Presentation on theme: "Jan Dvořáček Technical University in Zvolen. Company – this fundamental business term is derived from two Latin words, “cum” and “panis”, which mean breaking."— Presentation transcript:
Company – this fundamental business term is derived from two Latin words, “cum” and “panis”, which mean breaking bread together.
„Few trends could so thoroughly undermine the very foundations of our free society as the acceptance by corporate officials of a social responsibility other than to make as much money for their stockholders as possible.“ Milton Friedman (Nobel prize recipient for economy)
„I think many people assume, wrongly, that a company exists simply to make money. While this is an important result of a company’s existence, we have to go deeper and find the real reasons for our being. As we investigate this, we inevitably come to the conclusion that a group of people get together and exist as an institution that we call a company so that they are able to accomplish something collectively that they could not accomplish separately – they make a contribution to society, a phrase which sounds trite but is fundamental.“ Dave Packard (Co-founder of Hewlett Packard Company)
C – Corporate S – Social R – Responsibility....a duty or obligation to satisfactorily perform or complete a task (assigned by someone, or created by one's own promise or circumstances) that one must fulfill, and which has a consequent penalty for failure.
"Egoism is a life principle when human’s activities following only their own interests, ignoring the interests of other people. Egoism, as a moral quality, was in the history of moral consciousness generally evaluated negatively“ "Altruism is such a moral principle, that is based on the suppression of their own egoism (selfishness), in selfless sacrifice for the benefit of others, in the willingness to sacrifice their own interests for the interests of others“
A concept whereby companies decide voluntarily to contribute to a better society and a cleaner environment. A concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with stakeholders on a voluntary basis. (European Commission) Operating a business in a manner that meets or exceeds the ethical, legal and public expectations that society has of business. (Business for Social Responsibility)
Environmental dimension Social dimension Economic dimension Stakeholders dimension Dimension of voluntariness
„A stakeholder in an organization is any group or individual who can affect or is affected by the achievement of the organizations objective“ (Freeman, 1984) Primary stakeholders - owners, stockholders, investors, customers, suppliers, creditors, and employees Secondary stakeholders - the general public, government, competitors, communities, activist groups, lobbyists, business support groups, and the media
StakeholdersStakeholder's concerns Government taxation, VAT, legislation, employment, truthful reporting, diversity, legalities, externalities. Employees rates of pay, job security, compensation, respect, truthful communication. Customersvalue, quality, customer care, ethical products. Suppliers be paid on time, equitable business opportunities, long term supplies Creditorscredit score, new contracts, liquidity. Community jobs, involvement, environmental protection, shares, truthful communication. Trade Unionsquality, worker protection, jobs. Owner(s) profitability, market share, market standing, succession planning, raising capital, growth, social goals. Investorsreturn on investment, income.
Economic: transparency, corporate governance, code of ethics, ethical marketing and advertising, a non-corrupt framework,... Social: philanthropy, supporting local community, volunteerism, supporting of education, workforce diversity, engaging in fair trade practices, outplacement,... Environmental: recycling, waste management, water management, using renewable energy sources, utilizing reusable resources, creating 'greener' supply chains, packaging and transportation, using digital technology instead of hard copies,...
Sustainable Development Corporate Philanthropy Corporate Citizenship Cause Related Marketing Corporate Volunteering Social Responsible Investment Tax assignation
Enhanced brand image and reputation Differentiation from competitors Increased ability to attract, motivate and retain employees Costs reductions Increased sales and customer loyalty Positive PR More business opportunities Easier access to capital
Milton Friedman...“there is one and only one social 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 deception or fraud.“ Consumers’ skepticism
sociocultural and economic environments are so heterogeneous countries with more developed economies have higher social expectations Maslow's hierarchy of needs example of an air pollution problem (Chile vs. U.S.A.)
R2 Jacket environmental cost: 60 % of recycled polyester 135 liters of water 20 pounds of carbon dioxide “I know it sounds crazy, but every time I have made a decision that is best for the planet, I have made money. Our customers know that—and they want to be part of that environmental commitment.” Yvon Chouinard (Patagonia founder)