Corporate
Responsibility
Chelsea Hulse
David Furjanic
Naomi Gunawardena
Introduction
Corporate responsibility – the ethics of a business
Business definition
Responsibility to the government and to general public
Go beyond requirements of regulators and
environmental groups
Many groups monitor corporate responsibility
Social, economic, and environmental issues
Introduction (cont.)
Green practices – increasing efficiency of resource
use; reducing impact on environment
Environment is one of the main focuses of corporate
responsibility
As consumers become more environmentally aware,
businesses are working to become “greener” –
responsibility
Waste reduction and recycling, green building, energy
and water conservation, use of green power, pollution
prevention, etc.
Background
Term “corporate social responsibility” originated in
1970’s
Focus on corporate responsibility is still a relatively
new area, but becoming “mainstream”
It has become a “multi-billion dollar public relations
specialty” (http://www.sourcewatch.org/index.php?title=Corporate_Social_Responsibility)
Background (cont.)
Corporate responsibility reports for selected
companies (2008):
Walt Disney Company
Starbucks Coffee Corporation
IBM
Coca-Cola Company
Benefits for the Business
Reduces resource use, waste and emissions: helps environment and
saves money
Good reputation: easier to recruit customers and employees.
Helps the business comply with regulatory requirements.
Involvement with the local community generate positive press
coverage.
Good relationships with local authorities make doing business easier.
Understanding the wider impact of the business can help it develop
new products and services.
Benefits for Us
Builds trust between
companies and
stockholders, which is
good for the market
The environment is
protected
Consumers can express
their views by choosing
a company that has
“green practices”
Blackle is an example of a green
practice. This black version of Google
saves energy every time you use it!
Cons
Sometimes purely a
marketing strategy
CSR not legally enforceable
Corporate citizenship vs.
CSR
Fraud
Opinions
Good initiative but needs right motives
Is it manager’s duty?
Sources
http://www.cartoonstock.com/newscartoons/cartoonists/cca/lowres/ccan154l.jpg
http://www.delegatesource.com/images/corporate-social-responsibility.gif
http://crs.sagepub.com/cgi/reprint/34/1/51
http://www.wisegeek.com/what-is-corporate-responsibility.htm
http://www.investopedia.com/terms/c/corp-social-responsibility.asp?&viewed=1
http://en.wikipedia.org/wiki/Corporate_social_responsibility
http://dictionary.bnet.com
Eds. Kakabadse, Andrew and Mette Morsing. Corporate Social Responsibility. New
York: Palgrave, 2006.
Orsato, Renato J. Sustainability Strategies. New York: Palgrave, 2009.
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