Course : Corporate Social Responsibility (1508CSR03)

elearning.lspr.edu
Master of Arts in Communication : Corporate Communication Studies

LSPR eLearning Program

Session Topic : Stakeholder Approach

Course: Corporate Social Responsibility

By Ida M. Bayuni, M.M.

Content

Part 1

Shareholders & Employees

Part 2

Customers, Suppliers, Governments & Unions

Part 3

Competitors et al

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Part1: Shareholders & Employees

Stakeholder Approach: Overview

Stakeholder Approach
1.
2.
3.

4.

Identification of stakeholders
Understand specific claims
Reconciliation of claims,
assignments of priorities
Coordination of claims with other elements

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Stakeholder: Shareholders

Shareholders
Appropriate returns on their investment,
1. Participation in,
a) Distribution of profits,
b) Additional stock offerings,
c) Assets on liquidation,

2.
3.
4.
5.
6.

Vote of stock,
Inspection of company books,
Transfer of stock,
Election of board of directors,
Additional rights as have been established in the contract with the
corporation

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Stakeholder: Employees

Employees
Seek broadly defined job satisfactions,
1. Economic, social, & psychological satisfaction in the place of
employment,
2. Freedom from arbitrary & capricious behavior on the part of
company officials,
3. Share in fringe benefits,
Freedom to join union
Participate in collective bargaining
4. Individual freedom in offering up their services through an
employment contract
5. Adequate working conditions.
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Part2: Customers, Suppliers, Governments & Unions

Stakeholder: Customers & Suppliers

Customers

Suppliers

Want what they pay for,

1. Service provided with the
product,
2. Technical data to use the
product,
3. Suitable warranties,
4. Spare parts to support the
product during use,
5. R&D leading to product
improvement,
6. Facilitation of credit.

Seek dependable buyers,

1. Continuing source of
business,
2. Timely consummation of
trade credit obligations,
3. Professional relationship in
contracting for
a. Purchasing &
b. Receiving goods &
services.

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Stakeholder: Governments & Unions

Governments

Unions

Want adherence to legislation,

1. Taxes
Income,
Property, &
So on
2. Adherence to,
the letter & intent of public policy
dealing with
the requirements of fair & free
competition
3. Discharge of legal obligations of business,
a. people &
b. organizations
4. Adherence to antitrust laws.

Seek benefit for their members,

1. Recognition as the
negotiating agent for
employees;
2. Opportunity to
perpetuate the union as a
participant in the business
organization.

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Part3: Competitors et al

Stakeholder: Competitors & Local Communities

Competitors

Local Communities

Want fair competition,

1. Observation of the norms of
competitive conduct established
by,
a) Society &
b) The industry

Want the company to be a responsible

citizen,
1. Place of productive & healthful
environment in the community,
2. Participation of company officials in
community affairs,
3. Provision of regular employment,
4. Fair play,
Reasonable portion of purchases...
made in the local community,
5. Interest in & support of local
government, support of
a) Cultural &
b) Charitable projects.

2. Business statesmanship on the

part of peers.

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Stakeholder: General Public

General public
Expects the companys existence to improve the quality of life,
1. Participation in & contribution to society as a whole,
2. Creative communications between,
governmental & business units
designed for reciprocal understanding,
3. Assumption of fair proportion of the burden of,
a) Government &
b) Society,
4. Fair price for,
products & advancement of the state-of-the-art technology that
the product line involves.

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Stakeholder Approach: Level of Social Commitment

Social
No
1

Obligation
Low

Responsibility
Intermediate

Responsiveness
High

Reactive

Proscriptive

Proactive

Proscriptive*

Does more than required

by law

Anticipates &
prevents problems

Adheres to legal
requirements

Does more than required Searches for society

by economic considerations responsible acts

Adheres to economic
considerations

Avoids public stands on

issues

Takes public stands

on issue

*Proscriptive means,
the firm reacts when its action is called,
(or threatened to be called) to the publics attention.
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Stakeholder Approach: From CSR to CSV

No

CSR

CSV

Value: economic & societal

benefits relative to cost

Values: doing good

Joint company & community value

Citizenship, philanthropy, sustainability
creation

Discretionary or in response to
external pressure

Integral to competing

Separate from profit maximization

Integral to profit maximization

Agenda is determined by external

reporting & personal preferences

Agenda is company specific &

internally generated

Impact limited by corporate footprint Realigns the entire company

& CSR budget
budget

Example: Fair trade purchasing

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Example: transforming procurement

to increase quality & yield.
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Course : Corporate Social Responsibility (1508CSR03)

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