Lecture 5 - Part 1
Lecture 5 - Part 1
Social Responsibility
SMT 940
Abeer Youssef
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Overview
• Corporate Social Responsibility (CSR).
• Types of social responsibility.
• CSR aims.
• Benefits of CSR.
• Examples of CSR.
• Dimensions of CSR:
➢ Environmental dimensions of CSR and operations
strategy.
➢ Social dimensions of CSR and operations strategy.
➢ Economic dimensions of CSR and operations strategy.
➢ Stakeholder dimensions of CSR and operations
strategy.
➢ Voluntary dimension of CSR and operations strategy.
➢ Corporate philanthropy.
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• Case study- Leaking waste containers.
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• CSR is about how business takes account of its economic, social
and environmental impacts in the way it operates maximising the
benefits and minimising the downsides.
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Famous definitions
• Canadian Government: “CSR is
generally understood to be the
way a company achieves a
balance or integration of
economic, environmental and
social imperatives while at the
same time addressing shareholder
and stakeholder expectations.”
• European Union: “CSR is a concept whereby companies integrate
social and environmental concerns in their business operations and
in their interaction with their stakeholders on a voluntary basis.”
Notice:
- Social responsibility is the general way of a person being
responsible for the societal and environmental benefit.
- CSR concerns obligation of business companies to ensure their
business benefit to the society as well as the environment.
- It is a continuous commitment by businesses to behave
ethically and contribute to economic development while
improving the quality of life of the workplace, local
community, and society at large.
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Types of social responsibility
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Responsibility towards society
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Responsibility towards government
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Responsibility towards shareholders
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Responsibility towards employees
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Responsibility towards customers
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CSR aims
• CSR is a reflection of a company’s environmental and
social performance over the last 12 months has
businesses being compliant with the law have reached
their committed targets.
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Benefits of CSR
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Corporate Social Responsibility theories
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Friedman’s traditional view of business
responsibility
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Ackerman model
In 1976, Ackerman model has emphasised on the internal
policy goals and their relation to the CSR.
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Examples of CSR in different industries
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Environmental dimensions of CSR
and operations strategy
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Social dimensions of CSR and
operations strategy
Deals with human aspects of operations behaviour.
Globalisation
Ethical Globalisation
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Social considerations of CSR
and operations strategy
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Economic dimensions of CSR
and operations strategy
• Input costs
• Output costs
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Stakeholder dimensions of CSR
and operations strategy
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Voluntary dimension of CSR
and operations strategy
• Corporate philanthropy
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Corporate philanthropy
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Case study- Leaking waste containers
Description
ABC's chemical waste is stored in a warehouse at an off-site
location. While inspecting the warehouse, engineer Scott Lewis
notices several leaking drums.
Abstract
This case is one of thirty-two cases which address a wide range
of ethical issues that can arise in engineering practice provided by
the Centre For the Study of Ethics in Society, Western Michigan
University.
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• Please read the waste disposal caselete. We have
three different scenarios.
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Examples of companies with great environmental
initiatives
Green practice in service and manufacturing
sector
• Ford- Green life
https://www.youtube.com/watch?v=8rn5S5FK03Q
• eBay
https://www.youtube.com/watch?v=my1GYN5IWtI
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Successful eco-design
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Eco-design
• Eco-design has become key in product marketing for
both:
1) Premium market has customers ready to pay for
responsible products;
2) Mainstream markets that now take benefit of the
technologies developed for the premium market.
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The organisation’s external environment
The firm embedded in its external environment, as seen in the figure.
Political factors
• Wars, corruption (lecture 2), trade union activities, local
and international regulations, taxation, etc.
• Interest rates,
• Employment levels,
• Inflation rates,
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Socio-cultural factors
➢ Lifestyle changes,
➢ Career expectations,
➢ Demographics,
– Life expectancies
– Aging population
– Rising affluence
– Changes in ethnic composition
– More women in the workforce globally
➢ Increase in temporary workers, and
➢ Geographic distribution of global population.
Technological factors
• Productivity improvements,
• Focus of technological efforts,
• Industrial spending for R&D (Research and
development),
• Patent protection,
• Stage of product or industry,
• Digital Communications,
– E-tailers
– Mobile devices
• Biotechnology, and
– Genetic engineering
• Nanotechnology.
Ecological factors
• Global warming
• Carbon footprint
Benefits of CSR:
• Increased employee satisfaction,
• Improve public image,
• Increase customer loyalty, and
• Increase creativity. 59
Corporate Social Responsibility theories:
• Examples of CSR
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Dimensions of CSR:
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