Term
| Corporate Social Responsibility |
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Definition
| a view of the corporation and its role in society that assumes a responsibility among firms to pursue goals in addition to profit maximization and a responsibility among a firm's stakeholders to hold the firm accountable for its actions. |
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Definition
| economic-->legal-->ethical-->discretionary |
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Definition
| companies must prioritize stake holders by their strategic importance |
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| Strategy strive to provide the business with a source of sustainable compeitive advantage, but for any competitive advantage to be sustainable, it must be accepted by the wider enviroment. *Standard Oil, BP |
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Term
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Definition
TWO ARGUMENT FORMS
1.Consequestialist ethical reasoning justifies action in terms of the outcomes it generates (the greatest good for the greatest number of ppl)
2. Categorical ethical reasoning justifies action in terms of the principles by which that action is carried out (the application of core ethical principles, regardless of the outcomes they generate) |
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Term
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Definition
| CSR is an argument of moral reasoning that reflects the relationship between a company and the principle expected by the wider society within it operates. It assumes businesses recognize that for profit entities do not exist in a vaccuum and that a large part of the success comes as must from actions that are congruent with societal values and norm as from factors internal to the company |
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Term
| Rational Argument for CSR |
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Definition
| CSR is a rational argument for businesses seeking to maximize their performance by minimizing restrictions on operations. In today's globalized world, where individuals and activist organizations feel empowered to enact change, CSR represents a means of anticipating and reflecting societal concerns to minimize operational and financial constraints on business. |
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Term
| Economic Argument for CSR |
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Definition
| CSR is an argument of economic self-interest for business. CSr adds value because it allows companies to reflect the needs and concerns of their various stakeholder groups. By doing so, a company is more likely to retain its societal legitimacy and maximize it financial viability over the medium to long term. Simply put, CSR is a way of matching corporate operations with societal values and expectations. |
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Term
| Iron Law of Social Responsibilty |
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Definition
| in a free society, discretionary abuse of societal responsibilities leads, eventually to mandated solutions. "Power is taken away from those whom abuse it" |
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Term
| Five driving forces of CSR |
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Definition
Affluence
Sustainability
Globalization
Media
Brands |
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Term
Milton Friedman Argument
End C1 |
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Definition
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Term
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Definition
| answers why the organization exists. It identifies the needs the firm aspires to solve from others |
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Definition
| states what the organization is going to do to achieve its vision. it addresses the types of activities the firm seeks to perform |
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Definition
| determines how the organization is going to undertake its mission. It sets forth the ways it will negotiate its competitive environment in order to attain a sustainable advantage |
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Definition
| the day to day management decisions made to implement the firms strategy |
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Definition
Strengths Weaknesses Opportunites Threats
The goal of a firms strategy therefore is to recognize its strengths and align them with the opportunies that are present in the enviroment, ensuring that the strategy and tactics remain consistent with its vision and mission |
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Term
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Definition
| stakeholders in an organization are the individuals and groups who are depending on the firm in order to achieve their personal goals and on whom the frim is depending for its existance |
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| Porters Five Competitive Forces |
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Definition
Power of Suppliers
Power of Buyers
Threat of new entrants
Threat of Substitutes
Industry Rivalry |
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Term
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Definition
| the industry perspective focuses on the firms operating environment (inparticular the industry's structure) as the most important determinant of competitive advantage. Porter sees it as a zero sum game between the five competitive forces, suppliers, buyers, new entrants, substitutes and industry rivalry. |
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Definition
| The ideal vehicle for the integration of CSR and strategy is a multi stakeholder perspective that enables firms to respond to the dominant trends in society today-- 1 globalization 2 developing technologies 3 increasing pressure to attend to social goals other than just profit maximization |
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Term
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Definition
1. Organizational Stakeholders
Directors, Employees, Executives, Stockholders
2. Economic Stakeholders
Customer Competitors, Creditors Distributors, Supplier Unions
3. Societal Stakeholders
Communities, Enviroment, Government Regulators, Media, Non profits and NGOS
4. Affluence Globalization Sustainability Media Brands |
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Term
| Four Steps To Prioritizing Stakeholders |
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Definition
1. Identify
2.Analyze
3.Prioritize
4.Act |
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Term
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Definition
| The incorporation of a holistic CSR perspective within a firm's strategic planning and core operations so the the firm is managed in the interests of a broad set of stakeholders to achieve maximum economic and social vlue over the medium to long term |
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Term
Ch3
Milton Friedman vs Charles Handy |
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Definition
| Friedman argues that profit, as a result of the actions of the firm, is an end in itself. He believes strongly that a frim need not have any additional justification for existing and that, in fact, social value is maximized when a firm focuses solely on pursuing its self-interest in attempting to maximize profit. |
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Term
| Charles Handy vs Milton Firedman |
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Definition
| A firm should not remain in existence just because it is profitable, but because it is meeting a need that society as a whole values. |
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Term
| The gallup Annual Honesty and Ethics poll |
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Definition
| the honesty and ethics of 21 workers in different positions, reveals that the public's perception of business executives is not very high. A reviw of the results from 1192 to 2010 shows the percentage of the US public surveyed who rted business executives ethics as very high or high never rises above 25% and is trending downwards. |
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Term
| PRME The United Nations six Principles of Responsible Management Education P101 |
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Definition
1.Purpose
2.Values
3.Method
4.Research
5.Partnership
6.Dialogue |
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Definition
Facts
90% of Americans live within 15 miles of walmart
2011 Walmart generated 419 billion in sales...If Walmart were a country it would be the 25th largest economy in the world
2010 CEO Michael Duke's annual salary of 35 million earned him more in an hour than his employees earned in an entire year at 8.75 an hour
Suppliers- their margins are continually squeezed by walmarts efforts of cost reduction
Regulators- complain that the state has to subsidize the low wages and benefits it pays its employees
Good
-reasonable quality and low prices
-good jobs in economically deprived regions
-wide range of products
-redefinition of supply chain management through technological efficiencies
-increased productivity
Bad
-loss of domestic jobs
-strong opposition against collective representation of workforce
-relatively low employee wages and benefits
-competitors go out of business, reducing competition and consumer choice
-litigation against the company brought by many stakeholder groups |
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Term
| Walmart Sustainability via Stakeholder Theory |
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Definition
| In order to sustain its dominant market position, stake holder theory, argues that a CSR perspective should by integrated into the firms strategic planning processes and throughout day to day operations. Absent this perspective, the firm is endangering its societal legitimacy. |
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Term
Walmart's Enviromental Goals
Greenwash p 119 |
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Definition
1. To be supplied 100 percent by renewable energy
2.To create zero waste
3. To sell products that sustain our resources and enviroment. |
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Term
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| Actions (e.g., campaigns, boycotts, protest) by individuals, nonprofit organizations, or NGOs designed to further social, political, or environmental goals. |
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| Organizations that exist to meet societal needs rather than seek profits for their owners or the political concerns of government. Nonprofits often differ from NGOs by having a domestic, rather than an international, focus. |
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Term
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Definition
| A legal organizational form permitted to engage in commercial business. The name company comes from a combination of the Latin words cum and panis, the literal translation of which originally meant “breaking bread together.” |
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Term
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Definition
| The incorporation of an holistic CSR perspective within a firm’s strategic planning and core operations so that the firm is managed in the interests of a broad set of stakeholders to achieve maximum economic and social value over the medium to long term. |
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Term
| iron law of social responsibilty* |
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Definition
| The axiom that those who use power in ways society deems to be abusive will eventually lose their ability to continue acting in that way. |
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Definition
| Consumers who avoid specific industries, firms, or products based on performance metrics that they value. |
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Definition
| Contributions by firms that benefit stakeholders and the community, often through financial or in-kind donations to nonprofit organizations. |
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Term
| non governmental organizations NGOS* |
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Definition
| Organizations that pursue social good exclusively, rather than profits or the political goals of government (although many NGO activities are government-funded). For example, an NGO might help feed the poor after a disaster, although this activity may be seen as a governmental task in other societies or under other conditions (see Nonprofits). |
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Definition
| A donation made, either by an individual or organization, to a charity or charitable cause. |
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Term
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Definition
| The process, facilitated by rapidly improving communication technologies, transportation, trade, and capital flows, that allows a firm’s opera¬tions to transcend national boundaries, and facilitates greater interaction among people, societies, cultures, and governments worldwide. |
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Definition
| The linkages formed by relationships among firms that provide a firm with the materials necessary to produce a product (see Value chain) |
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Term
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Definition
| A tool used to identify the internal Strengths and Weaknesses of the firm and the external Opportunities and Threats present in the firm’s environment. The goal is to match the firm’s strengths with its opportunities, while strengthening the weaknesses and avoiding any threats. |
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Definition
| An internal perspective of the firm that identifies the resources, capabilities, and core competencies of the firm as the main determinant of a sustainable competitive advantage (see Industry perspective). |
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Definition
| An external perspective of the firm that identifies the structure of the environment in which the firm operates (in particular, its industry) as the main determinant of competitive advantage (see Five forces and Resources perspective). |
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Term
| core competence/capabilty* |
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Definition
| The processes of the firm that it not only does very well, but is so superior at performing that it is difficult (or at least time consuming) for other firms to match its performance in this area. |
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Term
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| A macro-level analysis of the competitive structure of a firm’s industry that indicates a firm’s potential for profit (see Industry perspective). |
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Term
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Definition
| A stakeholder in an organization is (by definition) any group or individual who can affect or is affected by the achievement of the organization’s objectives. |
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Definition
| An analysis of the linkages within the production process that identifies each value-adding stage in the process. This analysis is possible within a firm or among firms. |
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Definition
| The strategy of specific business units within a firm that enable it to differentiate its products from the products of other firms on the basis of low cost or another factor, such as superior technology, in order to create a sustainable, competitive advantage (see Differentiation and Low cost). |
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Definition
| The strategy of the firm. Strategy at this level involves decisions that allow the firm to navigate its competitive environment, identifying the businesses in which the firm will compete and whether to enter into partnerships with other firms via joint ventures, mergers, or acquisitions (see Business strategy). |
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Term
| corporate stakeholder responsibility* |
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Definition
| A responsibility among a firm’s stakeholders to hold the firm accountable for its actions. |
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Term
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Definition
| The process (often annual) whereby firms create or reformulate plans for future operations. |
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Definition
| Relocating jobs to overseas countries in search of lower labor costs. |
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Definition
| Returning jobs closer to home in order to create more flexible and responsive supply chains. |
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Term
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Definition
| A level of pay that is designed to meet basic living standards for an employee above subsistence levels. A “living wage,” which is socially-defined, is usually set at a higher level than a “minimum wage,” which is legally defined. |
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