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1、Business Ethics and Social ResponsibilityGlenn Behenna1What are Stakeholders?Stakeholders are those individuals or groups who depend on an organisation to fulfil their own goals and on whom, in turn, the organisation depends (Johnson et al 2011).2Stakeholders of a Large Organisation3Stakeholder Expe

2、ctations Decisions taken by managers are influenced by stakeholders (CIM 2010). This poses a challenge as there are many different stakeholders with different, perhaps conflicting, expectations. Managers will need to take a view on:i.Which stakeholders have the greatest influence.ii.What stakeholder

3、 expectations do managers need to pay most attention to.iii. To what extent the influence and expectations of different stakeholders vary.4Ethics Ethics is a branch of philosophy that deals with what is considered to be right or wrong. Business ethics addresses what can be regarded as morally right

4、and wrong in the way businesses make decisions and conduct their activities (Crane and Matten 2007). 5How Does Business Ethics Relate to Corporate Social Responsibility (CSR)? An organisations core ethical values and standards should underpin everything that it does and the way its employees conduct

5、 their everyday business. Business ethics is about doing things ethically. How an organisation approaches the social and environmental impacts of its business operations and its voluntary contribution to the wellbeing of the global and local communities in which it operates, is often known as Corpor

6、ate Social Responsibility (CSR); it is often about doing ethical things. Can an organisation be responsible without a culture that is based on ethical values such as trust, openness, respect and integrity?6What is Corporate Social Responsibility?Corporate social responsibility (CSR) is concerned wit

7、h the ways in which an organisation exceeds its minimum obligations to stakeholders specified through regulation (Johnson et al 2011).7What is CSR? The entirety of CSR can be discerned from the three words contained within its title phrase: corporate, social, and responsibility. CSR covers the respo

8、nsibilities corporations (or other for-profit organisations) have to the societies within which they are based and operate. More specifically, CSR involves a business identifying its stakeholder groups and incorporating their needs and values within the strategic and day-to-day decision-making proce

9、ss. A business society within which it operates, defines the number of stakeholders to which the organisation has a responsibility, may be broad or narrow depending on the industry in which the firm operates and its perspective.8What Business Areas Does CSR Cover?Ethics - discretionary actions.Strat

10、egic brand management - Brand building, Brand insurance.Stakeholder relations - Internal (employees) - External (suppliers, distributors, investors, NGOs, government, media, consumers).Crisis management.Community engagement.Community Relations.Day-to-day operations - Environmental sustainability, Wo

11、rkplace issues.Moral righteousness.External PR/ad - Meet consumer expectations, Cause-related marketing.Corporate governance transparency, social auditsSRI (Sustainable and Responsible Investment).Diversity.Legislation and litigation.Cultural conflict. 9Why is CSR relevant? Whilst it addresses the e

12、xpectations of customers and shareholders/owners it also addresses the expectations of the other stakeholders:Society at large.Community.The environment.Interest groups.10Key Drivers in CSR Environmental concerns. Globalisation and concerns for sustainable development in LDCs.Less Developed Countrie

13、s 欠發(fā)達(dá)國家，不發(fā)達(dá)國家 Importance of global brands and corporate reputations.11Key Drivers in CSRChanging social expectations - Consumers and society in general expect more from the companies whose products they buy. This sense has increased in the light of recent corporate scandals, which reduced public tru

14、st of corporations, and reduced public confidence in the ability of regulatory bodies and organisations to control corporate excess.Increasing affluence - This is true within developed nations, but also in comparison to developing nations. Affluent consumers can afford to pick and choose the product

15、s they buy. A society in need of work and inward investment is less likely to enforce strict regulations and penalise organisations that might take their business and money elsewhere.Globalisation - The growing influence of the media sees any mistakes by companies brought immediately to the attentio

16、n of the public. In addition, the Internet fuels communication among like-minded groups and consumersempowering them to spread their message, while giving them the means to co-ordinate collective action (i.e. a product boycott).12Why is CSR Important? CSR is an important business strategy because, w

17、herever possible, consumers want to buy products from companies they trust; suppliers want to form business partnerships with companies they can rely on; employees want to work for companies they respect; and NGOs,non-government organization 非政府組織，非政府機(jī)構(gòu)increasingly, want to work together with compan

18、ies seeking feasible solutions and innovations in areas of common concern. “The 21st century will be the century of the social sector organisation. The more economy, money, and information become global, the more community will matter.”Peter F. Drucker, Founder of the Drucker Foundation13Key Issue i

19、s Sustainability Sustainability issues for the benefit of the global environment and society (and so organisational reputation). Sustainability issues for the survival of the organisation.14Key Issues in Sustainability Population pressure. Production and consumption. Globalisation. Global warming an

20、d climate change. Ozone depletion.臭氧耗竭 Acid rain. Genetic engineering. Loss of habits and species diversity.15Impact on Organisations Importance of assessing the true social, ethical and environmental impact of its products/services. Higher profile of corporate values. Increased importance of sustai

21、nability of business and product/brand strategies. Increased significance of other stakeholder audiences for communications. Drawn into corporate governance as guardians of brand reputation.Crisis management and contingency planning.16CSR & Corporate Brands Brands today are one of the key focal poin

22、ts of corporate success. Companies try to establish popular brands in consumer minds because it increases leverage, 杠桿作用; 影響力; 優(yōu)勢which is directly reflected in sales and revenue. All aspects of a companys operations today feed into helping build the corporate brand. Crucial is how a brand is perceiv

23、ed by all stakeholders (Fill 2010).17CSR & Corporate Brands Organisations have been making increasing use of corporate communications in order to make known their attitudes, policies and strategies towards their corporate responsibilities. This has been partly as a result of stronger regulatory and

24、social pressures for organisations to be more transparent (Fill 2010). 18CSR & Corporate Brands Positive marketing/brand-building BP BP, with a $200 million re-branding exercise, has effectively re-positioned itself as the most environmentally sound and socially responsible of the extraction compani

25、es. The company stands in stark contrast today with Exxon Mobil that faces on-going NGO attacks, consumer boycotts, and activist-led litigation because of its decision to fight the environmental movement, and its failure to recognise the wider importance of CSR as a corporate strategy. N.B. This was

26、 until the BP Deepwater Horizon oil spill in the Gulf of Mexico 2010.19CSR & Corporate Brands Brand insurance NIKE NIKE has emerged as one of the most progressive global corporations in terms of CSR because it has learned from its past mistakes and attacks by NGOs. As one of the first corporations t

27、o have a Vice-President for Corporate Responsibility and to publish an annual CSR Report, the company has done a lot to mitigate public opinion, establish its brand as representative of a much more committed corporate citizen, and insure itself against any repeat of the consumer boycotts it faced in

28、 the mid-1990s.20CSR & Corporate BrandsTo a 2006 article in Business Week called Nike Goes Green, the company spent millions of dollars throughout a 14 year period to eliminate an environmentally harmful chemical that was being used in the heel of its Nike Air line of running shoes. To quote the art

29、icle directly: “Nike sees the effort as part of a broader strategy to embrace social responsibility without compromising profits or product performance.” Also, according to another 2006 article called Nike: Not just doing it for themselves, Nike partnered with the United Nations as well as Microsoft

30、 to create a global awareness campaign called . This campaign is aimed to increase awareness about young global refugees and raise money for education and refugee camps. Another direct quote: “Once viewed more as a silo function, managing risks and reputation, corporate responsibility

31、 is increasingly embraced throughout as a source of growth and innovation.”Although these are just two quick examples, they are enough to demonstrate that Nike has seriously responded to the harsh criticism it once received concerning CSR. It is important to point out that Nike chose to remain relat

32、ively quiet about the positive changes it has made in terms of its strategies and initiatives. This displays a degree of humility within the company and the intentions for “good” CSR. On that note, I would also like to add that I did not come across any articles relating directly to the issue of swe

33、at shops21CSR & Corporate Brands There is a great deal of interesting material on the site that can be used to discuss corporate responsibility issues. The website, as well as various films and archived files such as Snake, demonstrates a number of issues about Shells identity and how they are devel

34、oping their brand.22CSR & Corporate BrandsVisit 1. Identify what Shell are trying to say about their identity and how they are developing their brand.2. Explore the various ways in which Shell communicate their corporate social responsibilities.3. Confirm the perceived importance that Shell have att

35、ached to their corporate responsibilities.23CSR & Corporate BrandsVisit 1. Identify what easyJet are trying to say about their identity and how they are developing their brand.2. Explore the various ways in which easyJet communicate their corporate social responsibilities.3. Confirm the perceived im

36、portance that easyJet have attached to their corporate responsibilities.24CSR & Corporate BrandsVisit 1. Identify what Asda are trying to say about their identity and how they are developing their brand.2. Explore the various ways in which Asda communicate their corporate social responsibilities.3. Confirm the perceived importance that Asda have attached to their corporate responsibilities.25Student ActivityExplore the sustainability and CSR issues your own organisations are facing. The focal point for discussion should be the process of identifying relevant issues and t