• 1. This mini-project builds on the previous mini-projects 2a or 2b. Review your plan for inclusion of Corporate Social Responsibility (CSR) obligations . Demonstrate that you have taken an ethical approach in the creation and deployment of your plan.
Corporate Social Responsibility is one of the fundamental concepts of excellence; leaders wishing to develop their organizations towards excellence should ensure that all aspects of the organization operate in a sustainable and ethical manner.
2. Create a presentation (10-15 minutes) that you will deliver to the Board of
WaveRiders. The presentation should include a description of best practices in CSR and how you recommend that these practices be applied where appropriate in
WaveRiders. Whilst a costed proposal is not required, be prepared to justify your proposal to the Board which has to justify its expenditure to its shareholders.
3. Make sure that in your presentation you cite all reference sources that you use, using APA format, and provide a reference list (as the last slide if you are using a slide show to support your presentation).
4. Use your wiki to develop your ideas and use the library database and other sources appropriately to support your work.
5. Present your work on Thursday 24 February at 1.30 pm in IMC Room 249.
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23/02/2011
MBE A-1
Leadership and Excellence
UKFM-LE 10MB01
07/02/2011 to 25/02/2011
OV

Organizations have moral, ethical, and philanthropic responsibilities in addition to their responsibilities to earn a fair return for investors and comply with the law.
Corporate social responsibility (CSR) can be defined as the “economic, legal, ethical, and discretionary expectations that society has of organizations at a given point in time” (Carroll and
Buchholtz ,2003)
FOR AGAINST
The rise of the modern corporation created and continues to create many social problems. Therefore, the corporate world should assume responsibility for addressing these problems.
Taking on social and moral issues is not economically feasible.
Corporations should focus on earning a profit for their shareholders and leave social issues to others.
A traditional view of the corporation suggests that its primary, if not sole, responsibility is to its owners, or stockholders (Smith, 1990).
In the long run, it is in corporations' best interest to assume social responsibilities. It will increase the chances that they will have a future and reduce the chances of increased governmental regulation.
Assuming social responsibilities places those corporations doing so at a competitive disadvantage relative to those who do not.
Large corporations have huge reserves of human and financial capital. They should devote at least some of their resources to addressing social issues.
Those who are most capable should address social issues. Those in the corporate world are not equipped to deal with social problems.
Source: Smith (1990)
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Definition & Justification
Be a good corporation citizen
Be ethical
Obey the law
Be profitable
Discretionary Responsibilities
Ethical Responsibilities
Contribute resources to the community: improve quality of life
Obligation to do what is right,
& fair. Avoid harm
Legal Responsibilities
Economic Responsibilities
Law is society’s codification of right & wrong. Play by the rules of the game
The foundation upon which all others rest.
Source: Carroll (1991)
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EFQM results are of course achieved by enablers.
Discretionary
Responsibilities
Ethical
Responsibilities
Legal
Responsibilities
Economic
Responsibilities
Definition & Justification
Leadership
• Role models for values and ethics, secure the future by defining/communicating core purpose/vision, ensure their people act with integrity and high ethical standards
Strategy
• Developed to ensure economic, societal, and ecological sustainability, through deployed plans
People
• Are cared for, expected to act ethically.
Partnerships and Resources
• Managed for sustainable benefit
Processes, Products and Services
• Designed to optimise stakeholder value, and optimum value for customers
Society Results
• Split 50:50 between perception and performance
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Very successful company, selling around 120 million pairs of jeans per year.
- But, throughout its lifecycle, a pair of jeans consumes as much energy as powering a personal computer for 556 hours.
- Partnership with Goodwill to promote environmental benefits.
- “Care Tag for Our Planet” (includes eco-friendly suggestions for caring for clothing, disposal).
- Reinvention of product creation process (product life-cycle approach).
- Moving to carbon neutral operations, with 100% renewable energy.
- Improving resource efficiency: zero-waste, decreasing water usage.
- Minimising impact of chemicals in product lifecycle.
•
- Used a green focus to drive innovation: energy efficiency and environmental concern.
- E.g. Hybrid engines, lighter materials, 'smart' systems improving efficiency of internal electronics.
- Voluntary recall of Avensis in UK (though no accidents were reported), and 1.7 million cars worldwide.
- Transparent approach hopes to win back confidence of media and public.
Sources: Miratel Solutions (2010), Fisk (2010), Toyota UK 2011, BBC News 2011)
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• Interface Flooring:
- Mission Zero strategy hopes to eliminate any negative impacts on the environment by 2020.
- New service model: from selling carpets to provision of carpeting.
- Took responsibility for whole life cycle: leased, replaced, and recycled under one contract (closing the loop).
- Between 1996 and June 2004:
- 57 million lbs prevented from going to landfill, with half recycled.
- Energy use per unit of carpet reduced by 45%.
- 60% reduction in GHG emissions.
- $330 million saved through resource waste reduction.
• British Airways:
- Accused of computer hacking, poaching passengers, impersonation of Virgin staff, document shredding and press smears so as to gain market share.
- Virgin sued BA for £4 million. Reflected badly on BA, lack of ethics cost customers.
From Fisk (2011), Harrison (1993) and Cohen and Grace (2005) 7

1.
- Research European Market in order to Develop the new Market
2.
- Sales Promotion (campaign) in
European Market to enhance the business
3.
- Price change, according to inflation (increasing contribution)
4.
- HR Allocation Change (shift from
Leisure Sales to European sales)
5.
- Continue to invest in new tech to advance in competitive market
6.
- HR moving between Finance &
HR, with a reduction.
Sales decreasing
High cost
SWOT
Market development
Review the cost
HR reduction
Continuous review
Internal
Appraisal
Strategy
Restructuring in 5years
Cost reduction
Market development
Increase market share in Europe
Allocation
Financial resource
Action Plan (seen in as page-3)
Changing Orgs Shift managers
Actual results & outcomes
Adapted From Deming (1993), DuBrion (1998)
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External
Ethics
Environment
Internal
Ethics
Environment
Legal
Economy
Community
Political
Environment
Legal
Economy
Community
Social
External Factors
-Research European
Market in order to
Develop the new
Market
-Sales Promotion
(campaign) in
European Market to enhance the business
-Price change, according to inflation (increasing contribution)
-Continue to invest in new tech to advance in competitive market
Internal Factors
-HR Allocation
Change (shift from
Leisure Sales to
European sales)
-HR moving between Finance &
HR, as a kind of the reduction
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1
Research European Market in order to Develop the new
Market
2
Sales Promotion (campaign) in
European Market to enhance the business
3
Price change, according to inflation (increasing contribution)
4
HR Allocation Change (shift from Leisure Sales to
European sales)
5
Continue to invest in new tech to advance in competitive market
UK
6
HR moving between Finance &
HR, as a kind of the reduction
☑
☑
☑
☑
Ethical Impacts
Europe
☑
☑
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☑
China
India
☑
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☑
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☑
Analysis
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Reviewing WAVERIDERS’
Action Plan – Environmental
Impacts
1
Research European Market in order to Develop the new
Market
2
Sales Promotion (campaign) in
European Market to enhance the business
3
Price change, according to inflation (increasing contribution)
4
HR Allocation Change (shift from Leisure Sales to
European sales)
5
Continue to invest in new tech to advance in competitive market
UK
6
HR moving between Finance &
HR, as a kind of the reduction
☑
Environmental Impacts
Europe
China
India
☑
☑ ☑
☑ ☑
Analysis
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Reviewing WAVERIDERS’
Action Plan – Political Impacts
1
Research European Market in order to Develop the new
Market
2
Sales Promotion (campaign) in
European Market to enhance the business
3
Price change, according to inflation (increasing contribution)
4
HR Allocation Change (shift from Leisure Sales to
European sales)
5
Continue to invest in new tech to advance in competitive market
UK
6
HR moving between Finance &
HR, as a kind of the reduction
☑
Political Impacts
Europe
☑
☑
☑
China
India
☑
☑
☑
☑
Analysis
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Reviewing WAVERIDERS’
Action Plan – Legal Impacts
1
Research European Market in order to Develop the new
Market
2
Sales Promotion (campaign) in
European Market to enhance the business
3
Price change, according to inflation (increasing contribution)
4
HR Allocation Change (shift from Leisure Sales to
European sales)
5
Continue to invest in new tech to advance in competitive market
UK
6
HR moving between Finance &
HR, as a kind of the reduction
☑
☑
☑
Legal Impacts
Europe
☑
☑
☑
China
India
☑
☑
☑
☑
☑
☑
Analysis
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Reviewing WAVERIDERS’
Action Plan – Economic
Impacts
1
Research European Market in order to Develop the new
Market
2
Sales Promotion (campaign) in
European Market to enhance the business
3
Price change, according to inflation (increasing contribution)
4
HR Allocation Change (shift from Leisure Sales to
European sales)
5
Continue to invest in new tech to advance in competitive market
UK
6
HR moving between Finance &
HR, as a kind of the reduction
☑
☑
☑
Economic Impacts
Europe
☑
China
India
☑
☑ ☑
☑ ☑
☑
☑
☑
Analysis
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Reviewing WAVERIDERS’
Action Plan – Community
Impacts
1
Research European Market in order to Develop the new
Market
2
Sales Promotion (campaign) in
European Market to enhance the business
3
Price change, according to inflation (increasing contribution)
4
HR Allocation Change (shift from Leisure Sales to
European sales)
5
Continue to invest in new tech to advance in competitive market
UK
6
HR moving between Finance &
HR, as a kind of the reduction
Community Impacts
Europe
China
India
☑
☑ ☑
☑
Analysis
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Reviewing WAVERIDERS’
Action Plan – Social Impacts
1
Research European Market in order to Develop the new
Market
2
Sales Promotion (campaign) in
European Market to enhance the business
3
Price change, according to inflation (increasing contribution)
4
HR Allocation Change (shift from Leisure Sales to
European sales)
5
Continue to invest in new tech to advance in competitive market
UK
6
HR moving between Finance &
HR, as a kind of the reduction
☑
☑
Social Impacts
Europe
☑
☑
China
India
☑
☑
☑
☑
☑
☑
☑
Analysis
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1
-Research European Market in order to Develop the new Market
2
-Sales Promotion (campaign) in
European Market to enhance the business
3
-Price change, according to inflation
(increasing contribution)
☑
UK
Ethical
Europe
China/Indi a
Environment
UK Europe
China/Indi a
Political
Environment
UK Europe
China/Indi a
UK
Legal
Europe
China/Indi a
UK
Economy
Europe
China/Indi a
UK
Community
Europe
China/Indi a
UK
Social
Europe
China/Indi a
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☑ ☑
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☑
☑
☑
4
-HR Allocation Change (shift from
Leisure Sales to European sales)
☑
5
-Continue to invest in new tech to advance in competitive market
6
-HR moving between Finance & HR, as a kind of the reduction
☑
☑
☑
☑ ☑ ☑ ☑ ☑
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• Market Research - Collate information from the regulatory bodies, competitors, and potential competitors. Ascertain importance of CSR values to consumers.
• Sales Promotion - Advertising without defaming our competitors. Look to enter untapped
European markets.
• Price Change - Transparency in pricing information leading to customer confidence.
• HR Allocation - Assess vacant roles against existing staff to give opportunity for growth. Help those no longer required to find other employment.
• New technology - Provide training to operate new machines, investing in eco-friendly production techniques, materials, etc. This can help to reduce life-cycle energy use.
• Renewable energy commitment – moving to carbon neutrality.
• Life cycle approach – Advise customers on how best to maintain products, and look at how to recover at end of life, for appropriate disassembly and recycling.
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• Not without associated costs.
• These strategies present opportunities for long-term, sustainable growth for company, and thus, shareholders (Grayson and Hodges, 2004).
• Financially, potential savings to be made from more efficient resource use.
E.g. Interface Flooring, Levi’s, etc.
• Customers increasingly ethical in choice (Fisk, 2010).
• Not reacting to shifts in consumer/societal demands now could lead to greater risk and worse consequences in the long-term.
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Financial
Performance
Improvement
Enhance Brand Image
& Reputation
Openness of
Company Activities
Competitive
Advantage
CSR
Discretionary
Responsibiliti es
Ethical
Responsibilities
Legal Responsibilities
Economic Responsibilities
Reduction of
Operation
Cost/Licence Cost
Customer Loyalty
Risk Management
Compliance
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• BBC News (2011). Toyota recalls 1.7m vehicles globally over 'fuel leak'. Retrieved on February 22nd
2011 from http://www.bbc.co.uk/news/world-asia-pacific-12283732.
• Carroll, A.B. (1991), "The pyramid of corporate social responsibility: toward the moral management of organizational stakeholders",Business Horizons, July/August, pp.39-48.
• Cohen, S., Grace, D. (2005). Business Ethics: Problems and Cases. 3rd Edition. Australia: Oxford
• Deming, E. W. (1982). Quality, productivity, and competitive position. Cambridge: MIT, Centre for
Advanced Engineering Study.
• DuBrion, A. J. (1998). Leadership: Research findings, practice and skills. New York: Houghton Mifflin
• Fisk, P. (2010). People, Planet, Profit. London: Kogan Page.
• Grayson, D., Hodges, A. (2004). Corporate Social Opportunity! Sheffield: Greenleaf Publishing
• Harrison, M. (1993). Battle of the Airlines, The Independent. Retrieved February 22nd 2011 from http://www.independent.co.uk/news/battle-of-the-airlines-king-backed-dirty-tricks-ba-staffhacked-into-virgin-computers-and-poached-passengers-1477973.html
• Miratel Solutions (2010). Levi’s wearing social responsibility with pride. Retrieved February 22nd
2011, from http://www.miratelinc.com/blog/levis-wearing-social-responsibility-with-pride
• Smith D., (1991). The Kraken Wakes: corporate social responsibility and the political dynamics of the hazardous waste issue. Industrial Crisis Quarterly, 5: 189-207.
• Toyota UK (2011). Avensis Voluntary Recall. Retrieved February 22nd 2011 from http://www.toyota.co.uk/cgi-bin/toyota/bv/frame_start.jsp?id=avensis_recall
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