Corporate Social Responsibility David Crowther & Güler Aras
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CORPORATE SOCIAL RESPONSIBILITY DAVID CROWTHER & GÜLER ARAS DOWNLOAD FREE TEXT BOOKS AT BOOKBOON.COM David Crowther & Güler Aras Corporate Social Responsibility Download free books at BookBooN.com Corporate Social Responsibility © 2008 David Crowther, Güler Aras & Ventus Publishing ApS ISBN 978-87-7681-415-1 Download free books at BookBooN.com Corporate Social Responsibility Contents Contents 1. Defining Corporate Social Responsibility 10 1.1 Introduction 10 1.2 Definitions of CSR 10 1.3 The effects of organisational activity 13 1.4 The principles of CSR 14 1.5 Conclusion 17 1.6 References 17 1.7 Further reading 18 1.8 Self-test Questions 18 2. The principles of CSR 19 2.1 Introduction 19 2.2 The prominence of CSR 19 2.3 Changing emphasis in companies 20 2.3.1 Sustainability 21 2.4 Environmental issues and their effects and implications 22 2.5 Externalising costs 22 2.6 The Social Contract 25 2.7 Conclusions 26 2.8 References 26 2.9 Further reading 27 2.10 Self-test Questions 27 WHAt‘s missing in this equaTION? You could be one of our future talents Please click the advert MAERSK INTERNATIONAL TECHNOLOGY & SCIENCE PROGRAMME Are you about to graduate as an engineer or geoscientist? Or have you already graduated? If so, there may be an exciting future for you with A.P. Moller - Maersk. www.maersk.com/mitas Download free books at BookBooN.com Corporate Social Responsibility Contents 3. Stakeholders & the social contract 28 3.1 Introduction 28 3.2 What is a stakeholder? 28 3.3 Multiple stakeholding 30 3.4 The classification of stakeholders 30 3.5 Stakeholder Theory 30 3.6 Regulation and its implications 34 3.7 Risk Reducing 36 3.8 Conclusions 38 3.9 References 38 3.10 Further Reading 40 3.11 Self-test Questions 40 4. Issues concerning Sustainability 41 4.1 Introduction 41 4.2 Defining sustainability 41 4.3 The Brundtland Report 42 4.4 Critiquing Brundtland 43 4.5 Sustainability and the Cost of Capital 45 4.6 Redefining sustainability 46 4.7 Distributable sustainability 49 4.8 Summarising Sustainability 50 4.9 Conclusions 51 4.10 References 51 Please click the advert Download free books at BookBooN.com Corporate Social Responsibility Contents 4.11 Further reading 52 4.12 Self-test Questions 52 5. Ethics, CSR and Corporate Behavior 53 5.1 Introduction 54 54 5.2 What is Ethics? The Why ? 54 5.3 Ethical philosophies 55 5.4 The Gaia Hypothesis 58 5.5 Corporate Behaviour 59 5.6 CSR, Ethics and Corporate Behavior 60 5.7 Corporate Reputation 61 5.7 Conclusion 62 5.8 References 63 5.9 Further Reading 63 5.10 Self-test Questions 64 6. Performance Evaluation and Performance Reporting 65 6.1 Introduction 65 6.2 What is performance? 65 6.3 Social accounting 66 6.4 Aspects of performance 68 6.5 The balanced scorecard 69 6.6 The environmental audit 72 6.7 The Measurement of Performance 74 6.8 The Evaluation of Performance 75 www.job.oticon.dk Download free books at BookBooN.com Corporate Social Responsibility Contents 6.9 Multi-dimensional performance management 76 6.10 Conclusions 77 6.11 References 77 6.12 Further reading 78 6.13 Self-test questions 78 7. Globalisation and CSR 79 7.1 Introduction 79 7.2 Globalisation 79 7.3 How Globalisation Affects CSR 83 7.4 Globalisation, Corporate Failures and CSR 84 7.5 Is Globalisation an opportunity or threat for CSR? 86 7.6 Conclusion 88 7.7 References 88 7.8 Further Reading 89 7.9 Self-test Questions 89 8. CSR in not for profit organisations 90 8.1 Introduction 90 8.2 Distinguishing features of sector 90 8.3 Types of NFP organisation 91 8.4 Motivation for NFP’s 92 8.5 Implications for managers 93 8.6 Available resources 94 8.7 Structure of a charity 95 Please click the advert Download free books at BookBooN.com Corporate Social Responsibility Contents 8.8 Accounting issues 96 8.9 CSR issues in NFPs 96 8.10 Conclusions 98 8.11 References 98 8.12 Further reading 99 8.13 Self-test questions 99 9. CSR and Strategy 100 9.1 Introduction 100 9.2 The Role of a Business Manager 100 9.3 The objectives of a business 101 9.4 The Tasks of a Manager 104 9.5 The importance of performance measurement 108 9.6 Managers and business ethics 108 9.7 Corporate Governance 110 9.8 Corporate Governance Principles 111 9.9 Conclusions 114 9.10 References 114 9.11 Further reading 115 9.12 Self-test Questions 115 10. Corporate Social Responsibility and Leadership 116 10.1 Introduction 116 10.2 The concept of leadership 116 10.3 Styles of Leadership 119 © Always aiming for higher ground. 2009 Accenture. All rights reserved. Just another day at the office for a Tiger. Join the Accenture High Performance Business Forum On Thursday, April 23rd, Accenture invites top students to the High Performance Business Forum where you can learn how leading Danish companies are using the current economic downturn to gain competitive advantages. You will meet two of Accenture’s global senior executives as they present new original research and illustrate how technology can help forward thinking companies cope with the downturn. Please click the advert Visit student.accentureforum.dk to see the program and register Visit student.accentureforum.dk Download free books at BookBooN.com Corporate Social Responsibility Contents 10.4 Organisational culture and styles of leadership 119 10.5 Motivation 121 10.6 Definitions of power 123 10.7 Sources of power 125 10.8 Systems of control 126 10.9 Strategic planning 126 10.10 Corporate planning 129 10.11 Planned and emergent strategy 131 10.12 Feedback 132 10.13 Agency Theory 135 10.15 The Limitations of Agency Theory 140 10.17 References 141 10.18 Further reading 143 10.19 Self-test Questions 143 Notes 144 it’s an interesting world Get under the skin of it. Graduate opportunities Cheltenham | £24,945 + benefits One of the UK’s intelligence services, GCHQ’s role is two-fold: to gather and analyse intelligence which helps shape Britain’s response to global events, and, to provide technical advice for the protection of Government communication and information systems. In doing so, our specialists – in IT, internet, engineering, languages, Please click the advert information assurance, mathematics and intelligence – get well beneath the surface of global affairs. If you thought the world was an interesting place, you really ought to explore our world of work. TOP www.careersinbritishintelligence.co.uk GOVERNMENT EMPLOYER Applicants must be British citizens. GCHQ values diversity and welcomes applicants from all sections of the community. We want our workforce to reflect the diversity of our work. Download free books at BookBooN.com Corporate Social Responsibility Defining Corporate Social Responsibility 1. Defining Corporate Social Responsibility CSR “analyses economic, legal, moral, social and physical aspects of environment”. Barnard (1938) ...being the managers of other people's money than of their own, it cannot well be expected that they should watch over it with the same anxious vigilance with which partners in a private copartnery frequently watch over their own. Like the stewards of a rich man, they ... consider attention to small matters as not for their master's honour and very easily give themselves a dispensation from having it. 1.1 Introduction Corporate Social Responsibility (or CSR as we will call it throughout this book) is a concept which has become dominant in business reporting. Every corporation has a policy concerning CSR and produces a report annually detailing its activity. And of course each of us claims to be able to recognise corporate activity which is socially responsible and activity which is not socially responsible. There are two interesting pints about this: firstly we do not necessarily agree with each other about what is socially responsible; and although we claim to recognise what it is or is not when we are asked to define it then we find this impossibly difficult. Thus the number of different definitions is huge and is this chapter we will look at some of these. 1.2 Definitions of CSR The broadest definition of corporate social responsibility is concerned with what is – or should be – the relationship between global corporations, governments of countries and individual citizens. More locally the definition is concerned with the relationship between a corporation and the local society in which it resides or operates. Another definition is concerned with the relationship between a corporation and its stakeholders. For us all of these definitions are pertinent and each represents a dimension of the issue. A parallel debate is taking place in the arena of ethics – should corporations be controlled through increased regulation or has the ethical base of citizenship been lost and needs replacing before socially responsible behaviour will ensue? However this debate is represented it seems that it is concerned with some sort of social contract between corporations and society. Download free books at BookBooN.com 0 Corporate Social Responsibility Defining Corporate Social Responsibility This social contract implies some form of altruistic behaviour – the converse of selfishness – whereas self-interest connotes selfishness. Self-interest is central to the Utilitarian perspective championed by such people as Bentham, Locke and J. S. Mill. The latter, for example, is generally considered to have advocated as morally right the pursuit of the greatest happiness for the greatest number – although the Utilitarian philosophy is actually much more based on selfishness than this – something to which we will return later.