Peng Inst Chapter 17 REVISED (2nd Edition)

Peng Inst Chapter 17 REVISED (2nd Edition) - Peng Global...

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Unformatted text preview: Peng Global Business 2e Chapter 17 Managing Corporate Social Responsibility Globally 1 2 LEARNING OBJECTIVES After studying this chapter, you should be able to: 1. Articulate a stakeholder view of the firm 2. Apply the institution-based and resource-based views to analyze corporate social responsibility 3. Participate in three leading debates concerning corporate social responsibility 4. Draw implications for action 3 CORPORATE SOCIAL RESPONSIBILITY Corporate social responsibility (CSR) - consideration of, and response to, issues beyond the narrow economic, technical, and legal requirements of the firm to accomplish social benefits along with the traditional economic gains which the firm seeks. At the heart of CSR is the concept of the stakeholder the group or individual who can affect or is affected by the achievement of the organizations objectives. 4 CORPORATE SOCIAL RESPONSIBILITY Figure 17.1 shows that while shareholders are important, there are other stakeholders such as customers, employees, and governments. Chapter 16 focused on shareholders while this chapter focuses on nonshareholder stakeholders (stakeholders). A leading debate is whether managers promotion of the interests of these stakeholders is at odds with their fiduciary duty to shareholder interests. 5 6 CORPORATE SOCIAL RESPONSIBILITY Criticism of the CSR View Firms are not social agencies and cannot/should not take on all the social problems of the world. Robert Reichs Supercapitalism CSR is a distraction to the contributions firms make to society by: creating jobs paying taxes creating products and services to meet societys needs These are ways that firms do good for society. 7 A STAKEHOLDER VIEW OF THE FIRM Three important perspectives: 1. A Big Picture Perspective Global sustainability 1. Primary and Secondary Stakeholder Groups Primary firm relies on these for continuous survival and prosperity Secondary not engaged in transactions and not essential to for survival 1. A Fundamental Debate Free market school (profit maximization) CSR movement school (stakeholders have equal rights) 8 A Big Picture Perspective The stakeholder view of the firm represents a big picture with the goal of global sustainability Global Sustainability - ability to meet the needs of the present without compromising the ability of future generations to meet their needs Three drivers of sustainability in the 21 st century 1. Increasing population, poverty, and inequity associated with globalization....
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This note was uploaded on 01/25/2012 for the course ECON 102 taught by Professor Jones during the Spring '11 term at UVA.

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Peng Inst Chapter 17 REVISED (2nd Edition) - Peng Global...

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