1 the profit motive and environmental issues geoff leese october 2006 revised july 2007, august...
TRANSCRIPT
1
The Profit Motive and Environmental issues
Geoff Leese October 2006 revised July 2007, August
2008, August 2009
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Introduction
Profit maximisation Corporate Social Responsibility
definition Ethical management Benefits of CSR CSR and stakeholders The SVN and it’s standards The arguments against
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The profit motive
Profit means growth Growth means survival But at what cost? Short term profit vs. long-term
survival
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Corporate Social Responsibility
The commitment of business to contribute to sustainable economic development, working with employees, their families, the local community and society at large to improve their quality of life.”
The World Business Council on Sustainable Development.
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Ethical management
Is it legal? Is it balanced?
That is, fair to all stakeholders Is it “right”?
Are you proud of it? Would you want others to know
what you decided?
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Ethical policy
Purpose Don’t lose sight of it
Pride Don’t be ashamed of what you’ve done
Patience Long term survival rather than short term
profit Persistence
Commitment to principles is important Perspective
Stay focused!
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Benefits of CSR
Satisfied customers Loyal employees Enhanced reputation
Taken From SERCO annual CSR report, 2003
http://www.investis.com/reports/srp_crr_2003_en/report.php?type=1
Socially responsible and environmentally sustainable
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CSR and customers
Product safety Cost-based pricing High quality Focus on customer needs Value for money Honest advertising
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CSR and shareholders
Maximum information Honest accounting practices Resisting hostile takeovers Creating a sound capital base
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CSR and employees Health and Safety Fair wages Continuous employment Job design Training and personal development Promotion opportunities Equality of treatment Respect privacy Respect family life
Home/work balance
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CSR and society
Environmental sustainability “Clean” operations Contribution to local
communities No restrictive practices Obeying spirit as well as letter of
the law Conserve natural resources
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CSR and suppliers
Prompt payment Enforced by law in some societies
Confidentiality Long notice of termination of
contracts Don’t exploit position of
dependence power Help them to help you
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The SVN standards
Three general topics Ethics
– Values Accountability
– Disclosure Governance
– Stakeholder representation
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The SVN standards
Six stakeholder topics Employees Investors Customers Suppliers The community The environment
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The SVN standards
Each standard consists of Principle Practices Measures Resources
Visit http://www.svn.org/initiatives/PDF_standards.pdf for more information
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The arguments against CSR
Overdependence Disproportionate influence Undermines democratic process Not our problem Can’t afford it Leads to higher prices Puts us at a competitive
disadvantage
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The arguments against CSR
How do we measure it? Diversity of viewpoints
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Summary
Profit maximisation Corporate Social Responsibility
definition Ethical management Benefits of CSR CSR and stakeholders The SVN and it’s standards The arguments against
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Further reading
Bennett chapter 8 Johnson and Scholes section
5.4 Social venture network - follow
the link! Corporate Social Responsibilty
- follow the link!