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Issue Monitoring and Identification
Corporate Social Responsibility
A trend or unsettled matter that, if continues, could have a significant impact on how a company operates and succeeds.
A contestable point, difference of opinion regarding fact, value, or policy, which has consequences for the organization’s plan and future success or failure.
Issue:
Fairness Equality Security Environmental
Strategic Issues Management Process
Identification of Issue
Analysis of Issue
Prioritization of Issue
Formulation of Issue Response
Implementation of Issue Response
Evaluation, Monitoring, and Control of Results
Scanning, Monitoring of Issue1.
3.
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5 Leading Forces as Predictors of Social Change/Issues
Leading Authorities/AdvocatesLeading Literature
Leading Organizations
Leading Events
Leading Political Actions
Examples of Leading Forces
Example Issue
Fannie Mae/Freddie Mac Governance, Fraud
9-11 Security – terrorism
BP Oil spill Environment
Leading Events
Example Issue
Ralph Nader Safety
Ghandi World Peace
Mother Teresa Compassion
Leading Authorities/Advocates
Example Issue
Sierra Club Environment
MADD Driving, Drinking
PETA Animal rights
Leading Organizations
Example Issue
An Inconvenient Truth Global Warming
Hotel Rwanda Genocide
Literature
Ranking of Issues:
Four Filter Criteria
Relevance
Actionabili
ty
Criticality
Urgency
Issue Ranking Techniques
Polls/Survey
Delphi Technique – panel experts in structure
Trend Extrapolation – current data to predict future trends
Scenario Building – analyzing future, alternative outcomes
Use of Precursor Events or Bellwethers – precedes, predicts
Organizations must agree on a clear definitionuse exact wording to name or position the issuebe clear, precise, and focused
Anti-choice/anti-abortion vs. Pro-life/Pro-choice Some have tried euphemisms:
Correctional facility - Prison
Waste chemical storage facility - Toxic dump
Biosolids - sewage sludge
Say one thing, and say it well.
Corporate Social Responsibility 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 families as well as of the local community and
society at large
CSR-Corporate Social Responsibility
corporate citizenship,
corporate philanthropy,
corporate giving,
corporate community involvement,
community relations,
community affairs,
community development,
corporate responsibility,
global citizenship
corporate social marketing.
Renowned economist Milton Friedman:
“The only responsibility of business is to make money for shareholders (period), and that any corporate investment in social programs is a misuse of shareholder money.”
From the 1950s-1980s, many executives believed that it was the government’s responsibility alone to tackle social issues.
Legitimacy Gap: What an organization does (or is believed to do) compared to the expectations of the general public and stakeholders.
consider a company’s ethical stance when buying a product
believed companies should attach at least as much importance to social responsibility as profitability when making business decision
67%
80%
Legal vs. Ethical
Most Generous Corporations
Kroger2010 profits: $589 millionGave 10.9% to charity ($64 million)
Macy’sGave 8.1% to charity ($41 million)
SafewayGave 7.6% to charity ($76.5 million)
What are your perceptions of these amounts? Were you aware of these gifts? Does these number influence your perceptions of the corporations?
CSR
Economic
Legal
Ethical
Philanthropic
Breaking the law?
Balancing profits with market interests?
Giving back time and money to community?
Fair to people and doing good for all?
Difficulty Defining & Implementing CSR
Stakeholders may have different expectations of how an organization should operate.
No absolute standards of corporate social responsibility exist: generational differences and stakeholder perspectives.
Organizational leaders must understand that ethical standards are linked to operations/effectiveness.
Operations managers fear issue managers will interfere with performance of jobs.
Steps to achieving CSR:
Integrate CSR into company’s business plan
Conduct a Social Audit (charity, volunteerism, transparency)
Self-regulation (industry-wide)
Develop a Code of Ethics
Ways for organizations to communicate CSR:
Media relations
Paid advertising
Financial documents (annual report, etc.)
Internal documents to employees
Product placement
Social media marketinghttp://www.youtube.com/watch?v=CcMe1NZoddg
http://www.youtube.com/watch?v=ZnIccnEyUyA
Six Strategies to achieve CSR
Be realistic, don’t promise more than you can deliver
Encourage public input on operations and practices
Allow and encourage diversity
Allow whistle-blowing
Provide ethics training
Avoid pyramidal management – strive to be flat
TuitionCosts
For-profit Public
Associate’s $38,000 $5,000
Bachelor’s $61,000 $36,000
University of Phoenix graduation rate: 15%
Ethical Corporate Communication
PRSAFive Principles of Ethical Communication
HONESTY: Professional communicators are honest, accurate and candid in all communications.
CONFIDENTIALITY: Protecting the confidences and privacy rights of employees and customers
CREDIT: Professional communicators give credit and identify that source.
FREE SPEECH: Professional communicators support the principles of free speech and free ideas.
COURTESY: Sensitivity to cultural values and beliefs are crucial for the professional communicator.
http://www.pbs.org/wgbh/pages/frontline/collegeinc/view/
Ethical vs. Moral
Frames: It’s easyFocus on pain/fear/urgency