Transcript 16 Ethics Responsibility and Strategy Chp 16 (Apr 16).ppt

Canadian Business and Society:
Ethics & Responsibilities
Chapter
Sixteen
Ethics, Responsibilities,
and Strategy
Copyright © 2008 McGraw-Hill
Ryerson Ltd.
1
Chapter Outline
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Introduction to CSR Strategy
Approaches to Viewing Social/Ethical and
Environmental Responsibilities
Stakeholders and Strategic Issues
CSR Strategy and Purpose; Assessment of the
Environment; Resources and Capabilities
Establishment of Objectives
CSR Strategy Options and Selection,
Implementation, and Evaluation
Future Ethics in Canadian Business and Society
Chapter 16
Copyright © 2008 McGraw-Hill
Ryerson Ltd.
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Introduction to CSR Strategy
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Strategic management: process by which a
corporation
◦ establishes its mission and objectives,
◦ analyzes the environment and resource
capabilities in order to formulate strategy,
◦ creates the organizational systems and
processes needed to implement the strategy,
◦ and devises mechanisms for evaluating
performance.
Chapter 16
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Introduction to CSR Strategy

CSR strategy: the portion of a
corporation’s comprehensive corporate
strategy addressing major social, ethical,
environmental, and governance issues.
Chapter 16
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Stage 1: Identify Stakeholders and Strategic
Issues
Strategic issue: a point in question or a
matter that is in dispute that will have a
major impact on the corporation’s
performance, positive or negative.
 Consider all stakeholder issues involving
owners, directors, employees, customers,
lenders, suppliers, competitors, society,
etc.
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Chapter 16
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Stage 2: Create CSR Strategy and
Purpose
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Mission: An enduring statement that specifies in very
broad, even philosophical terms, the organization’s
“reason for being” and what distinguishes it from
similar organizations.
Vision: A statement of what the corporations wants
to become or where it wants to be at some date in
the future.
Chapter 16
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Stage 3: Develop CSR Strategy and Assess
the Environment
Corporation must develop capability to
assess external environment
 Environmental factors: structure of
industry, social trends, technological
developments, government policies,
competitor’s behaviour, demographic
changes
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Stage 4: Assess Resources and Capabilities
Management must evaluate corporation’s
internal resources and capabilities to
better understand opportunities and
threats.
 Assessment allows for better response to
social and environmental issues.
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Stage 5: Establish Objectives
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Objectives are the ends the corporation seeks to
achieve through its existence and operations.
Most corporations have socially oriented objectives
in addition to financial objectives.
Setting of objectives is critical to strategic
management but can only occur after assessing the
environment and corporate resources.
Chapter 16
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Stage 6: CSR Strategy Options
and Selection
 Identify strategic options available to the
corporation
 Examples include cost leadership,
differentiation, diversification, and
strategic alliances
 Similarly, for CSR strategy there are many
different approaches to achieving
objectives
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Stage 7: CSR Strategy and Implementation
Develop stakeholder relationships
 Ethical management and leadership
 Practice of corporate social responsibility
 Reporting and communicating social
responsibility achievements
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Stage 8: CSR Strategy Evaluation
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Continuous monitoring and reviewing of actions
and initiatives must be undertaken to address social
and environmental responsibilities
Important: (1) maintain business legitimacy; (2)
deter threat of government regulation; and (3)
business success and existence depends on how
well it responds to social and environmental issues
Continuous monitoring by NGOs
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CSR-Related Awards
and Recognition
Canada’s Most Respected Corporations
(Globe and Mail newspaper)
 Canada’s Most Admired Corporate
Cultures (Canadian Business magazine)
 Corporate Social Responsibility Ranking
(Report on Business magazine)
 Canada’s 50 Best Corporations (Corporate
Knights magazine)
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Future Ethics in Canadian Business and
Society
 Accountability for social, ethical, and
environmental responsibilities has
resulted in major changes to how
business operates, and will continue to do
so into the future.
 Three possibilities for future of corporate
responsibility: (1) imposed by government
regulation; (2) free markets will force
changes; or (3) corporations will redefine
themselves.
Chapter 16
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