Corporate Social Responsibility, Study Guides, Projects, Research of Business

Download Corporate Social Responsibility and more Study Guides, Projects, Research Business in PDF only on Docsity! Huamin Research Center, School of Social Work, Rutgers University China Philanthropy Research Institute, Beijing Normal University Huamin Philanthropy Brochure Series - 13 November 2015 Corporate Social Responsibility Jacqulean Salib, Di Sun, Jiang Wu, Xin Wen, and Chien-Chung Huang What is Corporate Social Responsibility (CSR)? 1 Corporate Social Responsibility (CSR) is when a corporation goes beyond making money and engages in actions that results in social good, beyond the interests of the corporation which is required by law (McWilliams, Siegel, & Wright, 2006). McWilliams, A., Siegel, D. S., & Wright, P. M. (2006). Corporate social responsibil- ity: Strategic implications*. Journal of management studies, 43(1), 1-18. Historical Development of CSR 4  The concept of corporate social responsibility can be tracked back to the 1960s, when sweeping social and environmental movements began to influence the expectations consumers had of corporate behavior in the United States.  Activists began to launch campaigns to demand that corpora- tions treat employees with respect and fairness, create programs of philanthropies to improve the community, and practice envi- ronmental sustainability.  Consumers came to expect corporation to have moral, ethical, and philanthropic obligations to the local community and – in a larger sense – to the global community.  Corporations began to invest time, manpower, and money in or- der to develop policies, practices and philanthropic programs that addressed serious problems such as poverty, urban blight and crime, educational fairness, access to technology, and eco- nomic development in developing countries.  In the 1990s, CSR became an established part of corporate cul- ture, influencing the ways corporations communicate with stakeholders and consumers and the ways in which business treat employees, the environment, and communities. Haerens, M. (2014). Corporate social responsibility. Farmington Hills, Mich: Greenhaven Press Domains of CSR 5 Archie Carroll and Mark Schwartz came up with a three-domain approach to Corporate Social Responsibility that includes the economic, legal, and ethical domain. Economic Domain- Captures the activities that are meant to have a positive economic impact on the corporation (direct or indirect). Legal Domain- This refers to the business firm's responsive- ness to legal expectations mandated and expected by society in the form of federal, state, and local jurisdictions, or through le- gal principles as developed in case law. Ethical Domain- This refers to ethical responsibilities of busi- ness as expected by the general population and relevant stake- holders. Schwartz, M. S., & Carroll, A. B. (2003). Corporate social responsibility: A three- domain approach. Business Ethics Quarterly, 13(04), 503-530. 6 Benefits of a CSR Include: Haerens, M. (2014). Corporate social responsibility. Farmington Hills, Mich: Green- haven Press Drawbacks of a CSR Crane, A., Matten, D., Spence, L. (Eds.).(2014). Corporate Social Responsibility: Readings and Cases in a Global Context. London: Routledge.  Responsible businesses attract more investors, re- duce their risks and address stakeholders concerns.  Creating a better environment while making a prof- it.  Most consumers prefer to buy products from com- panies that use CSR.  Many critics view corporate social responsibility as a ploy that companies use as a means to generate profit. How to Apply CSR to a Business Instead of viewing CSR as an initiative look at it as a way of doing business. Little steps make a substantial difference. The Environment- “Think Sustainably”. Just by doing simple things in your office such as shutting of your computer monitor and recy- cling paper can help not only the environ- ment and the bottom-line. Staff Welfare- “Invest in your staff”. Get your staff involved, make it a point to hear their opinion and most of all keep them motivated. Employees will do a better job when they feel like they have a purpose and feel like they are helping to make a difference. Community- “Support your local communi- ty”. If possible create part time jobs and pur- chase locally. Support the communities needs and challenges by creating programs and grants. Haerens, M. (2014). Corporate social responsibility. Farmington Hills, Mich: Green- haven Press 9 Developing CSR strategy One way to think about the intersection of CSR and Strategy is to focus on the formulation and implementation of a distinct CSR strategy. Typical steps would be a planning phase, an implementing phase, and an evalua- tion phase, with the last phase potentially initiating a feedback loop to build on successes and learn form mistakes. Husted, B.W., & Allen, D.B. (2010). Corporate Social Strategy: Stakeholder Engage- ment and Competitive Advantage, Cambridge：Cambridge University Press 10 Corporate Social Responsibility: An Implementation Guide for Business Implementation framework Plan 1,Conduct a CSR assessment © Assemble a CSR leadership team; © Develop a working definition of CSR; © Identify legal requirements; * Review corporate documents, processes and activities, and internal capacity; and @ Identify and engage key stakeholders. 2. Develop a CSR strategy * Build support with CEO, senior management and employees; * Research what others are doing, and as the value of recognised CSR instruments; * Prepare a matrix of proposed CSR actions; * Develop ideas for proceeding and the business case for them; and * Decide on direction, approach, boundaries and focus areas. Do 3. Develop CSR commitments * Do a scan of CSR commitments; * Hold discussions with major stakeholders; * Create a working group to develop the commitments; * Prepare a preliminary craft; and © Consult with affected stakeholders. 4. Implement CSR commitments © Develo 5 an integrated CSR decision-making « Prepare and implement a CSR business plan; * Set measurable targets and identify performance measures; + Engage employees and others to whom CSR commitments apply; * Design and conduct CSR training; * Establish mechanisms for addressing problematic behaviour; * Create internal and external communications plans; and * Make commitments public. ‘Check 5. Assure and report on progress © Measure and assure performance; © Engage stakeholders; and Report on performance, internally and externally. Improve 6. Evaluate and improve * Evaluate performance; = Identify opportunities for improvement; and + © Engage stakeholders. Cross-check: One cycle completed Return to plan and start the next cycle. <+- Source: http://www.iisd.org/pdf/2007/csr_guide.pdf 11  Case Study 2: Johnson & Johnson Background: Johnson and Johnson was founded in 1886 by three brothers. In 1943, General Robert Wood Johnson came up with the companies Credo Johnson and Johnson currently have over 265 operating companies in more than 60 countries with about 126.5k employees. Along with their family of companies through the years they have transformed the world of health by bringing forth innovative products and surgical procedures such as: sterile surgical dressings and suiters, sanitary protection products, first aid kits, minimally invasive surgeries, hip and knee replacements and so on. In 2014 Johnson and Johnson put approximately $1 billion worth of products and cash towards over 500 programs that address major health related issues in local communities. CSR mission: Johnson and Johnson‟s mission is to help people live longer, healthier and happier lives. Johnson and Johnson is constantly researching new ways to improve the health and well-being of people. Strategy: Johnson and Jonson uses it Credo as, its bases. The Credo states that the company must be responsible for their customers, employees, communities and shareholders. They believe that good corporate governance results from sound processes that ensure that their directors are well sup- ported by accurate and timely information, sufficient time and resources, and unrestricted access to management. Impact: Most recently Johnson and Johnson has collaborated with global health organizations and government agencies to help regions effected by the ebola epidemic. They are contributing to relief efforts to provide aide to both victims and health workers, they are also working on coming up with a vaccine. During the 2014 FIFA world cup Johnson and Johnson created a blood drive in Brazil which they named the Johnson and Johnson Tour do Carinho, it was the largest blood campaign in Brazil. Since the campaign took off more than 23,000 blood donations were collected, a total that will poten- tially save up to 93,000 lives. To assure that their organization continues to have a positive impact Johnson & Johnson has teamed up with Practice Greenhealth to survey their different facilities to gain insight on sustainability initiatives and challenges. They also continue to work across their or- ganization to drive more sustainable practices that respond to their customers needs and fulfill their 14 Citizenship & Sustainability priorities to advance human health and well-being, help to safeguard the planet, and lead a dynamic and growing business responsibly. Source: http://www.jnj.com/?utm_source=bing&utm_medium=cpc&utm_campaign=J% 26J+General&utm_term=%22johnson%20and%20johnson%22&utm_content=J%26J+General+- +P|mkwid|SpRfKOS5_dc|pcrid|5876228707 Source: http://files.shareholder.com/downloads/JNJ/595420100x0x815170/816798CD-60D9-4653-BB5A- 50A66FD5B9E7/JNJ_2014_Annual_Report_bookmarked_.pdf 15 Case Study 3: Hanergy Holding Group Limited Background: Hanergy Holding Group Ltd. is a multinational clean energy company as well as the world‟s leading thin-film solar power company, committed to changing the world by clean power. Es- tablished in 1994, the company is headquartered in Beijing and has a total of 15,000 employees. It has branches in provinces all over China as well as in the Americas, Europe and the Middle East, Asia -Pacific, Africa and other regions, with core businesses covering hydropower, wind power and thin- film solar power. In the year of 2014, Hanergy Thin Film Power Group Limited made total revenue of 96 billion Hong Kong Dollars. CSR mission: Hanergy aims to create a better world and a better way of life through the develop- ment and application of clean energy and the provision of professional services. In order to achieve balanced development and to minimize the big difference between urban and rural compulsory edu- cation, Hanergy is committed to the construction of the compulsory education to narrow the gap be- tween schools. Hanergy aims to raise awareness and cares of AIDS and reduces discrimination against HIV patients. Additionally, it advocates a civilized and healthy lifestyle. Strategy: 1. Hanergy thin-film power technology is thin, flexible and multi-applicable film with low cost, lightweight, and non-polluting production, which has been considered the future trend. It al- lows consumers to take advantage of the technology to generate power. Hanergy thin-film power technology adopts photovoltaic power generation, which can be dispersed using a distributed access to low-voltage distribution network, allow surplus electricity for the Internet and other power con- sumption. Hanergy cooperates with many multi-industry corporations to put thin-film technology on roofs, vehicles, and moveable power station to improve the comfort of vehicles and effectiveness of environmental protection. A great number of people have been using thin-film technology. Hanergy is about to popularize its thin-film nationwide. 2. Hanergy is dedicated to shorten the gap between urban and rural compulsory education by financially supporting students in rural areas to receive ur- ban education. Hanergy, China Yingcai Scholarship Fund, and The High School Attached to Tsing- hua University collectively established the “Raising them up” program. They financially aid under- privileged young talents from poor families to have the same opportunities to receive urban educa- tion as urban students do. Hanergy‟s volunteers went to several provinces in China to advocate and 16 of situations. Impact: Amway (China) has worked with over 3.15 million of children in the “One by One” pro- gram. Amway Charitable Foundation was established in 2011, which focuses on children charitable works and events. Additionally, Amway (China) created an environment education program in the year of 2008, “Amway Environment Protection Carnival”. It is a theme park, which educates people on mutual knowledge sharing about environment protection. So far, the carnival has covered 81 cit- ies, 2.1 million people‟s participation in China. Lastly, Amway (China) has established over 210 vol- unteers‟ teams with a total of 2.1 million volunteering hours. 19 Source: http://www.amway.com.cn/activity/CSR.html Brown, D., Dillard, J., & Marshall, S. (2009) „Triple bottom line: a business metaphor for a social construct‟, In Understanding the social dimension of sustainability, New York: Routledge: 211- 230 Crane, A., Matten, D., Spence, L. (Eds.).(2014). Corporate Social Responsibility: Readings and Cases in a Global Context. London: Routledge. Foster, D. & Jonker, J. (2005). „Stakeholder relationships: The dialogue of engagement‟, Corporate Governance 5(5), 51-57 Haerens, M. (2014). Corporate social responsibility. Farmington Hills, Mich. : Greenhaven Press Hawkins, D. (2006). Corporate Social Responsibility: Balancing tomorrow‟s sustainability and to- day‟s profitability. Palgrave Macmillan, New York. Hohnen, P. (2007). Corporate Social Responsibility An Implementation Guide for Business. Re- trieved from: http://www.iisd.org/pdf/2007/csr_guide.pdf. Johnson and Johnson. (2014). Johnson & Johnson 2014 Annual Report. Retrieved from: http://files.shareholder.com/downloads/JNJ/595420100x0x815170/816798CD-60D9-4653- BB5A-50A66FD5B9E7/JNJ_2014_Annual_Report_bookmarked_.pdf Longo, M., Mura, M., Bonoli, A. (2005). Corporate social responsibility and corporate performance: The case of Italian SMEs‟, Corporate Governance 5(4), 28-42. McWilliams, A., Siegel, D. S., & Wright, P. M. (2006). Corporate social responsibility: Strategic im- plications*. Journal of management studies, 43(1), 1-18. McWilliams, A., & Siegel, D. (2001). Corporate social responsibility: A theory of the firm perspective. Academy of management review, 26(1), 117-127. Papasolomou-Doukakis, I., Krambia-Kapardis, M., & Katsioloudes, M. (2005). „Corporate Social Re- sponsibility: The Way Forward? Maybe Not!‟. European Business Review 17(3), 263–279. Schwartz, M. S., & Carroll, A. B. (2003). Corporate social responsibility: A three-domain approach. Business Ethics Quarterly, 13(04), 503-530. Starbucks. (2014). Starbucks Global Responsibility Report 2014. Retrieved from: http://globalassets.starbucks.com/assets/ea2441eb7cf647bb8ce8bb40f75e267e.pdf Resources 20 Huamin Philanthropy Brochure Series - 13 Huamin Research Center, School of Social Work, Rutgers University 390 George Street, Room 503, New Brunswick, NJ, 08901, USA China Philanthropy Research Institute, Beijing Normal University 19 XinJie Kou Wai Street, Room 1003A, Haidian District, Beijing, 100875, China Corporate Social Responsibility Jacqulean Salib, Di Sun, Jiang Wu, Xin Wen, and Chien-Chung Huang,