Corporate Social Responsibility Ethics Aalto University May 2019
Corporate Social Responsibility & Ethics Aalto University May 2019 Prof. Carole Parkes
Outcomes n n n Understand meaning & context of CSR (& Sustainability) Know and apply ethical models Understand agency theory and stakeholder analysis Know main standards and their impact Analyse the CSR strategy of an organisation/company
We will cover n n n Meaning, evolution, context and scope Ethics frames and decision-making Stages in development The UN Sustainable Development Goals (SDGs) Stakeholders …. Local and global issues …. Labour and human rights Standards and recognising best practice
We are learning …. . Content, but also about innovation and values
You need n n n An open mind Willingness to engage Willingness to listen Willingness to change your mind Interest in people, business and the environment
Assessment n n n Active participation Sulitest (Sustainability Literacy Test) Individual assignment Group presentation Group project n 10% n 20% n 25% n 35%
Important Deadlines n n n Individual mindmap – Tuesday night Sulitest – any time before Friday evening Group work - Friday
Groups n Work together throughout week n 8 groups of 5 or 6 n Sit together in class n Work on group project as you go
General advice n n Work on both projects as you go along Don’t carve things up too much! Do an individual reflection daily Let me know if I’m trying to cover too much!
Office hours n Before class (more or less) n I will also be there most mornings
Introductions n n n Your name Where are you from? Something not many people know about you
So…. Today n Foundations Meaning of CSR Shifting standards Sustainability n Taxonomy of responsibilities n n n
What is “Corporate”? • All business/ organisation forms • What is the purpose of business?
What is “Social”? so·cial (adj. ) n n Living together in communities. Of or relating to human society and its modes of organization: social classes; social problems; a social issue. Living together in organized groups or similar close aggregates: Ants are social insects. Of, relating to, or occupied with matters affecting human welfare
What is “Responsible”? re⋅spon⋅si⋅ble (adj. ) n n answerable or accountable, as for something within one's power, control, or management (often fol. by to or for) chargeable with being the author, cause, or occasion of something (usually fol. by for): Termites were responsible for the damage. n n n having a capacity for moral decisions and therefore accountable; capable of rational thought; action & behaviour: The defendant is not responsible for his actions. able to discharge obligations or pay debts. reliable or dependable, as in meeting debts, conducting business dealings, etc.
Sustainability; Social Responsibility; Human Rights; Climate Change What has it all got to do with us? What has it all got to do with business?
Sustainability and Social Responsibility The greatest challenge faced by the world today is: How can we improve human existence for all in the context of a resources and carbon constrained planet? The social, economic and environmental state of the world demands fundamental change in many of these areas and continuing with ‘business as usual’ is no longer an option
“We can’t make the Earth sustainable; it is sustainable – but whether with us, or without us, is our choice. ” Judge, (2002) UN World Summit on Sustainable Development
Key issues in Environment • • Depletion of natural resources Water Population growth Waste Deforestation/Desertification Energy use and carbon emissions Climate change
Fossil Fuels Bill Mckibben – Do the Math • https: //www. youtube. com/watch? v=HEpb. YGZKr. C 4
Story of plastic https: //www. youtube. com/watch? v=eg-E 1 Ftjax. Y
ECONOMIC VIABILITY SOCIAL RESPONSIBILITY GOVERNANCE POVERTY & WEALTH ETHICS Corporate Social Responsibility HUMAN RIGHTS ENVIRONMENTAL SUSTAINABILITY WORKER’S RIGHTS
Economy Markets Market Dominated Systems Adapted from J Dillard
https: //www. youtube. com/watch? v=5 G 0 nd. S 3 u. Rdo
SUSTAINABLE DEVELOPMENT GOALS (SDGs) “Solutions will involve everything from regulation to disruptive innovation – and everyone from world leaders and chief executives, to educators, activists and citizens, ” (Ban Ki Moon, 2015) We the people https: //www. youtube. com/watch? v=Rpq. Vmv. MCmp 0
Sphere of Influence
Who is “Responsible”?
Markets Sustainable Systems Adapted from J Dillard
Terms related to CSR Triple bottom line n Sustainability n Corporate citizenship n Moral capitalism n Corporate identity n
Sustainable n What does “sustainable” mean?
Sustainability n 1987 Brundtland Report : the kind of development that meets the needs of the present without compromising the ability of future generations to meet their own needs
Dimensions of sustainability Environmental Social Economic
Sustainability Tripod People Planet Profit
Sustainability Tripod Social capital Natural capital Financial capital
Sustainability Literacy n Online n Learning mode n Self-paced n Pass/fail for completion
What is CSR?
What is CSR?
What is CSR?
What is not CSR? Philanthropy alone Greenwashing Spin without substance Customer/supplier Appropriation
ISO 26000
Individual Assignment Choose organisation Map how they are doing Think of opportunities Imagine it better Think of responsibilities
ISO 26000 talks about n n n n Community Human Rights Labour Environment Operating practices Consumer issues Governance
Mindmapping responsibilities n Aalto, Mikkeli
Useful resources for the individual assignment n See My Courses for videos and other materials
Issues
ISO 26000
What to aim for? Global Standards Goals Sectoral Local
Sustainable Development Goals
So what’s the scope?
Issues
Issues - economic
Issues - governance
Issues - environment
Issues - stakeholders
Communities
Issues – human rights
Issues - production
Issues - disclosure
Issues - other
Issues - labour
For tomorrow n n Identify your individual organization Explore the sector for your group company n Work on mindmap n If possible, read Mirvis & Googins
Sector Allocation Afternoon Class Group 1 2 3 4 5 6 7 8 Sector Retail Automobiles Food Producers Oil and Gas Travel and Leisure Forestry and Paper Media Beverages
Tuesday n n n Work on ethics Trust Governance & Corruption Stakeholders from CSR perspective Introducing the group work
- Slides: 64