Académique Documents
Professionnel Documents
Culture Documents
Society
Chapter - 06
Implementing
Corporate Social
Responsibility
Business model
• A business model is the underlying idea or
theory of how a business will create value by
making and selling something in the market.
The theory is validated if the business makes a
profit. In the universe of business models,
there are two distinct types as they relate to
corporate responsibility, the progressive
model and the traditional model.
• A traditional business model is one in which
the central strategy for creating value is based
on meeting market demands while complying
with the law.
• A progressive business model differs. It
creates value by meeting market demands
and, in the process, mitigating social problems
or improving society in some way. The value
proposition is based on actions that would be
considered voluntary responsibilities in more
traditional companies.
Sources of Pressure for Social Responsibility
A Spectrum of Responses to Social Demands
A Model Process of CSR
Implementation
CSR Review
• Discovering Core Values
Core values, the central beliefs that guide decisions,
reside deep in the company’s culture. Once formed
they are very persistent. There are many ways to find
them.
• Engaging Stakeholders
Many companies now engage in formal or informal
dialogue with a range of stakeholders, those entities
that can affect or are affected by their activities. They
are driven less by an ethical duty to be open than by a
desire to avoid disruption of operations.
CSR Strategy
• A strategy is a basic approach, method, or plan for
achieving an objective. A company with a strategy is like a
traveler with a map showing the city of destination and a
plan to reach it by taking the morning train. Like this
traveler, a company defining its CSR strategy must first find
an objective, or a vision of what it will achieve, then create
a method for reaching it.
• Action Planning
When a strategy and decision-making structure are in
place, transforming intent into action is still necessary. An
action plan sets forth the multitude of tasks that, together,
will bring the strategy to fruition. Such tasks include
revising or creating policies, budgeting resources, and
assigning work.
• Performance Goals and Timelines
A strong action plan sets performance goals and timelines for their
accomplishment. To be effective, goals must be specific and
progress toward them should be measurable. Such goals and
measures create a common language and focus efforts across
organizational units.
• Incentives and Accountability
Job descriptions that include sustainability duties encourage
accountability. Incentives further encourage meeting goals.
Performance evaluations, pay, and promotions are linked to
targeted actions.
• Alignment of Strategy and Culture
Corporate culture must be aligned with strategic intent. Where the
culture contains deep-seated, informal values that conflict with
official CSR policies, those policies are likely to be ignored. If
managers who meet financial goals but neglect “soft” sustainability
goals are promoted, it indicates that formal policy is inconsistent
with underlying beliefs about requirements for career
advancement.
Reporting and Verification
• To complete the cycle of CSR implementation, companies
can assess and report information about their social
performance. Publishing such reports serves two main
purposes.