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Flashcards in CSR Deck (18)
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1

Why CSR?

Helps recruit and keep good employees

Can help differentiate firm and enhance its brands

Helps cut costs e.g minimise packaging, economise energy, recuse waste

Help firm avoid increased tax, regulation or Eldon actions by government

2

Ethics are

Moral principles and values that govern behaviour regarding right and wrong

3

Variation in ethical standards

Relativism

Normativism

4

Relativism

Contextual based standard

5

Normativism

Uniform standard

6

CSR is

Manner of operating business that meets or exceeds the ethical, legal, commercial and public expectations

7

Sustainability

Meeting humanity’s needs without harming future generations

Economic
Social
Environmental

8

Coordinated market economies CSR and sustainability

Implicit elements of the institutional framework

France
UK
Germany

9

Liberal market economies CSR and sustainability

Explicit elements of corporate policies

USA

10

Matter and Moon (2008)

Liberal market economies







Coordinated market economies

11

4 Strategic responses to institutional pressure to engage in CSR and sustainability

Reactive

Responsive

Accommodative

Proactive

12

Reactive strategic behaviours

Deny responsibility

Do less than requires

E.g Ford Pinto fire 1970s

13

Responsive strategic behaviours

Admit responsibility but fight to do the least that is required

Nike early 1990s

14

Accommodative strategic behaviours

Accept responsibility, do all that is required

E.g Ford Explorer rollovers 2000s

15

Proactive strategic behaviours

Anticipate responsibility, do more than is required

E.g BMW 1990s

16

What strategy to use in implicit and explicitly CSR and sustainability countries?

Implicit
Accommodative
Should use proactive also? Yes

Explicit
Proactive

Do all companies benefit from CSR and sustainability?
Size of company
Type of industry

17

Does CSR relate to COMPETITIVE ADVANTAGE?

Aldi Walmart McDonalds competing in price minimisation sector
- Less likely to benefit from proactive CSR strategy


Waitrose M&S compete on basis of brand image
More likely to benefit

18

Are ethical behaviour, CSR and sustainability good for MNE’s financial performance?

YES
- reduce costs associated like packaging
- attract and retain employees
- positive brand image in mind of target customers
- great revenues
- if successful

NO
- it is expensive
- resource intensive
- time consuming
- outcome is uncertain
- short term

Only benefits a company if it can build a credible reputation as a socially responsible firm but this doesn’t happen overnight