This document summarizes the key topics discussed at a workshop between Airbus and CIMPA/SKEMA on stakeholder management, corporate social responsibility, and ethics. The workshop covered definitions of stakeholders and their importance in the knowledge economy. It also discussed how cultural contexts can influence stakeholder prioritization. Additionally, it examined how companies can develop strategies toward stakeholders through analysis and identifying social issues. The workshop provided frameworks for stakeholder mapping, organizational processes, and transactions. It also reviewed concepts of CSR, ethics, rights, justice, and care approaches.

1. 1rst Airbus-CIMPA/SKEMA Exchange Workshop
Stakeholders Management, Company Social Responsability & Ethics
Mai 2011Airbus-CIMPA / SKEMA Exchange Workshop n°1 - Stakeholder Management, CSR & Ethics
Damien BOISBOUVIER

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Firm exposure in a complex environment
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Stakeholders Theory : A few definitions
• Stanford Research Institute (1963): “Those groups without whose
support the organization would cease to exist”
• Groups whose constituencies have more than a contract at stake,
et going beyond property (Jones, 1980)
• An individual or group of individuals that can affect or is affected
by the achievement of the organization’s objectives (Freeman,
1984)
• Groups to whom the corporation is responsible (Alkhafaji, 1989)
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Stakeholders in the knowledge economy
• The rise of citizens
• Direct debates, progress of democracies
• Groups act in networks
• Information technologies play a fundamental role.
• In order to respond to social demands, corporations need to
identify clearly the groups.
Mai 2011Airbus-CIMPA / SKEMA Exchange Workshop n°1 - Stakeholder Management, CSR & Ethics
(Svendsen & laberge, 2005)

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Stakeholders in cultural contexts
• Important role played by Culture:
• In the US, the shareholder comes first.
• In Japan, the customer is central.
• In Europe, a social model based on « a sacred union » with unions.
• Do these fundamental models explain the different strategies of
individual firms?
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Company strategy towards stakeholders
• Stakeholders’ Analysis
• Who are our stakeholders ?
• What are the impacts on organizational processes?
• How is the firm interacting with stakeholders?
• Values’ analysis
• What are our most important values ?
• Social Issues
• What social issues will we be facing in the coming years ?
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Stakeholder Management Capability
Mai 2011Airbus-CIMPA / SKEMA Exchange Workshop n°1 - Stakeholder Management, CSR & Ethics
Stakeholders
mapping
Organizational
processes
Transactions
and
negotiations

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Stakeholders importance & priority
• Who are stakeholders ?
• Primary : bound by contract
• Secondary : no contractual bond with the organization
• Is a secondary stakeholder less important?
• Confronting perspectives
• Normative perspective: Legitimacy is the most important criterion
(Society comes first)
• Strategic perspective: Power is the most important criterion
(Firm comes first)
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Stakeholders Mapping & Weighting
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(Mitchell et al., 1997)

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Organizational Processes
• Process of portfolio analysis
• Analyzing the key success factors of an operation.
• Measuring some indicators (i.e market growth rate) to obtain a
portfolio maximizing profit and minimizing risks.
 That exercise rarely takes into account the interests or demands of
stakeholders.
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Organizational Processes
• Process of strategic review
• Assessing a business unit performance
• Checking upon the application of strategy
 Managers defends their economic performance, but rarely have the
opportunity to enhance the actions implemented for stakeholders.
 No reward for these actions (Therefore no initiative)
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Organizational Processes
• Monitoring the economic environment
• Environmental monitoring could be watching stakeholders moves
• Traditional techniques are centered on the market
 Analysis is for instance performed on data, cues and signals to
provide a commercial analysis, not to perceive social signals
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Transactions & negotiations
• Transactions with stakeholders is a daily activity. Sales, invoicing,
shipping, negotiating or informing about the firms activities.
• Some stakeholders relations are more informal: the transaction is
not as easy. Discussions with NGOs, the media or consumers
associations are less easy.
• A different type of discussion with a client, who has a claim, is
generating frustration. Company policy is used to cover up the
firms inability to cope.
A successful relationship must take legitimacy into account.
The firm should rely on foundational values and corporate
philosophy.
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Corporate Social Performance
Social reactivity:
Anticipation on the
demand of the
society
Social responsibility :
In agreement with the
values of the society
Social obligation:
Minimum required
toward society
(Standards)
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Corporate Social Performance Model
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• Principles of Corporate Social Responsibility
• Institutionnal Principle : Legitimacy
• Organizational Principle : Public Responsability
• Individual Principle : Managerial Discretion
• Process of Corporate Social Responsiveness
• Environmental assessment
• Stakeholder management
• Issues management
• Outcomes of Corporate Behaviour
• Social Impacts
• Social Programs
• Social Policies

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Corporate Social Responsibility
« Social responsibility encompasses economic, legal, ethical and
discretionary expectations that society have on organizations at some
point in time »
Carroll, 1979
« Concept in which companies integrate social, environmental, and
economic concerns in their activities and interactions with their
stakeholders (its ecosystem) on a voluntary basis »
European Commission Green Paper, 2001
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A brief History
• Bowen, 1953 : « The social responsibility of the business man »
• 1960’s : A hot debate to know if the companies should have social
duties or not.
• Milton Friedman, 1970, New York Times :
• « The only social responsibility of business is to increase its profits »
• « Whether he wants it or not, the manager should be accountable if
he spends the money of his shareholders, clients or employees »
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Notions of Contractual Rights & Duties
• Limited rights and duties that arise when a person enters into an
agreement with another person.
• When a person enters freely into a role, knowing the duties that society
attaches to the acceptance of this role, this person is agree to fulfill this
duty.
• The contracts are legal and / or moral institutions
• Make a visit to your doctor is a form of contract
• Lead someone somewhere is an agreement without legal justification.
• Social institutions play a fundamental role: family, medical, legal,
business institutions would cease to exist if they did not exercise control
over these agreements.
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Social Responsiveness & Stakeholder Management
• The issues can be very important, relative to a context, in conflict with the
interests of another stakeholder. It is useful to balance them (Freeman,
1984).
• They interact at different levels, which leads to complex situations.
Particularly in multiple community roles that individuals and groups may
have
• A group can be an influent member of a religious community and also a
client and shareholder of a company (Freeman, 1984).
• Organizations must be aware of the dynamic aspect of stakeholders
groups, which can belong to different categories or go from one to the
other.
• Stakeholders are sometimes conflictual, in competition with one another
for appropriating resources coming from the organization.
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On Morality and Ethics
Mai 2011Airbus-CIMPA / SKEMA Exchange Workshop n°1 - Stakeholder Management, CSR & Ethics
• In that sense, the company is amoral and secular
• One of its issue is to harmonize individual moralities
Morality Ethics
Etymology Mores (latin) Ethos (greek)
Definition Set of normative or
dogmatic universal rules
and principles
Set of rules of conducts
shared by and typical of a
given society
Based on Discrimination between
good and evil (Theorical)
Distinction between good
and bad (Pragmatical)
Example Religious morality Code of ethics

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Ethics polarities
Ethics
Rights
Justice
Utilitarist
Care
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Notions of Rights & Utilitarist Ethics
• Utilitarianism defends a pragmatic approach which claims to be morally right,
when it might trample human rights.
Mai 2011Airbus-CIMPA / SKEMA Exchange Workshop n°1 - Stakeholder Management, CSR & Ethics
(Human) Rights Utilitarism
Perspective of the individual Perspective of society as a whole
Promotes what is due to the individual
from society
Promote society utility
Promotes individual welfare Promotes social welfare
Protects individual choices Promote collective choices through the
measurement of utility (cost/benefits
analysis)
Notions of rights and duties
Negative rights (non-interference)
Positive rights (justification)
Problems : Uncertainty of estimation, of
utilities comparison, of equivalence with
non-economic goods

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Notions of Care & Justice Ethics
• Utilitarianism can also contradict social justice because it does not take into
account how a utility is distributed among the members of society
Mai 2011Airbus-CIMPA / SKEMA Exchange Workshop n°1 - Stakeholder Management, CSR & Ethics
Care Justice
Perspective based on relationships with
others
Perspective based on social justice
Promotes what is due to the community Promotes an equitable distribution of
benefits and burdens
Promotes the well being of those close,
dependent and related to us
Promotes an appropriate comparative
treatment of individuals
Possible contradictions with ethical
principles (favoritism, nepotism, no
testimony against a parent)
Problem of the relevance of the aspects
of comparison: Egalitarian distribution or
related to the contribution?

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What you can hear on Ethics
• "This is a hypocritical approach: the company seeks only to
maximize profit"
• "When i come into the company in the morning, i give up my
personal moral"
• "Ethics makes us to lose businesses : others countries have less
scruples"
• "You can't make an omelette without breaking a few eggs"
• "This is only a smokescreen, intended for media and public
opinion"
• "It's a fad, such as sustainable development. In addition it is a
luxury for rich countries…"
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