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Transcript of CSR
LEED (Leadership in Energy and Environmental Design) green building standard.
Recycling all their paper and plastic cups broadly recyclable
Forest carbon programs: Conservation International to expand efforts to protect carbon- absorbing tropical forests in coffee-growing regions in Mexico, and Indonesia. Environmental Stewardship The four strategies of CSR Definitions of CSR Definition of CSR is still unclear (Carroll, quoted in Crane et al. 2008).
European Commission (2001) defines CSR as “‘a concept whereby companies decide voluntarily to contribute to a better society and a cleaner environment’’ and ‘‘a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis”.
Business for Social Responsibility (BSR), a U.S.-based global business organization: CSR means ‘‘operating a business enterprise in a manner that consistently meets or exceeds the ethical, legal, commercial, and public expectations society has of business’’ (Perrini 2006).
In general, CSR means companies run their businesses to generate profit, while simultaneously implementing social responsibility for the community, workers and the environment (Kreng & Huang 2011). Outline What does CSR mean?
History of CSR
Benefits of CSR for MNCs
Examples of CSR strategies of
Questions Crane, Andrew, Abagail McWilliams, Dirk Matten, Jeremy Moon and Donald S. Siegel. 2008. Corporate social responsibility. The United States: Oxford University Press.
CSR Branding Survey. 2010. SlideShare. Http://slideshare.net/Globalnews/csr-branding-survey-2010-final.
European Commission. 2001, Green Paper: Promoting a European Framework for Corporate Social Responsibility (European Commission, Bruxelles, Belgium).
Perrini, Francesco. 2006. “SMEs and CSR Theory: Evidence and Implications from an Italian Perspective.” Journal of Business Ethics 67(3): 305-316. doi: 10.1007/s10551-006-9186-2
Kreng, Victor B. & May-Yao Huang. (2011). Corporate social responsibility: consumer behavior, corporate strategy, and public policy. Social behavior and personality, 39(4), 529-542. http://search.proquest.com.dbgw.lis.curtin.edu.au/docview/874622042/fulltextPDF?accountid=10382. http://content.ebscohost.com.dbgw.lis.curtin.edu.au/pdf19_22/pdf/2004/EXE/01May04/13836269.pdf?T=P&P=AN&K=13836269&S=R&D=bth&EbscoContent=dGJyMNLr40Sep7Y40dvuOLCmr0qeprdSr6a4Ta%2BWxWXS&ContentCustomer=dGJyMPGuskqxqLFRuePfgeyx44Dt6fIA.
Chapman, Simon. 1994. "Tobacco and Deforestation in the Developing World". Tobacco Control. Vol. 13. No. 4. PP.447-453.
Getuhan, Amare. 2010. "Eucalyptus farming in Ethiopia: The case of eucalyptus farm and village woodlots in Amhara region". Eucalyptus Species Management. Status and trends in Ethiopia. 206-221.
Geist, Helmut J. 1999. "Global Assessment of Deforestation Related to Tobacco Farming. Tobacco Control. Vol. 8. No. 1. 18-28
Hirschhorn, Norbert. 2004. "Corporate Social Responsibility and the Tobacco Industry: hope or hype?. Tobacco Control. Vol. 13. No. 4. 447-453
Sauser, William I, Jr. 2005. "Ethics in Business: Answering the Call" Journal of Business Ethics 58(4): 345-357 doi: 10.1007/s10551-004-5715-z.
Starbucks Annual Report. 2011. Starkbucks Corporation.
http://assets.starbucks.com/assets/19c68ea6c48a473d865c7327c08d817f.pdf Nonmaleficence/ Latin: “First, do no harm”
What is your definition of CSR?
CSR: “Not just doing good but first, do no harm”
Doing good: minority
Doing harm: majority Afforestation: Planting trees in Africa where tobacco barns are situated (Chapman, 1994)
Biodegradable cigarette butts
Educational Funding: Financially funding schools
Fire Safe Cigarettes/Fire Standards Compliant (FSC): Self-extinguishing/Fire-safe/Reduced Ignition Propensity (RIP)
Engaged in social and
Quit Now toll-free lines Altria and CSR
- "The concept whereby companies integrate social and environmental concerns in their business operations to produce an overall positive impact on society (EU)" What does CSR
mean to you? Starbuck Foundation – Charity
Community service projects
Youth Action Grants
Starbucks invests in programs designed to strengthen local economic and social development, working collaboratively with nongovernmental organizations that have the experience and expertise to work with farming communities
Indonesian provinces BLEND (Better Living, Education, Nutrition, and Development).
Tea-growing regions of India and Guatemala, Starbucks has supported health and economic development programs through Tazo’s Community Health and Advancement Initiative (CHAI) project, a joint partnership with Mercy Corps. Community (Crane et al. 2008) History of CSR The Middle of 1800s : CSR began with employment policy in developed countries (The United State and Europe)
Provided knowledge, training and health insurance
Built libraries and schools
The late 1800s : found several activities of firms
Endowed their profit to foster houses
Built schools for children
By the 1950s : A significant change in businessmen’s perception toward CSR. It leads to an increasing number of businessmen, which were interested in the CSR approach
The decade of 2000 onward : major global concern
Gain competitive advantage
Create strong positive image What do you know
about CSR? Afforestation: Eucalyptus trees are not native to African soil, lacking natural functions, therefore detrimental to soil (Getuhan, 2010)
Biodegradability: takes decades for butts to degrade
Tobacco Company Funding Schools?
FSC: more additives more damage
Assisting people in quitting but still selling cigarettes
Utilized social and environmental issues as shield Analysis Deforestation: Production of tobacco requires substantial amount of trees to endure a curing process by constructing barns/cigarette paper (Geist, 1999)
Pollution: Air, water, land pollution via use of pesticides (WHO, 2008)
Litter: Cigarette butts
Soil Degradation: Tobacco plants naturally deplete more nutrients than most plants
Health: Pesticides/herbicides are detrimental to health: Methyl Bromide, Imidacloprid, Aldicarb/Second-hand smoking (USEPA) The Impacts of
Cigarette Production Industry: Tobacco
Headquarters: Henrico, Virginia
Was previously named Philip Morris
Was renamed due to social, legal and financial difficulties
Owns Nabisco and previously owned KRAFT
CEO: Michael E. Szymanczyk
2011: was ranked Fortune number 157 Holistic approach to ethically resourcing
Farmer loans and forest conservation programs.
Historically world coffee market prices have been very volatile due to global demand and supply
Starbucks pays a premium price for coffee
C.A.F.E – Coffee and Farmer Equity (2004) – promoting social, economical and environmental standards
Provides farmers with credit as well as fair trade and organic certifications.
Farmer support centres: Technical support from Starbucks quality control experts Ethical Sourcing Starbucks & CSR Starbucks was first established in
1971 in Seattle USA. Today has over 17,000 stores in more than 55 countries across the world.
Starbucks mission is “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time”
Starbucks first setup its CSR strategy in 2000 partnering with Conservation International to build ethical coffee-sourcing guidelines Siriphak Khanitwayanon (15810427) Hayes Lee-Hogan (15951859) Caleb Hsieh (15989356) (Galbreath 2009; Yoon, Gurhan-Canli and Schwarz 2006) What are the benefits that firms
might get from CSR activities? Reduce employee turnover : training, high salaries, fairly treated and attractive welfare >> achieve high level of customer satisfaction.
Enhance company reputation : alleviate environmental issue, improve quality of life and help sufferer from natural disaster >>Create customer loyalty as well.
Reduce operating cost : Recycle strategy >> waste reduction.
Attract new customers : introduce green products
However CSR can hurt company itself : ineffective CSR Minor, D. and Morgan, J. 2011. “CSR as Reputation Insurance: Primum Non Nocere”.California Management Review. Vol. 53. No. 3. PP. 40-59 Reference List (CSR branding survey 2010) (CSR branding survey 2010) Customers are willing to pay
a premium for goods from
socially responsible companies Conclusion Starbucks : good example of implementing CSR strategy, community and environmental strategies
Altria : Abusing CSR, using CSR as a shield
CSR is not only doing good but first, do no harm Primum Non Nocere (Sauser 2005) CSR ORPORATE OCIAL ESPONSIBILTY