Business ethics & CSR path
Which economist argued that corporate social responsibility is "a waste of money"?
Milton Friedman
Which two authors introduced the concept of creating shared value?
Michael Porter and Mark Kramer
What does the "B" in B Corp stand for?
Benefit
Finish the line from the lecture: "What is good for the community is good for the ___
The business.
Philanthropy stage means:
a) Donations and volunteering
b) Compliance with community standards
c) Solving social needs via the business mode
a) Donations and volunteering
Shared value is the sum of two types of value. Which ones?
financial values and societal values
Name two reasons why a company might pursue B Corp certification.
Any two of: leadership drive, standing out against bigger competitors, attracting investors, following what others in their industry are doing
Walmart cut 100 million miles from its delivery routes and saved $200 million. Is that philanthropy, CSR or shared value?
Shared value. One decision produces both the environmental benefit and the saving, so it doesn't compete for budget. Donating the same $200 million would be philanthropy.
60% of CEOs chose "unique position to make a difference," only 3% "mitigate public criticism." This shows:
a) Defensive reputation management still dominates
b) Social engagement is framed as capability-led opportunity
c) CEOs act mainly on stakeholder pressure
b) Social engagement is framed as capability-led opportunity
One firm buys fair trade coffee so it can put the logo on the pack.
Another rebuilds its procurement to raise farmer yield and bean quality.
Which one is shared value, and what's the difference?
The second.
Porter and Kramer use this exact pairing. The test is whether the firm changed how it operates or only changed what it says.
A B Corp evaluation looks at the "double bottom line." What two things does that refer to?
Profit & social benefit
Under CSR, value means "doing good." Under CSV, value means what?
Economic and societal benefits relative to cost.
Eco packaging pre-selected at checkout uses which route to sustainable behaviour?
a) Use social influence
b) Shape good habits (make it the default)
c) Talk to the heart
b) Shape good habits (make it the default)
What are three ways to create shared value?
1. New needs, new markets
2. New value chain configurations
3. New industry cluster support
What are the three key parts of B Corp certification?
1. Verified performance
2. Legal accountability
3. Public transparency.
Why is Corporate Social Responsibility (CSR) being criticized?
People look at CSR like greenwashing
A brand donates to a worker charity while its suppliers stay in distress. The CSV move is:
a) Give more and publicise it
b) Redesign sourcing so supplier incomes and input reliability both improve
c) Add a supplier code and annual audit
b) Redesign sourcing so supplier incomes and input reliability both improve
According to Kramer & Pfitzer (2016) what are the five elements of collective impact that must be in place for a collective impact effort to achieve its aim of large-scale social change? (mention at least 3)
1: a common agenda
2: a shared measurement system
3: mutually reinforcing activities
4: constant communication
5: a dedicated "backbone" support from one or more independent organizations.
According to Kim et al. (2016), what two industry-level conditions can encourage the emergence of more B Corporations?
1. The widespread use of generic CSR or sustainability claims, which motivates purpose-driven companies to distinguish themselves from greenwashing.
2. Hostile shareholder-centred practices, such as mass layoffs and high income inequality between executives and ordinary workers.
A CSR agenda is set by external reporting and personal preference. Where does a CSV agenda come from?
It's company specific and internally generated.