Corporate Values and

Responsibility
Class Learning Outcomes

- Critically assess the debate that surrounds corporate values and social
responsibilities
- Evaluate the CSR activities and its impact on competitive advantage of a
selected organisation
Contents

- Corporate values
- Corporate social responsibilities (CSR)
- CSR and competitive advantage
Corporate Values

- Values are fundamental beliefs.

- They are the principles we use to define
that which is right, good and just.
- Values provide guidance as we determine
the right versus the wrong, the good versus
the bad.
- They are the standards for behaviour
Corporate Values

- Corporate values define the acceptable

standards which govern the behaviour of
individuals within the organisation
- Organisational values are a set of beliefs
that specify universal expectations and
preferred modes of behaviour in a company
- They point the way to purposeful action and
approved behaviour
Corporate Value Bases

- There are three categories of organisational values

- Physical values - cleanliness, reliability, quality, safety
etc
- Organisational values - communication, cooperation,
standardisation, coordination etc,
- Psychological values - creativity, innovation, loyalty,
respect for individual, service to society etc.
Impact of Corporate Value

- The corporate values are integrated into the

company’s way of doing business (policies,
procedures, compensation practices,
performance appraisals, etc.)
- They affect all aspects of the company from
what products get made or sold to how people
are treated
Impact of Corporate Value

- Values represent the philosophy about how they

intend to conduct their business
- Organisation’s values are always in line with its
purpose or mission, and the vision that the
organisation trying to achieve
- Founders values permeate the workplace, and
founder will hire people who share the same
values
Impact of Corporate Value

- Values hold a major role in daily decision

making, norms and relationship guidelines and
how people interact with each other and
customers and suppliers
Impact of Corporate Value on Strategy
Policy

Management
Review Planning

Improvement Implementation

Evaluation
Corporate Social Responsibilities (CSR)

- Corporate social responsibility is a gesture of

showing the company’s concern & commitment
towards society’s sustainability and
development
- CSR is the ethical behaviour of a company
towards society
Definition of Corporate Social Responsibilities

“ 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 workplace and their families
as well as of the local community and society at
large” (World Business Council for Sustainable
Development, no date)
CSR explained

- CSR encompasses the extent to which

companies should promote human rights,
democracy, community improvements and
sustainable development objectives throughout
the world (Confederation of British Industry,
2001)
Four Dimensions of CSR
Dimensions of corporate responsibility

- Business ethics, values and principles

- Accountability and transparency
- Commitments to socio-economic developments
- Environmental concerns
- Human rights
- Workers rights and welfare
- Market relations
- Sustainability
- Corporate governance
Benefits of CSR

- Increased employee loyalty and retention

- Increased quality of products and services
- Increased customer loyalty
- Increased reputation and brand image
- Greater productivity and quality
- Reduced regulatory oversight
- Product safety and decreased liability
Competitive Advantage and CSR

- Shareholder value
- Revenue
- Operational efficiency
- Access to debt and equity capital
- Customer attraction and retention
- Creation of brand value and reputation
- Human capital
Driving Forces behind CSR

- Globalisation
- Power & Influence of business corporations
- Growing access to education and information
- Growing awareness of environmental issue
- Spread of corporate scandals and public distrust
Types of CSR

- Ethical CSR: Responsibility to avoid harms or social injuries

- Altruistic CSR: Contributing to the common good at the possible expenses of
the business for altruistic, humanitarian or philanthropic causes
- Strategic CSR: Firms social welfare responsibilities that benefit both the
corporation and stakeholders
Triple Bottom Line Concepts of CSR

- Economic responsibilities (Profit)

- Social Responsibilities (People)
- Environmental Responsibilities (Planet)
Recap

- Corporate values
- Corporate social responsibilities (CSR)
- CSR and competitive advantage
Class Activity

- Identify the CSR activities of the selected organisation

- Evaluate the impact of such CSR activities on people, planet and profit
- How CSR help achieve competitive advantage for the organisation
Thanks for Listening

- Assignment assistance