on | yaya 5 Feder Strategic es Vitis LE ee en Le TE) YA U/ Lf LL Ly w ey Zs 7 a pe YZ YZ oy Z Ly ee ty Lg Zy Ye te es Ze Z ies Zs Ly Ze Tas3-1 Discuss the relationship between social responsibility and corporate performance 3-2 Explain the concept of sustainability 3-3 Conduct a stakeholder analysis 3-4 Explain why people may act unethically 3-5 Describe different views of ethics, according to the utilitarian, individual rights, and justice approachesWhat is CSR? https://www.youtube.com/ watch ?v=D87s2aTG20Y Hypocrilal: dao dic gia Financial Discrepancies: sai l@ch bao cao tai chinhThen, answer the following questions: * What is CSR? * Does that company practice CSR? * Do they have problems with that? What are problems© proposes that a private corporation has responsibilities to society that extend beyond making a profit Remember triple bottom line! 3-8ORGANIZATION STRUCTURE OF SAMSUNG CHAIRMAN fl > raaeess \ ‘A Regional Headquarters :North America, Europe, China, Southeast Asia, Sou Asia, Latin America, Middle East, and AfricaDai-ichi Life Vietnam launches CSR Foundation CGEM s.. = With the commitment to being a “Lifetime partner” and bringing long-term benefi to Vietnam country and its people, Dai-ichi Life Vietnam, a wholly-owned subsidiar of Japan’s leading life insurer Dai-ichi Life Insurance Company Limited, yesterda organised the launching ceremony of the CSR Foundation “For A Better Life” a Sofitel Legend Metropole Hotel in Hanoi.Startup hub program https://impacthub.net/ikea-packaging- innovation-program-3/ What is the motive of having this program?Primary goal of business is profit maximization not spending shareholder money for the general Rotor Be ceCarroll’s Four Responsibilities of Business — ee Philanthropic Responsibilities Be a good corporate citizen. Ethical Responsibilities Be ethical. Legal Responsibilities Obey the law. Economic Responsibilities Be profitable. Source: Carroll (1996)Analyze these four responsibilities in one business activity of your company (operating, investing, and financing activities) For example: Vinamilk invested in organic milk processing, giving gifts to the poor children,...Carroll’s Four Responsibilities of Business (1 of 2) Economic responsibilities © produce goods and services of value to society so that the firm may repay its creditors and increase the wealth of its shareholders Legal responsibilities « defined by governments in laws that management is expected to obey 3-15Carroll’s Four Responsibilities of Business (2 of 2) Ethical responsibilities * follow the generally held beliefs about behavior ina society DT KYe gt (oyar-la] responsibilities * purcly voluntary obligations a corporation assumes (e.g., Vinamilk: milk for the upland poor children)Figure 3-1: Responsibilities of Business Discretionary Social Responsibilities Ethical Economic Legal SOURCE: Suggested by Archie Carroll in A. B. Carroll," Three Dimensional Conceptual Model of Corpo- rate Performance,” Academy of Management Review (October 1979), pp. 497-505: A. B. Carroll,"Managing -Ethically with Global Stakeholders: A Present and Future Challenge.” Academy of Management Executive (May 2004), pp. 114-120; and A. B. Carroll, “The Pyramid of Corporate Social Responsibility: Toward the Moral Management of Organizational Stakeholders.” Business Horizons (July-August 1991), pp. 39-48.Characteristics of Sustainability * Environmental * Economic a Social Livable Built Environment Equitable Viabilit EconomyExhibit 5-1 Arguments For and Against Social Responsibility Public expectations Public opinion now supports businesses pursuing Sconsmic and social goal. Long-run profits Socially rospansibie companies tond to have Etnical opiigation Bucinossce should bo socially responsible bocauso Fosponsibio actions ars tho mane thing t do" Public image Businseses con create a fovorable public image by pursuing social goals. Better environment Discouragement of turtner montar tion Yocoming cocially rocpensibie, businesses can oxpoct leas government reaulation. Balance of responsibility and power Businesses Nave s lot of bower and on equally Iorge smount of responsibility ts nowded t ‘Stockholder interest= ‘Social rosponeibinty will Improve 2 business's oat pres intne long run. Possession of resources Businossve have tho resources to support public Snd charitable projects that nood assistance. ‘Superiority of prevention over cures Businesses Ghouid oddrose socis! problems Botore they become senious and costly #0 correct,Can CSR improve financial performance of firms?* May enable firm to charge premium prices and gain brand loyalty (ex. Yves Rocher) * May help generate enduring relationships with suppliers and distributors * Can attract outstanding employees (ex. Starbucks) * More likely to be welcomed into a foreign country (ex. Levi Strauss) * Can utilize the goodwill of public officials for support in difficult timesAt the end of the day, all business activities aim to create values for their stakeholders - who are stakeholders? - why are they important?* #1 Customers. Stake:?... * #2 Employees. Stake:?... * #3 Investors. Stake: Stake:?... ° #4 Suppliers. Stake:?... * #5 Communities. Stake:?... * #6 Governments. Stake:?... *7??* #1 Customers. Stake: Product/service quality and value. * #2 Employees. Stake: Employment income and safety. ... * #3 Investors. Stake: Financial returns. ... + #4 Suppliers . Stake: Revenues and safety. ... * #5 Communities. Stake: Health, safety, economic development. ... * #6 Governments. Stake: Taxes and GDP.* Stakeholders * have an interest in the business and affect or are affected by the achievement of the firm’s objectives ¢ Enterprise strategy * an overarching strategy explicitly articulating the firm’s ethical relationship with its stakeholders 3-25* Stakeholder analysis * the identification and evaluation of corporate stakeholders * usually done in a three-step process* The first step in stakeholder analysis is to identify primary stakeholders. * Primary stakeholders * those who have a direct connection with the corporation and who have sufficient bargaining power to directly affect corporate activities * include customers, employees, suppliers, shareholders, and creditorsStakeholder Analysis (3 of 4) The second step in stakeholder analysis is to identify the secondary stakeholders. Secondary stakeholders * have an indirect stake in the corporation but are also affected by corporate activities ¢ includes NGOs, activists, local communities, trade associations, competitors, and governments 3-28* The third step in stakeholder analysis is to estimate the effect on each stakeholder group from any particular strategic decisions.Activity List all important stakeholders of “your company” and discuss their power over and interest in your business 15 minutes for group discussionHow to treat your stakeholders? Monitor |Apathetics Interest >Is stakeholder Input important for strategic decision- making? Once stakeholder impacts have been identified, managers should decide whether stakeholder input should be invited into the discussion of iam eee one arDee A group is more likely to accept or even help implement a decision if it has some input into which alternative is chosen and how it is to be implemented. 3-32Green Management and Sustainability + Green management: managers consider the impact of their organization on the natural environmentHow Organizations Go Green * Legal (light green) approach + Market approach * Stakeholder approach * Activist approachExhibit 5-2 Green Approaches Environmental Sensitivity Exhibit 5-2 uses the terms shades of green to describe the different environmental approaches that organizations may take. @ Pearson it ©2052 20 Fenn etn i ReEvaluating Green Management Actions * Company-issued reports on environmental performance * ISO 9000 (quality management) and ISO 14000 (environmental management) standards * Global 100 list of the most sustainable corporations in the world + https://www.corporateknights.com/rankings/global -100-rankings/2023-global-100-rankings/2023- global-100-most-sustainable-companies/dWhat is business Ethics? Why is it important in business strategies and policies? Unethical behaviors exist?Managers and Ethical Behavior ¢ Ethics: principles, values, and beliefs that define right and wrong behavior Starbucks Business Ethics https://www.youtube.com/watch?v=A9i8dwKC7TEExhibit 5-3 Factors that Determine Ethical and Unethical Behavior Exhibit 5-3 shows factors that determine ethical and unethical behavior. @Pearson it ©2052 20 Fenn etn i ReN * Unaware that behavior is questionable * Lack of standards of conduct * Different cultural norms and values * Behavior-based or relationship-based governance systems * Different values between businesspeople and stakeholders 3-40@ Pearson INTEGRITY ‘Mainzain honesty and clear comenunication in the workplace. TEAMWORK Work together to get the job done. OBJECTIVITY Don't make career decisions based on whom you like best, CONFIDENTIALITY Maintain clients’ confidence at all times. GROWTH Always pursue professional growth, opr ©2085, 2012208 ann etn AF* Code of Ethics *specifies how an organization expects its employees to behave while on the job 3-42A code of ethics: 1. Clarifies company expectations of employee conduct in various situations 2. Makes clear the company expects its people to recognize the ethical dimensions in decisions and action* Whistleblowers *employees who report illegal or unethical behavior on the part of others* Ethics * the consensually accepted standards of behavior for an occupation, trade, or profession * Morality * one’s rules of personal behavior based on religious or philosophical grounds * Law * the formal codes that permit or forbid certain behaviors and may or may not enforce ethics or morality 3-45Summary * What is CSR? * Why is CSR important in business strategies and policies? * Who are stakeholders? * Are they important in business strategies and policies? * What is Business Ethics? Is that important? Do you think that business social responsibility and ethics is important in business today?8 Sustainable Business Practice Examples * Be Intentional About Sustainability. ... + Partner with Employees. ... + Water And Electric Conservation. ... * Supply Chains. ... * Develop a Recycling Program. ... * Chemical Management. ... * Purchase Only Energy Efficient Products. ... * Develop Sustainability Work Policies. * https://thethrivingsmallbusiness.com/sustainable- Biieneeespracticee)