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Flashcards in Session 8 Deck (18):

What is the definition and concept of CSR?

Corporate social responsibility (CSR) refers to companies taking responsibility for their impact on society. As evidence suggests, CSR is increasingly important to the competitiveness of enterprises. It can bring benefits in terms of risk management, cost savings, access to capital, customer relationships, human resource management, and innovation capacity


In which sectors can Corporate Responsibility be divided?

- Corporate Governance
- Corporate Social Responsibility
- Corporate Citizenship


In which sectors can Corporate Social Responsibility be divided?

- ecological responsibility
- economic responsibility
- social responsibility


On what does CSR have to focus?

on the whole life-cycle of a product or service


Which steps can you find in the four-part model of CSR?

- philanthropic responsibilities (desired by society)
- ethical responsibilities (expected by society)
- legal responsibilities (required by society)
- economic responsibilities (required by society)


What are the internal goals of CSR?

- motivation of employees
- diversification
- support of innovation
- increase of cost- and material efficiency


What are the external goals of CSR?

- protection/improvement of the corporate image
- improvement of investor relations
- strengthening the customer relationship


Why do firms engage in CSR?
What are the company/brand reputation and legitimacy arguments?

- attracting new customers
- improving shareholder value
- developing better relationships with local communities
- achieving a competitive advantage by attracting loyal customers because of the positive image
- attractiing new employee because of fair treatment
- voluntary committing to social actions may forestall legislation and ensure greater corporate independence from government
- long-term investment by creating an improved and stable competitive context in which to do business


Why do firms engage in CSR?
What are the competitive advantage arguments?

- aligning unique CSR-programs with corporate strategies for setting the firm apart from its competitors
- competitive advantage through enhancing its relationship with its customers
- better relationship to investors and other stakeholders


Why do firms engage in CSR?
What are the equal employment opportunity and cost-reducing arguments?

- explicit EEO-statements reduce employee turnover through improving morale
- being environmental proactive can lower the costs of complying with present and future environmental regulations
- tax advantages


What is "Greenwashing"?

is the practice of companies of falsely spinning and describing their products as environmental friendly


Which types of CSR reporting exist?

- sustainability reports
- CSR reports
- information events
- marketing events
- etc.


What is socially responsible investing (SRI)?

- investment strategy which involves also social goals and values (in addition to financial goals)
- consideration of the investor's ethic values


What are the SRI investment strategies?
Shareholder activism

investors influence the management to fulfill financial goals, taking into account the interests of customers, employees, business partners, and the company


What are the SRI investment strategies?
Positive interesting

- exclusive realisation of investments with a positive social influence
- concentration on investments which consider social and environmental aspects but also are succesful from a financial perspective


What are the SRI investment strategies?
Community investment

- investments in community institutions instead of individual firms


Was behaupten Jo und Harjoto in ihrem Text "Corporate Governance and Firm Value: The impact of Corporate Social Responsibility"?

- Untersuchung der Auswirkungen der internen und externen Unternehmensführung und Überwachungsmechanismen auf die Wahl des CSR-Engagements
- Wert der Beteiligung an Unternehmen, die sich mit CSR-Aktivitäten beschäftigen
- CSR-Wahl positiv mit der internen und externen Unternehmensführung und Überwachungsmechanismen
- CSR-Engagement beeinflusst Unternehmenswert positiv
- Einfluss eines Analytikers positiv gegenüber dem Unternehmen
- Einfluss von Vorstandsführung, Vorstandsunabhängigkeit, Eigentum von Blockholdern und institutionelles Eigentum relativ schwach gegenüber Unternehmenswert
- Erhöhung des Unternehmenswerts durch CSR-Tätigkeiten, die sich auf die soziale Verbesserung innerhalb des Unternehmens wie Mitarbeitervielfalt, feste Beziehungen mit seinen Angestellten und Produktqualität richten


Was behaupten Luo und Bhattacharya in ihrem Text: "Corporate Social Responsibility, Customer Satisfaction, and Market Value"?

- nicht klar. ob CSR den Marktwert des Unternehmens beeinflusst
- 1. Vermittlung von Kundenzufriedenheit teilweise durch die Beziehung zwischen CSR und Marktwert des Unternehmens
- 2. Unternehmensfähigkeiten (Innovationsfähigkeit und Produktqualität) mäßigen die finanziellen Renditen von CSR
- 3. diese eingeschränkten Beziehungen werden durch Kundenzufriedenheit vermittelt
- CSR reduziert Kundenzufriedenheitslevels in Unternehmen mit geringer Innovationsfähigkeit und verringert somit den Marktwert