Corporate Social Responsibility

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10/3/2012

Corporate Social Responsibility
Introduction: A Stakeholder’s
Perspective
Perspective

Recent Business Incidents for
Deliberation – 1
• Toyota: http://www.youtube.com/watch?v=qNm-h9FbJg&feature=channel • The Octopus: http://www.youtube.com/watch?v=o30eVK1C1C0
• Cafe de coral: http://www.chinadaily.com.cn/hkedition/201011/04/content_11499922.htm • Minimum Wages
▫ http://www.youtube.com/watch?v=Wnwck09iBdU&feature=fvsr
• Cafe de Coral
▫ http://www.youtube.com/watch?v=BG47rvQVP0A&feature=fvsr
• PCCW and HSBC
▫ http://www.youtube.com/watch?v=GPEn3LZNTJc&feature=fvsr

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Cases of lack of Corporate Social
Responsibility?
• Olympus accounting scandal

▫ http://www.cbsnews.com/video/watch/?id=7389690n

• Meng Niu Milk Scandal

▫ http://www.globaltimes.cn/NEWS/tabid/99/ID/689954/Mengniumilk-scandal-forces-company-to-tighten-cow-fodder-inspections.aspx ▫ http://www.youtube.com/watch?v=7bUEd7GPJ44

• CLP Tariff increases

▫ http://www.youtube.com/watch?v=n61s0ej0a7w (Chief Executive) ▫ http://www.youtube.com/watch?v=EQzgA_dobzg (SAR Government – EPB)
▫ http://www.youtube.com/watch?v=hlE3EVhSNcI (General public) ▫ http://www.youtube.com/watch?v=EseoUL6lDgk&feature=related (CLP –final decision)
▫ http://www.youtube.com/watch?v=1uRt-4yAAY8&feature=related (News report)
▫ http://www.youtube.com/watch?v=mo-145CDgbs&feature=related (News)

Reflections on Business
• Do you agree with that “the Social Responsibility of Business is to Increase its Profits (a remark by Milton Friedman)”?
• Are profits the only business of business? – the location of corporate social responsibility
• Do you agree with that “others have a legitimate claim on the corporation (a reply by Freeman to Friedman’s remark)”?
• The idea of socially responsible corporations
• Which are the major stakeholders to which corporation should be responsible to?
• List:
▫ CSR companies (in HK and other countries)
▫ Non-CSR companies (in HK and other countries)

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Fundamental Questions in Business
• What is the purpose of business within society?
▫ Any other purposes apart from making profit?
▫ A company exist simply to make money???

• Do companies have obligations beyond the
benefits their economic success already
provides?
provides?
▫ Business Ethics/corporate social responsibility???

• What are the stakeholders business should be
responsible to?
▫ Solely shareholders/investors??

Carroll’s four-part model of
corporate social responsibility

© Oxford
University Press,
2007. All rights
reserved.

Desired by society
Philanthropic
Responsibilities

Expected by society
Ethical
Responsibilities

Required by society
Legal
Responsibilities

Required by society
Economic
Responsibilities
Source: Carroll (1991)

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CSR – Concept and Definition – 1
• CSR: a much broader concept than business
ethics
▫ Business ethics – the application of ethics and
ethical theory to the decision of business

• CSR – business are more than just profit-seeking
entities and, therefore, also have any obligation
titi
th
to benefit society

CSR – Concept and Definition – 2
• CSR:
▫ is about business and other organizations going
beyond the legal obligation to manage the impact
they have on the environment and society.
▫ In particular, this could include how organizations
interact with their employees, suppliers,
suppliers
customers and the community in which they
operate, as well as the extent they attempt to
protect the environment

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CSR – Concept and Definition – 3
• CSR: both a means and an end
▫ Mean: it is an integral element of the firm’s
strategy: the way the firm goes about delivering its
products or services to the markets
▫ End: it is a way of maintaining the legitimacy of its
actions in the larger society by bringing
stakeholder concerns to the foreground

• CSR is complex and still evolving: between social...
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