Jan Dvořáček, Corporate Social Responsibility

Jan Dvořáček
Technical University in Zvolen
Company – this fundamental business term is derived
from two Latin words, “cum” and “panis”, which mean
breaking bread together.
„Few trends could so thoroughly undermine the
very foundations of our free society as the acceptance by
corporate officials of a social responsibility other than to
make as much money for their stockholders as possible.“
Milton Friedman (Nobel prize recipient for economy)
„I think many people assume, wrongly, that a company
exists simply to make money. While this is an important
result of a company’s existence, we have to go deeper and find
the real reasons for our being. As we investigate this, we
inevitably come to the conclusion that a group of people get
together and exist as an institution that we call a company so
that they are able to accomplish something collectively that
they could not accomplish separately – they make a
contribution to society, a phrase which sounds trite but is
Dave Packard (Co-founder of Hewlett Packard Company)
C – Corporate
S – Social
R – Responsibility
....a duty or obligation to satisfactorily perform or
complete a task (assigned by someone, or created by
one's own promise or circumstances) that one must
fulfill, and which has a consequent penalty for failure.
"Egoism is a life principle when human’s activities
following only their own interests, ignoring the interests
of other people. Egoism, as a moral quality, was in the
history of moral consciousness generally evaluated
"Altruism is such a moral principle, that is based
on the suppression of their own egoism (selfishness), in
selfless sacrifice for the benefit of others, in the
willingness to sacrifice their own interests for the
interests of others“
profit only)
altruism (fully divided
company’s profit for society)
A concept whereby companies decide voluntarily to
contribute to a better society and a cleaner environment. A
concept whereby companies integrate social and
environmental concerns in their business operations and
in their interaction with stakeholders on a voluntary basis.
(European Commission)
Operating a business in a manner that meets or
exceeds the ethical, legal and public expectations that
society has of business. (Business for Social Responsibility)
 Environmental dimension
 Social dimension
 Economic dimension
 Stakeholders dimension
 Dimension of voluntariness
„A stakeholder in an organization is any group or
individual who can affect or is affected by the
achievement of the organizations objective“
(Freeman, 1984)
 Primary stakeholders - owners, stockholders, investors,
customers, suppliers, creditors, and employees
 Secondary stakeholders - the general public,
government, competitors, communities, activist groups,
lobbyists, business support groups, and the media
Stakeholders Stakeholder's concerns
taxation, VAT, legislation, employment, truthful reporting,
diversity, legalities, externalities.
rates of pay, job security, compensation, respect, truthful
value, quality, customer care, ethical products.
be paid on time, equitable business opportunities, long term
credit score, new contracts, liquidity.
jobs, involvement, environmental protection, shares, truthful
Trade Unions
quality, worker protection, jobs.
profitability, market share, market standing, succession planning,
raising capital, growth, social goals.
return on investment, income.
 transparency, corporate governance, code of ethics, ethical
marketing and advertising, a non-corrupt framework, ...
 philanthropy, supporting local community, volunteerism,
supporting of education, workforce diversity, engaging in
fair trade practices, outplacement, ...
 recycling, waste management, water management, using
renewable energy sources, utilizing reusable resources,
creating 'greener' supply chains, packaging and
transportation, using digital technology instead of hard
copies, ...
 Sustainable Development
 Corporate Philanthropy
 Corporate Citizenship
 Cause Related Marketing
 Corporate Volunteering
 Social Responsible Investment
 Tax assignation
 Enhanced brand image and reputation
 Differentiation from competitors
 Increased ability to attract, motivate and retain
Costs reductions
Increased sales and customer loyalty
Positive PR
More business opportunities
Easier access to capital
 Milton Friedman
 ...“there is one and only one social responsibility of
business – to use its resources and engage in activities
designed to increase its profits so long as it stays
within the rules of the game, which is to say, engages
in open and free competition deception or fraud.“
 Consumers’ skepticism
 sociocultural and economic environments are so
 countries with more developed economies have higher
social expectations
 Maslow's hierarchy of needs
 example of an air pollution problem (Chile vs. U.S.A.)
R2 Jacket environmental cost:
 60 % of recycled polyester
 135 liters of water
 20 pounds of carbon dioxide
“I know it sounds crazy, but every time I have
made a decision that is best for the planet, I have made
money. Our customers know that—and they want to be
part of that environmental commitment.”
Yvon Chouinard (Patagonia founder)