Lecture 7: Sustainability Motivations and the business case Flashcards Preview

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Flashcards in Lecture 7: Sustainability Motivations and the business case Deck (17):
1

What are the different levels of analysis for sustainability?

- Individual (mindset)
- Organisation (strategy)
- Society (stakeholder)

2

What are the personal drivers of sustainability?

I must
I want
I can
We can

3

Where are the biggest perception gaps?

- Transparency
- Combating child labour
- Fair trade

4

Where are the smallest perception gaps?

- Safety
- Animal welfare
- Clean environment

5

Define what a business case is

A business case captures the reasoning of starting a project

6

What are five arguments against CSR?

1. Friedman: maximize profits is sole responsibility
2. Business is not equipped to do so
3. Business already has enough power
4. Lowers compettitivness
5. Dilutes from primary purpose

7

What are five argument in favor of CSR?

1. In businesses long term interest
2. Ward off government regulation
3. Business has the resources
4. Pro-acting is better than reacting
5. Strong public support for business taking up CSR

8

What are five argument in favor of CSR?

1. In businesses long term interest
2. Ward off government regulation
3. Business has the resources
4. Pro-acting is better than reacting
5. Strong public support for business taking up CSR

9

Want are the components of the CSR business case?

1. Legal - required
2. Ethical - expected
3. Discretionary - desired

10

Four business case arguments for CSR

1. Cost and risk reduction
2. Gaining competitive advantage
3. Developing reputation and legitimation
4. Win-win outcomes

11

What is CSR for each of the four phases?

1. Corporate self responsibility
2. Corporate social responsiveness
3. Corporate social responsibility
4. Corporate societal responsibility

12

What are the three tipping points in CSR process?

1. Trigger event
2. Internal alignment
3. External alignment

13

What is the agency problem?

The separation between decision making and being exposed to the consequences of these decisions

14

What are the two mechanisms to battle agency cost?

Bonding
Monitoring

15

What is fiduciary duty?

The extent that a manager of an organization acts in the interest and benefits of another actor

16

What is the narrow and broad definition of fiduciary duty?

Narrow: agency relationship between a capital provider and manager
Broad: Relates to the relationship between society as a whole and the management of a company

17

What are the four interfaces in the institutional spheres diagram?

1. Government vs non government
2. Profit vs non profit
3. Public vs private
4. Public good vs private good