07 Fragen

Milton Friedman 1970

Corporate Social Responsibility

• use resources

• engage activity designed to increase profits

• THE BUSINESS OF BUSINESS IS BUSINESS

• focus on ethical behaviour

• social + ecological

• impact a company has on society (incl economic view)

• WHY?

  • CSR not only as a burden, but also as an opportunity

Shareholders own company —> management= agent of shareholders —> GOAL: satisfy shareholders

• if manager spends money on social purpose = spending somebody else´s money

  • reduce return to shareholder

  • raise price to customer

  • lowers wages

critical

• for me: if everybody would du CSR in private —> friedman is right

• BUT

  • people do not act altroistic

• A company is designed to gain money —> I agree

  • in a wider sense

• classical concept

• bottom line = profit

• Social issues: society

• Environmental

• economic

Shareholder: US POV

• firm acts in favor of the owners / Sharehoders

• value = Share price * number of shares should be maximized

• sociatal concerns= distraction / irritation

Stakeholder

• pursuing interests of multiple groups

• often different and conflicting goals

• must pursue profits “optimizing not maximizing”

• fair to employees

• Altruistic:

  • in line with Milton

  • seperate earning money and investing it

  • Bill Gates

    • invests seperately from microsoft

      • even in Microsoft changes Behaviour

  • Warren Buffet

    • invests in Start-Ups (that seem to make money in future)

• Strategic:

  • change business model to be fit for future

  • opposite of altruistic

  • Frosch - only sustainable

    • create value from it

  • combinde profit and environment

    
    

• Ethical:

  • mix

  • react / avoid external effects

  • build wall to protect from sound emmissions —> keep license

  • meet (minimal) guidelines

• Tactical

  • because company is forced

    • (even if by customer —> Shitstorm)

  • change business model

  • KIK —> Child labour

  • LAW

    • CSR reporting

    • global supply chain

• Broad spectrum

• UN, OECD, EU, ISO…

• suggested:

  • reporting-guidelinnes

  • voluntary self-obligation

  • operational guidelines

  • discussion papers

  • mebership

  • 
    

• different goals

• different history / organisation in background

• difficult

• always easy to say yes

• innovating process very expensive

• can not be sure if product really reaches people

• if it´s necessary / expected to give it away —> all companies have to do —> stop of investing

• soccer players earn more