CSR vs. Business Ethics vs. Sustainable Business
CSR: Companies take responsibility for their impact on society (EU 2011).
Business Ethics: Involves addressing issues of right and wrong in business situations (Crane).
Sustainable Business: Aims to contribute to sustainable development without compromising the ability of future generations (World Commission on Environment and Development).
Swedish Model vs. CSR
Swedish Model: National, law-based, negotiation culture, and production-focused. Responsibility linked to the company’s role in society.
CSR: Global, soft regulation, media visibility, and consumption-focused. Responsibility linked to the company’s choices and impacts.
Historical Evolution of Business and CSR
Early Industrial Society: Companies operated locally, acting as patriarchal systems with low mobility.
Industrial Society: Increased mobility and urbanization led to the Swedish model, separating roles and distancing companies from social responsibility.
Post-Industrial Society: Globalization, digitalization, and individualization weakened normative structures, bringing new CSR challenges.
Challenges Faced by Companies Over Time
Political Challenge (1960s–70s): Calls for economic democracy.
Environmental Challenge (1980s–90s): Focused on emissions and hazardous products.
Social Challenge (1990s–2000s): Issues related to social exclusion and globalization.
Triple Bottom Line (1990s–2010s): Integrating economic, environmental, and social dimensions.
Implicit vs. Explicit CSR
Implicit CSR (Nordic Model): CSR is embedded in welfare arrangements (e.g., healthcare).
Explicit CSR (Anglo-Saxon Model): Companies develop structures (e.g., supply-chain controls, codes of conduct) to meet social needs.
Skepticism Towards CSR in Sweden
Swedish Trade Union View: CSR should not be a corporate responsibility but publicly funded.
Confederation of Swedish Enterprise: CSR is mainly relevant in countries with weaker legal systems.
Current CSR Drivers
Political Interests: EU is moving towards 'hard' legislation to standardize business practices.
Ideological Interests: Companies are increasingly expected to adopt sustainability values.
Activism: NGOs seek to influence businesses to meet policy goals.
Key Concepts in Business Ethics
Descriptive Theories: Explain business behavior, such as why companies face CSR issues.
Normative Theories: Prescribe how businesses should act ethically.
Legitimacy and Isomorphism
Legitimacy: Companies seek moral, pragmatic, and cognitive legitimacy to justify their operations.
Isomorphism: Companies become similar due to coercive pressures (laws), mimetic pressures (emulation due to uncertainty), and normative pressures (industry standards).
Ethical Theories in CSR
Consequentialism: Focuses on the outcomes of actions (e.g., Utilitarianism).
Ethics of Duty: Focuses on adhering to moral duties or rights.
Virtue Ethics: Considers the character of the person taking action.
Discourse Ethics: Involves informed dialogue before decisions.
Approching Ethical Problems in Practice (Stakeholder Models)
Product and Process Matrix: Evaluates products and processes based on ethical criteria
Classic Stakeholder Model: Identifies key stakeholders in a business.
Network Stakeholder Model: Considers relationships between stakeholders and their influence on one another.
Stakeholder Salience Model: Evaluates stakeholders based on power, urgency, and legitimacy."
CSR Control vs. Ethics Management
CSR Control: Focuses on controlling organizational output in terms of societal impact (e.g., through SDGs, ISO standards).
Ethics Management: Controls behavior and thinking of employees through formal rules, values, norms, and culture.
Tools for Ethics Management
Formal Tools: Policies, rules, and regulations guiding employee actions.
Informal Tools: Values, norms, and storytelling.
Informative Tools: Dialogues, communication, and training programs.
Shared Value Approach
Shared Value (Porter & Kramer, 2011): Businesses create economic value by addressing societal needs.
Three strategies:
1) Reconceiving Products & Markets: Designing products to meet societal needs.
2) Redefining Productivity in Value Chain: Improving resource and labor productivity.
3) Improving Competitive Context: Overcoming social constraints to economic growth.
Collective Impact
Involves cross-sector collaboration for solving societal problems through shared agendas, communication, and mutually reinforcing activities. Best practice examples include Novo Nordisk.
Measuring CSR Impact
Social Return on Investment (SROI): A tool to measure social impact, but there are challenges in determining causality and long-term contribution.
Sustainability Dimension in Investments
Sustainability is increasingly part of investment decisions, balancing financial returns (ROI) with sustainability goals. Companies need to consider impact adaptation and the trade-off between ROI and sustainability impact.
Social Entrepreneurship
Non-Profit: Focus entirely on social needs.
Hybrid: Mix of commercial and social objectives.
Social Enterprise: Profit-driven but with a strong emphasis on social missions.
Impact Investing
Financing mechanisms like Social Impact Bonds and Green Bonds focus on generating both financial and social returns.
Role of Partnerships in CSR
Partnerships are vital for tackling social challenges, especially through Collective Impact approaches. Examples include strategic partnerships that align with business objectives.
Skanska Case Study
Skanska worked on a social inclusion project, improving employment outcomes but facing challenges in achieving large-scale societal impact.
Key Challenges in CSR and Shared Value
Balancing large goals with practical implementation, scaling partnerships, and ensuring long-term sustainability of projects.
Zuletzt geändertvor 4 Monaten