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MBA 103 Chapter 12

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Chapter 1

STRATEGIC PUBLIC POLICY


VISION FOR CORPORATE
SOCIAL RESPONSIBILITY

Presented by: Novelyn B. James


INTRODUCTION
Government and Corporate Social
Responsibility (GCSR) has made an impressive
entry on the economic, business, political, and
social scene.

There were different terms used, such as:


social action, socially responsible investment,
management by values, corporate citizenship,
business ethics, the triple bottom line, reputation,
and so on.
Three aspects
(Albareda, lozano, maruccio, rocher, and yu)

AGENDA VISION
UNDERSTANDING

The variety of What we understand What project for


practices, measures, by CSR and, therefore, society CSR conforms
and proposals that what business model to.
come under the term is proposed and what
CSR. role business firm is
considered to play in
society.
CORPORATE SOCIAL
The European Commission (2001) defines CSR as a “concept
RESPONSIBILITY whereby companies integrate social and environmental concerns in
their business operations and in their interaction with stockholders
REFERENCE on a voluntary basis.”

FRAMEWORK
The commission tackles this topic with two aspects:

● What - emphasizes the fact that companies


should make social and environmental
commitments in their actions.
● How - stresses the voluntary nature of those
commitments

Consequently, our approach starts from the


proposition that the right question is not about CSR
regulation, but what policy governments should adapt
towards CSR.
CSR WHERE DO WE STAND?
The CSR debate highlights the fact that, in globalized
world, it is just not products and services that compete
but also business models, management models, and
government national models.
Roome (2005) stated that, in the approach taken to
CSR in every country, several elements were
included:

1. The political and institutional structure


2. The political style and processes
3. The social structure
4. The intensity of the nature to voluntariness,
as opposed to the acceptance of the
regulation and government control
5. How the role of businesses is described
locally and nationally
6. The role and the position of NGOs and civil
society
7. The characteristics of the educational system
and the values converged by it.
8. What is expected of leaders
9. Historical traditions
CSR Background on National Framework
Source: Adopted from Roome (2005)

Institutional reference framework and economic and


social history

Business system and culture

Approach to csr
Building the nation as an economic and social space
Without a shared vision - and indeed corporate - reflection on
CSR boils down to no more than the pragmatic results of the
correlation forces and the play of interests, or the scenario of
conflict of convictions.
Incorporating CSR into the public: economic, political, and social agenda reminds us that
neither companies nor countries are possible without a shared vision: a shared corporate
vision and a shared vision for the country, each in its own differentiated way, because CSR
debate is always a debate about the society we wish to build and how companies
contribute to the building process.
The following issues/topics that can be publicly
formed and aired:

1. CSR Players Involved


2. CSR and Partnership Relations
3. CSR and Creation of Social Capital
4. CSR and Business Discourse
5. CSR: Innovation and Coherence
6. CSR from Rhetoric to Good Practices
Managing Corporate Social Responsibility Conceptual Matrix of CSR
Source: Vilanova, ESADE (2003)

COMPANIES

PUBLIC SECTOR CIVIL SOCIETY

VISION
STAKEHOLDERS WORKS MARKET ENVIRONMENT ACCOUNTABILITY
MISSION

STRATEGIES

POLICIES

PRACTICES
Corporate Social Responsibility is a process in which the most important thing is the trajectory
and the direction that sustain it and the ongoing commitment that gives it structure.

Management Accountability
Strategy + Values Integration and
(Structure and and
= Identity Learning Process
Processes) Communication

Workers
Environment
Suppliers
Consumers
Local Community
Associations
Governments
CSR Process etc.
Source: Lozano, ESADE
When CSR is conceived as a process, it is
important to be aware that several dimensions
have to be taken into consideration:

1. The Explicit - elements that formalize and


objective CSR

2. The Tacit - intangible elements that make up


the concrete manifestations of CSR in each
company.

3. The Negative Aspects

4. The Propositional Aspects


Why we need strategic vision
Nothing can replace business initiative when it comes to
contributing through its action to build the CSR agenda, shapes
its understanding and frame it in a vision. But nothing can justify
public powers abstaining from promoting the development of
these same agenda, understanding and vision.
Chapter 2

GSCR:
CONTEXT
AIM AND
PERSPECTIVE
The literature on governments and csr: european framework
The Green Paper “Promoting a European Framework for Corporate Social
Responsibility” (EC, 2001) and the “Commission Communication Concerning
Corporate Social Responsibility: A Business Contribution to Sustainable Development”
these are documents published by the European Commission that give us the key to
understanding the role the governments can play in the promotion and development of
CSR.

In June 2004, EC also presented the Final Report of the European multi-stakeholder
Forum on CSR.

In March 2006, the EC published a new communication explaining a vision of CSR that
is linked to sustainable economic growth, the competitiveness of the European
economy, innovation and job creation.

The EC also published other complementary documents that provide important


elements and information on the European debate on CSR and the role of governments.
Comparative study between european framework and american framework

From an American Point of View


The pioneering works of Aaronson and Reeves (2002) analyzed the
differences between the development and the acceptance among European
based companies on the role adopted by European Governments
promoting CSR and the less favorable acceptance to be found in the US
based companies in relation to US government initiatives.

In 2001, Canadian Business for Social Responsibility published a document


that compiles a series of recommendations to the Canadian government.

In 2003, another report that makes a recommendation is published entitled


“Promoting Global Corporate Social Responsibility” by Frank Hawkins
Kenan.
From an European Point of View
According to Habisch et. al. (2005), CSR across Europe, presents collective research on CSR in 23
European Countries, all either EU Member States or in the process of joining

The author states that in Europe, in general, the concept of CSR is linked to sustainability and
governance.
Contribution that present a more Pan-European Vision:
1. Roome (2005) presents the implications of the CSR
agenda of European governments.

2. Matten and Moon (2005), developed a conceptual


framework for understanding CSR in Europe on the
basis of the social governance, comparing European
context with the American one.

3. Lessen and Vorobey (2005) provide insight into


development of theoretical and empirical models
on the role of business in society in Europe, based
on social contract theory and stakeholder theory.
Roles in Public Sector in Relation to CSR
According to Fox et. al. (2002), work from the idea of the public sector
adopting four roles: mandating, facilitating, partnering, and endorsing.
The report builds and develops a matrix with the possible initiatives
taken by governments depending on the roles the adopt, in relation
to the 10 key themes on the CSR agendas: minimum standards, public
policy role of the business, good corporate governance, socially
responsible investment, philanthropy and community development,
stakeholder engagement, production and consumption, certification
and management systems, transparency and reporting, and
international CSR Standards.

Lepoutre et. al. (2004) analysis discusses the strategic roles played by
governments and present common tools adopted in public action.

Nidasio (2004), focuses exclusively on a comparative study of the


reporting frameworks by the governments of Italy, Belgium,
Netherlands, and France, it classifies the national reporting
frameworks according to 2 levels of analysis: top-down as opposed to
a bottom-up approach, and a government center as opposed to a
multi-stakeholder approach.
Governance and csr
Moon (2004), considers that this government adopted its CSR policy as a response to the social
governance crisis and the lack of legitimacy of the state that appeared in the last decades of the
twentieth century.

Midttun (2005), locates the development of CSR in the context of the changes taking place in the welfare
state, on the basis of a comparative study of three models: the Neo-liberal Model, Keynesian Welfare
State Model, and the Embedded Relational CSR Model taking into account three players: government,
industry, and civil society.
Gribben et. al. (2001), presents the role of
governments in creation of new models of social
partnerships with a view to solving social problem,
in coordination with companies, social
organizations and local government.

Guarani and Nidasio (2003), analyzed the role of


CSR in public-private partnerships incorporates
an area of long-term consistency into the concept
of political networks.

Bendell and Kearins (2004) address the political


dimension of CSR and its application to business
administration and management in relation to
demands of civil society.
Corporate Social Responsibility as a
relational approach

The European Commission (2001) defines CSR as a “concept


whereby companies integrate social and environmental
concerns in their business operations and in their
interaction with stockholders on a voluntary basis.”
however, if we dig deeper we will realize that CSR implies a
relational interpretation of business activity, when this
activity carried out.

Thus, in carrying out its CSR activities enterprise builds


relationships and can set up frameworks for dialogue with
other social players, especially with its stockholders.
Many European governments have started to develop and design
governmental actions and policies in the framework of CSR. They
have adopted several roles and lines of action, such as:

1. They play the role of facilitators in promotion and


discussion on the developments of CSR.
2. They play the role of promoters of CSR.
3. They play the role of mediators
4. They play the role of related to partnering in the
development of partnership initiatives and projects with the
participation of the public-private sector.
5. They play the role of creators and knowledge networks,
giving validity to those instruments, standards and tools
that are already accepted and legitimized,
6. They play a participatory role in the international
organizations that have adopted CSR promotion and
development measures on an international scale, by
transferring their formal commitments to the national scale.
7. They play the role of regulators
CSR FRAMEWORK: BEYOND VOLUNTARY COMPLIANCE VS.
LEGISLATION
For simplicity, on one side of a coin we could put those who
consider that CSR starts where the law ends. On the other
side, there are those who think that CSR is a management
model that affects the whole company’s activity, integrally,
and cross-sectionally.
GOVERNMENT ACTION IN THE FIELD OF CSR: COMPARATIVE EVALUATION
Every country has focused CSR on the most appropriate social or
environment issues according to its historical trajectory, depending on the
relationship that exists between business, government and civil society
stakeholders.
Thank you!!

msiawy

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