...Preliminary Draft - Comments Welcome CORPORATE SOCIAL RESPONSIBILITY: DOING WELL BY DOING GOOD?* RAY FISMAN GEOFFREY HEAL VINAY B. NAIR# Abstract We provide a framework for analyzing corporate social responsibility (CSR). Our model of CSR in this paper has two important ingredients – CSR is at least in part a profit motivated decision; and different CSR activities are aimed at different audiences. We examine the implications of our framework using a ‘visible’ CSR index that captures consumeroriented CSR. We find that CSR is more prevalent in advertisingintensive (consumer-oriented) industries, and CSR is more positively related to profitability in these industries. Further, the effect of CSR on profits is stronger in competitive industries, especially when few other firms undertake such actions, suggesting that CSR may be used as a means of differentiation in otherwise competitive environments. We also find tentative evidence that the profit effects of CSR are more positive when large external shareholders are on the board. Finally, we document that different types of CSR activities targeted toward different audiences appear to be unrelated. The authors thank Franklin Allen, Randall Morck, Michael Roberts and Jeremy Stein for discussions. # Fisman and Heal are at the Graduate School of Business, Columbia University and Nair is at The Wharton School, University of Pennsylvania. 1 * In the business community, Corporate Social Responsibility (CSR) has emerged as a significant...
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...Social Responsibility Corporate social responsibility (CSR) can be defined as the way businesses integrate social, environmental and economic concerns into their corporate values, culture, decision making, strategy and operations in a transparent and accountable manner. The result of this approach is that these businesses often establish better practices within their operation, create wealth and improve society (Nickels, 2009). In the past, businesses principally concerned themselves with winning in the marketplace and little else as they believed this was their sole role. Economists had been quoted as declaring that the only responsibility of any business is to make money and please its shareholders. Economists may view companies who practice in CSR as wasting resources and money that should be used in making more profits for their shareholders CSR is no longer defined by how much money a company contributes to charity, but by its overall involvement in activities that improve the quality of people’s lives. Corporate responsibility has come up as an important subject matter in the international business community and is increasingly becoming a conventional activity. There is mounting recognition of the significant effect the activities of the private sector have on numerous stakeholders like; their workforce and clientele, the society, the environment, competitors, business associates, investors, shareholders, governments and others. It is also becoming increasingly clear...
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...Jonathan P. Doh and Terrence R. Guay GLOBALIZATION AND CORPORATE SOCIAL RESPONSIBILITY: HOW NONGOVERNMENTAL ORGANIZATIONS INFLUENCE LABOR AND ENVIRONMENTAL CODES OF CONDUCT Abstract • Concerns over the potential negative spillovers from globalization have resulted in increasing demands for multinational corporations (MNCs) to adhere to international standards and codes of responsibility. Nongovernmental organizations (NGOs) have been important advocates for development and adoption of these standards and codes. • In this paper, we provide a brief review of the emergence of NGOs and their influence on debates about globalization, and a specific assessment of NGO efforts to promote stronger labor and environmental policies of multinational corporations. • We examine the role of NGOs in development and enforcement of twelve international agreements and codes of conduct addressing labor issues and environmental practices. We use findings from these cases and insights from international business and other managerial theory to develop propositions that explain the circumstances under which NGOs have more or less influence in developing and enforcing international codes. Key Results • We suggest NGOs will achieve the greatest impact on codes of conduct when: 1) they intervene early in the code development process; 2) they forge transnational coalitions with other organizations, including other NGOs, MNCs, and governments; 3) codes are devised...
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...Demetria Brown Social Responsibility Is any corporation doing their part? Abstract In today’s society of accountability and sustainability, corporate reputation and corporate responsibility are intertwined. Corporations in particular now have to deal with rapidly growing pressures and expectations from diverse and demanding stakeholders (the people of the public) pressures that they cannot escape and expectations that they must address. Corporate Social Responsibility has begun to move from the sideline to the mainstream, from its established positions in socially responsible and environmental investment movements, to the center of media attention and on to the public agendas of multinational corporations. Much good can be credited to ethical public relations practice as is relates to corporate social responsibility. (Broom, 2009, p.133) The term "Corporate Social Responsibility" demonstrates the new expectations that are emerging for multinational corporations. Public relations and corporate responsibility worlds would do well to share an interest in aligning corporate reputation with a post-CSR agenda that is increasingly focused on accountability and sustainability -- and increasingly integrated with corporate strategy. Most corporate managements and communications professionals understand the basics of the corporate responsibility agenda and its potential impact, on the reputations of their companies and clients. Not all corporations are comfortable with integrating...
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...Running Header: CORPORATE RESPONSIBILITY AND MARKETING STRATEGY Corporate Responsibility and Marketing Strategy Terrance Brinson Strayer University Contemporary Business 508 Dr. Jean Fonkoua April 28, 2014 Running Header: CORPORATE RESPONSIBILITY AND MARKETING STRATEGY Abstract This paper examines the corporate responsibility and marketing strategies of Apple Corporation. Also, discussed in this paper are the challenges that Apple has faced with factory workers, and trying to balance social responsibility and corporate performance to continue to keep its competitive advantage over its competition. Apple has proven to be a benchmark in the electronic industry by brand recognition, producing several different products which include iPod and the MacBook. Apples marketing strategy is focused on providing the best consumer experience in the world. By investing heavily in education, Apple is also helping their workers learn new skills so that they can better understand their rights. With continuing efforts, you will see in this paper how Apple is trying to strengthen their programs to help suppliers protect their workers. Running Header: CORPORATE RESPONSIBILITY AND MARKETING STRATEGY Introduction Apple is a multinational company that is headquartered in Cupertino, California, that designs, develops and sells consumer electronics, computer software and personal computers. Their best-known hardware products are the Mac line of computers, iPod media...
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...22 Standard of Listed companies in Bangladesh with Regard to Social Audit 23 * Part Three: Objectives, Scope & Methodology of the Study Objectives 26 Scope 27 Methodology 28 * Part Four: Findings of the Study Sample Enterprises 30 Areas of Social Responsibilities Discharged 33 Reporting Practices 36 Evaluation 37 * Part Five: Conclusion Summary of the Findings 39 Future Directions 40 References 42 Part one: Introduction A Brief Description of CSR Corporate social responsibility (CSR), also known as corporate responsibility, corporate citizenship, responsible business, sustainable responsible business (SRB), or corporate social performance, is a form of corporate self-regulation integrated into a business model. Ideally, CSR policy would function as a built-in, self-regulating mechanism whereby business would monitor and ensure its support to law, ethical standards, and international norms. Consequently, business would embrace responsibility for the impact of its activities on the environment, consumers, employees, communities, stakeholders and all other members of the public sphere. Furthermore, CSR-focused businesses would proactively promote the public interest by encouraging community...
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...ABSTRACT The new company law has been put in place by the government with best intentions and it is now the turn of the corporate sector to demonstrate that it will play according to the rules. The government on its part must trust the corporate sector to function honestly and also keep a watch. The Companies Act, 2013, enacted on 29th August, 2013 on accord of Hon’ble President’s assent, has the potential to be a historic milestone, as it aims to improve corporate governance, simplify regulations, enhance the interest of minority investors and for the first time legislate the roles of whistle blowers. The 2013 Act has introduced several provisions which would change the way Indian corporates do business and one such provision is spending on activities of Corporate Social Responsibility. The importance of Corporate Social Responsibility is increasing in Indian Corporate scenario because organisation have realize that ultimate goal is not profit making beside this trust building is viable and assertable with societal relationship. “Companies Act 2013: A Revolutionary Legislation or Not” “Businesses need to go beyond the interests of their companies to the communities they serve.” ~Ratan Tata, Former Chairman the Tata Group India had a long tradition of corporate philanthropy and industrial welfare has been put to practice since late 1800 A.D. Historically, the philanthropy of business people in India has resembled western...
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...A BRIEF ANALYSIS OF [pic] CORPORATE SOCIAL RESPONSIBILITY [pic] ABSTRACT Corporate Social Responsibility (CSR) is becoming an increasingly important activity to businesses nationally and internationally. As globalization accelerates and large corporations serve as global providers, these corporations have progressively recognized the benefits of providing CSR programs in their various locations. CSR activities are now being undertaken throughout the globe. “Every company harms the environment and people!” CHAPTER I THE RESEARH PROPOSAL [pic] [pic] INTRODUCTION The problems and issues that confront society today are too large and complex to be solved by government and NGOs alone. Sustainable solutions to society’s problems can only be found through the collaboration and involvement of all who are part of it. Companies have tremendous strengths; they have extremely capable people, technology, access to money, the ability of geographical reach, etc. Many companies worldwide and now even in Pakistan are more powerful than governments and even countries, and thus corporate are important stakeholders in society. Our objective of the research is analysis of Pakistan’s major telecom companies to explore and understand the role that telecom corporate are playing and can play in finding meaningful solutions to the problems facing Pakistan today. RESEARCH OBJECTIVES: The general objective of our study is to identify...
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...Business Ethics Assignment Corporate Social Responsibility Table of Content_____________________________________________________ ______ What is corporate social responsibility? 3 Why Has CSR Become Important? 4 3. What Is The Business Case For CSR? 4 4. Potential benefits of implementing a CSR approach 5 5. Are Firms Benefiting From CSR Activities? 7 6. What Is The Relationship Between CSR And The Law? 8 7. Implementing Corporate Social Responsibility________________________ 8 8. CSR Implementation Framework and Corporate Governance__________ 9 9. What Is a CSR Strategy? 11 10. Why to Have a CSR Strategy?_______________________________________11 11. How to Develop A CSR Strategy?____________________________________11 11.1 Build support with senior management and employees______________ 11 11.2 Research what others are doing___________________________________ 11 11.3 Prepare a matrix of proposed CSR actions__________________________ 12 11.4 Develop options for proceeding and the business case for them______13 11.5 Decide on direction, approach and focus areas____________________ 14 12. Can You Have Social Responsibility Without Ethics?__________________ 15 13. Corporate social responsibility as business strategy__________________ 20 ...
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...u07a1 Project – Impact of Corporate Social Responsibility For this project component, you generally assess the impact of corporate social responsibility policy on the workplace and corporate America. * Assess how, and to what extent, corporate social responsibility can be meshed with a corporation's obligation to maximize profits for its shareholders. Generally, CSR and the obligation of corporation functions hand in hand so that the company can be productive. The intention of any organization is to be lucrative, or to maximize its profits. When an organization works together the returns for the shareholders is undeniable. If the organization acquires the proper approach to interlock the two as one, profits will maximize while at the same time the organization will attract other shareholders through constant corporate social responsibility determination. While the notion of “corporate social responsibility,” may have once been regarded as a corporate philanthropy, it has quickly become a crucial part of any large company’s long-term strategy – not just in marketing, but in recruiting, too: As consumers are ever more concerned with where products come from, employees now want more from their employer than a paycheck. They want a sense of pride and fulfillment from their work, a purpose and importantly a company’s whose values match their own. Not only is CSR crucial to recruiting talented employees, it’s also a great way to maintain the engagement of your existing work...
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...CORPORATE RESPONSIBILITY PAPER. Question: Does Walmart have a corporate responsibility to avoid doing business in countries that are undemocratic, violate human rights, or permit exploitative work conditions even if it benefits those employed by Walmart in that country. In order to understand the reasons why Walmart should care about doing business in undemocratic countries where human rights are constantly being violated, several factors must be taken into consideration. Firstly, the definition of corporate and social responsibility must be clearly realized. Next, there should be thorough comprehension of corporate law and international corporate law in relation to human rights. Another point to identify to realize Wal-Mart’s responsibility is the efforts that have been made by the corporation in the issues of humanitarianism; in this we will identify cases, which will illustrate the corporation’s record when it comes to human rights. As a corporation founded in one of the democratic countries in the world as well as a major player in international organizations such as the United Nations, Wal-Mart as an entity has a moral responsibility to adhere to human rights law and protecting the citizens of so called “undemocratic countries.”, Corporate responsibility is defined as “duty and rational conduct expected of a corporation; accountability of a corporation to a code of ethics and to established laws” (Dictionary.com.) but in this case, the definition of Corporate Social...
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...ASOCIO Policy Paper CORPORATE SOCIAL RESPONSIBILITY Date: June 2004 Table of Contents 1 CORPORATE SOCIAL RESPONSIBILITY ........................................................... 2 1.1 What is corporate social responsibility? ........................................................ 2 1.2 Asia Pacific Perspective ................................................................................ 2 1.3 Corporate Social Responsibility: Unlocking the value................................... 3 1.4 World Economic Forum & CSR ..................................................................... 3 1.5 Case Studies ................................................................................................. 4 1.6 Should ASOCIO have a role? ....................................................................... 5 CORPORATE SOCIAL RESPONSIBILITY ASOCIO Policy Paper June 2004 1 CORPORATE SOCIAL RESPONSIBILITY Corporate Social Responsibility (CSR) is becoming an increasingly important activity to businesses nationally and internationally. As globalisation accelerates and large corporations serve as global providers, these corporations have progressively recognised the benefits of providing CSR programs in their various locations. CSR activities are now being undertaken throughout the globe. 1.1 What is corporate social responsibility? The term is often used interchangeably for other terms such as Corporate Citizenship and is also linked to the concept of Triple...
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...Corporate social responsibility statements are effective ways of ensuring multi-national companies act ethically. Discuss For the past few years there has been lots of discussion about Corporate Social Responsibility. Most of the multinational companies issue every year a report on their practices. They try to get involved into communities, fight the poverty in the third world countries and donate millions of ponds every year to charities to as they say “build the better future”. But are their corporate social responsibility statements effective ways of ensuring that multinational entities act ethically? From my point of viewview, CSR statements do not ensure that practices of companies obey the rules of business ethics and I am going to present a few arguments for. Corporate Social Responsibility is fairly recent termterm and maybe that is why there is no consistent definition for it. Most multinational companies use different terms in their reports, for example Shell defines it as ‘sustainable development’, Ford uses the phrase ‘connecting with society’, Diageo prefers the termterm ‘corporate citizenship’. All these expressions, although they have different meanings, are related to Corporate Social Responsibility but because of the proliferation of approaches, every company can put emphasis on something different, creating therefore complexity and confusion. What is more, the socially responsible company not only complies with minimum requirements of the law, but goes...
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...2009 Suparn Sharma, Jyoty Sharma, Arti Devi 205 CORPORATE SOCIAL RESPONSIBILITY: THE KEY ROLE OF HUMAN RESOURCE MANAGEMENT Suparn Sharma (PhD),Joity Sharma (PhD), Arti Devi Abstract Business organizations have waked up to the need for being committed towards Corporate Social Responsibility. But still majority have just been taking up some form of philanthropic activities for its stakeholders. Nurturing a strong corporate culture which emphasizes Corporate Social Responsibility (CSR) values and competencies is required to achieve the synergistic benefits. The employees of an organization occupy a central place in developing such a culture which underlines CSR values and competencies. The present study, therefore, is an attempt to explore the engagement of human resource management professionals in undertaking Corporate Social Responsibility. It also suggests Human Resource Management to take a leading role in encouraging CSR activities at all levels. The combined impact of CSR and human resource activities, which reinforce desirable behavior, can make a major contribution in creating long term success in organizations. Sharma S., Sharma J. and Devi A. - Corporate Social Responsibility: The Key Role of Human Resource Management 206 Business Intelligence Journal January Introducción Business houses, right from the inception of human race, have been regarded as constructive partners in the communities in which they operate. Though they have been instrumental...
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...Corporate Social Responsibility (CSR) Introduction Business houses, right from the inception of human race, have been regarded as constructive partners in the communities in which they operate. Though they have been instrumental in creating employment, wealth, products and services, yet the pressure on business to play a role in social issues involving employees, stakeholders, society, environment, government etc. is continuously increasing. The society is questioning the existence of business houses, especially in the wake of the scandals and scams conducted by the business houses like UTI, Enron, and WorldCom. In response to it, the organizations around the globe are forced to wake up to the need for being committed towards Corporate Social Responsibility. Over the years this concept of Corporate Social Responsibility (CSR) has gained unprecedent momentum in business and public debate and has become a strategic issue crossing the departmental boundaries, and affecting the way in which a company does business. It has become so important that many organizations have rebranded their core values to include social responsibility. Almost all corporate websites/ policies/reports talk about their endeavors for CSR which has become a way of ensuring that the organization is fulfilling all the obligations towards society and thus is eligible for the license to operate. It assures that the organization can grow on sustainable basis. These activities of CSR ranging from small...
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