...Corporate Social Responsibility and Accounting - A Literature Review Master thesis in Financial Accounting Fall semester 2012 Supervisor: Kristina Jonäll Author: Ulla-Christel Götherström Abstract Master Thesis in Financial Accounting, School of Business, Economics and Law, University of Gothenburg, fall semester 2012 Author: Ulla-Christel Götherström Supervisor: Kristina Jonäll Title: Corporate Social Responsibility and Accounting - A literature review. Background and problem: Corporate Social Responsibility (CSR) is an area which has gained much attention the last 10-15 years. To satisfy various stakeholders, corporate social responsibility has increased its importance and often constitutes a substantial part of the firms´ financial reports, in spite of the fact that there are no legal requirements. However, to perform strategic CSR-reporting has become more or less compulsory for firms. The research question is: What research has been performed in the area of corporate social responsibility and accounting? Aim: The aim is to provide a structured overview of the literature in the area of corporate social responsibility and accounting regarding the years 2002-2012. The overview will provide a basis for future research and constitute a framework for focused research question. Delimitation: The focus of this study is on research published in scientific journals from 2002 until 2012. Method: A literature review was performed including peer-reviewed papers...
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...n n Thesis Statement: Utility of Stakeholder Theory for Sustainable Business Introduction Strategies employed by international companies to gain competitive advantage over their rivals differ from one company to another. One way of doing this is ensuring that they are environmentally conscious in how they partake their activities. In this modern age, they should not only focus on profit making but also consider how their activities affect the stakeholders of the business; hence the stakeholder model. The Stakeholder Model Unlike the traditional economic model that focused on the main goal of profit making, the Stakeholder theory focuses on more values and ways to make the stakeholders comfortable in the business. A business has more than the three employer,employee,supplier as stakeholders .The stakeholder model thus looks to balance out all these stakeholders in order to reduce any conflict that may arise from the all-inclusive environment. It is important for any company to recognize its social obligation in society in order to abide and custom its operations in the same line. Figure 5.23 presents the different dimensions of social aspect of community such as pollution, health care to employees among other societal obligations. In order to measure a company’s social and environmental performance, the triple bottom- line accounting caters for these aspects. The author refers to a mining company in Indonesia that uses triple line accounting that enables it control its mining...
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...oriented theories, sustainability issues and disclosures made by Orica Limited in their 2013 Sustainability Report (“Orica 2013”). The review is based on the system oriented theories covering Stakeholder Theory, Legitimacy Theory and Institutional Theory. On the basis of this assessment, recommendations are made for future approaches to Orica’s Sustainability Reporting. The 2013 Sustainability Report by Orica provided benefit to stakeholders. Orica’s key sustainability challenges and opportunities focus on: refining the customer value proposition, developing people capability and competence, driving common systems and processes, developing performance metrics and targets, reviewing manufacturing reliability and integrity, extending the mining service offering and securing low cost and capital efficient supply (Orica 2013). These areas are constantly being enhanced and some current initiatives are the Seven Pillar training program to ensure all employees have an understanding of Orica’s vision, value and strategies, development of stakeholder plans at key sites to provide a consistent approach to management, implementing Environmental Management Plans (EMPs) to identify key environmental risks, controls and impacts, and Project Sustain which identifies initiatives under Orica’s Safety, Health, Environment and Community (SHEC) (Orica 2013). The disclosures made by Orica can be assessed using system oriented theories. Deegan (2012, p. 109) defines system oriented theories as “theories...
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...The Social Responsibility of Business: A Review. Maz Demosthenous School of Commerce The Flinders University of South Australia GPO Box 2100 Adelaide South Australia 5001 Telephone: +61 8 82013896 Facsimile: +61 8 82012644 Email: Maz.Demosthenous@flinders.edu.au SCHOOL OF COMMERCE RESEARCH PAPER SERIES: 00-8 ISSN: 1441-3906 For many, the view that the main goal or purpose of business is to make as much money as possible is accepted as a matter of fact and is beyond debate. To go further and say that the social responsibility of a business is also just to make a profit is open to debate. The aim of this paper is to discuss the various views of the responsibility of business, and to consider where accounting fits in. In addition, to explore the ethical responsibilities that a corporation may have beyond making profits for its stockholders. The Friedman view Milton Friedman’s view is that in a capitalist economy, there is one and only one responsibility of business- to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud (Friedman, 1983). When one is looking at the responsibilities of an individual or an organisation they must first examine their roles. The directors of companies have a fiduciary responsibility to act in the best interest of the shareholders. The managers are agents of the shareholders...
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...MANAGING FOR STAKEHOLDERS: TRADE-OFFS OR VALUE CREATION1 One of the central uses of stakeholder theory, in its original form, was as a counterpoint to the idea that corporations should be managed in the interests of shareholders. As the theory developed the debate was often framed in terms of “shareholders vs. stakeholders.” While developing “theories of the firm” is an interesting and useful project, focusing solely on “theory of the firm” obscures a more important contribution of stakeholder theory. The purpose of this brief essay is to set forth what I consider to be the central insight of stakeholder theory: the jointness of stakeholder interests. The Basic Idea The basic idea of “managing for stakeholders,” as I now see it, is quite simple, and I believe it is closer to the origins of the idea from Eric Rhenman and the Tavistock thinkers. In fact, Juha Nasi was correct in his assessment of the Scandinavian origins of the stakeholder idea that focus on what holds stakeholder interests together. Nasi originally suggested that we focus on “intressent” in Swedish. “In Finnish this term was modified as “intressentti” or “sidosryhma” which could be translated as an “interest group” or even as a “linkage” or “bonding” or “binding” group.” (Nasi, 1995 at 98) It is this bonding or binding idea that is most interesting to explore. Managing for stakeholders asks us to see stakeholders as “bound together by the jointness of their interests.” So, the basic idea goes like this. Business...
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...crisis: 4 Stakeholders and Typology theories: 4 Definition of Stakeholders: 4 A typology theories of stakeholder: 4 Types of stakeholders: 5 Ethical Framework: 5 Applying stakeholder theories to this Bulgaria case: 5 Refugees: 5 Bulgarians: 6 European Union: 7 IS-terrorist attacks: 8 Apply the ethical approach into the view of the Bulgaria’s government: 8 Conclusion 10 REFERENCE: 10 Introduction: As we can see that ethics is perceived in different angles and aspects but it is, undeniably, an important role of ethics in our life. According to Noel Preston (2001, p.18) ethics indicates the general views of what is right, fair or good. It is also the core values, rules which we use to make our choices and actions. Similarly, (Boardman, 2005) said that ethics is applied naturally for many areas such as our own lives, business and an organisation. In our daily lives, making decisions and actions seem to be driven or motivated from/ by the certain standards or values. Furthermore, ethics target on evaluating the right or wrong behaviours of both individuals and the good or bad performance of an organisation. This report will evaluate the ethical approach which Bulgaria government uses to make the fence-line decision. This paper will be divided into four parts. The first part is going to summary the Bulgaria cases. The next part will come up with all stakeholders and typology theories. Then the third part, this report will apply these stakeholder and typology...
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...Small business social responsibility: Expanding core CSR theory Laura J. Spence Abstract This paper seeks to expand business and society research in a number of ways. Its primary purpose is to redraw two core CSR theories (stakeholder theory and Carroll’s CSR pyramid), enhancing their relevance for small business. This is done by the application of the ethic of care, informed by the value of feminist perspectives and the extant empirical research on small business social responsibility. It is proposed that the expanded versions of core theory have wider relevance, value and implications beyond the small firm context. The theorization of small business social responsibility enables engagement with the mainstream of CSR research as well as making a contribution to small business studies in scholarly, policy and practice terms. Key words: corporate social responsibility, ethic of care, feminist ethics, small and medium sized enterprises (SMEs), small business, Carroll’s pyramid, stakeholder theory. Correspondence: Laura J. Spence, PhD. Professor of Business Ethics. Director, Centre for Research into Sustainability, School of Management, Royal Holloway, University of London, Egham, Surrey, TW20 0EX, UK. Laura.Spence@rhul.ac.uk Acknowledgements: With sincere thanks to the special issue editors and reviewers, Kate Grosser and Dirk Matten for their insightful comments in the development of this paper. Introduction Small business social responsibility - whether it be a software...
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...last main environment is environment is economic. Our company is in Taiwan, and we import hearing aid sell to our customers, so our product is middle price. Not low price. If the Economic environment is bad, then we also can’t accomplish the sales. Q3. The benefit of using a stakeholder approach is able to think of other stakeholders' interest can better inform the moral dimension of your own decisions. The stakeholder approach also provides a means for mapping complicated relationship between the focal and other stakeholders, a means of identifying the strategies of each stakeholder, and a means for assessing the moral responsibility of all the constituencies. As a result, I know the stakeholder approach I can choose more options to solve the problem. For example, my manager will tell me the profit price of the hearing aid, and we sell different price to the dealer and our own customers. If I don’t know the difference of the dealer and customer which is dealer usually will buy an amount of our product to get a lower price, and dealer also is business to business. Unlike sell to the customers which is business to the customers. By knowing the stakeholders approach, I will know who the primary stakeholders. Real time...
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...OF SOCIAL SCIENCES, NORWEGIAN SCHOOL OF HOTEL MANAGEMENT MASTER’S THESIS STUDY PROGRAM: THESIS IS WRITTEN IN THE FOLLOWING SPECIALIZATION/SUBJECT: Festival and Event Management IS THE ASSIGNMENT CONFIDENTIAL? MSc in International Hotel and Tourism Leadership No TITLE: Benefits of multi-stakeholder groups for participating in Gladmat festival AUTHOR ADVISOR: Prof. Reidar Johan Mykletun Student number: 215519 ………………… 214504 ………………… Name: Ambassador Rezene Meretse ……………………………………. Muhammad Yahya ……………………………………. ACKNOWLEDGE RECEIPT OF 2 BOUND COPIES OF THESIS Stavanger, ……/…… 2013 Signature administration:…………………………… 2 Abstract This paper investigates the benefits of multi-stakeholders from participating in the Gladmat festival in Stavanger. The findings of this study can help festival and event managers to understand which major factors can attract group of stakeholders to the festival. It could help them to formulate policies, to offer suitable segment focusing on the marketing field. Stakeholder theory, the benefit segmentation theory, push and pull motivation theory, and Maslow’s hierarchy theory were applied to find the benefits of stakeholders for participating in the festival. Mixed method research have been used to collect the data, three qualitative studies and one quantitative study is carried out to explore and describe the benefits from the festival. The outcome from the qualitative shows owners benefits by positioning and marketing...
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...world"(Goldstein, 1999, p.27). Young people between 18 and 30 were chosen as a target group due to the fact that they were trendsetters and interested in sports activities. Furthermore, they are fashion conscious and they have knowledge of how using the internet (Okonkwo, 2007). The company is a fashion retailer, selling quality products of branded and niche suppliers, with a promise of a free delivery within five days. They listed brands such as Tommy Hilfiger, Fila, Lacoste and Adidas (Malmsten, Portanger and Drazin, 2001). But obviously something went wrong, because nowadays Boo.com is well-known as the largest European dot.com failure. Hence, this assignment will analyze the rise and fall of boo.com in detail, with regard to stakeholder identification and an environmental scanning (internal and external) as well as a recommendation or strategic implementation how their strategy would have been...
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...UI400 Philosophy Paper Methodology. The method of argumentation and (sometimes) proof used in philosophy is derived from and is essentially a refinement of the so-called Socratic Method, also known as Platonic dialectic (derived from Plato’s dialogues & refined over the centuries). It consists not merely in reporting on what others have said or argued, but in examining their claims to test them for validity, truth, soundness, and reliability of generalization and so on. It involves deductive methods, reductio ad absurdum or the selective application of relevant counterexamples, analogical and inductive procedures. It requires the examination of ideas, reasons, arguments and experience, and evidence drawn from various sources. It even involves experimental reasoning in the form of thought experiments. The overall format is that of the hypothetical-deductive method of developing a thesis by proposing a hypothesis, deducing the consequences that logically follow from that hypothesis and then testing them against other well-established beliefs, experience, data, and the results of the analyses and interpretations of a thesis by other scholars (secondary sources). Below follows a brief outline of some key steps to follow in executing a genuine philosophical analysis of a thesis and it argument(s). First a flow chart: 1. Thesis statement – a brief statement of the problem, why you think it’s a problem, & how you plan to approach it (these elements...
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...STRENGTHENING STAKEHOLDER-COMPANY RELATIONSHIPS THROUGH MUTUALLY BENEFICIAL CORPORATE SOCIAL RESPONSIBILITY INITIATIVES C.B. Bhattacharya Daniel Korschun Sankar Sen Forthcoming: Journal of Business Ethics Abstract Corporate social responsibility (CSR) continues to gain attention atop the corporate agenda and is by now an important component of the dialogue between companies and their stakeholders. Nevertheless, there is still little guidance as to how companies can implement CSR activity in order to maximize returns to CSR investment. Theorists have identified many company favoring outcomes of CSR, yet there is a dearth of research on the psychological mechanisms that drive stakeholder responses to CSR activity. Borrowing from the literatures on means-end chains and relationship marketing, we propose a conceptual model that explains how CSR provides individual stakeholders with numerous benefits (functional, psychosocial, and values) and how the type and extent to which a stakeholder derives these benefits from CSR initiatives influences the quality of the relationship between the stakeholder and the company. The paper discusses the implications of these insights and highlights a number of areas for future research. 1 STRENGTHENING STAKEHOLDER-COMPANY RELATIONSHIPS THROUGH MUTUALLY BENEFICIAL CORPORATE SOCIAL RESPONSIBILITY INITIATIVES Corporate social responsibility (CSR), or “a commitment to improve community wellbeing through discretionary business practices...
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...Intoduction Nike’s foundation was on 1964 as managed Phil Knight and Bill Bowermann who are both the former track coach in the University of Oregon. The business is focus of the decrease of the transport cost because they believe that it can also gain higher margins with low labor cost. The company made it on top and recorded to have the best performance for the past 30 years due to the image of the organization’s holy superiority. Nevertheless, in 1997, declination of the company’s fortune had declined which performed a drop down of 40% to 47% in the same year and the profit also fell for 69% in the end year. Stable into negative is the result of the Standard and poor which shows that the plan had not worked. The primary reason of the declination of the company is the fact it is doing many limited editions and special runs so that they can maintain its image to be. These only show that they have brilliant marketing brand but their strategy remain to be unproven. There are also allegations on the foreign factories of the company for having the poor air quality. It has also been added on implementing child labor with minimum pay wage and lack of compensation and sick pay. In 1998, Knight came out to clean up the image of the company and says that they had walk on the fine line. This can start to improve the 350,000 workers’ conditions in the entire Asia. The plan is to restrict on working conditions which are not acceptable. Part of the plan also is the 40% wage increase and...
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...renewed interest in stakeholderrelated concepts of management and receptivity to approaches which embed stakeholder engagement in the ‘business of business’. The stakeholder engagement function has moved from ‘nice to have’ to core business. This paper describes a fiveyear action research study to identify trends in corporate stakeholder engagement management and develop a stakeholder engagement management framework reflecting industry best practice. Keywords: Stakeholder, Corporate social performance, Stakeholder engagement, Ethical strategy, Systematic engagement INTRODUCTION Over the past decade and more, Australian organisations have increasingly sought to respond to global trends by incorporating social sustainability and social performance principals into organisational management - grappling with these concepts and their practical implementation in the business environment. Associated with this focus on social performance, has been a burgeoning interest in stakeholder-related concepts of management, together with a drive to enhance the strategic value of corporate communications functions such as stakeholder engagement, community consultation and social risk management - primarily to improve corporate responsiveness to the social environment. Emergence of stakeholder theories: According to Hitt, Freeman and Harrison (2001, p.190) the use of the term stakeholder emerged in the 1960s from pioneering work at Stanford Research Institute, which argued that managers...
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...Hasnae Benyaich The Social Responsibility of a Business is to Increase Profit by Milton Friedman in the light of The Stakeholder Theory by Edward Freeman In light of Friedman's understanding, we can without much of a stretch withhold his fundamental contentions in respect of corporate social responsibility. Friedman contends that the main obligation of a business is to make utilization of its potential asset for the sole purpose of expanding benefit. For him, staying aware of the capitalist principles of the business is an ethical need since it depends on free and fair competition. In addition, stakeholders are forcing corporate officials to provide an optimal financial situation of the company, regardless of social responsibility. Friedman contends that social obligation is not appropriated to companies but rather to people and in this manner a corporate official has a commitment toward partners, workers and clients; or else he will lose the power given to him. In particular, he trusts that each business ought to be viewed as an individual property and the flexibility to have a business is a social obligation in itself, in condition that it remains within the principles of the capitalist system. Friedman takes a gander at different examples where he considers social obligation an out of line task to a corporate official since it would be considered as another sort of tax collection. Regardless of the fact that the corporate official concedes to using such a methodology, the...
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