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MBA 292 Strategic Corporate Social Responsibility


MBA 292 Strategic Corporate Social Responsibility – PowerPoint PPT presentation

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Title: MBA 292 Strategic Corporate Social Responsibility

MBA 292Strategic Corporate Social Responsibility
  • Professor Kellie A. McElhaney
  • 4.04.07

  • Current News
  • Project Updates
  • Limitations of CSR
  • Issues Analyses
  • Great Debate Assignments for April 18th Class

Current News
  • The Supreme Court ordered the EPA to explain why
    it has refused to regulate greenhouse gas
    pollution from cars- says it is their job and
    within their jurisdiction (54 vote).
  • http//

Current News
  • A unanimous Supreme Court overturned a lower
    court's ruling that would have allowed utility
    Duke Energy Corp. to modernize aging coal-fired
    power plants without reducing air pollutants.
  • Automotive engineers at the Union of Concerned
    Scientists (UCS) unveiled a minivan design that
    shows automakers can build affordable vehicles
    with existing technology that would meet or
    exceed global warming pollution standards for
    cars and trucks adopted by California and 10
    other states.
  • UCS Vanguard

Current News
  • More than two-thirds (68) of the world is
    concerned about climate change with the South
    Africans (82) and Brazilians (87) most
    concerned, findings from a BBC study said.
  • At the low end of anxiety were Americans at 57
    and Indians at 59.

Current News
  • Food Is Top Advertised Product to Children on
    U.S. TelevisionIn what The Washington Post calls
    the "largest study ever conducted of television
    food marketing to children and teens," a study by
    the Kaiser Family Foundation and Indiana
    University finds that of all television
    advertisements during children's shows, 34 are
    for candy and snacks, 28 for cereal and 10 for
    fast foods.
  • Harry Potter Heralds Publishing First with
    FSC-Certified PaperU.S. publisher Scholastic
    Corp. has announced that 65 of the 16,700 tons
    of paper used to publish the seventh and last
    Harry Potter book, "Harry Potter and the Deathly
    Hallows," will be certified by the Forest
    Stewardship Council (FSC) as coming from
    sustainability managed forests.
  • San Francisco is First U.S. City to Ban Plastic
    BagsSan Francisco's City Council has voted to
    ban plastic bags at the checkout of large
    supermarkets and chain pharmacies within the
    coming year. In the first law of its kind in the
    United States, only compostable or paper bags
    will be allowed.

Individual Giving by State
Source James Irvine Foundation
Individual Giving by Region
Source James Irvine Foundation
Foundation Giving
Source James Irvine Foundation
Project Updates
  • Next Milestone Preliminary Recommendations
  • Due April 18th
  • Bring hard-copy draft of preliminary
    recommendations presentation to Colleen and me in
    class (2/page)
  • Email to liaisons for feedback
  • There can still be placeholder slides awaiting
    final data/ analysis we want to review general
    direction, comprehensiveness, focus
  • Use consistent template to lay out each

Limitations of CSR
Economists Viewpoints
Few trends could so thoroughly undermine the
very foundation of our free society as the
acceptance by corporate officials of a social
responsibility other than to make as much money
for their stockholders as possible.
- Milton Friedman
A large corporation these days not only may
engage in social responsibility, it had damn well
better try to do so. - Paul A.
Friedmans Argument
Individual responsibility vs. Corporate
Taxes vs. regulations
Voluntary v. mandated
Two Perspectives
  • The business of business is business
  • The sole legitimate purpose of business is to
    create shareholder value
  • Challenges to this perspective?
  • CSagghhhh
  • CSR in its most fuzzy, ill-defined format
  • Companies must also create positive social impact
  • Challenges to this perspective?

The Economists Argument
  • CSR initiatives could diminish shareholder
    returns, distract business leaders from their
    focus, and allow companies to continue bad
    behaviors in the shadows

The Economists Argument
  • It is philanthropy at other peoples expense
  • Profit-maximizing CSR does not silence the
  • Non-profit-maximizing CSR silences the critics,
    but is unethical
  • Companies can pay lip service to CSR, but
    continue to make things worse for communities

The Economists Argument
  • Disenchanted NGOs are now calling for more
    government, when poor government was the reason
    for CSR in the first place
  • Seeking profit has made our system as great and
    powerful as it is
  • Companies funding CSR just to get negative press
    and NGOs off their backs, not in best interest of
    company or community
  • Using company money for CSR is like CEO deciding
    to buy a corporate jet, or expensive shower

A New CSR Framework?
Raises Social Welfare
Reduces Social Welfare
Raises Profits
Reduces Profits
Myths Reality
Measure Value in Buckets
  • Workplace
  • Absenteeism, turnover, grievances, diversity
    profile, pay conditions, etc.
  • Marketplace
  • Customer complaints, customer satisfaction,
    supplier satisfaction, supplier codes
  • Environment
  • Energy consumption, water usage, solid waste, CO2
  • Community
  • Pre-tax cash giving, in-kind giving, reputation

  • Develop processes to build CSR into highest
    levels of strategy setting (Board seat, map
    relevant issues)
  • Actively manage contracts
  • Shape societal debates
  • Government regulations
  • Social labeling
  • Changing Corporations legal status/ structure
  • Building CSR principles into founding stage of

A Reality?
The Great CSR Debate
  • For April 18th (no class next week) you will
    prepare and argue either PRO or CON of CSR as an
    effective/ ineffective business strategy
  • PRO Team Leader Mike Abbott
  • CON Team Leader Lorin May
  • First PRO Team (5-7 minutes to lay out statement
    and position) Pedro, Mike A., Hans, Mike P.,
    Melissa, Matt E.
  • First CON Team (5-7 minutes to lay out statement
    and position) Jeff D., Iris, Elizabeth L.,
    Steven O., Lorin, Margot

Next Class The Great Debate
  • Second PRO Team (rebuts first CON, extends
    position, 5-7 minutes) Maria, Sarah, Mike T.,
    Annabelle, Joe, Akif
  • Second CON Team (rebuts first PRO, extends
    position, 5-7 minutes) Shirin, Cristin, Adrian,
    Yang-Yang, Wiam, Nick
  • PRO Closing Argument (restates position, 3-5
    minutes) Alec, Steven A., Elizabeth S., Theresa
  • CON Closing Argument (restates position, 3-5
    minutes) Amy, Gabi, David, Emily

Next Class The Great Debate
  • Judges Q A (10 minutes)
  • 3-5 questions per side
  • Determine winner
  • Give specific feedback/ reasoning for vote,
    discuss what worked, what did not work
  • Roni, Daniel, Jennifer, Brooke, Jason
  • Time Keeper Jason
  • What will your strategy be?

Good Debating
  • Conviction
  • Think like opponent
  • Cite experts
  • Well-prepared presentation
  • Use of visuals and words
  • Well-researched
  • Examples
  • Data
  • Persuasiveness
  • Blend of ethos, pathos, logos
  • Strong Communication Skills
  • Verbal nonverbal
  • Use of physical presence and space
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