Corporate Social Responsibility
KAYODE AJEWOLE, DAJA MENEFEE &
ANDREA GRANGER
AGEC 805
02/27/12
Reviewed Literature
 Dahlsrud, A. (2008), How corporate social responsibility is defined: an analysis
of 37 Definitions. Corporate Social Responsibility and Environmental
Management, 15: 1–13.
 Maloni, M. J., & Brown, M. E. (2006). Corporate social responsibility in the
supply chain: An application in the food industry. Journal of Business
Ethics, 68(1), 35–52.
 Martinez, Steve W. (2007). The U.S. Food Marketing System: Recent
Developments, 1997-2006. U.S. Dept. of Agriculture, Econ. Res. Serv.,
ERR-42.
Outline
Corporate Social Responsibility Framework
I.
Defining Corporate Social Responsibility
What does CSR look like?
Three perspectives on CSR
What makes up CSR
I.
II.
III.
IV.
Dimensions
II.
I.
II.
III.
IV.
V.
VI.
VII.
VIII.
III.
IV.
V.
Animal welfare
Biotechnology
Environment
Community
Fair Trade
Labor and Human Rights
Health and Safety
Procurement
Social License
Conclusion
CSR Innovator
Defining Corporate Social Responsibility
 CSR has evolved over the last 50 years
 Several different phrases used with CSR
 All interpretations very similar, made up of similar
dimensions
Is there need for a universal definition?
What does it look like?
“Good For You, Good For the Community, Good
for the Planet” – ConAgra
“Creating Shared Value” – Nestle
“Nourishing our Consumers, Nourishing our
Neighbors, Nourishing our Employees,
Nourishing our Planet” – Campbell Soup
Ethical, Local, Global – Starbucks
Food with Integrity – Chipotle
Three perspectives on Corporate Social
Responsibility
 Dahslrud – CSR is a phenomenon/social
construction that should be understood and adapted
to company strategies rather than defined.
 Martinez – CSR is a differentiation strategy and a
social movement that surfaces in five stages.
 Maloni – CSR is an extended measure of corporate
performance beyond traditional economic and legal
considerations and should include ethical and
discretionary responsibilities unique to each firm.
What makes up CSR?
 8 dimensions (Maloni, 2006 )
Dimensions: Animal Welfare
What consumers want:
Better information about welfare practices of their food
products
 Especially relevant to food industry
 Consumers perceive higher levels of animal welfare as an
indicator for higher food safety and quality
 Consumer WTP is higher for improved animal welfare
conditions (Bennett et al., 2002).
Dimensions: Biotechnology
What consumers want:
Improved trust/more information about food products
 Public awareness of genetically modified food in the US is
increasing
 Concern: moral/ethical stances, cross- contamination,
growth hormone affects on animals, and over all food
safety concerns.
 Considerable threat to food retailers, need to create trust
soon
Dimensions: Environment
What consumers want:
More environmentally-conscious firms
 One of the more common dimensions of CSR
 Environmentally friendly products for consumers as well
as responsible environmental care practices in supply
chains
 Led by the emergence of organic food products
Case Study
CHIPOTLE
Back to the Start Commercial
CHIPOTLE
Dimensions: Community
Pasi et al (2011) believe that a socially responsible
company must maintain his local market presence
which includes:
 Physical Presence – Diversity of local production
and assortment
 Cultural Responsibility – Local history and food
traditions
Dimensions: Community
This dimension also includes...
 Educational support
 Economic development
 Job training
 Employee volunteering
 Health care
 Literacy
 Child care
 Housing
 E.t.c
Dimensions: Fair Trade
Fair Trade is a set of business practices Voluntarily adopted by
the producers and buyers of agricultural commodities and handmade crafts that are designated to advance many economic,
social and environmental goals
(equal exchange, 2012)
Dimensions: Fair Trade
 Raising and stabilizing the incomes of small scale farmers, farm
workers and artisans
 More equitably distributing the economic gains
 Promoting safe and sustainable farming methods working with
conditions
 Connecting consumers and producers
 Promoting labor rights
 Increasing consumer awareness and engagement with issues
affecting producers
Dimensions: Fair Trade
Barriers to Fair trade
 Limited store promotion  Fragmented supply
markets
 Reluctant and unaware
consumers
 Cost
 Restricted product range  Verification
Dimensions: Human Rights & Labor
Food supplies involve manual, strenuous, and dangerous
agricultural labor work characterized by:
 Low pay
 Labor migration
 Labor oversupply
 Child labor
 Poor working conditions
Dimensions: Human Rights & Labor
Agricultural child labor – The beverage industries example
In the Ivory Coast, an estimated 200,000 children are victims
of labor abuse in Cocoa production.
Case Study
The Hershey and McDonald Intervention
In February 2012, The Hershey company pledged $10
million over the next five years to educate West African
Cocoa farmers on improving their trade and combating
child labor. (CNN)
Ronald McDonald’s house provides housing for families of
sick children (Smith, 1994)
Dimensions: Procurement
Any behavior/activity that leads to unfair
conditions between buyers and sellers. Including:
 Favoritism
 Bribery
 Obscure contract terms
 Rebidding past deadlines
Dimensions: Health & Safety
It is vital for companies to address consumers’ concerns
regarding the industry’s capability to identify problems
early in the supply chain before products reach the retail
level. These issues include:
 Traceability
 Food security
 Product labeling
 Healthier offerings
Tyson
 CSR Statement: “Through its Core Values, Code of
Conduct, and Team Member Bill of Rights, Tyson strives
to operate with integrity and trust and is committed to
creating value for its shareholders, customers and Team
Members. The company also strives to be faith-friendly,
provide a safe work environment and serve as stewards
of the animals, land and environment entrusted to it.”
Social License
Social License - The benefit a company gain from a
community as a reward of social responsibility practices.
Falls best into the community dimension
Conclusion
 No need for a Corporate Social Responsibility
definition
 Dynamic and adaptable
 Measurable success
How to be a CSR Innovator
The Five Elements of the Best CSR Programs
Forbes Magazine April 2011
1. Business-based social purpose
2. Clear theory of change
3. Quality and depth of information
4. Concentrated effort
5. Partnering with experts