Contemporary Economic Issues Facing the Filipino Entrepreneur (1).pptx
Corporate Social Responsibility: The Good, the Bad and the Ugly
1. Corporate Social
Responsibility:
The Good, the
Bad and the Ugly
Presentation on the Paper by
Subhabrata Bobby Banerjee
Presented By
Samuel Ellis, Adrian Erlenbach, Alina
Grigore and Cindy Heeralal
Wednesday, May 9, 2012
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CRITICISMS
Critiques the limits of
Critiques the limits of functionalism
functionalism
Stakeholder theory as a
Stakeholder theory as a form of colonialism BANERJEE (2008)
form of colonialism Provides an alterna-
tive perspective
Power relationship between cor-
porations and goverments Power relationship between cor-
porations and goverments
Provides an alterna- CONTRIBUTIONS
tive perspective
Next Stop: Criticisms
Next Stop: Position in
Existing Literature EXISTING LITERATURE
Wednesday, May 9, 2012
3. N
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Wednesday, May 9, 2012
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PAPER OVERVIEW
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1. Paper overview
le ija en er/
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4. N
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Wednesday, May 9, 2012
de u ut
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Fo oc am ns
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Th t
PAPER OVERVIEW
er po
ab e H nm w
1. Paper overview
le ija en er/
De ck ta kn
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pm f S ed
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C t tai
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Th es s o
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5. N
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M C xt
a on st
An rke tr op
ti- t F ib :
Wednesday, May 9, 2012
de u ut
m nd io
Fo oc am ns
ne cau ra e
tic nt
xu lt, de alis
s di ve m
an sc
d ou lo &
‘g rs pm
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Th t
PAPER OVERVIEW
er po
ab e H nm w
1. Paper overview
le ija en er/
De ck ta kn
ve ing lit ow
lo o y’ l
pm f S ed
ge
en us
C t tai
rit n-
is iq
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Th es s o
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6. N
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M C xt
a on st
An rke tr op
ti- t F ib :
Wednesday, May 9, 2012
de u ut
m nd io
Fo oc am ns
ne cau ra e
tic nt
xu lt, de alis
s di ve m
an sc
d ou lo &
‘g rs pm
ov e en
Th t
PAPER OVERVIEW
er po
ab e H nm w
1. Paper overview
le ija en er/
De ck ta kn
ve ing lit ow
lo o y’ l
pm f S ed
ge
en us
C t tai
rit n-
is iq
t R ue
Th es s o
e ea f
ris rc Fu
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of tio
th na
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co
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O
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7. N
e
M C xt
a on st
An rke tr op
ti- t F ib :
Wednesday, May 9, 2012
de u ut
m nd io
Fo oc am ns
ne cau ra e
tic nt
xu lt, de alis
s di ve m
an sc
d ou lo &
‘g rs pm
ov e en
Th t
PAPER OVERVIEW
er po
ab e H nm w
1. Paper overview
le ija en er/
De ck ta kn
ve ing lit ow
lo o y’ l
pm f S ed
ge
en us
C t tai
rit n-
is iq
t R ue
Th es s o
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8. US Corporate Law, CSR Rhetoric and Market
Ideology
✤ Banerjee observes that the “legal revolution that gave
birth to the modern corporation essentially removed all
major restrictions around corporate activity and rules of
incorporation” (2008, p.54). Led to a situation where
“there was now no “official” requirement to serve the
public interest except in the economic relm” (2008, p.54).
✤ Dartmouth College V Woodward 1819 where
corporations received property rights as a defining step
of “conferring private rights on corporations, rights
normally held by individuals” (2008, p.55).
✤ “If the legal revolution that launched the modern
corporation was one that served particular interests, the
same could be said of the current rhetoric in corporate
boardrooms about “CSR”” (2008, p.59).
Wednesday, May 9, 2012
9. Limitations of CSR
✤ Win Win scenarios of CSR are very
limited.
✤ Normative Assumptions of Corporate
Citizenship are “simplistic assumptions
with little theoretical or empirical
support” (2008, p.62).
✤ “Lack of critical examination in the
literature” (2008, p.63)
✤ Greenwashing.
✤ Companies stop empowering their
stakeholders when their profit interest
diverges with that of the local community.
Wednesday, May 9, 2012
10. Corporate Hijack of Sustainable
Development
• (Shiva, 1991 in Banerjee, 2008, p.65)
“Rather than reshaping the markets and
production processes to fit the logic of
nature, sustainable development uses
the logic of markets ad capitalist
accumulation to determine the future of
nature”.
• “The language of capital is quite
apparent in discourses of sustainable
development.” (Banerjee, 2008, p.65).
• No criticism of this fact and the failings
of the market to be able to predict true
costs.
Wednesday, May 9, 2012
11. Foucault’s, “Discourse power/knowledge
nexus” and “Governmentality”
✤ “the circulation of power produces a power/knowledge nexus where the
effect of power relations on society is dependent on the production of
discourses of truth through the production of knowledge” (Clifford 2001
in Banerjee, 2008,p.67).
✤ E.g. The presence of science and scientific methods in our everyday
discourse. How did it get there? Through a process of normalization via
disciplinary power involving a complex system of institutions, regulations,
texts, policies and practices.
✤ Could the same be said of capitalism?
✤ Governmentality = “what practices, mechanisms and institutions are
needed for an individual and for societies to be governed” (2008, p.68)
✤ A way of doing this was using the economy.
Wednesday, May 9, 2012
12. Market Fundamentalism in governance and
Anti- Democratic Development
✤ “Market fundamentalism
defines the parameters of
democracy” (2008, p.70).
✤ “Development sustainable or
otherwise, in a globalizing
world is inherently anti-
democratic as several
indigenous groups have
found” (2008, p.70).
✤ “Despite all the strident rhetoric
about the “stakeholder
corporation”
Wednesday, May 9, 2012
13. 2. Contributions to Management
Critiques the lim
Critiques the limits of functionalism
functionalism
Stakeho
Stakeholder theory as a form of
form of colonialism
Power relationship between cor-
porations and goverments
Provides an alterna- CONTRIBUTIONS
tive perspective
Next Stop: Position in
Existing Literature
Wednesday, May 9, 2012
14. Contributions: the 4 Points for Managers
✤ Critiques the “limited” (2008, p.61)
functionalism paradigm.
✤ Argues that stakeholder theory is a
form of “stakeholder colonialism” (p.
51)
✤ Highlights the complex power
relationship between corporations,
governments and international
institutions.
✤ Provides an alternative perspective:
discourses of CSR as ideological
movements that legitimize the
power of large corporations.
Wednesday, May 9, 2012
15. The Lose-Lose Scenario
✤ CSR just serves “narrow business
interests“ (p. 52) and discourses of
CSR “legitimise and consolidate the
power of large corporations” (p.51)
✤ The way CSR is used now doesn’t
benefit neither the society nor the
companies (criticism of the win-win
scenarios)
✤ Society: the social good is no
longer a priority – it is now provided
by the economic function
✤ Corporations: CSR neither offers
competitive advantage nor
improves the company’s financial
performance
Wednesday, May 9, 2012
16. Lost voices
✤ “Stakeholder relations are
systematized and controlled by
the imperatives of capital
accumulation” (2008, p. 73)
✤ They create value only for
certain people and
institutions
✤ “Stakeholder colonialism “ –
“stakeholders who do not
toe the corporate line are
either co opted or
marginalized” (2008, p.72)
Wednesday, May 9, 2012
17. “Free markets first and democracy would
follow” (p. 69)
✤ There is a need to question the rhetoric of democratic values
✤ Democracy takes a back seat to corporate interests:
✤ Democracy conveniently forgotten:
✤ “national governments are increasingly employing neoliberal agendas
that have adverse impacts on their livelihoods” (p. 71)
✤ Corporations don’t have the ability to take over the role of governments
in contributing to social welfare.
Wednesday, May 9, 2012
18. Starting point for a solution
✤ “Some kind of universal charter that
corporations are accountable to rather
than voluntary codes of conduct” (p. 74)
✤ Genuine change (p. 75)
✤ Scholars need to subvert the managerial
thinking
✤ Restoring a sense of social justice and
equity
✤ New questions need to be asked – from a
different, often oppositional perspective
(p. 74)
Wednesday, May 9, 2012
19. 3. Position within existing literature
CRITICISMS
Critiques the limits of
he limits of functionalism
ctionalism
Stakeholder theory as a
eory as a form of colonialism BANERJEE (20
nialism
Provides an alterna-
tive perspective
Power relationship between cor-
porations and goverments
CONTRIBUTIONS
Next Stop: Criticisms
EXISTING LITERATURE
Wednesday, May 9, 2012
21. Position within existing literature
✤ Radical and critical of functionalist approach -
Banerjee critiques the interplay between
Business and Society which follows a
business centric approach
✤ Similarly, Gond & Matten (2007 p5) state
“CSR literature has never overcome a narrow,
business-centric perspective”
✤ A reorientation of current management
practice towards a more critical approach
based on ideology critique
✤ “….the inclusion of more diverse values within
decision practices to benefit the wider
public....” (Kuhn & Deetz 2008 p174)
✤ CSR seen as a power relationship “…CSR
becomes an ideological movement designed
to consolidate the power of large
corporations” (2008 p. 59)
Wednesday, May 9, 2012
22. Position in relation to existing debates
✤ Constructivist view of CSR
✤ CSR as a “negotiated order” (Gond & Matten cite) between business and society and a
process of social construction where content is defined by all actors (Latour 2005 in
Gond & Matten cite)
✤ CSR as a power relationship
✤ Stakeholder colonialism - unequal power relations.
✤ Tatz (1982, in Banerjee 2008) describes the process as communities “talked to” about
decisions “arrived at”.
✤ The nature and type of profit seeking organizations determines the societal costs borne
and the power and freedom organizations will possess (Perrow 2002 in Banerjee2008)
…as opposed to…
✤ Functionalist CSR/ CMS
✤ Management theory teaches that the corporation is capable of resolving all social
conflict “fairly and justly” within its walls (Frank 2001:143 in Banerjee 2008)
Wednesday, May 9, 2012
23. Contributions to Future Research
✤ Banerjee’s book ‘The Good, The Bad and The Ugly’ 2008 reviewed by
Calton (2010 p363) as ‘an antidote to sloppy thinking and overreaching
claims about a new, brave CSR world’.
✤ Re-framing of CSR and the role of the Corporation in society and its
existing business practices: Banerjee’s focus on the bad and ugly CSR
illustrates that good CSR is often inhibited in the present practices of
organizations for social change
✤ Critical model of Stakeholder inclusion and communication
✤ “The logic is not one of containing stakeholder interests but trying to
accomplish them through corporate activity” Kuhn & Deetz (2008 p186)
✤ Non-managerial/ functionalist approach to CSR contributing to more
critical approach to management studies
Wednesday, May 9, 2012
24. Th se o
e ar f F
ris ch un
e ct
of io
th na
e l-
co
rp
or
at
Wednesday, May 9, 2012
io
n
functionalism
O
Critiques the limits of
v
or erl
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an is
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ai e
N na o
eg bl f s
co le e ta
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or s t ve ho
at he lo ld
CRITICISMS
io p pm er
ns o en the
ss
De
do i t -
in bili
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go o
4. Criticisms of Banerjee (2008)
of ite od f
fe m
r p uc
ra h
ct co
ic m
al p
so lai
lu nin
tio g
ns , fa
Q ils
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io
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25. Th se o
e ar f F
ris ch un
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of io
th na
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co
rp
or
at
Wednesday, May 9, 2012
io
n
functionalism
O
Critiques the limits of
v
or erl
y yd
an is
d m
su is
st siv
ai e
N na o
eg bl f s
co le e ta
rp ct de ke
or s t ve ho
at he lo ld
CRITICISMS
io p pm er
ns o en the
ss
De
do i t -
in bili
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go o
4. Criticisms of Banerjee (2008)
of ite od f
fe m
r p uc
ra h
ct co
ic m
al p
so lai
lu nin
tio g
ns , fa
Q ils
ue
st
io
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?
26. Th se o
e ar f F
ris ch un
e ct
of io
th na
e l-
co
rp
or
at
Wednesday, May 9, 2012
io
n
functionalism
O
Critiques the limits of
v
or erl
y yd
an is
d m
su is
st siv
ai e
N na o
eg bl f s
co le e ta
rp ct de ke
or s t ve ho
at he lo ld
CRITICISMS
io p pm er
ns o en the
ss
De
do i t -
in bili
to sp g ty
go o
4. Criticisms of Banerjee (2008)
of ite od f
fe m
r p uc
ra h
ct co
ic m
al p
so lai
lu nin
tio g
ns , fa
Q ils
ue
st
io
ns
?
27. Criticism 1: Too Quick to Dismiss Valid CSR
Theories
✤ Stakeholder theory
✤ Banerjee critiques the stakeholder
view of the firm as a form of
colonialism “that serves to regulate
the behavior of stakeholders” (p. 72)
✤ However, Banerjee's critique fails to
acknowledge that:
✤ Stakeholder empowerment is a two-
way street.
✤ Business and stakeholder interests
are increasingly aligned
✤ Positive examples of stakeholder
influence exist (ex. Shell, social
media)
Wednesday, May 9, 2012
28. Criticism 1: Too Quick to Dismiss Valid CSR
Theories
✤ Sustainable Development
✤ Banerjee critiques Sustainable Development for its emphasis on
traditional capitalistic notions (i.e. triple bottom line), and for its history
of being ‘hijacked’ by corporate interests.
✤ However, we find SD’s capitalistic perspective to be among its strengths
✤ Provides a business case for sustainability that is compatible with the
corporate mindset
✤ Incorporating externalities (i.e. carbon emissions) into the current
economic system
✤ Misuse of SD by corporations does not justify dismissing the theory
altogether
✤ Companies frequently latch onto and manipulate ‘trendy’ movements
(ex. ‘diversity’, ‘innovation’). This does not mean the ideas being
manipulated are without merit and should be discarded.
Wednesday, May 9, 2012
29. Criticism 2: Bad and Ugly, But What About
Good?
✤ Banerjee denies the possibility that corporations can contribute to social
welfare. However, we find this assumption counterproductive for The
following reasons:
✤ Despite lacking suitability, corporations increasingly have to adopt roles
traditionally reserved for governments that create social value, so totally
dismissing their ability to create social good is not helpful for improving
the status quo.
✤ Even though they are largely to blame for the current social,
environmental and economic crises, corporations are a necessary
mechanisms for bringing about positive change.
✤ Ex: Walmart
✤ Banerjee’s call for management research to adopt “different, often
oppositional perspectives” (p. 74) may alienate the academic
community from the establishments they are hoping to remedy.
Wednesday, May 9, 2012
30. Criticism 3: Heavy on Complaining, Light on
Solutions
✤ Banerjee’s highly negative critique of the current state of CSR fails to
focus adequately on solutions, providing just a few paragraphs, mainly
focusing on academic research at the expense of actual prescriptions for
action for managers.
✤ Banerjee's solution: critical view of companies' ability to address csr--
>places the brunt of responsibility for implementing CSR into the hands of
regulators
✤ This is unlikely to work:
✤ As banerjee has emphasized, gov’ts are notoriously pro-business
✤ typical reasons that governments can’t effectively enforce CSR (MNCs,
less efficient that the marketplace, etc.)
✤ “Substituting one narrative for its total opposite does not enhance our
Wednesday, May 9, 2012
31. References
✤ Banerjee, S. B. (2008). ‘Corporate Social Responsibility: The Good, the
Bad and the Ugly’, Critical Sociology, Vol. 34(1): 51-79.
Wednesday, May 9, 2012