Discussion Board Assignment #1 (Facebook)
Chapter 3
Corporate Social Responsibility
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Former CEO, Unilever
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What we will Talk About Today
Big business and responsible use of corporate power
Origins and phases of social responsibility concept
Arguments for and against corporate social responsibility
The “social enterprise” and the B corporation
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What we will Talk About Today
Big business and responsible use of corporate power
Origins and phases of social responsibility concept
Arguments for and against corporate social responsibility
The “social enterprise” and the B corporation
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Corporate Power and Responsibility
- The capability of corporations to influence government, the economy, and society, based on their organizational resources
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Corporate Power and Responsibility
Positive:
command more resources
produce at lower costs
new products and technologies
economic opportunities
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Corporate Power and Responsibility
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- Negative:
shape tastes
dominate public discourse
divide markets
squash competition
disproportionate political influence
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Corporate Power and Responsibility
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- Iron law of responsibility says that in the long run, those who do not use power in ways that society considers responsible will tend to lose it
- Given the power of large, global corporations, stakeholders expect business to use its power for the betterment of society
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Case Study Facebook
Consider in the Following Video:
What are some of the most significant issues discussed in this video?
After watching this video, what is your view of Facebook’s power? What kind of power do they have?
Does Facebook have any responsibility as a business to address any of the issues you’ve identified?
If Facebook isn’t motivated to address any of these issues, what should “society” do – if anything?
Facebook
Additional Perspectives
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What we will Talk About Today
Big business and responsible use of corporate power
Origins and phases of social responsibility concept
Arguments for and against corporate social responsibility
The “social enterprise” and the B corporation
Serving the bottom of the pyramid
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The Meaning of
Corporate Social Responsibility
- A corporation should act to enhance society and be accountable for its actions
- harm to people and society should be acknowledged and corrected
- company should forgo some profits if it seriously hurts stakeholders or act if it can have a positive social impact
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Origins of Corporate Social Responsibility
- In the US, the idea of corporate social responsibility appeared around the start of the 20th century
- In response to social protest, some corporations used their power for broad social purposes rather than for profits alone
- Ex. Andrew Carnegie
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Laughlin Memorial Free Library, Ambridge, PA
James Laughlin I (1806-1882), was a partner of Benjamin Franklin Jones (1826-1903) in Jones & Laughlin Steel
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Laughlin Memorial Free Library, Ambridge, PA
James Laughlin I (1806-1882), was a partner of Benjamin Franklin Jones (1826-1903) in Jones & Laughlin Steel
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Figure 3.2
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Balancing Multiple Responsibilities
- Multiple responsibilities include:
Economic
Legal
Social
- Challenge is to balance all three
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Social responsibilities
Economic responsibilities
Legal Responsibilities
Stages of Corporate Citizenship
Figure 3.5
What we will Talk About Today
Big business and responsible use of corporate power
Origins and phases of social responsibility concept
Arguments for and against corporate social responsibility
The “social enterprise” and the B corporation
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Enlightened Self-Interest
- Economic and social goals co-exist
- Leadership sees business advantage in providing true value to its customers, helping its employees grow and behaving responsibility
Enlightened Self-Interest
- Are socially responsible companies more or less profitable?
- Studies show modest correlation between CSR and financial performance
- Corporate social and environmental responsibility likely to pay off
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Discourages Government Regulation
Study found that:
“firms enjoyed significant strategic advantages and maximized social benefit to their communities when they voluntarily and freely developed a social strategy rather than acting under coercive pressure.”
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What we will Talk About Today
Big business and responsible use of corporate power
Origins and phases of social responsibility concept
Arguments for and against corporate social responsibility
The “social enterprise” and the B corporation
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The B Corporation
Also called a “benefit corporation”.
Type of corporation that blends social objectives with financial goals.
A “B Corporation” must prove it is socially responsible by meeting B Lab standards
B Lab is a non-profit organization that assesses a corporation’s social and environmental performance standards
The B Corporation
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What we will Talk About Today
Big business and responsible use of corporate power
Origins and phases of social responsibility concept
Arguments for and against corporate social responsibility
The “social enterprise” and the B corporation
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