Corporate Social Responsibility

Lesson 1 Lesson Plan

What is CSR? Two Opposing Views

Module 8 Lesson One begins with an explication of the relationship between business and society, which helps understand the notion of corporate social responsibility (CSR). The lesson provides a definition of CSR, identifies the different viewpoints of CSR and then shows why CSR is of growing concern to students and leaders as well as public relations practitioners. Though businesses are economic entities that exist to advance the financial interests of their owners; this is not their only concern. The lesson argues that without the balance of a multi-stakeholder approach, firms can become unethical, exploitive, anti-social, and corrupt—losing legitimacy and their ability to pursue the owners’ economic goals over the long term. Arguments for and against CSR are presented along with trends that are propelling CSR to a greater prominence in corporate and strategic thinking.

Collectively, Lesson One draws on core concepts and innovative models to provide a comprehensive overview of CSR. The lesson concludes with a case study that illustrates how broad societal issues, such as LGBT rights, are increasingly influencing the relationships between stakeholders, including shareholders, and corporations. The lesson illustrates the practical challenges faced by organizations and practitioners that grapple with this complex topic. Throughout the lesson and its accompanying instructional materials, additional readings, suggested audio/visual resources, and stimulating questions for debate allow easy application in the classroom.

Key Concepts: Corporate social responsibility, stakeholder, economic view, societal View, globalization, affluence, and sustainability

  1. What is CSR?
  2. Arguments for CSR
  3. Why is CSR important?
  4. Why is CSR increasingly relevant today?
  5. Case study
  6. Conclusion

Lesson 2 Lesson Plan

An Introduction to Conscious Capitalism

Module 8 Lesson Two discusses conscious capitalism as an emerging concept grounded in the theory of corporate social responsibility (CSR). The lesson provides an introduction to conscious capitalism, which argues that success in today’s business environment is correlated highly with ethical, responsible, and inspiring behavior. Many large companies have recently created or installed models to practice conscious capitalism as a business strategy. It is important for students to understand this new approach to CSR and determine whether the movement could offer the prospect of integrating greater social responsibility into mainstream business practices. The lesson first defines conscious capitalism and presents an evolution of the concept with a focus on values-based economic values where values represent social and environmental concerns at both global and local scales. Then, a case study completes the lesson, which reflects the extent to which conscious capitalism can turn into an opportunity for both firms and stakeholders.

Together, Lesson Two draws on core concepts to provide a comprehensive overview of conscious capitalism. Through a case study on REI’s recent #OptOutside, the lesson illustrates the progression of CSR into a new framework—conscious capitalism—and the practical opportunities faced by firms that help redefine and shape the notion of CSR. Throughout Lesson Two and its accompanying instructional materials, additional readings, suggested audio/visual resources, and stimulating questions will allow instructors to facilitate a lively debate in the classroom.

Keywords: CSR, conscious capitalism, stakeholder, culture, leadership, tactile

  1. Conscious capitalism
  2. Four pillars of conscious capitalism
  3. Conscious capitalism vs. corporate social responsibility
  4. Case study
  5. Conclusion

Discussion Questions:

  1. What does it mean for an organization to be ethical? What is the difference between an unethical and an illegal act?
  2. What does it mean for an organization to be conscious?
  3. What is the difference between an ethical company and a conscious company?

Resources

Module Overview

Lesson One defined CSR as the notion of companies looking beyond profits to their role in society and identified the different viewpoints of CSR and then shows why CSR is of growing concern to business students and leaders. Though businesses are economic entities that exist to further the financial interests of their owners; this is not their sole concern. Without the balance of a multi-stakeholder approach, firms can become exploitive, anti-social, and corrupt—losing legitimacy and their ability to pursue the owners’ economic goals over the long term. Arguments for and against CSR are presented along with trends that are propelling CSR to a greater prominence in corporate and strategic thinking. The lesson concludes with a case study that illustrates how broad societal issues, such as LGBT rights, are increasingly influencing the relationships between stakeholders, including shareholders, and corporations.

During the recent corporate scandals that include companies such as Goldman Sachs, BP, Volkswagen, and Wells Fargo, a few companies have distinguished themselves by their commitment to ethical and sustainable business practices. This lesson focuses on conscious capitalism as a movement in the United States, which is grounded in the theory of corporate social responsibility with a holistic focus on voluntary exchange, entrepreneurship, competition, freedom to trade and the rule of law. Conscious enterprises, such as Whole Foods, Trader Joe’s, Patagonia, claim to follow a business strategy in which they seek to benefit both human beings and the environment. The lesson will first define the idea of conscious capitalism, identify its main tenets, and discuss some exemplary corporate practices. After presenting a case study on REI’s recent #OptOutside campaign, the lesson concludes with a discussion on whether conscious capitalism can be a viable framework for enhancing the profit-making potential of responsible, ethical, and sustainable corporate behavior.

Citations & Resources

Lesson 1

Carroll, A. B. (1979) A three-dimensional conceptual model of corporate performance. Academy of Management Review, (4)4, 500.

Carroll, A. B. (1991). The pyramid of corporate social responsibility: toward the moral management of organizational stakeholders. Business Horizons. 34(4):39-48.

Carroll, A. B.  (1999). Corporate social responsibility. Business and Society, 38(3), 268-295.

Clarkson, M. B. E. (1995). A stakeholder framework for analyzing and evaluating corporate social performance. The Academy of Management Review, 20(1), 92-117.

Deetz, S. (2007). Corporate governance, corporate social responsibility, and communication. The debate over corporate social responsibility, 267-278.

Donaldson, T., & Preston, L. (1995). The stakeholder theory of the corporation: concepts, evidence, and implications. The Academy of Management Review, (1), 65-91.

Fama, E., & Jensen, M. (1983). Separation of Ownership and Control. The Journal of Law & Economics, 26(2), 301-325.

Fama, E., & Jensen, M. (1983). Agency problems and residual claims. The Journal of Law & Economics, 26(2), 327-349.

Freeman, R. E. 1984. Strategic management: A stakeholder approach. Boston: Pitman

Friedman, M. (1970). The social responsibility of business is to increase its profits. The New York Times Magazine.

Kidder, R. (2011). Why Corporate Social Responsibility needs ethics. Ethics Newsline.

Porter, M. E., & Kramer, M.R. (2006). Strategy and society: the link between competitive advantage and corporate social responsibility. Harvard Business Review, (84)12, 78–92.

Porter, M. E., & Kramer, M. R. (2011). Creating shared value. Harvard Business Review, 89(1/2), 62-77.

Schwartz, M., & Carroll, A. (2003). Corporate social responsibility: a three-domain approach. Business Ethics Quarterly, 13(4), 503-530.

Vogel, D. J. (2005). Is there a market for virtue? The business case for corporate social responsibility. California Management Review, 47(4), 19–45.

Werther, W. B., Jr. & Chandler, D. (2010). Strategic corporate social responsibility: stakeholders in a global environment. New York: SAGE Publications.

Williamson, O. (1993). Calculativeness, trust, and economic organization. The Journal of Law & Economics, 36(1), 453-486.

Lesson 1 Case Study References

Allen, F. E. (March 22, 20143). Howard Schultz to Anti-Gay-Marriage Starbucks Shareholder: 'You Can Sell Your Shares.' Forbes. http://www.forbes.com/sites/frederickallen/2013/03/22/howard-schultz-to-anti-gay-marriage-starbucks-shareholder-you-can-sell-your-shares/print/
Freeman, R. E. (1984). Strategic management: A stakeholder approach. Boston: Pitman.

Delgado. A. (March 25, 2013). Conservatives boycott Starbucks over coffee chain’s support of same-sex marriage. MediaIte. http://www.mediaite.com/online/conservatives-boycott-starbucks-over-coffee-chains-support-of-same-sex-marriage/

Dump Starbucks. The Petition. http://www.dumpstarbucks.com/

Grider, G. (October 2, 2014). Starbucks Howard Schultz Tells Anti-Gay Marriage Christians To ‘Sell Your Shares. Now the End Begins. Retrieved from http://www.nowtheendbegins.com/starbucks-howard-schultz-tells-anti-gay-marriage-christians-sell-shares-video/

Lii, Y. S., & Lee, M. (2012). Doing right leads to doing well: When the type of CSR and reputation interact to affect consumer evaluations of the firm. Journal of Business Ethics, 105(1), 69-81.

Mitchell, R. K., Agle, B. R., & Wood, D. J. (1997). Toward a theory of stakeholder identification and salience: Defining the principle of who and what really counts. Academy of Management Review, 22, 853–886.

National Organization for Marriage. (2016). Dump Starbucks. Retrieved from https://www.nationformarriage.org/main/ourwork/dump-starbucks

Schultz, H. (2016). A Special Message from Howard Schultz. Retrieved from https://www.starbucks.com/responsibility/community/supplier-diversity/message-from-howard

Smith, A. (March 28, 2013).  Starbucks CEO holds his ground on gay marriage. CNNMoney. Retrieved from http://money.cnn.com/2013/03/26/news/companies/starbucks-gay-marriage/index.html

Starbucks. (2016) Responsibility. Retrieved from  https://www.starbucks.com/responsibility

Starbucks. (2016). Diversity & Inclusion. Retrieved from https://www.starbucks.com/responsibility/community/diversity-and-inclusion

Stuart, H. (March 22, 2013). Starbucks Gay Marriage Stance: CEO Puts Smackdown On Anti-Marriage Equality Shareholder. The Huffington Post. Retrieved from http://www.huffingtonpost.com/2013/03/22/starbucks-gay-marriage-howard-schultz_n_2931734.html

Lesson 2 All References

Drucker, P. F. (1994). Post-capitalist society. Routledge.

Conscious Capitalism. (November, 2016).  “An Introduction to Conscious Capitalism,” Retrieved from http://www.consciouscapitalism.org/node/3998

Mackey, J. & Sisodia, R. (2013). Conscious Capitalism: liberating the Heroic Spirit of Business. Harvard Business Review.

The Four Principles of Conscious Capitalism. (2016). Retrieved from http://www.consciouscapitalism.org/aboutus

Sisodia, R. S. (2011). Conscious Capitalism: A Better Way to Win. California Management Review, 53(3).

Patagonia: Don’t Buy this Jacket. (December 8, 2015). Retrieved from https://rctom.hbs.org/submission/patagonia-dont-buy-this-jacket/

Schawbel, D. (Janunary 15, 2013). John Mackey: Why companies should embrace conscious capitalism. Forbes. http://www.forbes.com/sites/danschawbel/2013

The Conscious Capitalist Credo. http://www.consciouscapitalism.org/node/4005

Whole Foods. Core Values. https://www.wholefoodsmarket.com/mission-values/core-values/we-satisfy-delight-and-nourish-our-customers

O’Toole, J., & Vogel, D. (2011). Two and a Half Cheers for Conscious Capitalism. California Management Review, 53 (3), 60-76.

President’s Message: A Message from Jerry Stritzke. (2016). Retrieved from https://www.rei.com/about-rei/presidents-message.html

About REI. (2016). Retrieved from https://www.rei.com/about-rei.html
"2010 Stewardship Report: Employee Pay and Benefits". rei.com

"REI Releases 2015 Stewardship and Earnings Report, Gives Back Three-Quarters of Profit to Outdoor Community and Opens Voting for Board Members | REI Newsroom". newsroom.rei.com. Retrieved 2016-04-06.

REI's Closing on Black Friday. Other Gear Companies Need to Follow Suit. (October 28, 2015). Outside Online. Retrieved from http://www.outsideonline.com/2030051/reis-closing-black-friday-other-gear-companies-need-follow-suit.

REI opting outside again, closing stores, stopping online sales Thanksgiving and Black Friday. Business Journal. http://www.bizjournals.com/seattle/news/2016/10/24/rei-black-friday-thanksgiving-google-optoutside.html

REI closing on Black Friday for 1st time in push to #OptOutside. (November 17, 2015). USA Today. http://www.usatoday.com/story/money/2015/10/26/rei-closing-on-black-friday-for-first-time-in-its-history/74627872/

REI to Workers: Shun Black Friday and instead enjoy blue skies with pay! (November 30, 2015). CNN  http://www.cnn.com/2015/11/24/living/rei-outdoors-campaign/index.html

REI closing on Black Friday for 1st time in push to #OptOutside. (November 17, 2015). USA Today. http://www.usatoday.com/story/money/2015/10/26/rei-closing-on-black-friday-for-first-time-in-its-history/74627872/

REI Shocks Retail World By Closing For Black Friday, Paying 12,000 Employees to 'Opt Outside. (October 27, 2015). Forbes. http://www.forbes.com/forbes/welcome/?toURL=http://www.forbes.com/sites/micahsolomon/2015/10/27/rei-opts-out-of-black-friday-closing-143-stores-and-paying-employees-to-opt-outside/

Will you go out with us? #OptOutside. (October 23, 2016). Co-Op Journal. http://blog.rei.com/news/optoutside-will-you-go-out-with-us/

#OptOutside You Tube Video. http://blog.rei.com/news/optoutside-will-you-go-out-with-us/

Module Developer

Nur Uysal

Dr. Nur Uysal

Associate Professor, DePaul University

Nur Uysal (PhD, University of Oklahoma) is an associate professor at DePaul University. Dr. Uysal teaches courses in Public Relations, Corporate Communication, and Corporate Social Responsibility. Uysal’s research focuses on CSR, Stakeholder Engagement, and Activism. She authored numerous journal articles and conference papers, nationally and internationally. Nur Uysal is a three-time winner of the Top Faculty Paper award from the Public Relations Division of the National Communication Association. Her doctoral dissertation on shareholder activism and CSR was given the 2012-2013 James E. and Larissa A. Grunig Outstanding Dissertation Award. Her research has appeared in top-tier strategic communication journals, including The International Journal of Strategic Communication, International Journal of Business Communication, and Public Relations Review. Uysal is a Page Up member and a Plank Center Educator Fellow.

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