Summary

This document provides an overview of corporate social responsibility (CSR) concepts, principles, and arguments for and against it. It discusses topics such as the definition of CSR, key principles including sustainability and accountability, the CSR pyramid model, and arguments for and against CSR strategies. The document seems to be a supplementary material or educational notes.

Full Transcript

Zyle Jhay B. Jaraba BS-REM 1-2 **GGSR** **Reviewer 1-4** **Lesson 1:** **Topic 1: corporate social responsibility defined (CSR)** CSR is a self-regulating business model that helps a company to be socially accountable to itself, its stakeholders, and the public. To engage in CSR means that, in...

Zyle Jhay B. Jaraba BS-REM 1-2 **GGSR** **Reviewer 1-4** **Lesson 1:** **Topic 1: corporate social responsibility defined (CSR)** CSR is a self-regulating business model that helps a company to be socially accountable to itself, its stakeholders, and the public. To engage in CSR means that, in the ordinary course of business, a company is operating in ways that enhance society and the environment, instead of contributing negatively to them. Examples of CSR: Charity, philanthropy, volunteering, engaging with the public, helping the community socially **Topic 2: key principles of CSR** Sustainability a company\'s efforts to operate in a way that benefits both the environment and society, while also being economically viable. This involves making decisions that not only help the company succeed but also consider the long-term impact on people, the planet, and future generations. It includes things like reducing waste, using resources responsibly, supporting communities, and ensuring fair working conditions. Key idea: Helping outside the community while benefiting both the environment and society. - Top of Form Accountability a company takes responsibility for its actions and decisions, particularly regarding its social, environmental, and ethical impact. It involves being transparent about the company\'s practices, ensuring it meets its commitments, and being answerable to stakeholders like employees, customers, investors, and communities. This means regularly reporting on progress, addressing any negative impacts, and making improvements where necessary to align with CSR goals. Key idea: Taking accountability of your own actions. - Bottom of Form Transparency: a company openly shares information about its actions, policies, and practices related to social, environmental, and ethical issues. It involves being clear and honest with stakeholders about how the company operates, the impact of its activities, and the progress it's making toward its CSR goals. Transparency helps build trust and allows stakeholders to hold the company accountable for its commitments and performance. Key idea: Openly shares information about actions, policies, and practices related to social, environmental, and ethical issues. It helps to build trust. **Topic 3: CSR pyramid** The CSR Pyramid is a way to understand what companies need to do to be responsible: 1. **Economic Responsibility (Bottom):** A company must make a profit and be successful financially. 2. **Legal Responsibility:** The company must follow laws and rules. 3. **Ethical Responsibility:** The company should do what is right, even if it\'s not required by law. 4. **Philanthropic Responsibility (Top):** The company can give back to society by supporting good causes or helping communities. The idea is that companies should first focus on making money and following laws, then aim to do what's ethically right, and finally, go above and beyond by helping others. Key idea: foundation of a company. **Topic 4: arguments in support and against CSR** Support in CSR \- Business is unavoidably involved in social issues Businesses are either helping solve social problems or making them worse. They are responsible for issues like unemployment, inflation, and pollution. Just like everyone else, companies must balance their rights with their responsibilities to society. Key idea: private businesses are always involved in societal problems and is unavoidable \- Business has the resources to tackle today's complex societal problems. The private business sector has the resources to help solve social problems. Since businesses rely on society to build their success, they have a responsibility to give back and help address issues like pollution and poverty. Their success depends on the well-being of the society around them. Key idea: Private businesses have the resources to help solve social problems. Their success is because of the community. \- A better society means a better environment for doing business. Business can enhance its long-run profitability by making an investment in society today. In other words, today's problems can turn into tomorrow's profits. Key idea: Better society better profits. \- Corporate social action will prevent government intervention As evidenced by waves of antitrust, equal employment opportunity and pollution control legislation, the government will force business to do what it fails to do voluntarily. Key idea: The government makes the private businesses do the work they can't. Against in CSR \- Profit maximization ensures the efficient use of society's resources. By buying goods and services, consumers collectively dictate where assets should be deployed. Social expenditures amount to theft if stockholders' equity. Key idea: Consumers have control over the private business' profits \- As an economic institution, business lacks the ability to pursue social goals. Gross inefficiencies can be expected if managers are forced to divert their attention from their pursuit of economic goals. Key idea: Can't pursue social goals \- Business already has enough power Given that businesses have significant influence over our work, living conditions, purchasing decisions, and values, it is undesirable for more social power to be concentrated in their hands. Key idea: Businesses having more social power is bad \- Since managers are not elected, they are not directly accountable to the people Corporate social programs can become misguided because while the market system controls business performance economically, it is not effective in managing social performance. Key idea: Businesses mostly focus on gaining profits and can't have good social performance. **LESSON 2- STRATEGIC MANAGEMENT OF STAKEHOLDER** **RELATIONSHIP** **Topic 1: Stakeholders defined** A stakeholder is any person or group that has an interest in a company and can either affect or be affected by its actions. This includes investors, employees, customers, suppliers, the community, government, and other relevant parties. Stakeholders can influence a company\'s decisions and are impacted by the outcomes of its operations. Key idea: Stakeholder is a person relevant and involved to the decision-making process and is affected by its actions. **TOPIC 2- IDENTIFICATION OF KEY STAKEHOLDERS** Stakeholders can be of two types: ✓ Primary or Internal stakeholders ✓ External stakeholders **Primary or Internal Stakeholders** Stakeholders are individuals or groups directly involved in a business, like employees, owners, investors, suppliers, and creditors. Employees provide skills for wages, while owners focus on maximizing profits. Key idea: Those who are affected by the company's actions directly. Examples: employees, investors, creditors **Secondary or External Stakeholders** Secondary or external stakeholders are individuals or groups that are not directly involved in the business\'s daily operations but are still affected by its actions or decisions. This includes customers, suppliers, the community, government, trade unions, and the media. Unlike primary stakeholders (like employees or owners), secondary stakeholders don't have a direct economic relationship with the business but are influenced by its activities in other ways. Key idea: Not affected by the company's action directly. Example: customers, suppliers, community, government Some effective techniques to identify stakeholders: \- brainstorming Done by including all the people already involved and aware of the company and its objectives and encouraging them to come out with their ideas. Stakeholders can be brainstormed based on categories such as internal or external. \- Determining power and influence over decisions Identify the individuals or groups that have influence over a company\'s decisions. Understanding who is affected by and who has power over these decisions helps prioritize them in the strategy-formulation and implementation processes. \- Determining influences on mission, vision and strategy formulation Analyze the importance and roles of individuals or groups who should be involved in developing and implementing the strategy. \- Checklist Make a checklist or questions to help identify the more influential or important stakeholders. \- Who influences the opinions about the company? \- Who has been involved in similar projects in the past? \- Which group will benefit from the successful execution of the strategy which may be adversely affected? \- Involve the already identified stakeholders After identifying stakeholders, managers must effectively manage their interests and keep them supportive to ensure the organization\'s goals are prioritized. **TOPIC 3- TACTICS TO MAINTAIN POSTIVE STAKEHOLDER RELATIONSHIPS** A good stakeholder communications plan is crucial for building positive relationships. The key to success is finding the right engagement strategy that fits each stakeholder, ensuring they support your project. Effective stakeholder management leads to better project outcomes, while poor management can result in significant costs. The article outlines factors for maintaining strong stakeholder relationships. Key idea: Make sure that each stakeholder is on full support to the company's actions. ***1.Group your stakeholders*** Often, stakeholders will fall into two groups. Those who: \- Have a vested interest in the project \- Are affected by the project outcomes These two groups can be further split into those: - Directly involved in the project - Who have influence over decisions - Who need to stay informed about the process and decisions Grouping your stakeholders according to their level of decision-making will make it easier to develop a tailored approach to engaging each group. ***2. Clearly, communicate your project scope*** Tell your stakeholders the process you will use to communicate information to them right from the start. Also, clearly explain how you will engage with them in decisions. People are more willing to listen when you tell them about their influence over the outcome, the decision-making process, what is negotiable and what is not. Key idea: Tell your stakeholders on how you will communicate information to them at the start. Tell them how you engage them in making decisions. ***3. Gain your stakeholders trust right from the start*** Stakeholder relationship management involves frequent communication to help people understand the benefits of your project. When stakeholders understand the process and trade-offs, they are more likely to support the project, even if they don\'t agree with the final decision. Engaging early reduces the likelihood of strong objections later. Key idea: Just make good relationship with the stakeholders to gain their trust. ***4. Stay consistent with your messaging*** Confusing stakeholders with inconsistent messaging can lead to public outrage, loss of trust, and a damaged reputation. Stakeholders value clear, reliable, and up-to-date information, and are more likely to help resolve issues if they trust your communication. Key idea: Be consistent with messaging your stakeholder. ***5. Meet up with stakeholders who are resistant to change*** The world would lose creativity and innovation if everyone agreed on everything. Projects often involve differing opinions, and it's important to balance these views. To avoid negative reactions, regularly meeting with resistant stakeholders is crucial. These meetings can be in-person, by email, or phone calls. Addressing concerns and explaining the project scope, highlighting negotiable aspects and areas of influence, helps stakeholders feel involved and understand the changes. Key idea: Talk more to the resistant to change stakeholders and explain the plan. ***6. Use data management systems to summarize key information*** Reflecting after meetings with stakeholders is crucial. Write a summary covering the meeting's purpose, key findings, actions, and the date of the next meeting. Utilize your data management system to organize and track this information effectively. Key idea: Make conclusions and record the meetings. ***7. Keep surprises to a minimum*** Surprising stakeholders can harm relationships. Most stakeholders prefer to be informed early about risks and issues, but it\'s important to focus on solutions rather than just problems. Present options to resolve issues and ask for stakeholders\' input to make an informed decision about the next steps. Key idea: Don't surprise your stakeholders,

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