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Transcript of School of Management Warsaw
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School of ManagementSchool of ManagementWarsawWarsaw
November 2007November 2007
Lecturer Sander Hupkes MALecturer Sander Hupkes MA
Corporate Social ResponsibilityCorporate Social Responsibility
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Program 1st meeting
• Todays program
• Introduction (lecturer & students)
• The module
• What is CSR? Why CSR?
• Next session
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Your lecturer
• Drs. Sander Hupkes (=MA)
• Academic degree in Philosophy (University of Groningen 1987)
• Lecturer University of applied sciences Leeuwarden, Netherlands (since 2003)
• Something more about NHL and my country
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Your lecturer
• 10 years trade union
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Your lecturer
• 10 years trade union
• Modules: globalization, industrial relations, (business)ethics, CSR
• Age 47
• Married, no children
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Program module
• The book: Corporate Social Responsibility (a Dutch approach)
• Documentary on the Brent Spar (Shell)
• Collect information (www) on CSR and CSR reports.
• How to become a social responsible company?
• Assessment
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Program module
Today Introduction
Session 2 TV documentary on Brent Spar (Shell versus Greenpeace)
Session 3 Examples of CSR
Session 4 The cultural dimension of CSR
Session 5 Implementing a CSR strategy
Session 6 Evaluation
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What does CSR mean?
• Corporate social responsibility
• But what does it mean????????
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Responsibility?
• Responsibility = Accountability (answering, reporting)
• What responsibility do enterprises have?
• Four concepts
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Responsibility
Four concepts
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Responsibility
Minimal responsibility
Increase profits (shareholders)
= efficiency
Whitin the rules of te game (=law)
•Milton Friedman: one and only responsibility. Increase profit whitin the rules of the game (free and open competition, no deception or fraud)
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Responsibility
Corporate citizenship
Continuity
All stakeholders
Spirit of the law
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Responsibility
Corporate social responsibility
Damage reduction
Triple P
Value based (not law based)
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Resposibility
Social activism
Social objectives
Values and norms are the core business
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Why CSR?
Because………..
• You must do so (law, public expectations)
• You find it profitable (reputation, marketing, enlightened self-interest)
• You should do so (moral values, idealism)
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Why is CSR profitable?
• ???????????????????????
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Hapiness
• Richard Layard
Hapiness. Lessons from a New Science (2005)
World database on hapiness
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HapinessAVERAGE HAPPINESS IN 95 NATIONS 1995-2005 How much people enjoy their life-as-a-whole on scale 0 to 10
Top/bottom Full list Technical details Cite as
Top/bottom
Top
> 7,7
Middle range
± 6,0
Bottom
<4
Denmark 8,2 Phillipines 6,4 Armenia 3,7
Switzerland 8,1 India 6,2 Ukraine 3,6
Austria 8,0 Iran 6,0 Modova 3,5
Iceland 7,8 Poland 5,9 Zimbabwe 3,3
Finland 7,7 South Korea 5,8 Tanzania 3,2
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Marketing
Philip Kotler
1. Production based (price)
2. Product based (price quality)
3. Sales based (persuasion)
4. Marketingconcept (customor = king)
5. Values based sales and marketing (social responsibility)
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CSR
1973
Club of Rome
1987
Brundtland
2000
SER
2006
Al Gore
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The Dutch approach
• SER Social and Economic Council
• Consultation economy (
• Enterprise = a social activity
• CSR is core business
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Les 2?
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The Dutch approach
• Enterprise = value creating entity
• Value creation in various dimensions
• CSR cannot be based solely on charity!
• CSR is a varied and complex phenomenon
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Enterprise*
• Profit-driven
• Market-driven
• Transaction costs can be saved in partnership arrangements (for a longer period)
• Long-term form of co-operation between various stakeholders
• Bus
ines
s =
a s
ocia
l act
ivity
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Enterprise*
• Profit-driven, but the social and economic importance is to create value by using scarce sources in a efficient and effective manner for the production of goods and services wich, by satisfying human needs, contribute to general prosperity.
* The Dutch approach
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CSR
Corporate Social responsibility is determined by:
- Focus on public prosperity on the longer term
- Relation with stakeholders and society at large
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CSR
The conscious direction of business activities toward creating value in three dimensions for the longer term:- Financial-economic- Ecological- Social
Transparancy and accountability
Balance of power of stakeholders
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Triple P
• Beyond the Bottom Line: Putting Social Responsibility to Work for Your Business and the World
Joel Makower (1994)“Companies function best when they merge
their business interests with the interests of customers, employees, neighbours, investors and other groups directly and indirectly affected by their operations”
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Triple P
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Triple P
Essence of CSR in a nutshell
• Profit: shareholders and social importance: efficient, comparative advantage
• People: employees, neighbours, customors other groups affected
• Planet: nature, environment
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Triple P
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Values and norms
Used to be imposed by church and/or government
Nowadays values and norms are discussed in the public arena
Examples• OECD Guidelines• ILO labour standards• UN Global Compact• cleanclothes
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Accountability
An enterprise is expected to provide answers to legimate questions
Public dialogue
Corporate codes
Reports on CSR: GRI (Global Reporting Initiative)
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Les 3
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Globalization
Anglo saxon model:
- Hire and fire
- Corporate governance
- Shareholders value
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Globalization
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Four concepts
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Culture
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Culture
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Culture
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Cultureshock
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• http://www.btplc.com/Societyandenvironment/Businessgame/index.htm.