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