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WK14.1 Agenda

• News• CSR Reading discovery• CSR Video clip discovery• Summary

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CSR Reading discovery

• Read the following article• Summarize how each company do good.

• Why they do different activities? What make them do it differently?

Company People Planet Profit

Starbucks

UPS

Disney

Publix

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CSR Video Clips Discovery• Watch the following video clips.• Why should we do CSR?• What’s the specific issue for CSR in Asia?• Is there a link between CSR and profit?• What’s the new trend in CSR?

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Summary

• Summarize what you’ve discovered.

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14.2 Agenda

• News• CSR Lecture• Mind map

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CSR• What is CSR?• Customer Service Representative?• Corporate Social Responsibility!• The duty of a corporation to create wealth in

ways that avoid harm to, protect, or enhance societal assets.

• Wiki definition: a form of corporate self regulated integrated into a business model

• 3P: people, planet, and profit

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Company CSR• What’s the CSR for these companies?• How should we select the activity for CSR?

Brand Pedigree Toyota

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Evolution of CSR

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Evolution of CSR

Profit Maximization Philanthropy Regulation Theories of

Responsibilities

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Evolution of CSR

Survival of the fittest implied that rich people and dominant companies were morally superior.

Trustee: an agent of the company and balance all stakeholders, Service Principle: managers served companies by making profit

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Global CSR

NGOs demand regulation for corporations due to uneven regulation in developing countries.

EU emphasis on employee rights and environmental protection.

People first

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Global System of CSR1. Development of norms and principles.2. Codes of conduct.3. Reporting and verification standards.4. Certification and labeling schemes.5. Management standards.6. Social investment and lending: Good Global

index, IFC7. Government actions: actively promote voluntary

actions.8. Civil society vigilance: NGOs

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Pressure from Stakeholders

Company CSR

Philanthropic Requests

Communities

Competitors

Advocacy Groups

Stockholders/ Investors

Customers

Employees

Events/ Crisis

Governments

Multilateral Organizations

• Response to social demand– Obey the law

and make a profit

– Obey the law, accept some more duties

– Anticipate new demands, make CSR a competitive weapon! Like BP?

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CSR Process

• Review: current situation, size, financial, structure, production process, employees, culture, location, leader’s view etc.

• Strategy: embed CSR in core values(mission, vision) or core business, satisfy the stakeholders’ needs

• Implementation: CSR department, action planning, set up goal, timeline and target, align strategy with corporate culture.

• Reporting and verification: transparent, sustainable development

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CSR Strategy• CSR activities should be meaningful to benefit the

society and valuable to create value to the company. Thus, the company should consider both – Generic social issues: poverty, disease, environment,

and crime– Competitive social issues: factors that influence

success in the marketplace• GM, Toyota, Honda: environment• Unilever, Nestle: poverty• ADT: crime rate• Merck, Pfizer: disease

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GRI Indicators (Measurement)• Global Reporting

Initiative• Economic Performance

Indicators– Net revenues– Employee wages, and

benefits– Tax paid– Donation to communities– Number of jobs created

• Environmental Performance Indicators– Material used– Percent recycled– Energy saved

• Social Performance Indicators– Total hours of employee

training– Number of incidents– Number of breaches or

complaints

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SCG CSR• Which stakeholder is this CSR activity for?

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Pros and Cons

• Cons• Lower profit• Unequal cost among

competitors• Hidden cost pass on to

customers• Responsibility on

business rather than on individualT

• Pros• Long term profit• Discourage government

regulation.• Improve business value

and reputation.• Corrects social

problems caused by business.

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Forms of CSR

Strategic: charitable activities reinforces strategic business goalsBe careful with self interested!

Cause related: connect brand to charitable cause created emotional needAmerican Express, Avon

New form: use profit motive, philantrho-capitalismCemex partner with nonprofit organizationRed project license its brand to businessesGoogle 1% equity and profit for philanthropy

What about Thai CSR?

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Mind Map

• Summarize our lecture through mind map.

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Summary

CSR

Core business, Core Value

Need of Stakeholders

Strategy

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14.3 Agenda

• News• What are the CSR activities for these

companies?• Think of CSR activities for the companies in

Ubon– Yongsa-nguen– Ubonwasadu– Kaona