CSR- The Smart Business Strategy

752 views
705 views

Published on

Corporate Social Responsibility

Published in: Business, Economy & Finance
0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
752
On SlideShare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
0
Comments
0
Likes
2
Embeds 0
No embeds

No notes for slide

CSR- The Smart Business Strategy

  1. 1. Corporate Social Responsibility1 Wali Memon October01, 2011
  2. 2. CSR a) EMPHASIS ON FAIRNESS b) HISTORICAL OVERVIEW c) POLITICAL CONTINUUM: stakeholder---------------------------------------------minimalist [left] [right]2 Wali Memon October01, 2011
  3. 3. Isn’t this what we have laws for? THE LAW IS NECESSARY BUT INSUFFICIENT a) THE LAW IS REACTIVE b) THE LAW IS SLOW c) BUSINESS IS CHANGE-ORIENTED & FASTER3 Wali Memon October01, 2011
  4. 4. Ethical Responsibilities Social Responsibilities Legal Responsibilities Economic Responsibilities4 Wali Memon October01, 2011
  5. 5. Community in a pre-modern, modern and postmodern world In Context Or… why we expect more from business and how “the game is played”5 Wali Memon October01, 2011
  6. 6. Pre-modern TRADITIONAL ENTREPENEURIAL Power goes to those who succeed in “the jungle” Authority resides in those with legitimacy– size; wealth; longevity confers authority Ethics based on individual responsibility and programs minimized6 Wali Memon October01, 2011
  7. 7. Modern COMMUNITY OF RATIONAL RULES i) BUREAUCRATIC ii) SCIENTIFIC MANAGEMENT iii) RELIANCE ON "EXPERTS" iv) COMPREHENSIVE RULES Power goes to those who make the rules. Relies on expertise Authority goes to those who can enforce their rules Reach for the top Ethics are based on “fairness’ and programs based on rules7 Wali Memon October01, 2011
  8. 8. Postmodern COMMUNITY OF FLEETING EXCHANGES i) NEED TO INTERPRET ii) NEED TO BUILD CONSENSUS iii) LOOSE CONNECTIONS iv) SUSPICION OF AUTHORITY Power goes to those who can “make the deal” through networking and can handle uncertainty Authority goes to those who see and can sell coalitions and deals regardless of other levels of authority Ethics are situational; programs emerge to be responsive8 Wali Memon October01, 2011
  9. 9. Take a guess… This is from the "Ottawa Citizen": Can you imagine working for a company that has a little more than 300 employees, and has the following statistics: 30 have been accused of spousal abuse 9 have been arrested for fraud 24 have been accused of writing bad cheques 95 have directly or indirectly bankrupted at least 2 businesses 4 have done time for assault 55 cannot get a credit card due to bad credit 12 have been arrested on drug related charges 4 have been arrested for shoplifting 16 are currently defendants in lawsuits 62 have been arrested for drunk driving in the last year alone Can you guess which organization this is?9 Wali Memon October01, 2011
  10. 10. CSR Models10 Wali Memon October01, 2011
  11. 11. Position Responsible to therefore…Minimalist Stockholders/ Maximizing profit ownersSelf interested Stockholders/ Do good when owners/ cost furthers quest for “controllers” growth and profitSocial contract Those with social Goes beyond law and legal contract to spirit of commitmentStakeholder Those who DevelopManagement influence direction responsive and fortunes strategiesStakeholder Society as whole / Solutions forstewardship future social problems11 October01, 2011 Wali Memon
  12. 12. The Case for the Minimalist12 Wali Memon October01, 2011
  13. 13. Minimalist CSR a.k.a.- traditional stockholders model, fundamentalism, Libertarian Friedman PREMISES -Shareholders 1st -Obey the law -Private vs Public [MINIMAL STATE]13 Wali Memon October01, 2011
  14. 14. Minimalist critiques of other models THEY DISTRACT FROM PROFIT MOTIVE THEY ARE SOCIALISTIC "PUBLIC GOOD" IS SUSPECT 14 Wali Memon October01, 2011
  15. 15. Self-interest Defining “Me”15 Wali Memon October01, 2011
  16. 16. Self-Interested CSRPREMISESGOOD MOTIVES NOT ENOUGHPROFITS & COMMUNITYCULTIVATING PHILANTHROPYREPUTATION16 Wali Memon October01, 2011
  17. 17. Critiques of other perspectivesMINIMALIST IS TOO RIGID ALL OTHERS IGNORE PROFIT17 Wali Memon October01, 2011
  18. 18. “weFord: endeavor to become a leading contributor to a more sustainable world”…”The Ford Motor Company Fund supports many local and national programs to affect change, provide for those in need, and improve quality of life.”“Are consumers, especially in North America, truly interested in and willing to pay for new technology?” http://www.ford.com/en/ourCompany/corporateCitizenship/ourLearningJourney/strategicIssuesUpdate/climateChange.htm 18 Wali Memon October01, 2011
  19. 19. Social Contract19 Wali Memon October01, 2011
  20. 20. SOCIAL CONTRACT CSR PREMISES CORPORATION AS "MORALPERSON" IMPLICIT & EXPLICIT CONTRACT WITH SOCIETY WITH POWER COMES RESPONSIBILITY20 Wali Memon October01, 2011
  21. 21. Critique of alternate 1ST 2 MODELS FOCUS TOO MUCH ON PROFIT21 Wali Memon October01, 2011
  22. 22. Example LEAKY" CONDO PLAYERS LACKED A SENSE OF "IMPLICIT" CONTRACT WITH SOCIETY … developers “put a lot of money into marble countertops and fancy kitchens because that’s what sells the product. And consequently they don’t spend a lot of time thinking about how it looks [and functions] from the outside. It’s designing inside out.” http://www.myleakycondo.com/com020601.htm22 Wali Memon October01, 2011
  23. 23. Stakeholder Management23 Wali Memon October01, 2011
  24. 24. 3 STAKEHOLDER GROUPS: *PRIMARY [ECONOMIC] *SECONDARY [SOCIO POLITICAL] * TERTIARY [POWERLESS]24 Wali Memon October01, 2011
  25. 25. Critiques of alternatives 1ST 2 MODELS TOO PROFIT-FOCUSED -S-C MODEL IS TOO VAGUE25 Wali Memon October01, 2011
  26. 26. Examples CITIZENSBANK SHELL26 Wali Memon October01, 2011
  27. 27. STAKEHOLDER STEWARDSHIP27 Wali Memon October01, 2011
  28. 28. Stakeholder Stewardship PREMISES -CARING FOR TERTIARY -HELP NON-BENEFICIAL PARTIES -HOLD IN TRUST -ASPIRE TO HIGH IDEALS *ALL OF THIS PRESUPPOSES TIME & MONEY28 Wali Memon October01, 2011
  29. 29. Critiques of alternate -1ST 2 MODELS TOO PROFIT-FOCUSED -S-C MODEL TOO VAGUE STAKEHOLDER MODEL NOT AMBITIOUS ENOUGH29 Wali Memon October01, 2011
  30. 30. ExampleBen and Jerrys“Ben & Jerry’s Head of Social Mission has returnedfrom a two-week mission in Cote d’Ivoire and Mali onthe subject of alleged child trafficking in West Africa”http://www.benjerry.com30 Wali Memon October01, 2011
  31. 31. Issues of trust and change: Minimalist Change Issues Trust Hyper Trust growsParticipants competition when Investors/ globalization performance stockholders meets Owners / expectation; managers Distrust if fails to meet expectation 31 Wali Memon October01, 2011
  32. 32. Issues of trust and change:Self Interested Model Change Issues Trust Competition Trust grows Reputation whenParticipants enhancement program Program advocates advocates Owners / managers deliver enhanced corporate reputation; 32 Wali Memon Distrust if do October01, 2011 not
  33. 33. Issues of trust and change:Social Contract Change Issues Trust Need for Trust growsParticipants flexibility when keeps Those with internationaliz legal and contracts with firm ation social Owners / contracts managers over time; Distrust if do willing to 33 Wali Memon violate them October01, 2011
  34. 34. Issues of trust and change:Stakeholder Management Change Issues Trust Information Trust growsParticipants access to firm when Primary and increases stakeholders secondary Systems feel included Owners / open to in decision managers scrutiny making Distrust if feel excluded 34 Wali Memon October01, 2011
  35. 35. Issues of trust and change:Stakeholder Stewardship Change Issues Trust Pressure to Trust grows when include firm willing toParticipants tertiary negotiate withSpokespersons for tertiary Worry about spokespersonsOwners / managers environment for tertiary Distrust if feel excluded 35 Wali Memon October01, 2011
  36. 36. Modeling the context Premodern Minimalist Self Interested Modern The social contract Postmodern Stakeholder (management and stewardship)36 Wali Memon October01, 2011
  37. 37. Ethical Responsibilities Social Responsibilities Legal Responsibilities Economic Responsibilities37 Wali Memon October01, 2011
  38. 38. Questions38 Wali Memon October01, 2011

×