The document provides an overview of corporate social responsibility (CSR) and social initiatives. It discusses defining CSR and the evolving nature of the definition. It outlines the traditional approach of CSR as an obligation versus the new approach of supporting corporate objectives. Benefits of CSR include increased sales, strengthened brand position, and improved ability to attract and retain employees. Challenges include choosing social issues to address and developing and implementing programs. Milton Friedman's view that the only social responsibility of business is to increase profits is also summarized.

1. CSR Second Class

2. Source (pic) - http://www.flickr.com/photos/metatron1050/1400813198/sizes/o//

3. Put the cards in order… Most like you is the first card and least like you is the bottom card

8. Move to the side of the room that most represents you Discuss with your friends and provide examples that prove that your top card is correct

9. Your bottom two cards represent your biggest opportunity for growth The perfect team would have a member who has a top card that is different from yours

10. Do you have the resources?

11. 1st presentation (January 24) The 10-15 minute presentation should be followed by a lively discussion. The PPT should summarize the assigned social initiatives and prepare a short presentation that includes the following; Introduction Examples of initiatives Benefits &Concerns Keys to Success When to consider Ideas for Assumption University Conclusion and Discussion Pair work OK for next week?

12. Generation Trends Short Lecture

13. The “Six Options for Doing Good” (Corporate Social Initiatives) Marketing Related Cause Promotions Cause-Related Marketing Corporate Social Marketing Not typically Marketing Related Corporate Philanthropy Community Volunteering Socially Responsible Practices

14. Business Ethics Magazine List of 100 Best Corporate Citizens (only publicly traded companies) No Lodging Companies On This List 3 Restaurant Companies Listed 1 Airline Listed *No Other Firm From T&T Listed

17. What is “good”? Sustainability Corporate Citizenship Community Relations Community Development Global Citizenship

18. Corporate Social Responsibility CSR is a commitment to improve community well-being through discretionary business practices and contributions of corporate resources -Kotler,Lee

19. Corporate Social Initiatives Activities undertaken by a corporation to support social causes and to fulfill commitments to CSR. -Kotler, Lee

20. If we can’t define “tourism” by now a definitive CSR definition is a long way off. WTO World Business Council Defining CSR, Redefining CSR, The evolving definition of CSR

21. What are the trends? Increased Giving Increased Reporting Establishment of a Corporate Norm to Do Good A shift from Obligation to Strategy

22. The Traditional Approach Fulfilling an Obligation The New Approach Supporting Corporate Objectives

23. Why Do Good Increased Sales and Market Share Strengthened Brand Position Improved Corporate Image and Clout Increased Ability to Attract, Motivate and Retain Employees Decreased Operating Costs Increased Appeal to Investors and Financial Analysts

24. Challenges to Doing Good Choosing a Social Issue Selecting an Initiative to Address the Issue Developing and Implementing Program Plans Evaluation and Measurement

25. And that’s Chapter 1 any Questions?

27. Social Responsibility: …..more definitions Corporate Social Responsibility The idea that business has social obligations above and beyond making a profit. Business has an obligation to groups in society other than stockholders and beyond that prescribed by law.

28. A Continuum of Social Responsibility Strategies (extra)

29. Social Responsibility Strategies Reactive Strategy Denying responsibility while striving to maintain the status quo by resisting change. Defensive Strategy Resisting additional social responsibilities with legal and public relations tactics.

30. Social Responsibility Strategies (cont’d) Accommodation Strategy Assuming social responsibility only in response to pressure from interest groups or the government. Proactive Strategy Taking the initiative in formulating and putting in place new programs that serve as role models for industry.

31. Who Benefits from Corporate Social Responsibility? Altruism “ Are you being altruistic ?” The unselfish devotion to the interests of others. Research Findings There is a positive correlation between industry leadership on a socially responsible issue (pollution control) and profitability. Corporate social responsibility is a competitive advantage in recruiting talented people.

32. Who Benefits from Corporate Social Responsibility? (cont’d) Enlightened Self-Interest A business ultimately helps itself by helping solve social problems. An Array of Benefits for the Organization Retention of talented employees. Help in recruiting the talented and socially conscious. Help in swaying public opinion. Improved community living standards. … Others.

33. The Social Responsibility of Business Is to Increase Its Profits Please read

34. Source - http://www.flickr.com/photos/tatianacardeal/36956189 / CSR?

35. Economist, Milton Friedman says: “ 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."

36. Milton Friedman 1976 Nobel Prize Winner in Economics One of the most effective advocates of economic freedoms and free enterprise An advocate of limited government His theory asserts a corporation's primary and perhaps sole purpose is to maximize profits for the stockholder .

37. Milton Friedman Two main supporting arguments: Stockholders are the owners of the corporation, and hence corporate profits belong to them. Corporate executives are the stockholder's agents and must operate in the interests of their principle (stockholders). This does not allow donations to charity by the corporation (corporate executives) because the income belongs to the stockholders, not the corporate executives. Individual proprietors are different in that if they choose to spend the income generated by their business they are spending their own money, not the money of other people.

38. Milton Friedman Stockholders/Stakeholders Stockholders are entitled to their profits as a result of a contract among the corporate stakeholders. A stakeholder in this context refers to employees, managers, customers, suppliers, the local community, and the stockholders. Each stakeholder group has a contractual relationship with the firm, since they receive the remuneration they freely agreed to in a pre-established agreement (contract).

39. Encouraging Ethical Conduct Code of Ethics Published statement of moral expectations for employee conduct Requirements for an effective ethics code Must describe specific practices as unethical (e.g., kickbacks, payoffs, gifts, falsification of records, and misleading product claims). Must be firmly supported and fairly enforced by top management.

40. Millennium Development Goals What are they?

42. Introduction Agreed during the 2000 session of the United Nations General Assembly Every UN Member State made the same commitment to meet the Goals by 2015 7th July 2007 marked the official “half-way” point

43. Goal 1 Eradicate extreme poverty and hunger Reduce by half the proportion of people living on less than a dollar a day Reduce by half the proportion of people who suffer from hunger

44. Goal 2 Achieve universal primary education Ensure that all boys and girls complete a full course of primary schooling

45. Goal 3 Promote gender equality and empower women Eliminate gender disparity in primary and secondary education preferably by 2005, and at all levels by 2015

46. Goal 4 Reduce child mortality Reduce by two thirds (2/3) the mortality rate among children under five

47. Goal 5 Improve maternal health Reduce by three quarters the maternal mortality ratio

48. Goal 6 Combat HIV/AIDS, malaria and other diseases Halt and begin to reverse the spread of HIV/AIDS Halt and begin to reverse the incidence of malaria and other major diseases

49. Goal 7 Ensure environmental sustainability Integrate the principles of sustainable development into country policies and programmes; reverse loss of environmental resources Reduce by half the proportion of people without sustainable access to safe drinking water Achieve significant improvement in lives of at least 100 million slum dwellers, by 2020

50. Goal 8 Develop a global partnership for development Address the least developed countries' special needs Develop further an open trading and financial system that is rule-based, predictable and non-discriminatory, includes a commitment to good governance, development and poverty reduction - nationally and internationally

51. United Nations, Tourism and Blue Washing

53. 10 articles in the UN WTO Code of Ethics

54. Take a break

55. What are Uni’s doing?

56. CSR and/or sustainability

57. www.cpi.cam.ac.uk/

79. Brainstorm with a partner for 10 minutes Org name Mission, Vision, Objective Ideas for CSR projects Ideas for Resources

80. -Activity (5% of Final Grade)- CSR Journal Article Search at the Library Print/Copy the article and prepare a one page summary in your own words for the next class