Read the summary and the most important questions on Week 1 Lecture Videos BSS MCM

• 1 Introduction

• Several definitions for Corporate social responsibility exist, One of them is from McWilliams, Siegel & Wright (2006), what is the definition?

  "Actions that appear to further some social good, beyond the interests of the firm and that which is required by law"

• In the definition given by McWilliams, Siegel & Wright (2006) for Corporate social responsibility, the last part of the definition is particularly important, what it is about? And what does this indicate regarding CSR and something that is mandated by the government?

  It is about going beyond what is required by law. CSR really has to be voluntary, if it is mandated by the government, it is by definition not CSR.

• 1.1 Another CSR

• The definition of CSR, that is adapted from the European Commission (2001) and Aguinis & Glavas (2012), is: 'A concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis and in a context specific way.' Shortly discuss the elements that have been underlined in this definition.

  1. Variety of stakeholders of companies are: NGO's, consumers, suppliers;
     
  2. A context specific way indicates: CSR is interpreted different across different cultures. 

• What element within the definition of CSR is this an example of? "A local business in the Netherlands may donate to an environmental organisation to clean up the beaches, but if you are an oil company operating in Congo, then you will probably invest more in community related initiatives such as building schools or reducing the pollution in a community, those types of things."

  'A context specific way'.

• 1.2 Third Definition CSR

• 'The responsibility of enterprises for their impacts on society" is a definition of CSR by the European Commission (2011). What does this definition relate to CSR?

  It relates CSR to the specific impact of a particular company on society.

• How does this definition differ from the other two CSR definitions that were given earlier?

  With the other two definitions, the CSR initiative did not necessarily have to have something to do with the specific impact the company has on society, it can also be related to unrelated things.

• 1.3 Corporate Sustainability

• What does CS mean according to the 'Our Common Future' report of the World Commission on Environment and Development (1987) a.k.a. Brundtland report?

  'Managing a firm in such a way that its activities meet the needs of the present, without compromising the ability of future generations to meet their needs.'

• 1.4 Common elements CSR and CS

• The definitions of CSR and CS showed a variety of common elements which are seen as central to both CSR and CS. Which 6 are these?

  1. Triple Bottom Line: economic, social & environmental dimensions.
     
  2. Stakeholder. 
  3. Voluntary.
  4. Context-specificity.
  5. Managing externalities/impacts.
  6. Rooted in values and ethics.

• 1.4.1 The main elements

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• One of the main elements is the Triple Bottom Line, what is this about?

  Beside economic dimensions, companies also deal with social end environmental ones. This is referred to the Triple Bottom Line. The company creates economic, social and environmental value.

• One of the elements is that of Stakeholders, what is this about?

  Companies must take into account the need of different stakeholders that are affected by the company.