Lecture 3 Flashcards
(11 cards)
What is Corporate Social Responsibility (CSR)?
CSR is:
- The purposeful incorporation of public interest into a business’s decision-making process (Page & Parnell, 2020).
- Voluntary actions taken by a company to address the economic, social, and environmental impacts of its business operations and concerns of its stakeholders (Christensen et al. 2007).
What is the Triple Bottom Line in CSR?
The Triple Bottom Line refers to three core responsibilities:
- Economic (Profit): financial stability and growth
- Social (Employees, Community): wellbeing and health
- Ecological (Environment): nature protection, pollution minimalization, climate change prevention
How has CSR evolved historically?
CSR has developed differently across regions, depending on factors such as economic prosperity, social security structures, and cultural values.
Examples:
- 1900s–1950s: corporate power questioned
- 1960s–70s: business addresses social issues
- 1980s–90s: rise of business ethics and professional CSR
- 21st century: standards, best practices, advocacy and marketing
What are the Seven Pillars of Strategic CSR?
- Integrated with the firm (CSR must be embedded into company’s core operations and strategy)
- Business-driven (CSR activities should support long-term business goals)
- Stakeholder-focused (CSR should reflect the needs and concerns of key stakeholders)
- Strategic (CSR should be planned carefully and aligned with company strenghts and values)
- Based on core competencies (CSR should use the unique expertise or recources of the company)
- Evaluated and reported (CSR must be measured, tracked and reported transparently)
- Transparent (Be honest and open about what you do)
These seven pillars describe how organizations can make CSR truly effective and aligned with their business
What are types of CSR engagement?
-
Cause promotion
Supporting a cause by raising awareness, not neccessarily changing the company’s own behavior. -
Cause-related marketing
Contributions to a cause or charity-based sales. A portion of the sales is donated. -
Corporate social marketing
Support for a behavior-changing campaign to improve safety, health, or the environment. -
Corporate philanthropy
Direct contribution to a charity or cause. Making direct donations (money, services or goods) -
Community volunteering
Encouraging and facilitating employees to volunteer their time and skills for good causes. -
Socially responsible business practices
Changing how the company operates to reduce harm or increase positive impact.
The types of CSR engagement describe different ways in which a company can get involved with social or environmental causes.
What are the goals of strategic CSR communication?
- Reputational: show responsibility and rebuild trust
- Marketing/Branding: differentiate from competitors
- Engagement: encourage employees and customers to participate
- Social Impact (CSA): support broader societal and environmental goals
What are the core strategies for CSR communication?
- Tell your own story: uniqueness is valued
- Dialogical CSR communication: involve external partners
- Avoid empty boasting: match rhetoric with real actions
- Be transparent: hiding information can backfire
- Encourage (e)WOM: especially from trusted sources on social or informal channels
What are the three stakeholder CSR communication strategies (Morsing & Schultz)?
Stakeholder Information Strategy:
- One-way communication
- Inform the public about your CSR policies
Stakeholder Response Strategy:
- Two-way (non-symmetric) communication
- React and adapt policies to stakeholder concerns
Stakeholder Involvement Strategy:
- Two-way symmetric communication
- Co-create CSR initiatives with stakeholders
Describes how organizations communicate with its stakeholders about CSR
Why can CSR communication be risky?
- It may appear as boasting
- Stakeholders may perceive a mismatch between words and actions (expectation violation)
- Can result in accusations of greenwashing, which can damage:
• Reputation
• Market position
• Stakeholder engagement
• Social impact
What is community relations in CSR?
Community relations involve earning trust and acting as a responsible ‘citizen’ within the community.
Practices include:
- Donations to local causes (in-kind or financial)
- Employee volunteer programs
- Long-term partnerships with nonprofit organizations
Communication Analysis vs. Issue Analysis
- Communication analysis: evaluates how an organization communicates (internally and externally) and how effective that communication is.
- Issue analysis: identifies and examens potential threats, stakeholder relationships, and external factors that may impact the organization’s reputation or strategy.
