Corporate Social Responsibility in America vs Europe
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Questions and Answers

What is a distinguishing feature of American culture compared to European culture?

  • Stricter social welfare systems
  • Higher levels of taxation
  • More government regulation of businesses
  • Tradition of giving back to society (correct)
  • How do European governments typically use tax revenues in comparison to American governments?

  • Mainly for government subsidies
  • For social and solidarity activities (correct)
  • Primarily for military funding
  • To encourage private enterprise
  • In terms of corporate social responsibility (CSR), what is notable about the United States compared to Europe?

  • Higher levels of government control over CSR
  • Less emphasis on the social consequences of business
  • Stricter laws governing corporate behavior
  • Greater self-regulation among companies (correct)
  • What has driven the evolution of values and laws regarding CSR in Europe?

    <p>Spread of American managerial practices</p> Signup and view all the answers

    What is a characteristic of the laws governing businesses in Europe, particularly in France?

    <p>They prioritize social consequences over business intentions</p> Signup and view all the answers

    What is the primary benefit of a product-sharing operation connected to a company’s core business?

    <p>Greater visibility and long-term credibility</p> Signup and view all the answers

    Which aspect distinguishes American Corporate Social Responsibility (CSR) from European CSR?

    <p>More developed corporate philanthropy</p> Signup and view all the answers

    What does Corporate Social Responsibility (CSR) fundamentally imply about a company's role?

    <p>Companies should align their activities with societal values.</p> Signup and view all the answers

    Who is credited with the early definition of Corporate Social Responsibility?

    <p>Bowen</p> Signup and view all the answers

    Which of the following statements best describes the risk associated with adding a social charge to a product?

    <p>It may be seen as exploiting a social cause for marketing gain.</p> Signup and view all the answers

    What key aspect is essential for defining 'sustainable business'?

    <p>Participating in sustainable development</p> Signup and view all the answers

    How is the concept of shared value best characterized?

    <p>Creating economic value while addressing social needs.</p> Signup and view all the answers

    What is a potential downside of social causes used in marketing according to the content?

    <p>They may lead to customer distrust regarding intentions.</p> Signup and view all the answers

    What is one negative impact of polluting water sources for companies?

    <p>Heightened potential for reputational damage</p> Signup and view all the answers

    Which of these represents a risk of new regulations due to corporate misconduct?

    <p>Financial penalties</p> Signup and view all the answers

    What could potentially lead to business discontinuities for companies like Coca-Cola?

    <p>Environmental lawsuits</p> Signup and view all the answers

    How can reducing resource use benefit a corporation?

    <p>It mitigates financial risk</p> Signup and view all the answers

    What was one public response to Nike's corporate behavior?

    <p>Boycotts</p> Signup and view all the answers

    What is a potential consequence of corporate environmental negligence?

    <p>Legal repercussions</p> Signup and view all the answers

    Why are stakeholder identifications important in corporate ethics?

    <p>They mitigate risks associated with corporate misconduct.</p> Signup and view all the answers

    What does a corporation risk by not adhering to Corporate Social Responsibility (CSR) principles?

    <p>Reputational damage</p> Signup and view all the answers

    What percentage of the maintenance turnover for Air France-KLM comes from external customers?

    <p>33%</p> Signup and view all the answers

    Which predictive maintenance solution was launched by Air France-KLM in 2015?

    <p>PROGNOS</p> Signup and view all the answers

    What is one way an aircraft can provide a longer lifetime?

    <p>Leasing it back to the owner</p> Signup and view all the answers

    Which company offers bedrooms and conference rooms inside a grounded aircraft?

    <p>Jumbo Stay</p> Signup and view all the answers

    Which company collaborates with Airbus for aircraft recycling?

    <p>Tarmac Aerosave</p> Signup and view all the answers

    What type of expertise does the aircraft recycling field focus on?

    <p>Pollution control</p> Signup and view all the answers

    Where are the aircraft recycling facilities operated by Airbus and Tarmac Aerosave located?

    <p>France and Spain</p> Signup and view all the answers

    What is one benefit of providing a 'second life' to aircraft?

    <p>Minimizes environmental impact</p> Signup and view all the answers

    What is the calculated stakeholder value (SV) based on the given sales and opportunity costs?

    <p>€900</p> Signup and view all the answers

    How much value do customers contribute to the stakeholder value?

    <p>€200</p> Signup and view all the answers

    What does the total opportunity cost sum up to for the stakeholders?

    <p>€900</p> Signup and view all the answers

    What is the apparent accounting profit based on given figures?

    <p>€650</p> Signup and view all the answers

    Which stakeholder has the lowest value contribution in this scenario?

    <p>Shareholders</p> Signup and view all the answers

    What is the managerial slack calculated in this context?

    <p>€450</p> Signup and view all the answers

    If customers were willing to pay €2,000 and the sales price is €1,800, what is the value gained by customers?

    <p>€200</p> Signup and view all the answers

    What type of approach does the stakeholder value measurement utilize?

    <p>Value creation and distribution approach</p> Signup and view all the answers

    What is one financial consequence of reducing employee travel?

    <p>Risk of financial penalties and new regulations</p> Signup and view all the answers

    Which strategy is NOT mentioned as a means to improve employee well-being at Google?

    <p>Mandatory overtime</p> Signup and view all the answers

    What is the estimated cost of workplace discomfort per employee in 2020?

    <p>€14,000</p> Signup and view all the answers

    Which of the following is a potential positive impact of improving employee well-being?

    <p>Enhanced overall productivity</p> Signup and view all the answers

    Which risk is associated with neglecting employee mental health?

    <p>Decreased workplace morale</p> Signup and view all the answers

    What does the term 'Reputational risk' refer to in the context of employee well-being?

    <p>Negative public perception of the company</p> Signup and view all the answers

    Which of the following is a strategy used by companies like Google to prevent hidden costs?

    <p>Provide feedback and training on human relations</p> Signup and view all the answers

    What is an example of a CSR opportunity mentioned?

    <p>Investing in social issues for positive impact</p> Signup and view all the answers

    What impact does employee satisfaction have according to the corporate strategy?

    <p>It can reduce costs related to attrition and absenteeism.</p> Signup and view all the answers

    What is one negative impact of increasing workplace stress on employees?

    <p>Higher levels of psychological distress</p> Signup and view all the answers

    What is one approach companies typically take to manage new market opportunities related to CSR?

    <p>Identify and target social issues</p> Signup and view all the answers

    Which of the following is NOT a strategy for enhancing resource productivity mentioned?

    <p>Increasing employee travel obligations</p> Signup and view all the answers

    What does the research highlight about the psychological state of French employees as of March 2023?

    <p>44% are experiencing psychological distress.</p> Signup and view all the answers

    Study Notes

    Key Skills for Corporate Transition

    • Students will understand the dependence and impact of businesses on environmental systems and society
    • Students will be aware of the social acceptability issues of various technological transitions aimed at reducing environmental impact
    • Students will learn how to balance the pros and cons in a social and environmental perspective of various technological options

    Key Skills for Corporate Transition - Sessions

    • There will be five sessions with five different teachers
    • Session 1: Economics (October 2nd - Ioannis Bournakis)
    • Session 2: Life cycle analysis (October 16th - Yoann Guntzburger)
    • Session 3: Sustainable business (October 30th - Aurélie Peyron)
    • Session 4: Innovation (November 20th - Sophie Chlela)
    • Session 5: Artificial intelligence (November 27th - Margherita Pagani)

    Assessment

    • End session quiz on K2 - 20%
    • Midterm (30 minutes): 30 multiple choice questions - 30%
    • Final exam (90 minutes): open-ended questions - 50%

    Sustainable Business

    • Business organizations participate in sustainable development's society model
    • Corporate philanthropy
    • Corporate Social Responsibility
    • Shared value

    What is a Sustainable Business?

    • A business that contributes to Sustainable Development
    • Addresses environmental and social problems
    • Addresses solutions for these problems

    Environmental Problems

    • Global warming
    • Plastic gyres
    • Pollution

    Society Problems

    • Employment (Jobs)
    • Inequality (income disparity)
    • Freedom of speech rights

    Sustainable Development

    • The Brundtland Commission defines sustainable development as development that meets the needs of the present without compromising future generations from meeting their own needs.
    • Involves environmental, social, and economic factors.
    • Involves finding a balance between the needs of the current generation and the potential needs of the generations in future.

    Business Contribution to Sustainable Development

    • Eliminate negative impacts on society and the environment.
    • Reduce negative impacts on society and the environment.
    • Compensate for negative impacts on society and the environment.
    • Increase positive impacts on society and the environment.
    • Create new positive impacts on society and the environment.

    Business Contribution to Sustainable Development - Airline Industry

    • Eliminate negative impacts: KLM supports AeroDelft in designing a liquid hydrogen aircraft; Air France-KLM participates in initiatives to accelerate zero-emission commercial aviation technologies.
    • Reduce negative impacts: Air France-KLM is renewing its fleet with more fuel-efficient aircraft (Airbus A350, A320neo, Airbus A220, Embraer 195-E2s); incorporating Sustainable Aviation Fuel; participating in initiatives to increase production and supply of renewable and low carbon fuels.
    • Reduce negative impacts: Implementing new tools based on artificial intelligence in partnership with innovative start-ups such as SkyBreathe and OptiFlight for precise tracking of fuel-efficiency practices; new decompression and drift procedures; weight reduction strategies for aircraft.
    • Increase positive impacts: Creating "Train + Air" & "Air&Rail" combining air and train.
    • Compensate negative impacts: Support carbon capture, projects and invest in biodiversity conservation like reforestation projects in Panama, Uganda, and Colombia.
    • Engage customers: through individual or corporate SAF (Sustainable Aviation Fuel) programs. All members of Air France-KLM's Flying Blue program can purchase SAF to earn or maintain Flying Blue's Elite status.

    Corporate Philanthropy

    • Strictly defined as voluntary donations of corporate resources to charitable causes
    • Not considered to be a personal action
    • Not the same as sponsorship, as it doesn't involve exchange.

    Reasons for Corporate Philanthropy

    • To manage impacts on society and the environment.
    • To compensate for negative impacts
    • When expertise required to solve the problem is unavailable internally, cost-effectiveness (in relation to employing the firm's resources) is considered when deciding to finance initiatives through an external organization, rather than internally.

    Different Ways to Engage in Corporate Philanthropy

    • Financial giving (direct donations, foundations)
    • In-kind donations (materials, products, real estate)
    • Skills-based volunteering (employees' time contributed to associations)

    Foundations - Banking Industry Examples

    • Private funds, endowment funds
    • Short-term vs Long-term commitment
    • Influence vs Conformity

    Corporate Social Responsibility (CSR)

    • Companies have a responsibility toward society, and that includes balancing business activities with society's values and goals.
    • Different cultural interpretations, such as America's focus on "giving back" vs Europe's approach to social and governmental obligations.
    • Differences in legislative pressure (e.g., the US vs Europe).
    • The ISO 26000 standard provides a globally recognized and accepted definition of CSR.

    Stakeholders

    • Anyone that can be/is impacted or influenced by an organization or firm's actions.
    • Includes individuals & groups, as well as the company itself
    • Include their contributions to the value creation process
    • Identify relationships and influence levels

    Conflict of Interest

    • Stakeholders' interests, versus society interests, versus shareholders interests.
    • Potential conflicts due to differing needs or expectations among these entities in operations in a business.

    Why Engage in CSR?

    • Moral motivation
    • Relational motivation
    • Instrumental motivation

    Corporate Strategy & CSR

    • Balancing profitability and satisfying demands for CSR from various stakeholders (consumers, employees, community).
    • Identifying and addressing negative impacts to stakeholders.

    Product-Sharing

    • Allowing customers to contribute to social causes by purchasing
    • Ex: Volvic-Unicef operation, focusing on accessibility to drinking water.

    Addressing Environmental Issues

    • Implement sustainable supply chains - regenerate businesses
    • Utilize ecodesign with modularity
    • Reduce carbon footprint with reshoring & disintermediation
    • Employ responsible consumption models.
    • Ensure longer product lifetime

    Addressing Society Issues

    • Develop social inclusion strategies (BOP).
    • Consider social finance measures like social impact bonds and microfinance.
    • Foster company structures with equitable policies like cooperative status and leadership models.
    • Establish stakeholder governance by integrating their values into business practices.
    • Implement sharing economy models, to exchange goods and services.

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    Description

    This quiz examines the key distinctions between Corporate Social Responsibility (CSR) in the United States and Europe. It covers various aspects, including cultural influences, government tax revenue usage, and legal characteristics. Test your understanding of how these factors shape business practices and values in both regions.

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