’ Corporate social responsibility is a commitment to improve community well-being through discretionary business practices and contributions of corporate resources. (Kotler)
  6. 6. Why? Drivers for Change… <ul><li>Increased sales and market share </li></ul><ul><li>Strengthen brand positioning </li></ul><ul><li>Improved corporate image and clout </li></ul><ul><li>Increased ability to attract, motivate, and retain employees </li></ul><ul><li>Decreased operating costs </li></ul><ul><li>Increased appeal to investors and financial analysts </li></ul>
  7. 7. Drivers for Change, or… <ul><li>Preserving the ‘license to operate’ </li></ul><ul><li>Building a valid reputation </li></ul><ul><li>Fostering corporate values and human resource goals </li></ul><ul><li>Meeting the expectation of host communities, activist groups and governments, as well as of customers, employees and investors </li></ul><ul><li>Responding to critical social issues such as education, poverty and health outside the company </li></ul><ul><li>Exploring and expanding access to new markets </li></ul><ul><li>Source: 2001 Boston college - US </li></ul>
  8. 8. CSR: Three schools of thought <ul><ul><li>CSR product market demand </li></ul></ul><ul><ul><li>Labour market demand </li></ul></ul><ul><ul><li>Capital market demand </li></ul></ul><ul><ul><li>National governments </li></ul></ul><ul><ul><li>International </li></ul></ul><ul><ul><li>government </li></ul></ul><ul><ul><li>Company membership </li></ul></ul><ul><ul><li>organisations </li></ul></ul><ul><ul><li>Human rights </li></ul></ul><ul><ul><li>Educational organisations </li></ul></ul><ul><ul><li>For-profit organisations </li></ul></ul>A combination of all these schools drives “applied” CSR… Public-private partnerships for applied CSR Neo-liberal school (markets provide CSR) State-led school “ Third sector” school
  9. 9. CSR: Three possible critiques <ul><ul><li>Distortions in the firm </li></ul></ul><ul><ul><li>Distortion in the economy </li></ul></ul><ul><ul><li>National governments </li></ul></ul><ul><ul><li>International </li></ul></ul><ul><ul><li>government </li></ul></ul><ul><ul><li>New Social Movement? </li></ul></ul><ul><ul><li>NGO capture </li></ul></ul>A combination of all these critiques unmasks “applied” CSR… site of contestation between public and private spheres Neo-liberal critique State-led critique “ Third sector” critique
  10. 10. NO! <ul><li>Agency Theory </li></ul><ul><li>“ the social responsibility of business is to make as much money as possible for the shareholders, within the rules of the game.” (Milton Friedman) </li></ul><ul><li>The role of business is to increase profits by legal means </li></ul><ul><li>The use of resources for greater good will decrease profits or increases prices or both </li></ul>
  11. 11. Yes <ul><li>Stakeholder Theory </li></ul><ul><li>“ There exists an implicit or explixcit contract between business and the community in which it operates.” </li></ul><ul><li>Cannon (1994) </li></ul><ul><li>“ The concept of an imaginery ‘operating licence’ granted to a company by the public, which can effectively be suspended or withdrawn if the company appears to be behaving badly.” </li></ul><ul><li>Royal Society, ‘The Role of Business in a Changing World.’ (1995) </li></ul><ul><li>Business exists to serve the greater community </li></ul><ul><li>Business is obligated to use its resources in ways that benefit society </li></ul>
  12. 12. Organisational Developments
  13. 13. Features of CSR <ul><li>“ companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis” </li></ul><ul><li>(EU Commission, 2001) </li></ul><ul><li>Behaviour – over and above… </li></ul><ul><li>Sustainable Development – economic, social, environment impact </li></ul><ul><li>Business Management – not an add-on to the core </li></ul>
  14. 14. What forms does CSR take? <ul><li>Community involvement </li></ul><ul><li>Socially responsible investment </li></ul><ul><li>Corporate governance </li></ul><ul><li>Fair trade </li></ul><ul><li>Sustainability </li></ul><ul><li>e.g. Tesco – ‘Computers-for-Schools’ or… </li></ul><ul><li>… Is this Cause-Related-Marketing (Monbiot, 2001) </li></ul>
  15. 15. CSR & HR… <ul><li>Who should be responsible? </li></ul><ul><li>Marketing & PR – a marketing tool & customer relationships </li></ul><ul><li>Company Secretary – regulation & corporate governance </li></ul><ul><li>Human Resources – cultural issues & human behaviour </li></ul>
  16. 16. HR Role in Ethics & CSR <ul><li>Identify the values of the organisation </li></ul><ul><li>Drawing up a Code of Ethics </li></ul><ul><li>Ethical Behaviour with key stakeholders (‘psychological; contract’, CIPD,2003) </li></ul><ul><li>Managing the culture of the organisation </li></ul><ul><li>Training & development </li></ul><ul><li>Maintaining the ‘Employer- Brand’ </li></ul>
  17. 17. Codes of Practice <ul><li>Declaration of Interest </li></ul><ul><li>Confidentiality & Accuracy of Information </li></ul><ul><li>Competition </li></ul><ul><li>Business Gifts </li></ul><ul><li>Hospitality </li></ul><ul><li>(CIPS, 2003) </li></ul><ul><li>‘ Can codes of ethics really produce consistent behaviours?’ </li></ul><ul><li>(Farrell, Cobin, Dieredre & Farrel - Journal of Managerial Psychology, 2002) </li></ul>
  18. 18. “ Whistleblowing” why not! <ul><li>Public Interest Disclosure Act 1998 </li></ul><ul><li>Example: Piper Alpha Oil Platform, 1988 </li></ul><ul><ul><li>Explosion of oil & gas production facility </li></ul></ul><ul><ul><li>167 persons lost their lives </li></ul></ul><ul><ul><li>Cullen Report: severe shortfalls in safety procedures </li></ul></ul><ul><ul><li>Company or managers were never prosecuted </li></ul></ul><ul><ul><li>Why did this happen? </li></ul></ul><ul><ul><ul><li>Workers fear for jobs for raising safety issues </li></ul></ul></ul><ul><ul><ul><li>Might embarrass superiors </li></ul></ul></ul>
  19. 19. Bristol-Myers Squibb
  20. 20. Best CSR Practices Evaluating Efforts Develop & Implement Plans Select initiatives to support issues Choosing Social Issues to Support
  21. 21. So what is… THE BOTTOM LINE! <ul><li>Build trust of stakeholders </li></ul><ul><li>More effective management of risk </li></ul><ul><li>Attracts & retains talent/diverse workforce </li></ul><ul><li>Facilities access to capital </li></ul><ul><li>Improves competitiveness, market positioning & profitability </li></ul><ul><li>(Arthur D. Little – BITC ‘The Business Case for CSR’, 2003) </li></ul>
  22. 22. Coca-Cola

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