Strategy - Week 4

Question 1

what are institutions

Answer 1

basic observable facts of social life

norms, effectively

Question 2

what is an example of a pragmatic dimension of why people drive on the left side of the road in the UK

Answer 2

there are fines / regulations for driving on the wrong side of the road

Question 3

what is an example of a normative dimension of why people drive on the left side of the road in the UK

Answer 3

people will think you’re crazy and that you don’t care for others’ lives

Question 4

what is an example of a cognitive dimension of why people drive on the left side of the road in the UK

Answer 4

its a habit, feels natural and it would be strange to do anything else

Question 5

T/F: institutions are interdependent and involve institutional logic to function

Answer 5

True

an institution only works if all the other components of the system work along with it

Question 6

what is social legitimacy

Answer 6

the idea that people evaluate you based on your competency, morality and rationality

organizations pursue this to appeal to stakeholders’ criteria of the above 3 factors

Question 7

The instrumental justification for CSR

Answer 7

that companies will perform better by investing in CSR, rather than not

Allows ease of public pressures, activists, boycotts, and reputational concerns

Question 8

define the two types of CSR: cosmetic and strategic

Answer 8

cosmetic: CSR for publicity
strategic: seeking profitable lines of CSR

Question 9

how can companies use strategic CSR to their advantage

Answer 9

can allow companies to create an agenda that feeds into their value proposition, like Patagonia emphasizing sustainability … then customers pay a premium to buy ethically sourced products

Question 10

Critique and the ethical justification of CSR … does CSR always create a profitable outcome?

Answer 10

No … but the idea behind CSR is that: you should do good because it’s good to be good