Planes Financieros Introduction to Management and Finance (Ph6012) M. en I. Alejandro Flores M. Instituto Mar de Cortés Week 4

Planes Financieros Introduction to Management and Finance (Ph6012) M. en I. Alejandro Flores M. Instituto Mar de Cortés Week 4

Planes Financieros Introduction to Management and Finance (Ph6012) M. en I. Alejandro Flores M. Instituto Mar de Cortés Week 4 Week 4. Session 1 CORPORATE SOCIAL RESPONSIBILITY (CSR) AND ETHICS

Planes Financieros Introduction to Management and Finance (Ph6012) M. en I. Alejandro Flores M. Instituto Mar de Cortés Week 4 Definitions and Relationships Corporate social responsibility (CSR) is the process by which businesses negotiate their role in society In the business world, ethics is the study of morally appropriate behaviors and decisions, examining what "should be done” Although the two are linked in most firms, CSR activities are no guarantee of ethical behavior

Planes Financieros Introduction to Management and Finance (Ph6012) M. en I. Alejandro Flores M. Instituto Mar de Cortés Week 4 Recent Evidence of CSR Interest An Internet search turns up 15,000 plus response to “corporate citizenship” Journals increasingly “rate” businesses (and NGOs) on socially responsive criteria: Best place to work Most admired Best (and worst) corporate reputation

Planes Financieros Introduction to Management and Finance (Ph6012) M. en I. Alejandro Flores M. Instituto Mar de Cortés Week 4 Maximize firm’s profits to the exclusion of all else Balance profits and social objectives Do what it takes to make a profit; skirt the law; fly below social radar Fight social responsibility initiatives Comply; do what is legally required Integrate social objectives and business goals Lead the industry and other businesse s with best practices Do more than required; e.g. engage in philanthropic giving Articulate social value objectives Corporate Social Responsibility Continuum

Planes Financieros Introduction to Management and Finance (Ph6012) M. en I. Alejandro Flores M. Instituto Mar de Cortés Week 4 CSR are Grounded by Opposing Objectives (Maximize Profits to Balance Profits with Social Responsibility) and so Activities Range Widely Do what it takes to make a profit; skirt the law; fly below social radar Fight CSR initiatives Comply with legal requirements Do more than legally required, e.g., philanthropy Articulate social (CSR) objectives Integrate social objectives and business goals Lead the industry on social objectives

Planes Financieros Introduction to Management and Finance (Ph6012) M. en I. Alejandro Flores M. Instituto Mar de Cortés Week 4 Businesses CSR Activities Philanthropy give money or time or in kind to charity Integrative philanthropy—select beneficiaries aligned with company interests Philanthropy will not enhance corporate reputation if a company fails to live up to its philanthropic image or if consumers perceive philanthropy to be manipulative

Planes Financieros Introduction to Management and Finance (Ph6012) M. en I. Alejandro Flores M. Instituto Mar de Cortés Week 4 Integrate CSR Globally Incorporate values to make it part of an articulated belief system Act worldwide on those values Cause-related marketing Cause-based cross sector partnerships Engage with stakeholders Primary stakeholders Secondary stakeholders

Planes Financieros Introduction to Management and Finance (Ph6012) M. en I. Alejandro Flores M. Instituto Mar de Cortés Week 4 Business Ethics Development The cultural context influences organizational ethics Top managers also influence ethics The combined influence of culture and top management influence organizational ethics and ethical behaviors

Planes Financieros Introduction to Management and Finance (Ph6012) M. en I. Alejandro Flores M. Instituto Mar de Cortés Week 4 The Evolving Context for Ethics From domestic where ethics are shared To international where ethics are not shared when companies: Make assumptions that ethics are the same Ethical absolutism—they adapt to us Ethical relativism—we adapt to them To global which requires an integrative approach to ethics

Planes Financieros Introduction to Management and Finance (Ph6012) M. en I. Alejandro Flores M. Instituto Mar de Cortés Week 4 Emergence of a Global Business Ethic Growing sense that responsibility for righting social wrongs belongs to all organizations Growing business need for integrative mechanisms such as ethics Ethics reduce operating uncertainties Voluntary guidelines avoid government impositions Ethical conduct is needed in an increasingly interdependent world — everyone in the same game Companies wish to avoid problems and/or be good public citizens

Planes Financieros Introduction to Management and Finance (Ph6012) M. en I. Alejandro Flores M. Instituto Mar de Cortés Week 4 Ways Companies Integrate Ethics Top management commitment in word and deed Company codes of ethics Supply chain codes Develop, monitor, enforce ethical behavior Seek external assistance

Planes Financieros Introduction to Management and Finance (Ph6012) M. en I. Alejandro Flores M. Instituto Mar de Cortés Week 4 External Assistance with Ethics Industry or professional codes Certification programs, e.g., ISO 9000 Adopt/follow global codes Caux Round Table Principles

Planes Financieros Introduction to Management and Finance (Ph6012) M. en I. Alejandro Flores M. Instituto Mar de Cortés Week 4 Reasons for Businesses to Engage in Development of a Global Code of Business Ethics Create the same opportunity for all businesses if there are common rules Level the playing field They are needed in an interconnected world They reduce operating uncertainties If businesses don’t collaborate, they may not like what others develop

Planes Financieros Introduction to Management and Finance (Ph6012) M. en I. Alejandro Flores M. Instituto Mar de Cortés Week 4 Four Challenges to a Global Ethic Global rules emerge from negotiations and will reflect values of the strong Global rules may be viewed as an end rather than a beginning Rules can depress innovation and creativity Rules are static but globalization is dynamic

Planes Financieros Introduction to Management and Finance (Ph6012) M. en I. Alejandro Flores M. Instituto Mar de Cortés Week 4 For next class, read (and bring one printed copy per team, of the following case study: Corporate Social Responsibility - Companies in the News Nike Available at the following webpage: Assignment:

Planes Financieros Introduction to Management and Finance (Ph6012) M. en I. Alejandro Flores M. Instituto Mar de Cortés Week 4

Planes Financieros Introduction to Management and Finance (Ph6012) M. en I. Alejandro Flores M. Instituto Mar de Cortés Week 4 Week 4. Session 2 Nike Case Study. Presentation format

FRONT PAGE Free format, just include affiliation (School name), team name, members, presentation date.

Clarification of terms. In this part you will present the words or concepts that weren’t clear at the beginning, along with the corresponding definition.

Problem definition This section is about defining the problem (s) that your team found. It is important to consider that this is based in the reading (only)

Brainstorm / analizing the problem After defining the problem, a brainstorm (of about collective ideas) for solving the problem is required. Consider the problem context provided in the case study.

Classification of ideas from brainstorm So many ideas generated during the brainstorm are not useful unless you classify them in fewer categories. This will allow you to make your research in an easier way. Express here the classification applied.

Defining learning goals This is an independent step from the actual case study, but is important. As a team you should define what are your learning goals (what you would like to have at the end of the case study)

Independent research Make a research about similar cases, using the classification made before as a key to find other situations. You can compare with other experiences, or you can get your own idea.

Conclussions Write down here your conclussions. They should be based in your research, which is attached to your brainstorming and findings of the problem identified.

Planes Financieros Introduction to Management and Finance (Ph6012) M. en I. Alejandro Flores M. Instituto Mar de Cortés Week 4 OUT

Planes Financieros Introduction to Management and Finance (Ph6012) M. en I. Alejandro Flores M. Instituto Mar de Cortés Week 4 Week 4. Session 3 Case Study (Cont.)

Planes Financieros Introduction to Management and Finance (Ph6012) M. en I. Alejandro Flores M. Instituto Mar de Cortés Week 4 Week 5 agenda DateGroup 401Group 402 Mon, Feb 6thNo Class Tue, Feb 7th-----Working in case study presentation Wed, Feb 8th----- Thu, Feb 9thWorking in case study presentation Fri, Feb 10thPartial Exam Sat, Feb 11thPartial Exam From today, until Thursday, there will be a practicing exam available in the course web. Please answer it in order to avoid surprises on Friday and Saturday.

Planes Financieros Introduction to Management and Finance (Ph6012) M. en I. Alejandro Flores M. Instituto Mar de Cortés Week 4 Week 5 agenda On Friday 10th, there will be two available hours in the afternoon (from 17 to 19 hrs) for questions and comments, and/or to help in troubleshooting about the partial exam. On Saturday 11th, there will be 2 more hours for the same purpose, from 10 to 12 hrs) Partial exam will be 1)Online 2)Individual 3)Free to use notes, books, internet, etc. The partial exam will be available (for this time only) on Friday and Saturday.