1. 11. Corporate social responsibility
BUSINESS ECONOMICS 5 / 6
Copyright Mark Van Couwenberghe,

2. B 11 / 2
11.0 OVERVIEW
11.1 STAKEHOLDERS AND SHAREHOLDERS MODELS page B 11 / 3
11.2 CORPORATE SOCIAL RESPONSIBILITY: WHAT? page B 11 / 4
11.3 THREE P’S page B 11 / 5
11.4 CORPORATE SOCIAL RESPONSIBILITY: EXAMPLES page B 11 / 8
11.5 EXERCISES page B 11 / 10
11.6 VOCABULARY page B 11 / 12
Copyright Mark Van Couwenberghe,

3. 11.1 STAKEHOLDERS & SHAREHOLDERS MODELS
B 11 / 3
11.1 STAKEHOLDERS & SHAREHOLDERS MODELS
SHAREHOLDERS MODEL
STAKEHOLDERS MODEL
A company is owned by shareholders
A company is a network of relations:
Financial relation (with shareholders)
Other relations (mutual rights and obligations between
company and customers, suppliers, banks, government, … = stakeholders)
Main role of the company is to satisfy the shareholders = making maximum profit
Main role of the company is to act with responsibility towards all stakeholders
TRADITIONAL MODEL
ACTUAL MODEL
Copyright Mark Van Couwenberghe,

4. 11.2 CORPORATE SOCIAL RESPONSIBILITY: WHAT?
Corporate social responsibility (CSR) is a way for the company to take responsibility at 3 levels:
Social level = people’s well-being PEOPLE
Ecological level = interests of planet, nature PLANET
Economic level = wealth, profit, shareholders value PROFIT
In a way, it is no longer sufficient for a company to make good products and high profits; companies have broader responsibilities
Copyright Mark Van Couwenberghe,

5. 11.3 THREE P’s B 11 / 5 PEOPLE Social responsibility
Stakeholders = staff, neighborhood, customers, community, …
Social themes: employee participation, diversity, …
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6. B 11 / 6 PLANET Ecological responsibility
Companies have an impact on the planet, nature, …
Ecological themes: renewable energy, waste management, …
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7. B 11 / 7 PROFIT Economic responsibility
Making profit is primary target for each company: ensures continuity, ensures means to work on the other P’s
Economic themes: cost management, marketing mix, R&D, …
Copyright Mark Van
Couwenberghe,

8. 11.4 CORPORATE SOCIAL RESPONSIBILITY: EXAMPLES
Discuss following examples of CSR 1
TOMS Shoes - One for One Campaign
TOMS founder, Blake Mycoskie’s story must be widely known by now.
Touched by witnessing the hardships of Argentinian children having to grow up without shoes, Mycoskie launched TOMS with a simple idea - to match every pair of shoes sold with a new pair for a child in need.
But what started as just a shoe company has grown into an amazing, socially responsible organization that, as the company describes themselves:
“[...] helps address need and advance health, education and economic opportunity for children and their communities around the world.”
Since their launch, TOMS has given 60 million shoes to children.
Copyright Mark Van Couwenberghe,

9. 2 3 B 11 / 9 Starbucks - C.A.F.E. Practices
The acronym for Starbuck’s CSR initiative stands for Coffee and Farmer Equity (C.A.F.E.)
In its simplest form, C.A.F.E. is a set of buying guidelines that ensure that:
- All coffee purchased by the company meets their standards of quality,
- It must be sustainably grown.
- Support the farmers. The company requires suppliers to submit evidence of payments made throughout the coffee supply chain to demonstrate how much of the price Starbucks pays for green (unroasted) coffee gets to the farmer.
- Ensures safe, fair and humane working conditions for workers and providing adequate living conditions.
B 11 / 9 3
Disney
Disney is a name known around the world, and though the company has been around for a long time, its reputation is still a glowing one. The Walt Disney Company largely focuses on a few areas of social responsibility, namely community, the environment, and volunteerism.
Disney has been a major provider of aid after natural disasters, such as the 2010 earthquake in Haiti. The company also takes an interest in protecting the environment, giving proceeds from nature films to plant trees in the rain forest and protect thousands of acres of coral reef.
Copyright Mark Van Couwenberghe,

10. B 11 / 10
11.5 EXERCISES
Evaluate how these companies implement CSR through their advertising campaigns: 1
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Couwenberghe,

11. B 11 / 11 2 3
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Couwenberghe,

12. B 11 / 12
11.6 VOCABULARY EN NL
Copyright Mark Van Couwenberghe,

13. B 11 / 13 EN NL
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14. B 11 / 14 EN NL
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