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Summary - CSR tentamen
4 prevailing justifications for csr (Kramer,2007)
1. moral obligation achieve success with ethical values
3. License to operate, creating more right to operate
4. Reputation, pr and marketing
Why do you need to create independence between society and a business.
Competitiveness of companies (Kramer,2007)
- improving skills
- safe working conditions
- low level of pollution
Health of a society
- companies that create wealth
- productive workers
- participation in the economy open to all citizens.
3 categories of issues (Kramer 2007)
1. Generic social issues, not significantly impacted by operations
2. Value chain impacts, significantly impacted by companies activithies
3. Competitive context, external environment that effect the underlying drivers of competitiveness
operational effectives vs strategic positionOperation effectivenes: Running the same race faster, use best practices, being efficientStrategic positioning: Run a different race so you can create a unique sustainable position
Internal and external CSR
Internal= mission, vision, ethicis, values, diversity, compensation/benefits
External= supply chain, environment, philanthropy, reporting, marketplace
What makes a ‘ sustainable enterprise’
1. entrepreneurship and business development
2. sustainable and responsible workplace
3. Enabling environments for sustainable enterprises
Kind of stakeholders in tourism satisfactionPublic sector- local, regional and national authoritiesBusiness sector, Everything that has to do with hospitality industry. NGOs (non-governmetal Organisations)Knowledge community, international organizations, academies etc.Host community, Local citizens
Why, reasons behind CSR1. instrumental, meeting objectives that produce long-term profits2. political, using business power in a responsible way3. integrative, integrating social demands4. ethical, contributing to a good society by doing what is right
The new CSR Frameworksee image
How can you measure real value with CSR1. Workplace, Absenteeism, turnover, pay conditions2. marketplace, costumer complaints, '' satisfaction, supplier codes3. environment, energy consumption, wather usage4. community, pre-tax cash giving, reputation
Who was the first user of CSR and what did he/she soWho: Henry FordWhat: Increase working conditions, make cars more affordable
What is CSR
CSR is not about how you spend the money you make.
It’s about how you make the money you spend.
You have to do more then the legal minimum
CSR DEfinition 2Volantary activities undertaken by company to operate in an economic, scoail and environmentally sustainable matter recognizing value of incorporating csr practices into their operation abroad
What does belong to CSRDoes, ethical concept, play role in society, joint and shared responsibility within organization, creating a change
Who defined CSR a bit more?Howard R. Bowen , book Social Reponsibilities of the Businessman in 1999, But still no good definition
Definition used over the past 25 years
“The social responsibility of business encompasses the economic, legal, ethical, and discretionary expectations that society has of organizations at a given point in time
CSR LandscapeRun a good businessGive something backBe a good neighborBe a beacon to othersTransform an industryTransform multiple industries
CSR Dimensionsenvironmental dimension, reduce environmental footprint)Economical dimension, Cost, reputation, competing.Social dimension, Community(all part of sustainability)Stakeholder dimensionVolutariness simension (voluntary activity etc.)
4r approachReduce (water and energy consumption)Reuse (encourage guest to reuse towels and stuff)RecycleRethink (educations, green programms and Anamals and plants)
LeakagesHigh leakage: areas in developing countries with economies based largely on primary productionsLow leakage: Major tourist destinations in developed countries
Social dimensions, social scopeFirst look at tourist profile, 2. foreign tour operators, 3. destinations govermet. 4. local tourism industry 5. host community
Where does CSV stands forCorporate, social Values
differences between CSR and CSV
• CSR programs focus mostly on reputation and have only a limited contribution to the business.
• CSV is integral to a company’s profitability and competitiveness positioning. It leverages the unique resources and expertise of the company to create economic value by creating shared social value.
Elements of competitive context: the diamond4 factors1. Context for firm strategy and rivalry2. factor (input) conditions3. Related and supporting industries4. Demand Conditions
Differences CSR and CSV on different levelssee image