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04 CSR1 Stakeholders

04 CSR1 Stakeholders - ~ BCOR 1010 ~ Introduction to...

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Unformatted text preview: ~ BCOR 1010 ~ Introduction to Business Section 100 Instructor: Beth Cross Office: Room 345E – CESR Suite, Koelbel Email: [email protected] Email: [email protected] Cell #: 303 956-6010 Office # 303 492-4463 Office Hours, Spring, 2009: Office Mon. 11:30a-1:00p, Wed. 10:30a-12:00n Wed. and by appointment and 1 THE CONTEXT OF MODERN THE BUSINESS BUSINESS B. The Role of the Government Channeling Markets Along Competitive Channeling Lines Lines (collusion, anti-trust, natural monopolies) (collusion, Equality versus Efficiency (efficiency vs. equality, universal entitlements) (efficiency Market Failures (externalities and public goods, social cost) (externalities 2 Stents Coronary Heart Disease – – – – #1 Killer Genetics Not enough exercise Too many Too cheeseburgers cheeseburgers 3 Boston Scientific Stents What happened? What How would the market solve this market problem? problem? Why don’t we let the market solve it? 4 Market Failures Market (Inefficient Outcomes of Free Market) (Inefficient Externalities are over-produced Public goods are under-produced The market may fail to allocate or The account for the total costs and benefits of a product of 5 Externalities Costs borne by unrelated third Costs parties… parties …external costs – Pollution – Traffic congestion – Resource Depletion Usually negative to society Usually Over-produced in a Free Market Over-produced (Can also be positive) (Can – Bee pollen 6 Public Goods Social benefits are greater than private Social benefits benefits Public Parks Street Lights Clean Air Lighthouses Police/Fire Protection Health Facilities Defense Under-produced in a Free Market 7 Social Costs Social costs = Social private costs + externalities externalities ALL the costs… 8 Social Costs What would happen if companies What included social costs when they priced social their goods? their – Automobiles (Fuel efficiency) – Cleaning Products (Environmental impact) – Bullets (Social harm) – Sexual Advertising (Teen pregnancy) Sexual 9 PART ONE: THE CONTEXT OF PART MODERN BUSINESS MODERN C. Corporate Social Responsibility C. (CSR) (CSR) – Taking Account of Stakeholders’ Interests – Defining CSR Defining – Good business: enlightened self-interest – Ethics and the Individual 10 10 BP Amoco “Being a responsible business means taking steps to improve the things we can control and contributing on wider issues that we can influence” 11 11 Dove Ad Campaign “Talk to your daughter before the beauty industry does” 12 12 Corporate Social Responsibility Corporate Definition: (CSR) (CSR) ~ Taking into account the interests of Stakeholders Stakeholders ~ Responsiveness to the needs of Responsiveness Stakeholders Stakeholders (-- Corporate Citizenship) What/Who is a Stakeholder? What/Who – Anyone affected or impacted by the decisions or activities of a company… Anyone with a vested interest… Anyone 13 13 Stakeholders Consumers Employees Stockholders (shareholders) Members of the community Suppliers Anyone who stands to gain or lose 14 14 John Hardy Jewelry Sustainable Luxury 15 15 Enlightened Self Interest Engaging in responsible conduct Engaging because it benefits your business because -- it adds to the bottom line Taking into account the interests of Taking stakeholders because it benefits your business. business. ESI is not the same as ethics! 16 16 Stakeholders How can stakeholders How influence corporate behavior or hold companies accountable? hold 17 17 Exit And Voice Exit – – – – Quit Boycott Change brands Divest rI e ow P rs be um N n Voice – – – Protest Write Letters Cause negative publicity 18 18 CSR Should businesses do more than Should maximize profit? maximize – Case For: – Case Against: 19 19 CSR Is a corporation’s CSR Is responsibility situational based on: situational – Profit – Competitive Environment – Longevity – Industry – # of employees of – Country 20 20 ...
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