ISM Lecture 4

9 flashcards · Other · by Daniel F.

1. Calgene case study

   Approach: Relational Calgene pursued a relational approach by building long-term relationships with policymakers and regulatory agencies to gain approval for genetically modified organisms (GMOs). Focused on establishing trust and credibility with regulators over time, rather than addressing individual issues reactively. Participation Level: Individual Calgene engaged in individual action as a pioneer in the GMO industry, taking the lead in navigating uncharted regulatory territory. As the firs…

2. What is CSR

   Carroll, 1979: The social responsibility of business encompasses the economic, legal, ethical, and discretionary [later referred to as philanthropic] expectations that society has of organizations at a given point in time (required, expected, and desired responsibilities) World Business Council for Sustainable Development: CSR is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their familie…

3. perspectives on CSR

   Moir, 2001: neo-classical economics perspective Considers responsibilities towards shareholders foremost Social responsibility limited to creation of employment and paying taxes moral approach linked to social expectations Business is a part of society and has a social contract to meet its expectations Business earns legitimacy by fulfilling expectations of its stakeholders Enlightened self-interest or strategic approach It is in the economic interest of the business to do good

4. neo-classical economics perspective on CSR

   Considers responsibilities towards shareholders foremost Social responsibility limited to creation of employment and paying taxes ethical responsibility of the manager is to act legally, and to take those actions that maximise shareholder value Milton Friedman: "the business of business is business" e.g. Nike outsourcing to ASEAN

5. moral approach to CSR linked to social expectations

   Stakeholder theory firm should create value for all stakeholders (any group or individual who can affect or is affected by the achievement of the organization’s objectives) firm should conduct stakeholder analysis and engagement (identify most salient stakeholders) Social Contract Theory Business is part of society, they ought to act responsibly Businesses can use their power positively, so they should Legitimacy Theory To gain legitimacy, the actions of a firm must be proper and appropriate wi…

6. Enlightened self-interest or strategic approach to CSR

   its business's long-term self-interest to be socially responsible. Benefits Branding Benefits - advertise your initiatives Reputation and Legitimacy Benefits - Consumer Loyalty Capital (access) Benefits - these days ESG pays Risk Management Benefits - avoid non-market disruptions Political Benefits - voluntarily adopt standards to keep gov out Employee Loyalty - Employees identify more with the firm

7. CSR in research

   positive association between companies’ social performance, might even create competitive advantage

8. How CSR help overcome liability of foreignness for MNEs

   CSR could be useful non-market-strategy to gain legitimacy legitimacy gained from foreign stakeholder support leads to better financial performance do-good is best, do-no-harm is worst

9. Relationship between CAGE distance and CSR

   Less Willingness: MNE managers may feel less empathetic towards host country stakeholders when they are not able to identify with them. Less Ability: CSR investment in newer and different regulatory, economic, and cultural environments can be more costly and difficult. Return on such investment can be more uncertain.