Stakeholders and Corporate Social Responsibility PDF

Chapter 4 paragraphs: Stakeholders & Rightholders A stakeholder is an individual or group with an interest in an organization's operations. By contrast, a rightsholder is a stakeholder with legal rights regarding the organization's activities. Issue Materiality/Salience (Mitchell...

Chapter 4 paragraphs: Stakeholders & Rightholders A stakeholder is an individual or group with an interest in an organization's operations. By contrast, a rightsholder is a stakeholder with legal rights regarding the organization's activities. Issue Materiality/Salience (Mitchell, Agle &Wood) Salience is the degree to which managers give priority to competing stakeholder claim. It depends on three factors: Power (the ability to influence actions), Legitimacy (whether a claim is seen as proper or appropriate), and Urgency (how quickly a claim needs attention). The more attributes a stakeholder has, the more important they are to the organization. Stakeholder Influence Strategy (Frooman’s influence strategies) According to Frooman, stakeholders influence organizations through resource dependence, where they supply a resource and control its use. They use two strategies: Withholding (stopping the resource to force change) and Usage (continuing supply but with conditions). Influence can also happen through an influence pathway, where an ally of the stakeholder applies these strategies on their behalf. Stakeholder Matrix Mapping Visual tool used to categorise stakeholders based on their level of interest and influence Issue Management (Fink stages of crisis) (Caroll and Bryson 6 steps issue management process) Issue management helps organizations identify problems that might affect their goals. It includes six steps: finding issues, understanding them, ranking their importance, deciding how to deal with them, creating a plan, and checking if the plan worked. The goal is to prevent problems or manage them early to avoid bigger issues later. Crisis management is used for sudden, serious problems like scandals or natural disasters. It focuses on planning, preparing, and responding quickly to reduce harm. A good response includes honesty, apologising if needed, and learning from the situation. By managing issues and crises well, organisations can stay organised, protect their reputation, and improve over time. Stakeholder Collaboration (Swendsen FOSTER) Stakeholder collaboration focuses on building strong, mutually beneficial relationships between organisations and their stakeholders to foster trust and shared goals. Swendsen's FOSTER framework is a six-step approach to developing collaborative stakeholder relationships: creating a foundation through relationship-building aligned with organisational values and ethics; organisational alignment to ensure internal systems and structures support stakeholder collaboration; strategy development to guide engagement with stakeholders; building trust as a foundation for stable and cooperative relationships; evaluation to assess the effectiveness of collaboration and identify improvements; and repeat the process to ensure continuous progress. Chapter 5 paragraphs Corporate Social Responsability (CRS) (achieves a balance) (Stakeholder view) The way a corporation achieves a balance among its economic, social and environmental responsibilities in its operations to address stakeholder expectations. The concept of CSR includes the "moral minimum," emphasising obligations that range from preventing harm to promoting societal good. Businesses are held accountable not just for their actions but for the indirect harm they may cause by omission or neglect, as illustrated by concepts like the moral duty continuum.The debate on CSR also connects to the concept of moral agency, where businesses, as socially constructed entities, demonstrate "reasoned" choices in their missions and practices, despite their nature as legal fictions. In ethical discussions, CSR extends beyond moral agency to include power dynamics. Organisations have different forms of power—economic, technological, political, cultural, and social. Such power creates added responsibility for businesses to act ethically. ⃕Corporate Citizenship (Philanthropic approach) (being good member of society) Corporate Sustainability (Long-term strategic approach) (long-term survival) Corporate citizenship is a company’s commitment to ethical behavior, social responsibility, and community engagement beyond profit-making. Corporate sustainability balances/integrates social, environmental, and economic responsibilities into business operations to ensure long-term successes. The Triple-E bottom line (3E) (s how we measure whether a company is successfully applying CSR, corporate citizenship, and sustainability.) The Triple-E Bottom Line (3E) assesses a company’s success based on its economic,ethical , and environmental impact, showing whether it benefits or harms these areas Shareholder view (Friedman) According to the shareholder view, the primary goal of businesses is profit maximisation.Friedman believes that if business solely focused on making profits, everyone will benefit because the economy will grow. Additionally, Friedman argues that businesses, unlike people, do not have moral responsibility. Critics argue that since businesses have power and confluence, they should act morally. CSR Business Case (Schaltegger & Burritt) The rationale that guides management thinking. There are four variants of CSR business cases: Reactionary:CSR is only done to avoid reputational damage by removing harmful ads. Reputational: CSR is applied to make the company look good in the eyes of society. Responsible: CSR is applied to improve teh company’s performance. Collaborative: applied to work closely with stakeholders to solve problems.