Carrying out superficial CSR efforts that merely cover up systemic ethics problems in this inauthentic way especially as it applies to the environment , and acting simply for the sake of public relations is called greenwashing. The company grew quickly and is now a global brand owned by Unilever, an international consumer goods company co-headquartered in Rotterdam, The Netherlands, and London, United Kingdom.
Our Economic Mission asks us to manage our Company for sustainable financial growth. Our Social Mission compels us to use our Company in innovative ways to make the world a better place. CAFOs have been condemned by animal-rights activists as harmful to the well-being of the animals. Consumer activists also claim that CAFOs contribute significantly to pollution because they release heavy concentrations of animal waste into the ground, water sources, and air.
Coca-Cola provides another example of practices some would identify as greenwashing.
The company states the following on its website:. We are committed to ongoing stakeholder engagement as a core component of our business and sustainability strategies, our annual reporting process, and our activities around the world. As active members of the communities where we live and work, we want to strengthen the fabric of our communities so that we can prosper together.
Let us take a close look at this statement. Depending on the process and location, it is estimated that it takes more than three liters of water to produce a liter of Coke. For example, in Chiapas, Mexico, the Coca-Cola bottling plant consumes more than one billion liters of water daily, but only about half the population has running water.
Thus it requires interest on the part of stakeholders to continue to drive real CSR practices and to differentiate true CSR efforts from greenwashing. CSR used in good faith has the potential to reshape the orientation of multinational corporations to their stakeholders. By positioning themselves as stakeholders in a broader global community, conscientious corporations can be exemplary organizations. They can demonstrate interest and influence on a global scale and improve the way the manufacture of goods and delivery of services serve the local and global environment.
They can return to communities as much as they extract and foster automatic financial reinvestment so that people willing and able to work for them can afford not only the necessities but a chance to pursue happiness. In return, global corporations will have sustainable business models that look beyond short-term growth forecasts. They will have a method of operating and a framework for thinking about sustained growth with stakeholders and as stakeholders. Ethical stakeholder relationships systematically grow wealth and opportunity in dynamic fashion.
Without them, the global consumer economy may fail. Most organizations must practice genuine corporate social responsibility to be successful in the modern marketplace. The triple bottom line places people and the planet on equal standing with profit in the mission of an organization. The genuine practice of CSR, unlike greenwashing, requires a commitment to an additional stakeholder, the planet, whose continued healthy existence is essential for any organization to operate.
The California Act requires businesses that operate in California to describe for consumers all components and activities of their supply chains. True or false?
Unless a company earns and maintains that license social license holders may intend to block project developments; employees may leave the company for a company that is a better corporate citizen: and companies may be under ongoing legal challenge. In research of Requisite Organization Dr Elliott Jaques defines Social License to Operate for the company as the social contract the company has with the social license holders employees, trade unions, communities, government for them to manifest positive intention to support the business short- and long-term objectives by "providing managerial leadership that nurtures the social good and also gives the foundation for sustainable growth in organizational results.
The primary objective for the companies is to obtain and maintain the Social License to Operate. Based on the Requisite Organization research of Dr. Elliott Jaques to achieve this goal a company needs to:. A large body of literature exhorts business to adopt non-financial measures of success e. The business case for CSR  within a company employs one or more of these arguments:. Profit is the economic value created by the organization after deducting the cost of all inputs, including the cost of the capital unlike accounting definitions of profit.
This measure was claimed to help some companies be more conscious of their social and moral responsibilities. Another criticism is about the absence of a standard auditing procedure. The term was coined by John Elkington in A CSR program can be an aid to recruitment and retention ,   particularly within the competitive graduate student market.
Potential recruits often consider a firm's CSR policy. CSR can also help improve the perception of a company among its staff, particularly when staff can become involved through payroll giving , fundraising activities or community volunteering. CSR has been credited with encouraging customer orientation among customer-facing employees. CSR is known for impacting employee turnover.
Several executives suggest that employees are their most valuable asset and that the ability to retain them leads to organization success. Socially responsible activities promote fairness, which in turn generate lower employee turnover. On the other hand, if an irresponsible behavior is demonstrated by a firm, employees may view this behavior as negative. Proponents argue that treating employees well with competitive pay and good benefits is seen as a socially responsible behavior and therefore reduces employee turnover.
This interest is driven particularly by the realization that a positive work environment can result in desirable outcomes such as more favorable job attitudes and increased work performance. The authors noted that while developing and implementing a CSR strategy represents a unique opportunity to benefit the company. The survey's authors also stated that employee engagement on CSR initiatives can be a powerful recruitment and retention tool. As a result, employees tend to discard employers with a bad reputation. Managing risk is an important executive responsibility.
Reputations that take decades to build up can be ruined in hours through corruption scandals or environmental accidents.
CSR can limit these risks. CSR can help build customer loyalty based on distinctive ethical values. Some companies use CSR methodologies as a strategic tactic to gain public support for their presence in global markets, helping them sustain a competitive advantage by using their social contributions as another form of advertising. Companies that operate strong CSR activities tend to drive customer's attention to buy products or services regardless of the price.
As a result, this increases competition among firms since customers are aware of the company's CSR practices.alexacmobil.com/components/jylyrodet/haxu-spiare-whatsapp-tramite.php
Corporate Social Responsibility (CSR) – Business Ethics
These initiatives serve as a potential differentiator because they not only add value to the company, but also to the products or services. Furthermore, firms under intense competition are able to leverage CSR to increase the impact of their distribution on the firm's performance. Lowering the carbon footprint of a firm's distribution network or engaging in fair trade are potential differentiators to lower costs and increase profits.
In this scenario, customers can observe the company's commitment to CSR while increasing company sales. Whole Foods ' marketing and promotion of organic foods have had a positive effect on the supermarket industry. Proponents assert that Whole Foods has been able to work with its suppliers to improve animal treatment and quality of meat offered in their stores.
They also promote local agricultures in over 2, independent farms to maintain their line of sustainable organic produce. As a result, Whole Foods' high prices do not turn customers away from shopping. In fact, they are pleased buying organic products that come from sustainable practices. Theater one focuses on philanthropy, which includes donations of money or equipment to non-profit organizations, engagement with communities' initiatives and employee volunteering. This is characterized as the "soul" of a company, expressing the social and environmental priorities of the founders.
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The authors assert that companies engage in CSR because they are an integral part of the society. This program provides critical school readiness resources to underserved communities where PNC operates. On the other hand, theater two focuses on improving operational effectiveness in the workplace. The researchers assert that programs in this theater strive to deliver social or environmental benefits to support a company's operation across the value chain by improving efficiency.
Some of the examples mentioned include sustainability initiatives to reduce resource use, waste, and emission that could potentially reduce costs. It also calls for investing in employee work conditions such as health care and education which may enhance productivity and retention. Unlike philanthropic giving, which is evaluated by its social and environmental return, initiatives in the second theater are predicted to improve the corporate bottom line with social value. Bimbo , the largest bakery in Mexico , is an excellent example of this theater.
The company strives to meet social welfare needs. It offers free educational service to help employees complete high school. Bimbo also provides supplementary medical care and financial assistance to close gaps in the government health coverage. Moreover, the third theater program aims to transform the business model.
Basically, companies create new forms of business to address social or environmental challenges that will lead to financial returns in the long run. One example can be seen in Unilever's Project Shakti in India. The authors describe that the company hires women in villages and provides them with micro-finance loans to sell soaps, oils, detergents, and other products door-to-door. This research indicates that more than 65, women entrepreneurs are doubling their incomes while increasing rural access and hygiene in Indian villages. As a consequence, the company wants to introduce a new model to collect and recycle old furniture.
Corporations are keen to avoid interference in their business through taxation or regulations. A CSR program can persuade governments and the public that a company takes health and safety , diversity and the environment seriously, reducing the likelihood that company practices will be closely monitored. Appropriate CSR programs can increase the attractiveness of supplier firms to potential customer corporations.
CSR strategy or behaviors related to CSR was discussed by many scholars in terms of crisis management like responses to boycott in an international context. The strategy utilized by Arla Foods works and has helped the company in regaining the most of its lost market share among many countries in the Middle East. Arla Foods founded a funding for children with cancer and they donated ambulances to refugees in Lebanon. Other researchers analyzed the case of multinational enterprise strategies under the context of conflicts between Lebanon and Israel.
From Fiduciary to Vivantary Responsibility -
During the conflict, many companies stressed seeking to help the local community. For example, Citibank has provided monetary assistance to some local businesses affected by the war. Another activity did by a Lebanon company was a fund-raising campaign. Moreover, some researchers conclude that making charitable contributions, emphasizing local connections and demonstrating the impact on the local economy are strategic responses to the crisis of the boycott. CSR concerns include its relationship to the purpose of business and the motives for engaging in it.
Milton Friedman and others argued that a corporation's purpose is to maximize returns to its shareholders and that obeying the laws of the jurisdictions within which it operates constitutes socially responsible behavior. While some CSR supporters claim that companies practicing CSR, especially in developing countries, are less likely to exploit workers and communities, critics claim that CSR itself imposes outside values on local communities with unpredictable outcomes.
Better governmental regulation and enforcement, rather than voluntary measures, are an alternative to CSR that moves decision-making and resource allocation from public to private bodies. Some critics believe that CSR programs are undertaken by companies to distract the public from ethical questions posed by their core operations. They argue that the reputational benefits that CSR companies receive cited above as a benefit to the corporation demonstrate the hypocrisy of the approach.
Others have argued that the primary purpose of CSR is to provide legitimacy to the power of businesses. Bakan  is one of the most prominent critics of the conflict of interest between private profit and public good, and his argument is summarised by Haynes that "a corporate calculus exists in which costs are pushed onto both workers, consumers and the environment". Indeed, it has been argued that there is a "halo effect" in terms of CSR spending. Aguinis and Glavas conducted a comprehensive review of CSR literature, covering academic sources from numerous fields including organizational behaviour , corporate strategy , marketing and HRM.
It was found that the primary reason for firms to engage in CSR were the expected financial benefits associated with CSR, rather than being motivated a desire to be responsible to society. CEOs' political ideologies are evident manifestations of their different personal views. Each CEO may exercise different powers according to their organizational outcomes. In fact, their political ideologies are expected to influence their preferences for the CSR outcomes. Proponents argue that politically liberal CEOs will envision the practice of CSR as beneficial and desirable to increase a firm's reputation.
They tend to focus more on how the firm can meet the needs of the society. As a consequence, they will advance with the practice of CSR while adding value to the firm. On the other hand, property rights may be more relevant to conservative CEOs. Since conservatives tend to value free markets, individualism and call for a respect of authority, they will not likely envision this practice as often as those identifying as liberals might. The financials of the company and the practice of CSR also have a positive relationship.
Moreover, the performance of a company tends to influence conservatives more likely than liberals. While not seeing it from the financial performance point of view, liberals tend to hold a view that CSR adds to the business triple bottom line. For instance, when the company is performing well, they will most likely promote CSR. If the company is not performing as expected, they will rather tend to emphasize this practice because they will potentially envision it as a way to add value to the business. In contrast, politically conservative CEOs will tend to support the practice of CSR if they hold a view that it will provide a good return to the financials of the company.
In other words, this type of executives tend to not see the outcome of CSR as a value to the company if it does not provide anything in exchange. There have been unsubstantiated social efforts, ethical claims, and outright greenwashing by some companies that has resulted in increasing consumer cynicism and mistrust. For example, McDonald's Corporation positioned its association with Ronald McDonald House and other children's charities as CSR  while its meals have been accused of promoting poor eating habits. Acts which may initially appear to be altruistic CSR may have ulterior motives.
The funding of scientific research projects has been used as a source of misdirection by firms. Prusiner , who discovered the protein responsible of CJD and won the Nobel prize in Medicine, thanked the tobacco company RJ Reynolds for their crucial support. Proctor states that "the tobacco industry was the leading funder of research into genetics, viruses, immunology, air pollution"  anything which formed a distraction from the well-established research linking smoking and cancer. Research has also found that corporate social marketing , a form of CSR promoting societal good, is being used to direct criticism away from the damaging practices of the alcohol industry.
Companies may engage in CSR and social marketing in this case to prevent more stringent government legislation on alcohol marketing. Industries such as tobacco, alcohol or munitions firms make products that damage their consumers or the environment. Such firms may engage in the same philanthropic activities as those in other industries.
This duality complicates assessments of such firms with respect to CSR. Textile company Kitex has taken over the administration of an entire Indian village called Kizhakkambalam near Cochin by winning the local body elections. Environmentalists and mainstream politicians of India point out that this can lead to a dangerous precedent because the company got actively involved in CSR only after they were caught red-handed in polluting the village. One motivation for corporations to adopt CSR is to satisfy stakeholders beyond those of a corporation's shareholders.
Branco and Rodrigues describe the stakeholder perspective of CSR as the set of views of corporate responsibility held by all groups or constituents with a relationship to the firm. The stakeholder perspective fails to acknowledge the complexity of network interactions that can occur in cross-sector partnerships. It relegates communication to a maintenance function, similar to the exchange perspective.
The rise in popularity of ethical consumerism over the last two decades can be linked to the rise of CSR. One issue with the consumer's relationship with CSR is that it is much more complex than it first appears. This indicates that there is a clear discrepancy between consumer beliefs and intentions, and actual consumer behaviour, so that when it comes down to their actual purchase behaviour, CSR has a much lesser impact than consumers initially say it does.
One theory put forward for explaining the "CSR-Consumer Paradox" is that of "bystander apathy" or the bystander effect. So even if a consumer is against the use of sweatshops or wants to support green causes, they may continue to make purchases from companies that are socially irresponsible just because other consumers seem apathetic towards the issue.
A second explanation issued by Janssen and Vanhamme is that of reciprocal altruism. This is a key concept in evolutionary psychology that is argued to fuel all human behaviour: people only do something if they can get something back in return. In the case of CSR and ethical consumerism, however, consumers get very little in return for their investment. Ethically sourced or manufactured products are typically higher in price due to greater costs.
However, the reward for consumers is not much different from that of a non-ethical counterpart. Therefore, evolutionary speaking making an ethical purchase is not worth the higher cost to the individual even if they believe in supporting ethically, environmentally and socially beneficial causes. Shareholders and investors, through socially responsible investing SRI , are using their capital to encourage behavior they consider responsible. However, definitions of what constitutes ethical behavior vary.
For example, some religious investors in the US have withdrawn investment from companies that violate their religious views, while secular investors divest from companies that they see as imposing religious views on workers or customers. Some national governments promote socially and environmentally responsible corporate practices.
Collective bargaining is a way nations promote CSR. In Germany, CSR is kept at the industry level instead of the workplace; this has been viewed as one of the strengths of the German government's push of CPR. There is a higher percentage of workers in unions in countries like Sweden and Iceland which have more Social-Democratic elements in their Nordic Mode l than the U.
The U. In comparison with the U. Fifteen European Union countries are actively engaged in CSR regulation and public policy development. Some studies have claimed that the role and effectiveness of these actors were case-specific. Canada adopted CSR in The 'Heilbronn Declaration' is a voluntary agreement of enterprises and institutions in Germany especially of the Heilbronn-Franconia region signed on 15 September The approach of the 'Heilbronn Declaration' targets the decisive factors of success or failure, the achievements of the implementation and best practices regarding CSR.
A form of responsible entrepreneurship shall be initiated to meet the requirements of stakeholders' trust in economy. It is an approach to make voluntary commitments more binding. They further claim without source that "There is no form of market failure, however egregious, which is not eventually made worse by the political interventions intended to fix it," and conclude "there is no need for further research on regulation in the name of social responsibility. In the s, the US government could take away a firm's license if it acted irresponsibly. Corporations were viewed as "creatures of the state" under the law.
Woodward established a corporation as a legal person in specific contexts.
Shareholder Wealth Maximization, BE and SR - POITRAS...
This ruling allowed corporations to be protected under the Constitution and prevented states from regulating firms. On 16 December , the Danish parliament adopted a bill making it mandatory for the largest Danish companies, investors and state-owned companies to include CSR information in their financial reports.
The reporting requirements became effective on 1 January The law requires that all businesses affected establish a CSR committee to oversee the spending. Unlike global definitions of CSR which are in the triple bottom line, corporate citizenship, sustainable business, business responsibility and closed loop realm, in India CSR is a philanthropic activity.
Every company harms the environment and people! Corporate Social Responsibility is thus just about two aspects: 1 The steps taken by a company to neutralise, minimise or offset the harmful effects caused by its processes and product-usage. Only if you make a profit can you invest, innovate and build for the future. Serving the Bottom of the Pyramid BoP can be a profitable opportunity for a business. The BoP markets can provide new focus to firms. The single largest private rural health and hygiene programme The objective of the programme is to educate people about basic hygiene habits.
With a focus on rural communities, the programme targets school children, women, and community elders. Reach the so-called media-dark regions by turning rural women into direct-to home distributors of its mass-market products Provides livelihoods to thousands of women. Philanthropy:Altruistic concern for human welfare and advancement, usually manifested by donations of money, property, or work to needy persons, by endowment of institutions of learning and hospitals, and by generosity to other socially useful purposes. Corporate Philanthropy:Corporate Philanthropy mirrors individual philanthropy except for the fact that a corporation, not an individual, is donating funds, time, or talent.
Although Corporate Philanthropy and CSR are used interchangeably, there is a thin line of difference. The ministry of Company Affairs is drafting the new Companies Bill and has proposed the companies with turnover of more than Rs. Warren Buffet, in March , persuaded Indian billionaires to donate their wealth to charity. Rahul Bajaj says Since time of Buddha, India has been involved in philanthropy; its in our culture ; however such activities are different from those in the first world.
Even Sam Walton, an American, says Walmart was never and should never be in the business of charity. Who of them is ethical and correct? Tags: michael porters views project nanhi kali corporate social responsibility corporate philanthropy greatest amount economic csr altruistic csr csr activities. Post on Nov views. Category: Documents 0 download. Two reasons CSR hasnt been nearly as productive as it could be. Prevailing approaches are disconnected from business as to obscure many great opportunity for companies to benefit society.
Some Definitions Philip Kotler: CSR is the commitment to improve community wellbeing through discretionary business practices and contributions of corporate resources World Business Council for Sustainable Development: Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large.
This is important in market with competitive advantages Integration of CSR is a result of imitation or to get a competitive comparative advantage Business FocusRationale for the CSR is derived entirely or very largely from a concern with the interest of the enterprise itself.