Corporate Responsibility Chelsea Hulse David Furjanic Naomi Gunawardena

Introduction  Corporate responsibility – the ethics of a business  Business definition  Responsibility to the government and to general public  Go beyond requirements of regulators and environmental groups  Many groups monitor corporate responsibility  Social, economic, and environmental issues

Introduction (cont.)  Green practices – increasing efficiency of resource use; reducing impact on environment  Environment is one of the main focuses of corporate responsibility  As consumers become more environmentally aware, businesses are working to become “greener” – responsibility  Waste reduction and recycling, green building, energy and water conservation, use of green power, pollution prevention, etc.

Background  Term “corporate social responsibility” originated in 1970’s  Focus on corporate responsibility is still a relatively new area, but becoming “mainstream”  It has become a “multi-billion dollar public relations specialty” (

Background (cont.)  Corporate responsibility reports for selected companies (2008):  Walt Disney Company  Starbucks Coffee Corporation  IBM  Coca-Cola Company

Benefits for the Business  Reduces resource use, waste and emissions: helps environment and saves money  Good reputation: easier to recruit customers and employees.  Helps the business comply with regulatory requirements.  Involvement with the local community generate positive press coverage.  Good relationships with local authorities make doing business easier.  Understanding the wider impact of the business can help it develop new products and services.

Benefits for Us  Builds trust between companies and stockholders, which is good for the market  The environment is protected  Consumers can express their views by choosing a company that has “green practices” Blackle is an example of a green practice. This black version of Google saves energy every time you use it!

Cons  Sometimes purely a marketing strategy  CSR not legally enforceable  Corporate citizenship vs. CSR  Fraud

Opinions  Good initiative but needs right motives  Is it manager’s duty?

Sources         Eds. Kakabadse, Andrew and Mette Morsing. Corporate Social Responsibility. New York: Palgrave,  Orsato, Renato J. Sustainability Strategies. New York: Palgrave, 2009.