Corporate Corporate ResponsibilityResponsibility

Chelsea HulseChelsea HulseDavid FurjanicDavid Furjanic

Naomi GunawardenaNaomi Gunawardena

Introduction Corporate responsibility – the ethics of a

business Business definition

Responsibility to the government and to general public

Go beyond requirements of regulators and environmental groups

Many groups monitor corporate responsibility

Social, economic, and environmental issues

Introduction (cont.) Green practices – increasing efficiency of

resource use; reducing impact on environment Environment is one of the main focuses of

corporate responsibility

As consumers become more environmentally aware, businesses are working to become “greener” – responsibility

Waste reduction and recycling, green building, energy and water conservation, use of green power, pollution prevention, etc.

Background Term “corporate social responsibility”

originated in 1970’s

Focus on corporate responsibility is still a relatively new area, but becoming “mainstream”

It has become a “multi-billion dollar public relations specialty” (http://www.sourcewatch.org/index.php?title=Corporate_Social_Responsibility)

Background (cont.) Corporate responsibility reports for selected

companies (2008):

Walt Disney Company

Starbucks Coffee Corporation

IBM

Coca-Cola Company

Benefits for the Business

Reduces resource use, waste and emissions: helps environment and saves money

Good reputation: easier to recruit customers and employees.

Helps the business comply with regulatory requirements.

Involvement with the local community generate positive press coverage.

Good relationships with local authorities make doing business easier.

Understanding the wider impact of the business can help it develop new products and services.

Benefits for Us Builds trust between

companies and stockholders, which is good for the market

The environment is protected

Consumers can express their views by choosing a company that has “green practices”

Blackle is an example of a green practice. This black version of

Google saves energy every time you use it!

Cons Sometimes purely a

marketing strategy

CSR not legally enforceable

Corporate citizenship vs. CSR

Fraud

Opinions Good initiative but needs right motives

Is it manager’s duty?

Sources http://www.cartoonstock.com/newscartoons/cartoonists/cca/lowres/

ccan154l.jpg

http://www.delegatesource.com/images/corporate-social-responsibility.gif

http://crs.sagepub.com/cgi/reprint/34/1/51

http://www.wisegeek.com/what-is-corporate-responsibility.htm

http://www.investopedia.com/terms/c/corp-social-responsibility.asp?&viewed=1

http://en.wikipedia.org/wiki/Corporate_social_responsibility

http://dictionary.bnet.com

Eds. Kakabadse, Andrew and Mette Morsing. Corporate Social Responsibility. New York: Palgrave, 2006.

Orsato, Renato J. Sustainability Strategies. New York: Palgrave, 2009.