1 Flashcards
(17 cards)
MAIN AREAS OF RESPONSIBLE BUSINESS OPERATION/CORPORATE RESPONSIBILITY
business responsibility – an interface
between business, society and the natural environment →
consumer rights, employee rights, how society benefits from businesses, business impacts on the natural environment
→experts of various fields – economists, sociologists, company leaders etc.
Herman E. Daly (1991) – economic development AND sustainability
‚steady-state economy’ based on qualitative rather than quantitative growth
growth – growing in size, quantitative change (expansion)
development – betterment, ability to perform better
dimensions of sustainability
relatively well balanced otherwise no organisation, community, nation or group of nations
the quality of the natural environment
economic wellbeing
social justice
Corporate sustainability/sustainability
how companies thrive for operating sustainably
Sustainable development
national and global public policy strategies (often in the context of global challenges)
CSR variations – eerily similar theoretical foundations
Corporate Responsibility (CR)
Corporate Social Responsibility (CSR)
Corporate Sustainability (CS)
Triple Bottom Line (TBL)
Corporate Citizenship (CC)
Creating Shared Value (CSV)
Environmental, Social, Governance (ESG)
CSR1
Corporate managers as public trustees and social stewards – Corporate Social Stewardship (1950s and 1960s)
CSR principle: Corporate managers as public trustees and social stewards
The main corporate CSR activity: corporate philanthropy
The driving forces of CSR: consciousness of leaders and company reputation
CSR self-regulation: philanthropy and PR
CSR2
Corporate Social Responsiveness (1960s and 1970s)
CSR principle: corporate managers should embrace legally-required corporate responses to many social demands
The main CSR activity: interaction with stakeholders, legal compliance
The driving forces of CSR: pressure from stakeholders, government legislation
CSR self-regulation: stakeholder engagement, legal compliance
CSR3
Corporate / Business Ethics (1980s and 1990s)
CSR principle: creating and maintaining an ethical corporate culture
The main CSR activity: treating all stakeholders with dignity and fairness
The driving forces of CSR: human rights and religious-ethnic values
CSR legislations/self-regulation: mission statements, codes of conduct, social contract
CSR4
Corporate Global Citizenship (1990s and 2000s)
CSR principle: acknowledging responsibility deriving from the impacts of global companies
The main CSR activity: adaptation and implementation of global sustainability programs
The driving forces of CSR: negative impacts of globalization on the economies and the natural environment
CSR legislations/self-regulation: international code compliance, sustainability strategies
Definitions – common elements
over and above compliance, company self-regulation
company impacts: economy, natural environment; social issues
wide range of partnerships
corporate responsibility integrated into company strategy and operation
management, corporate governance company processes
Business ethics(ethics in/of management, ethics in/of economics)
Moral philosophy vs business ethics today
Ethics is a normative discipline
Every level of economy
Why and to what extent is somebody or something responsible and for what?
Corporate governance
Corporate governance is the system of rules, principles and processes by which the firm is directed and controlled.
It is about balancing the interests of a company’s many stakeholders and provides a framework to obtaining company’s objectives.
principle-agent problem:
in political science, supply chain management and economics occurs when one person or entity (agent=managers/decision-makers) is able to make decisions and/or take actions on behalf of, or that impact, another person or entity (principle=shareholders/owners)
Environmental management
process concerned with the interactions between human activity and its impact on the natural environment
- Sustainability
- Environmental impact of companies
Compliance
Risk of compliance
In case of failure, there are negative consequences (fines, loss of legitimacy)
Internal company policies, regulating documents
Often compliance officer
Compliance is the entry to becoming a responsible company
Quality management
Like CSR, quality is based on a set of values and beliefs at its center, such as “do no harm,” “zero-waste,” “make external costs visible,” and “driving out fear” between management and employees.
Risk Management
1 - Establishing the Management context
2 - Risk Identification
3 - Risk Analysis
4 - Risk evaluation
5 - Risk Treatment
Parallels:
Communication and consultation
Review and Monitoring
