Corporate social responsibility - Level 7

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Introduction to corporate social responsibility

Session objectives

By the end of this session you will understand:

• what Corporate Social Responsibility (CSR) is

• the four types of CSR & what each looks like in practice

• why CSR is important

• why CSR matters in the education field

Session content

The session includes a selection of case studies and practical examples and questions to make you think and activities to for you to submit to your tutor on BUD.

What is CSR

A definition

Corporate social responsibility (CSR) programs are initiatives that business companies undertake to integrate social and environmental concerns into their business operations and interact with their stakeholders on a voluntary basis (Dahlsrud 2008).

Tim Stobierski at Harvard Business School, explains corporate responsibility in his 2021 blog:

Corporate social responsibility is traditionally broken into four categories: environmental, philanthropic, ethical, and economic responsibility.

Environmental responsibility

• Organisations should behave in the most environmentally manner they can. This may include but is not limited to reducing pollution, single-use plastics and waste, using renewable and sustainable energy and resources, and balancing their negative environmental impact with things that bring a positive impact to the environment- for example planting trees, or donating to causes.

• Organisations should operate in a fair and ethical manner for all stakeholders. This includes its leaders, investors, employees, volunteers, suppliers, customers and anyone else who may be connected to the organization. Examples of this are having a higher minimum wage than is set by the government, only using supplies that have been sources with free trade standards, and not dealing with items that are created by companies who use child or slave labour.

Philanthropic responsibility

• An organisation should aim to actively make the world and society a better place. Many organisations donate to charities, or may create their own charitable trust to contribute positively to the world.

Economic responsibility

• An organisation should back all financial decisions around positive contributions to the areas above. Profit is not just seen as profit, but as a means to bring a positive impact to the planet, people and society.

Resources

Tobierski, T. (2021) Types of corporate social responsibility Links to an external site.

Pyramid of corporate social responsibility

Four types of responsibilities

The modern definition of CSR is derived from the book, “Pyramid of Corporate Responsibility,” by Archie Carroll (1991), a well-known business professor at the University of Georgia.

In his book, Carroll states that, within this pyramid, a corporation has four types of responsibilities. The first is the economic responsibility to be profitable. The second is the legal responsibility to obey the law. The third is the ethical responsibility to do what is right, even when not legally required, and the fourth is the philanthropic responsibility to give back to society for social, educational, recreational and/or cultural purposes.

"Corporate social responsibility encompasses the economic, legal, ethical, and discretionary (philanthropic) expectations that society has of organizations at a given point in time." (Carroll 1979, 1991)

This may be a useful simple model to hang ideas on but it should be noted:

“Carroll’s Pyramid of Corporate Social Responsibility fails to tackle conflicting obligations that companies often face and the ethical contours of those decisions. Critics have also noted that culture plays a huge role in organizational decision-

making and that Carroll’s model fails to meaningfully take this into account” (Understanding & Applying Carroll’s CSR Pyramid, Paul Perry, 2000)

Why is CSR important?

Main areas of benefit

In 2015, the Cone Communication Millennial CSR Study conducted a survey of 1,003 adults (500 men & 503 females) aged 18-34 years in the USA.

This study discovered that:

• Millennials - the first generation who grew up in a global world and internet age. They want companies to tell them how they are striving to improve the world around them and more than nine-in-ten (93%) feel better about companies upon learning of those efforts.

• 87% of millennials would purchase products with a social or environmental benefit over another option.

• 74% of them would volunteer for a cause supported by a company they trust.

• 70% would pay more for a product with social/environmental benefits.

• 62% would take a pay cut to work for a responsible company.

Given the fact that at the time of the study, there were eighty-six million millennials living in the USA, spending $600 billion annually, we cannot afford to ignore the significance of these findings & what it means for businesses and organisations today. It is likely that in 2020, a third of all retail sales come from this generation!

Source:

Cone Millennial CSR Links to an external site.

Not only is this a significant finding in terms of business, it’s an important consideration for all types of organisations as these millennials are not only spenders, they are employees, investors and advocates. Ity is the culture in which the generations are being born into!

In the 2019 Porter Novelli/Cone Gen Z Purpose Study, it was found that 90% of Gen Z - those succeeding millenials (born mid 1990s and early 2000s) believe companies should take action on social and environmental issues.

The bigger benefits of CSR

Benefits of CSR

People:

Internal and external – local, national and international.

• Benefits to the people working in the company- having an ethical approach to team and staff. Having a healthy working environment leads to better outcomes for the business and better staff wellbeing. Organisations are more likely to keep their staff and have a lower turnover rate if the environment in which they work is a positive one. In the example above of Patagonia, the Founder states:

“One thing I did not want to change, even if we got serious: Work had to be enjoyable on a daily basis. We all had to come to work on the balls of our feet and go up the stairs two steps at a time. We needed to be surrounded by friends who could dress whatever way they wanted, even be barefoot. We all needed to have flextime to surf the waves when they were good, or ski the powder after a big snowstorm, or stay home and take care of a sick child. We needed to blur that distinction between work and play and family.” Founder, Patagonia

• Helping to develop and support with poverty, for example.

Planet:

• Not only stopping damage to the planet, but an intentional positive impact on it. For example, not just using biodegradable products, but also planting more trees.

Profit:

Having good CSR means that the organisation has a positive impact on the local, national and international economy. This may include but is not limited to creating jobs, generating ideas, paying taxes, wealth creation, and having a positive economic impact.

Why does CSR matter in education?

Reasons for CSR in education

Impact of good CSR on staff:

Good staff satisfaction is essential, especially in the education field where staff are giving out hour after hour of physical and emotional energy. As leaders in your school, creating a healthy work environment should be one of your highest priorities.

Impact of good CSR on parents/caregivers:

Many of the parents/caregivers of your children are the millennials and Gen Z mentioned in the study earlier. These people care about CSR. Many of them care about the environmental impact their workplaces are having, and therefore will care about the impact their kids’ school is having. It’s also another great way of getting parents and caregivers involved in projects and initiatives that they are passionate about.

Impact of good CSR on children:

We know that having social responsibility is important for children. This may start with taking responsibility for keeping their workspace tidy, contributing to the class, taking care of a lonely child, or recycling.

Teaching children the value of such things at a young age sets them up for success in their future workplaces, in relationships, and for opportunities outside of the classroom.

“Promoting social and emotional learning in school programs leads to success in school and life and prevents mental health problems.” American Psychological Association, 2020

American Psychological Association Links to an external site.

Impact of good CSR on the future of the nation and the nations:

In education, if you impart these values at a young age, children will grow up with a clear sense of responsibility to those around them (people), the environment they live in (planet) and contribute to the economy (profit).

Children's development and social responsibility

Looking at social responsibility

In terms of looking at corporate social responsibility in terms of children’s development, we are going to look at a paper entitled, “The Developmental Roots of Social Responsibility In Childhood and Adolescence.”

Firstly, they define social responsibility as: “a value orientation that motivates individuals’ prosocial, moral, and civic behaviours. Relationships with others and a moral sense of care and justice are central to our definition of social responsibility. Reflecting concerns that extend beyond personal wants, needs or gains". (Gallay, 2006).

How do we develop SR in young people?

Roots of development can be found in emotional, social, behavioural and spiritual aspects of development of values and culture. In education therefore we need to consider:

1. Growth of executive function: mental skills and the management system of the brain

2. Empathy and compassion

3. Emotion regulation and intelligence

4. Identity

We can develop these by considering the following:

Responsibility:

• Being accountable for decisions and actions

• Being reliable and dependable

• Empowered to act when possible

Bigger picture:

• How the individual sees the world

• How the individual views themselves in relation to others (welfare, family, nature etc)

Being aware that there are obstacles that prevent young people engaging:

• Time constraints

• Personal basic needs overpowering any thought for others

• Social norms such as 'me first', 'competition'.

• Lack of opportunity

Aspects that we need to consider in our schools that will engender SR:

1. Connection

Children want to feel connected. We all desire to belong. This is especially powerful in children and adolescence and is seen in 'gang' culture. The good of the 'gang' comes first.

2. Confidence

We need to build trust and respect. Voices need to be heard and there must be respect given and received.

3. Concern

Care and justice: helping to develop mental ability to consider ethical concerns, issues of integrity and human rights.

Young people want to challenge and be given space to express their thinking.

4. Control

Ability to understand emotional responses in themselves and others. This helps young people control their reactions and value how others feel. It helps to develop controlled empathy.

"Empathy and emotion regulation may be key developmental foundations of social responsibility" (Hart, Atkins and Fegely, 2003).

5. Contribution

As we contribute so we also receive value. There is a balance between the need of self and the needs of others. A study be Hart and Fegley, 1995 showed that:

"Adolescents displaying exemplary care and community involvement illustrated that, compared with a matched sample, care exemplars endorsed more moral characteristics as part of the self and viewed their identity as more consistent and coherent".

There is a link between social responsibility and healthy personal identity.

What are the implications for school leaders and school communities?

What are the implications?

1. Experience of democratic participation. Articulation and defending opinions.

2. Open to ideas and opinions.

3. Genuine care for the individual.

4. Options to explore and do acts of kindness and social responsibility.

5. Are leaders demonstrating in word and deed the values we portray to be important?

"Thus, it is important that we - as the shepherds of the next generation of citizensbe intentional about promoting social responsibility in children and adolescents by cultivating competencies across emotional, cognitive, and identity domains and enriching contexts that support rather than impede social responsibility development." (Wray-Lake, L., & Syvertsen, A. (2011). The developmental roots of social responsibility in childhood and adolescence. In C. Flanagan & B. Christens

(Eds.), Youth development: Work at the cutting edge. New Directions for Child and Adolescent Development, 134, 11-25. doi: 10.1002/cd.308)

Resources

The Developmental Roots of Social Responsibility in Childhood and Adolescence Links to an external site.

Tasks

Tasks to complete:

Review your baselines in each area of your school - What is your schools’ current response?

Which of the following statements best fit?

1. Passive acceptance - a good idea but not on agenda.

2. Positive action when it happens to fit.

3. Purposeful vision - we have a policy and a plan.

4. Placed in the bin marked ‘wishful thinking’.

1. Take a look at this website, a good example of one school’s approach to CSR:

Social Responsibility | The Compass School Links to an external site.

Can you identify the different areas of responsibility they are taking, and how these would benefit staff, children, and their families?

After looking at this case study, go back to considering what your school is currently doing, and:

• Set some goals for improvement. (One per area of responsibility is a good starting point.)

• Work out how you will get your staff on board.

Then get the kids involved! I know so many children and young people who are passionate and educated about many of these matters. How about forming a small group of children who could champion these concepts amongst their classmates?

2. How to have continual improvement & successful monitoring of progress of CSR in your school.

• 5 Key Questions for a school leader:

• What are we currently doing well in the area of Corporate Social Responsibility?

• What is one thing in each area that could be improved?

• How can I implement these things in my school?

• How will I get my staff on board with these ideas?

• What difference will these changes make to the children & their families?

3. Create a strategic plan for how you will embed some CRS goals into your school setting. You may want to consider:

• Who will you get involved?

• What needs to be actioned?

• What will each person be responsible for?

• When and how will you review progress?

• What does good look like? How will you measure your success?

Summary

This is by no means a full presentation. In many ways it raises more questions than providing answers.

School leaders have a responsibility to reflect, learn and encourage their community to be a CRS community. This involves personal values, policy responses and public activity.

Let you imagination go and allow your staff and pupils to be imaginative.

Task

Time to dream!

If there was nothing stopping you, no restrictions placed upon you describe in 200 words what your school setting would look like in terms of CSR.

Describe how you can improve CSR in terms of the following core areas:

1. PEOPLE – healthy working environment, ethical approaches to leadership and people management.

2. PLANET – encourage intentional positive impact on the planet.

3. PROFIT – how an organisation is making a positive impact on the local, national or international stage.

Total of 500 words to be uploaded to the relevant activity in BUD.

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