Corporate Social Responsibility in America vs Europe

A business strategy where a company partners with a social cause, using product sales to raise funds or awareness for that cause. It aims to link business operations directly to social good and build long-term impact.

Refers to business practices that consider the environmental, social, and economic impacts of their activities, aiming to create a long-term positive effect on society while maintaining profitability.

A form of corporate social responsibility where companies directly donate money, resources, or employee time to charitable causes.

The idea that companies have a responsibility to act ethically and contribute positively to society, beyond just making profits, taking into account environmental, social, and governance (ESG) factors.

A business strategy focused on creating economic value in a way that also creates social value, solving social issues while growing the business.

The extent to which a company's social responsibility activities are visible and known to stakeholders, highlighting the company's positive impact and commitment to ethical practices.

The risk that CSR initiatives might be perceived as a tactic to boost sales or brand image rather than a genuine commitment to social good.

A notable difference in CSR approaches, where US companies emphasize corporate philanthropy and transparent communication, while European companies prioritize broader social responsibility and stakeholder engagement.

European governments collect more taxes and use them to fund social programs like healthcare, retirement, unemployment benefits, disability support, and public education.

American culture emphasizes the idea of "giving back to society" through philanthropy and volunteer work.

The United States has looser business regulations, allowing companies more discretion to go beyond legal requirements. Europe, particularly France, has stricter laws.

American managerial practices, including Corporate Social Responsibility (CSR), have influenced European companies. European values and laws also emphasize social consequences of business actions.

Corporate Social Responsibility (CSR) encourages companies to go beyond legal obligations and consider their social impact.

The negative effects a company's actions can have on various groups, like consumers, employees, or the environment.

A legal punishment for a company breaking laws or regulations, potentially involving fines or sanctions.

A disruption to a company's operations due to negative impacts, like boycotts or production halts.

The potential for a company's image to be damaged due to negative publicity or actions.

How a company uses its business plans to be socially responsible, balancing profits with positive social impact.

A refusal to buy or use a company's products or services due to ethical concerns.

Using less energy and materials for production, benefitting the environment and reducing costs.

The effect a company has on the environment, including pollution, resource depletion, or climate change.

Reducing travel expenses for employees leads to lower company costs and less environmental impact in a concise timeframe. However, there are potential risks like financial penalties, disrupted business operations, and harm to the company's reputation.

Identifying and evaluating the potential negative impacts of cost reduction strategies on various stakeholders - including employees, customers, and the environment - is crucial for successful implementation.

Investing in employee well-being, like flexible work schedules and mental health support, can significantly boost their productivity, leading to higher overall company performance.

Google prioritizes employee well-being through various initiatives like flexible schedules, personal project time, and remote work options, leading to improved work-life balance and higher employee satisfaction.

Companies can differentiate themselves through their commitment to corporate social responsibility (CSR), building a positive social impact by addressing social issues and investing ethically.

Caisses d’Epargne, a French bank, exemplifies successful CSR by implementing social responsibility initiatives that benefit both the company and society.

Schneider Electric demonstrates CSR principles by prioritizing sustainability and social impact in its business activities.

Ecotree is a platform that facilitates sustainable investments by connecting individuals with reforestation projects, allowing them to contribute to a greener future.

Using data and analytics to predict and prevent equipment failures, reducing downtime and costs. This involves analyzing patterns and trends in equipment performance to identify potential issues before they occur.

Finding new uses for retired aircraft, extending their lifespan and reducing waste. Common examples include converting them into hotels, restaurants, or leasing them to other airlines.

A complex process that involves dismantling, recycling, and reusing components of retired aircraft to minimize environmental impact and recover valuable materials. It includes special expertise in pollution control and material handling.

The revenue generated from providing maintenance services to other airlines, representing expertise and know-how.

A specific predictive maintenance solution launched by Air France-KLM in 2015, aimed at anticipating and preventing breakdowns in aircraft.

A unique hotel housed inside a retired Boeing 747 jumbo jet, offering bedrooms, conference rooms, and even a cockpit suite.

A company that specializes in aircraft deconstruction and recycling, partnering with Airbus to manage the end-of-life process for retired planes.

Companies working with Airbus in the field of aircraft recycling, contributing expertise and resources to manage the end-of-life process for retired planes.

The total value created for all stakeholders involved in a business, including customers, suppliers, employees, lenders, and shareholders. It's the difference between each stakeholder's perceived value received and their opportunity cost.

The value of the best alternative forgone when making a choice. It's what a stakeholder would have earned or received if they had chosen a different option.

Calculating stakeholder value involves subtracting the sum of each stakeholder's opportunity cost from the total value the business creates. This value is distributed among all stakeholders.

The profit shown in a company's financial statements, calculated traditionally as total revenue minus all expenses. It often doesn't reflect the true value created for stakeholders.

The difference between a company's apparent accounting profit and the actual value created for all stakeholders. It represents potential value that isn't being distributed efficiently.

The process of managing and prioritizing stakeholder value, ensuring that all stakeholders benefit from the business's activities.

A business approach that focuses on creating and distributing value among all stakeholders, not just shareholders. It prioritizes long-term sustainability and ethical practices.

The way a company allocates the value it creates among its stakeholders, taking into account their contributions and opportunity costs.