10 Questions
What was the primary goal of the mining company's CSR initiative?
To benefit the local communities
What was the outcome of the mining company's failed CSR initiative?
A violent uprising with many deaths
What was lacking in the mining company's approach to CSR implementation?
An experimental approach
How can companies foster experimentation in their CSR implementation, according to the research?
By mobilizing broadly for CSR
What was a key difference between the companies that realized their CSR goals and those that failed?
The involvement of lower-level managers and employees in CSR practices
What is a key strategy to mobilize CSR efforts within a company?
Nominating CSR champions across the company
What is the benefit of fostering connections between CSR champions across the company?
It helps CSR champions to support and encourage each other
What is a characteristic of companies that successfully realized their CSR goals?
Managers took for granted that CSR would eventually pay out
What is a way to instill confidence in the business case for CSR among employees?
Linking executive compensation to CSR goals
What is a difference between companies that realized their CSR goals and those that did not?
The former had managers who took for granted that CSR would pay out, while the latter did not
Study Notes
CSR Failure: A Mining Company Example
- A mining company partnered with local authorities to benefit local communities, but the CSR initiative failed due to corrupt authorities and minimal tax revenues staying in the region.
- The partnership's failure was apparent to local workers, but not communicated to corporate decision makers.
- The situation eventually led to a violent uprising and many deaths.
Fostering Experimentation in CSR Implementation
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Organizational structures and cultures can hinder CSR experimentation.
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Two ways to overcome these barriers are:
Mobilizing Broadly for CSR
- Involve multiple employees in CSR practices, including lower-level managers and remote production site workers.
- This diversity of employees can provide knowledge about local CSR effects and adapt practices to local circumstances.
- Nominate CSR champions across the company to foster a sense of ownership and encourage program reform.
- Establish connections between CSR champions to support and encourage each other.
Instilling Confidence in the Business Case for CSR
- Create an organizational culture that assumes CSR will pay out in the long term, even if unforeseen.
- This allows managers to explore CSR's effectiveness without short-term profit pressure.
- Link executive compensation to CSR goal realization, making CSR a priority regardless of short-term financial effects.
A mining company's CSR initiative failed to benefit local communities due to corrupt local authorities. Despite the partnership, tax revenues were diverted out of the region, highlighting the flaws in the CSR practice. The negative impact was apparent to locals, but what can be done to improve CSR outcomes?
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