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Corporate	
  Responsibility	
  Module	
  
Lecture	
  One:	
  Introduc8on	
  to	
  CR	
  	
  
January	
  8th	
  2015	
  
Lecturer:	
  Tobias	
  Webb	
  
Tobiaswebb.blogspot.com	
  	
  
What	
  the	
  course	
  covers	
  
1)	
  Introduc8on	
  to	
  CR.	
  A	
  brief	
  history	
  
2)	
  How	
  to	
  make	
  the	
  business	
  case	
  	
  
3)	
  AMrac8ng,	
  training,	
  mo8va8ng,	
  retaining	
  employees	
  
4)	
  Campaigning	
  NGOs,	
  who,	
  why	
  and	
  what	
  	
  
5)	
  Stakeholder	
  engagement,	
  who,	
  when	
  and	
  how	
  
6)	
  Supplier	
  engagement	
  in	
  CR	
  
7)	
  Reputa8on,	
  external	
  communica8ons	
  &	
  repor8ng	
  
8)	
  Innova8on	
  for	
  sustainable	
  business	
  	
  
	
  
Plus	
  a	
  Revision	
  Lecture	
  in	
  week	
  nine	
  	
  
Today’s	
  lecture	
  will	
  cover…	
  
•  What	
  is	
  CR?	
  
•  Why	
  does	
  it	
  exist?	
  
•  How	
  is	
  it	
  evolving?	
  
•  Who	
  are	
  the	
  best	
  known	
  theorists?	
  
•  A	
  brief	
  historical	
  tour	
  in	
  pictures	
  (It	
  would	
  be	
  
useful	
  to	
  tape	
  this	
  part	
  in	
  par8cular)	
  	
  
So	
  what	
  is	
  Corporate	
  Responsibility?	
  
•  It’s	
  an	
  oen	
  messy	
  compromise	
  between	
  
business	
  and	
  society	
  	
  
•  It’s	
  both	
  a	
  source	
  of	
  innova8on	
  and	
  a	
  source	
  
of	
  cost	
  to	
  many	
  large	
  companies	
  	
  
•  It’s	
  a	
  reac8on	
  to	
  the	
  increased	
  knowledge	
  we	
  
now	
  all	
  have	
  about	
  impacts	
  of	
  business,	
  about	
  
the	
  costs	
  of	
  “nega8ve	
  externali8es”	
  and	
  a	
  
debate	
  about	
  what	
  should	
  be	
  done	
  about	
  
them	
  
Why	
  does	
  CR	
  exist?	
  
•  Public,	
  Media	
  and	
  NGO	
  access	
  to	
  business	
  impact	
  
informa8on	
  has	
  grown	
  (plas8c	
  bags,	
  plas8c	
  in	
  the	
  
oceans,	
  emissions,	
  deforesta8on,	
  human	
  rights	
  
and	
  labour	
  condi8ons,	
  digital	
  privacy	
  etc)	
  
•  Because	
  not	
  everything	
  can	
  be	
  regulated	
  
successfully	
  given	
  the	
  complexity	
  of	
  the	
  world	
  
•  Because	
  sourcing	
  footprints	
  and	
  opera8ons	
  /	
  
sales	
  are	
  now	
  global	
  for	
  many	
  companies,	
  and	
  
stakeholders	
  all	
  over	
  the	
  world	
  are	
  demanding	
  
informa8on	
  and	
  results	
  from	
  business	
  	
  
How	
  is	
  it	
  evolving?	
  
•  Whilst	
  corporate	
  accountability	
  is	
  not	
  new,	
  post	
  
WW2	
  debate	
  started	
  out	
  around	
  the	
  
“responsibili8es	
  of	
  the	
  businessman”	
  (Bowen,	
  
Drucker	
  et.	
  Al.)	
  	
  
•  Individual	
  good	
  works	
  evolved	
  to	
  corporate	
  
philanthropy	
  to	
  corporate	
  ci8zenship	
  and	
  CSR	
  to	
  
corporate	
  responsibility	
  in	
  the	
  1990s.	
  
•  Today,	
  the	
  term	
  increasingly	
  used	
  is	
  corporate	
  
sustainability,	
  or	
  sustainable	
  business.	
  This	
  
promotes	
  depth,	
  breadth	
  and	
  inclusiveness	
  	
  
Who	
  are	
  the	
  best	
  known	
  theorists?	
  
	
  
•  Bowen:	
  Focused	
  on	
  social	
  responsibility	
  of	
  execu8ves	
  
•  Drucker:	
  Values	
  based	
  approach,	
  consider	
  externali8es	
  
•  Friedman:	
  Social	
  responsibility	
  to	
  improve	
  profits	
  
•  Carroll:	
  Pyramid	
  approach:	
  Phil/Ethics/Legal/Economic	
  
•  Freeman:	
  Advocated	
  social	
  rela8onships	
  as	
  strategic	
  
•  Elkington:	
  Triple	
  BoMom	
  Line:	
  Social,	
  Environ,	
  Financial	
  	
  
•  Pralahad	
  &	
  Hart:	
  Empower	
  the	
  poor	
  with	
  innova8on	
  
•  Porter:	
  Crea8ng	
  Shared	
  Value	
  over	
  tradi8onal	
  CSR	
  	
  
•  Many,	
  many	
  others:	
  Roome,	
  Grayson,	
  Handy,	
  Vogel,	
  
Eccles,	
  Henisz,	
  Donaldson,	
  Waddock,	
  Ioannou	
  etc	
  
Corporate	
  
Responsibility	
  History	
  	
  
in	
  Pictures	
  
1720	
  -­‐	
  2015	
  
1720:	
  The	
  South	
  Sea	
  Bubble	
  
1902-­‐4	
  
1911	
  
1962	
  
1965	
  
Friedman	
  Picture	
  
1970	
  
1970	
  
Popula8on	
  Bomb,	
  1968,	
  Limits	
  to	
  Growth:	
  1972	
  
“Green	
  Revolu8on”	
  provided	
  30-­‐50	
  year	
  solu8on	
  
1972	
  
1972	
  
Bhopal:	
  1984	
  
Exxon	
  Valdez	
  1989	
  
Anita	
  Roddick,	
  1980s/90s	
  
Rio	
  Earth	
  Summit	
  1992	
  
1990s	
  
1995	
  
1995-­‐6	
  
1999-­‐2003	
  
2001	
  
2004/5	
  onwards:	
  The	
  Rise	
  of	
  China	
  
2007	
  
2010	
  
2011-­‐12	
  
2006-­‐today	
  
2012	
  
2013	
  
Ongoing!	
  
Weibo:	
  500	
  million	
  users	
  since	
  2009	
  
M-­‐Pesa:	
  Now	
  in	
  Kenya,	
  Tanzania,	
  Afganistan,	
  South	
  Africa,	
  India	
  and	
  elsewhere	
  	
  
40%	
  of	
  Kenya’s	
  GDP	
  passes	
  through	
  M-­‐Pesa	
  today	
  	
  
April	
  2013:	
  Rana	
  Plaza,	
  Bangladesh	
  
 
	
  
Further	
  resources:	
  
Eleven	
  Reasons	
  to	
  be	
  Op8mis8c	
  
about	
  Sustainability	
  
tobiaswebb.blogspot.com	
  
www.slideshare.net/tobiaswebb	
  
www.eabis.org	
  
www.caseplace.org	
  
	
  
	
  

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Introduction to Corporate Responsibility Module

  • 1. Corporate  Responsibility  Module   Lecture  One:  Introduc8on  to  CR     January  8th  2015   Lecturer:  Tobias  Webb   Tobiaswebb.blogspot.com    
  • 2. What  the  course  covers   1)  Introduc8on  to  CR.  A  brief  history   2)  How  to  make  the  business  case     3)  AMrac8ng,  training,  mo8va8ng,  retaining  employees   4)  Campaigning  NGOs,  who,  why  and  what     5)  Stakeholder  engagement,  who,  when  and  how   6)  Supplier  engagement  in  CR   7)  Reputa8on,  external  communica8ons  &  repor8ng   8)  Innova8on  for  sustainable  business       Plus  a  Revision  Lecture  in  week  nine    
  • 3. Today’s  lecture  will  cover…   •  What  is  CR?   •  Why  does  it  exist?   •  How  is  it  evolving?   •  Who  are  the  best  known  theorists?   •  A  brief  historical  tour  in  pictures  (It  would  be   useful  to  tape  this  part  in  par8cular)    
  • 4. So  what  is  Corporate  Responsibility?   •  It’s  an  oen  messy  compromise  between   business  and  society     •  It’s  both  a  source  of  innova8on  and  a  source   of  cost  to  many  large  companies     •  It’s  a  reac8on  to  the  increased  knowledge  we   now  all  have  about  impacts  of  business,  about   the  costs  of  “nega8ve  externali8es”  and  a   debate  about  what  should  be  done  about   them  
  • 5. Why  does  CR  exist?   •  Public,  Media  and  NGO  access  to  business  impact   informa8on  has  grown  (plas8c  bags,  plas8c  in  the   oceans,  emissions,  deforesta8on,  human  rights   and  labour  condi8ons,  digital  privacy  etc)   •  Because  not  everything  can  be  regulated   successfully  given  the  complexity  of  the  world   •  Because  sourcing  footprints  and  opera8ons  /   sales  are  now  global  for  many  companies,  and   stakeholders  all  over  the  world  are  demanding   informa8on  and  results  from  business    
  • 6. How  is  it  evolving?   •  Whilst  corporate  accountability  is  not  new,  post   WW2  debate  started  out  around  the   “responsibili8es  of  the  businessman”  (Bowen,   Drucker  et.  Al.)     •  Individual  good  works  evolved  to  corporate   philanthropy  to  corporate  ci8zenship  and  CSR  to   corporate  responsibility  in  the  1990s.   •  Today,  the  term  increasingly  used  is  corporate   sustainability,  or  sustainable  business.  This   promotes  depth,  breadth  and  inclusiveness    
  • 7. Who  are  the  best  known  theorists?     •  Bowen:  Focused  on  social  responsibility  of  execu8ves   •  Drucker:  Values  based  approach,  consider  externali8es   •  Friedman:  Social  responsibility  to  improve  profits   •  Carroll:  Pyramid  approach:  Phil/Ethics/Legal/Economic   •  Freeman:  Advocated  social  rela8onships  as  strategic   •  Elkington:  Triple  BoMom  Line:  Social,  Environ,  Financial     •  Pralahad  &  Hart:  Empower  the  poor  with  innova8on   •  Porter:  Crea8ng  Shared  Value  over  tradi8onal  CSR     •  Many,  many  others:  Roome,  Grayson,  Handy,  Vogel,   Eccles,  Henisz,  Donaldson,  Waddock,  Ioannou  etc  
  • 8. Corporate   Responsibility  History     in  Pictures   1720  -­‐  2015  
  • 9. 1720:  The  South  Sea  Bubble  
  • 10.
  • 11.
  • 12.
  • 13.
  • 16.
  • 21. Popula8on  Bomb,  1968,  Limits  to  Growth:  1972   “Green  Revolu8on”  provided  30-­‐50  year  solu8on  
  • 27. Rio  Earth  Summit  1992  
  • 33. 2004/5  onwards:  The  Rise  of  China  
  • 34.
  • 37.
  • 40.
  • 44. Weibo:  500  million  users  since  2009  
  • 45. M-­‐Pesa:  Now  in  Kenya,  Tanzania,  Afganistan,  South  Africa,  India  and  elsewhere     40%  of  Kenya’s  GDP  passes  through  M-­‐Pesa  today    
  • 46.
  • 47.
  • 48.
  • 49. April  2013:  Rana  Plaza,  Bangladesh  
  • 50.
  • 51.
  • 52.
  • 53.
  • 54.
  • 55.
  • 56.
  • 57.
  • 58.     Further  resources:   Eleven  Reasons  to  be  Op8mis8c   about  Sustainability   tobiaswebb.blogspot.com   www.slideshare.net/tobiaswebb   www.eabis.org   www.caseplace.org