Corporate Social Responsibility – Lecture 1

Claudia Mesegué Terradas, Mariia Stolyga

Course overview
• Structure: 5 lectures (4 on campus & 1 guest lecture online)
• Assessment: Block 1 exam worth 5 EC (one content exam with
three parts: CSR, Economics, Marketing 1)
• CSR part of the exam: 15 MC questions based on the course material
• Mock test available on Bb (left menu – mock tests)
• Class presentations (week 1.6; application of the UN SDG goals)
 •What is CSR and why it’s important:

TODAY’s •Definitions
•Vocabulary
• CSR Core principles

AGENDA •Stakeholder Management

•What is a stakeholder?
Lecture 1 •The triple approach

• Drivers of sustainability

• UN SDGs – introduction and links for self-study

WHAT IS
CORPORATE
SOCIAL
RESPONSIBILITY?
4
 Corporate Social Responsibility

By some measurements, interest in Corporate Social Responsibility is growing greatly

Yet over the last 10 years, despite sustained interest, can anyone name a specific
achievement in the field of Corporate Social Responsibility?
DEFINITION
#1
“It refers to the obligations
of businessmen to pursue
those policies, to make
those decisions, or to follow
those lines of action which
are desirable in terms of
the objectives and values
of our society.”
- Bowen, 1953
DEFINITION
#2
“Corporate Social
Responsibility is a
gesture of showing
the company’s
concern and
commitment towards
society’s sustainability
and development.”
-BN Ghosh, Business Ethics and
Corporate Governance, 2012
 Corporate Social Responsibility

Corporate >>> not only corporations, but all businesses (large, medium and small)

Social >>> human society, community, all living organisms

Responsibility >>> obligation

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 1953 “…action[s] which are desirable...”

society’s sustainability and development.” 2012

How has this definition evolved?

VOCABULARY: SUSTAINABILITY IS

“Meeting the needs of the present

without compromising the ability of
future generations to meet their own
needs.

Sustainability presumes that resources

are finite and should be
used conservatively and wisely with a
view to long-term priorities and
consequences of the ways in which
resources are used.”

- UN World Commission on Environment and

Development, 1983
11
VOCABULARY: THE TRIPLE BOTTOM LINE

“it’s a business concept that firms

should commit to measuring their
social and environmental impact—in
addition to their financial
performance—rather than solely
focusing on generating profit, or the
standard “bottom line.”

- UN World Commission on Environment and

Development, 1983

12
VOCABULARY: (CONSCIOUS) CONSUMERISM

“is when buying practices are driven by

a commitment to making purchasing
decisions that have positive social,
economic, and environmental impact.

A socially conscious consumer will

think whether consumption is
necessary, then once they decide to
buy, they look at who is providing the
product and how the product impacts
each environment touched in its
creation and delivery.”

- Nguyen, 2021
Principles • Respect for human rights
of CSR: • Respect for different views (of CSR)
• Diversity and non-discrimination
• Make a social contribution
• Enter the dialogue with stakeholders
before undertaking any CSR activity
• Deal fairly and collaboratively
• Solicit feedback from the community
• Ensure long-run economic and social
development
STAKEHOLDER
MANAGEMENT

15
WHAT IS A STAKEHOLDER?
“A person, group or organization that has interest or concern in an
organization. Stakeholders can affect or be affected by the
organization's actions, objectives and policies.”

- Post, Preston, Sachs (2002)

 • Employees
• Shareholders
• Management

OK, BUT •
•
•
Suppliers
Governments
Press / Key opinion leaders

WHO’S A •
•
•
Unions (Trading / Labor)
Customers
Investors and Creditors
STAKEHOLDER? •
•
Communities
Agencies and NGO’S
• Competitors
• Schools
• Future generations
• …
MAPPING
STAKEHOLDERS
- +

-
+
THE TRIPLE APPROACH
• Power: they influence the
management and strategy of a
company to defend their own interests

• Urgency: presenting their interests

can put pressure on a company

• Legitimacy: demands and

expectations of a legitimate nature

- Garcia (1993)

19
DRIVERS OF
SUSTAINABILITY

20
5 Drivers of 1. Changing legal frameworks
Sustainability: 2. Financial savings
3. Human Resource strategic benefit
4. Growing resource scarcity pressure
5. Extra profit gain
 Legal
Companies adopt more sustainable
practices for fear of legal & financial
retributions.

Example: French ban on illegal dumping

or burning of unsold clothes.

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Financial
Companies have recognized that
being sustainable can help save
money.

Example: "smart lighting" systems

swithch off the lights when the
offices are empty. While the
companies save money on
electricity, the planet benefits too.

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HR
People who work for companies
that serve an authentic societal
purpose, tend to be more
productive, happier about
their job, and more committed.

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Resource scarcity

Instit
uut
voor
Mark
12-9-2021 BLOK 9 CE
eting
 Extra profit
Or rather: fear of losing profit

Instituut voor
12-9-2021 BLOK 9 CE Marketing
Management
United Nations Sustainable Development Goals
https://www.un.org/sustainabledevelopment/sustainable-development-goals/

https://www.globalgoals.org/business

https://sdgcompass.org/

Links for self-study

One-third of the MCQs on the final exam will directly reference the UN SDGs. Each
student is responsible for learning about the Goals and the work that companies are doing
to advance the goals. This material will not be covered by the lecturer (final presentation),
but it will appear on the final exam.
 GROUP ACTIVITY

In groups search examples of companies creating sustainable value for customers.

Then explain:
• What has the company done?
• Which driver(s) of sustainability is/are influencing the decision?
• Can your group offer any critique of the company’s activities?