CSR

Management of Corporate Ethics, Compliance and Social Responsibility

ABSTRACT

This paper explores how business organizations can ensure management of corporate ethics, compliance and social responsibility in times of economic uncertainly. It also discusses the tensions and interactions of Corporate Social Responsibility (CSR) strategies and crisis events - two activities that have significant implications for the reputation for a corporation. CSR has the prospective to improve a company's reputation, and a crisis event has the potential to tarnish it. While the effects of CSR and crisis on corporate reputation have been studied extensively in isolation, the two concepts have less often been studied together. There are evidences to sustain the idea that CSR has the potential to defend a company from the worst reputational effects of a crisis or emergency event.

CSR encompasses a corporation's social, ethical & environmental obligations to its constituencies & greater society, & prompts business leadership to look beyond its traditional bottom line at the social implications of its business. It demonstrates a corporation's respect for society's interests…by taking ownership of the impact its [operational] actions have on key constituencies including customers, employees, shareholders, communities & the environment. Put another way, C.S.R. involves voluntary & proactive actions that are relevant to the corporation, integrated into its business model & focus on long-term success & sustainability, rather than short-term financial returns.

Table of Contents

SECTION ONE: FOUNDATION FOR THE RESEARCH4

Problem Statement6

Definitions6

C.S.R.7

Emergency/Crisis8

Analysis of Literature Review15

Emergency (Economic Uncertainly) as an Opportunity for C.S.R.?16

SECTION TWO: THE PROJECT18

Case Research: F.W.18

Focus Factions30

Limitations33

Key Findings: Focus Faction 134

Key Findings: Focus Faction 240

Results of the Research45

SECTION THREE: APPLICATION TO PROFESSIONAL PRACTICE AND IMPLICATIONS FOR CHANGE56

Application of C.S.R. after Emergency56

CSR…An Effective Post-Emergency Strategy?56

Future Research57

Key Message From the Work64

Communicating C.S.R. to Stakeholders65

References68

SECTION ONE: FOUNDATION FOR THE RESEARCH

Never before has the United States experienced such high levels of consumer skepticism - and worse - cynicism. According to the 2010 Edelman Trust Barometer, 77% of informed publics (25-to-64 year-olds) surveyed in the U.S. trust corporations less now than they did in 2008. To put the situation in perspective, trust in American business - at 38% down from 58% [in 2009] - is the lowest in the Barometer's tracking history…even lower than in the wake of Enron and the dot-com bust. For corporations, these figures are alarming because trust significantly affects consumer spending [and] corporate reputation, both of which are essential for any business to succeed. ( Gourville 2004 )

This problematic increase in consumer distrust is amplified by increased access to information about corporate operations. As businesses respond to calls for increased transparency and their operations become more visible to stakeholders, organizations are expected to conduct business more responsibly since they are more likely to face judgment by consumers and other constituents. Compounding these complex business challenges, increased competition among organizations across the globe means that the ability to attract and maintain consumers (and build loyalty and trust) is a significant and significant competitive advantage. The critical factor is reputation - a less tangible corporate asset, but one by which an organization may ...