CSR Ethics

6.
Corporate Social Responsibility (CSR) Strategies: 03/16
1. Understanding CSR and its evolution

2. CSR frameworks and standards
3. Implementing CSR initiatives (use source Hardvard Business School Online)
SUBTOPICS 2 of 3 CSR frameworks and standards
SUBTOPIC 3 OF 3: Implementing CSR initiatives (use source Hardvard

Business School Online)
UPDATED: CORPORATE SOCIAL RESPONSIBILITY: A BRIEF HISTORY
“Corporate Social Responsibility (CSR) has come a long way, morphing from a nice thing to do to what it
is today: a necessity for a successful business.”
Source: accp.org
Profession Archie B. Carroll summarized the above in 1979 in A Three-

Dimensional Conceptual Model of Corporate Performance, which created a
model to make CSR less nebulous. He cited Holmes’ survey that, “That these
disparate factors should show up in a response to a question of this kind
suggests clearly that business executives do not have a consensus on what
social issues should be addressed.”
Using The Evolution of the Corporate Social Performance Model, which

debuted in 1985, Carroll’s definition of CSR was understood as a 3-pronged
approach:
CSR truly began to take hold in the U.S. in the 1970s, when the concept of the
“social contract” between business and society was declared by the Committee for
Economic Development in 1971. The social contract is based on the idea that
business functions because of public “consent,” therefore business has an
obligation to constructively serve the needs of society. This is often referred to
today as “license to operate” – that is to contribute more to society than solely their
products for sale.
The social contract outlined three responsibilities, and they’re still applicable today:
1. Provide jobs and economic growth through well run businesses.

2. Run the business fairly and honestly regarding employees and customers.
3. Become more broadly involved in improving the conditions of the community and
environment in which it operates.
Also in 1971, the Pax Fund (in response to the Vietnam War) and First Spectrum Fund were
established using social and financial criteria in the investment process, basing investment
decisions on a company’s social impact and business ethics.
In 1976, professor Sandra L. Holmes conducted a survey on CSR to find how decisions on which
causes to support were made. Her results, from the Executive perceptions of corporate social
responsibility, can boil down to:
 Utilizing a corporation’s ability to help a specific need

 Severity of a social need
 Executive interest
 PR gained from action
 Government influence
Profession Archie B. Carroll summarized the above in 1979 in A Three-Dimensional Conceptual

Model of Corporate Performance, which created a model to make CSR less nebulous. He cited
Holmes’ survey that, “That these disparate factors should show up in a response to a question of
this kind suggests clearly that business executives do not have a consensus on what social issues
should be addressed.”
Using The Evolution of the Corporate Social Performance Model, which debuted in 1985,
Carroll’s definition of CSR was understood as a 3-pronged approach:
1. companies adopted principles (or ethics),

2. created and executed formal processes (how they would respond),
3. and developed policies (managing specific issues).
This approach brought together social responsiveness and business ethics

into one field of study and performance.
In the early 1990s, professor Donna J. Wood published Corporate Social Performance Revisited.
This paper built on the two models previously mentioned and added an important facet: program
outcomes and impacts. Aside from perhaps an early version of the impact measurement systems
we know today, Wood also provided a model for assessing CSR at the institutional,
organizational, and individual levels.
The very early adopters of CSR were companies such as Johnson & Johnson, whose founder,
Robert Wood Johnson, established their credo in 1943, which requires that the needs of those
they serve be put first. The Hershey Company founder, Milton Hershey built more than just a
company in Hershey. He built a town and a community with facilities, civic centers, and cultural
institutions that continue to grow today.
These initiatives were in the first half of the 20th century, and their founders understood that
their stakeholders went beyond the board room and that when their customers and communities
were healthy and vibrant, their companies would be as well.
Many of the companies you hear about today developed their modern strategies in the 1980 –
1990s and began to communicate their contributions, fueled in part by President George HW
Bush’s call for thousand points of light.
As the 21st century progresses, the CSR field continues to evolve. In 2005, Environmental, Social
& Governance (ESG) was first coined, and a few years later, “Sustainability” became a
frequently used term in the field. The dot-com crash of the early 2000s and the financial crisis of
2008 “brought discussion on the social responsibility of business into the zeitgeist,” according
to McKinsey.
In the mid-2010s, the global conversation around CSR grew with the introduction of
the Enactment of Companies Act in India in 2013, mandating CSR for companies doing business
in India. This was followed in 2015 by the signing of the Paris Climate Agreement and the
creation of the United Nations Sustainable Development Goals (SDGs) further emphasized the
importance of sustainability and climate action.
Then, in 2019, the Business Roundtable released the Statement on the Purpose of a Corporation,
committing to:
 “Delivering value to our customers. We will further the tradition of American companies
leading the way in meeting or exceeding customer expectations.
 Investing in our employees. This starts with compensating them fairly and providing
important benefits. It also includes supporting them through training and education that
help develop new skills for a rapidly changing world. We foster diversity and inclusion,
dignity and respect.
 Dealing fairly and ethically with our suppliers. We are dedicated to serving as good
partners to the other companies, large and small, that help us meet our missions.
 Supporting the communities in which we work. We respect the people in our
communities and protect the environment by embracing sustainable practices across our
businesses.
 Generating long-term value for shareholders, who provide the capital that allows
companies to invest, grow and innovate. We are committed to transparency and effective
engagement with shareholders.”
The last several years have also brought the conversation of corporate purpose to the forefront.
Corporate leaders are tasked with helping their companies to define if they are a corporation
driven by competence-based purpose (based on the function of their product or service), culture-
based purposes (based on the culture of their company or the way their business is run), or cause-
based purpose (based on the social good their organization delivers).
Alongside conversations around purpose, stakeholder capitalism, “a popular management theory

in the 1950s and ‘60s that focused on the needs of all constituents, not just shareholders,” has
become an increasingly discussed topic amongst business leaders, including the Davos Manifesto
2020.
As stakeholder capitalism conversations continue, some companies are even beginning to

enshrine their commitments to environmental and social impact through B Corp
Certification and Public Benefit Corporation status. In 2021, Veeva Systems, a publicly traded
tech company, became the first public company to convert to a public benefit corporation.
In 2020, the CSR field was confronted with the “triple threat” of an economic crisis, the COVID-
19 pandemic, and the racial justice movement. for those working at the intersection of business
and community, this time was wrought with continual change and transformation.
Currently, the driving theme in corporate responsibility is interconnectivity – between business

and consumers, corporations and employees, employees and communities, racial justice and
environmental justice, climate change and the economy, and more.
It is the connection of each movement to all the others. The work can no longer be siloed in one
department. It is, by definition, connected and integrated throughout the business and affects a
broad audience of stakeholders.
As we enter 2024, the questions on the mind for many CSR and ESG practitioners surround how
they will be impacted by the Supreme Court’s ruling on Affirmative Action and what upcoming
regulations from CA’s Climate Accountability Package to the SEC to the EU’s CSRD legislation
mean for their company.
As new professionals join the field every day, it’s important to understand how this work began,
how it has evolved, and the trends shaping its future.
ESG = Environmental, Social and Governance….

Sample case………..
Sample interpretation…..

CSR Ethics

Uploaded by

Copyright:

Available Formats

CSR Ethics

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

CSR Ethics

Uploaded by

Copyright:

Available Formats

6.

Corporate Social Responsibility (CSR) Strategies: 03/16

1. Understanding CSR and its evolution

SUBTOPICS 2 of 3 CSR frameworks and standards

SUBTOPIC 3 OF 3: Implementing CSR initiatives (use source Hardvard

UPDATED: CORPORATE SOCIAL RESPONSIBILITY: A BRIEF HISTORY

Profession Archie B. Carroll summarized the above in 1979 in A Three-

Using The Evolution of the Corporate Social Performance Model, which

1. Provide jobs and economic growth through well run businesses.

 Utilizing a corporation’s ability to help a specific need

Profession Archie B. Carroll summarized the above in 1979 in A Three-Dimensional Conceptual

1. companies adopted principles (or ethics),

This approach brought together social responsiveness and business ethics

Alongside conversations around purpose, stakeholder capitalism, “a popular management theory

As stakeholder capitalism conversations continue, some companies are even beginning to

Currently, the driving theme in corporate responsibility is interconnectivity – between business

ESG = Environmental, Social and Governance….

You might also like

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.