Course content, structure and teaching
Analyze how new social and environmental demands from a variety of
stakeholders pose new risks and opportunities to business leaders.
Western firms operating in or sourcing from developing countries
are increasingly held responsible for a range of issues such as
climate change, labor rights and human rights that have previously
been seen as outside a firm’s sphere of influence (Reich 1998).
Today stakeholders as diverse as investors, employees, the media,
NGOs and customers have strong views on how corporations should be
run. One example is Nike, which owned no factories in the US but
purchased shoes from factories in Indonesia, China and Vietnam.
Nike came under severe criticism in the mid 1990s because Nike’s
suppliers had forced workers to work extremely long shifts under
dangerous conditions. As a response to the criticism, Nike issued
its own code of conduct for suppliers. Another example is Wal-Mart
which according to Jon Entine, a journalist with the magazine
Ethical Corporation, has turned “from evil empire to jolly
green giant” (Entine 2008: 36). Wal-Mart now works with suppliers
on greening its supply chain including increasing the purchase of
organic cotton, improving energy efficiency, etc. The course
addresses the following key questions:
- What drives the Corporate Social Responsibility agenda?
- How should business respond: Minimizing business risk
- How should business respond: Maximizing business
opportunity
- Limits to CSR
- Managing CSR initiatives: Codes of conduct
- Reporting: benefits and drawbacks
- Institutional investors and socially responsible
investments
- The crystal ball: New CSR issues and challenges?
Key words: Corporate social responsibility (CSR),
sustainability, business environment, strategy, management
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Session 3: Business response (continued)
Debora L. Spar and Lane T. La Mure (2003). “The Power of Activism:
Assessing the Impact of NGOs on Global Business”. In California
Management Review, Vol. 45, No 3, Spring.
Aneel Karnani (2011). “Doing Well by Doing Good – The Grand
Illusion”. In California Management Review, Winter.
Isabelle Maignan and David A. Ralston (2002). “Corporate Social
Responsibility in Europe and the U.S.: Insights from
Businesses' Self-Presentations”. In Journalof International
Business Studies, Vol. 33.
Case: Austin and Reavis, HBS 9-303-055, “Starbucks and
Conservation International”
Go to Starbucks website. See what they have to say about
fair-trade http://www.starbucks.com/aboutus/csr.asp If at all
possible visit a Starbucks. Look at the price list for coffee
beans:
- Which are most expensive?
- Why the price difference?
- What did you learn about Starbucks’ achievement of Fair Trade
goals?
Case: Fair Trade Coffee: The Mainstream Debate.
Authors:
Richard M. Locke, Cate Reavis,
Diane Cameron. This case can be downloaded for
freefrom MIT
at
https://mitsloan.mit.edu/MSTIR/sustainability/Fair-Trade-Coffee/Pages/default.aspx Abstract: This note describes the coffee
industry, the rise of the Fair Trade movement, and if and how Fair
Trade coffee can be scaled up without compromising the economic and
social standards that are at the heart of Fair Trade.
Session 4: Limits to CSR
Deborah Doane (2005). “The myth of CSR: The problem with assuming
that companies can do well while also doing good is that markets
don’t really work that way”. In Stanford Social Innovation
Review, fall, 23-29.
Timothy Devinney (2009). “Is The Socially Responsible Corporation
a Myth? The Good, Bad and Ugly of Corporate Social Responsibility”.
In Academy of Management Perspectives, forthcoming May
Ethan B. Kapstein (2001). “The Corporate Ethics Crusade”. In
Foreign Affairs, September/October.
Robert Reich (1998). “The New Meaning of Corporate Social
Responsibility”. In California Management Review, Winter,
40, 2.
Case: Stanford case (please note that we have THREE related cases:
“Anatomy of a Corporate Campaign: Rainforest Action Network
and Citigroup (A). P42A. By David P Baron et al
“Anatomy of a Corporate Campaign: Rainforest Action Network and
Citigroup (B). P42B. By David P Baron et al
“Anatomy of a Corporate Campaign: Rainforest Action Network and
Citigroup (C). P42C. By David P Baron et al
Session 5: Managing CSR issues: Codes of conduct.
Jette Steen Knudsen 2011. ”Company Delistings from the UN Global
Compact: Limited Business Demand or Domestic Governance Failure?”
Journal of Business Ethics. 103 (3): 331-349. DOI:
10.1007/s10551-011-0875-0.
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2139325
Jette Steen Knudsen 2012. The Growth of Private Regulation
of Labor Standards in Global Supply Chains: Mission Impossible for
Western Small and Medium-Sized Firms? Journal of
Business Ethics.
Forthcoming.
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2139229
Richard Locke, Fei Qin and Alberto Brause (2006), “Does Monitoring
Improve Labor Standards? Lessons from Nike”, MIT Sloan Working
Paper No. 4612-06.
Richard Locke and Monica Romis (2006), “Beyond Codes of Conduct:
Work Organization and Labor Standards in two Mexican Garment
Factories”, Working Paper No. 4617-06, MIT.
Lynn Paine et al (2005), “Up to the Code?” Harvard Business
Review, No 12, 2005.
David Vogel (2008), “Private Global Business Regulation” in Annual
Review of Political Science, Vol. 11, 2008:261-82. Article can be
found at:
http://www.haas.berkeley.edu/faculty/pdf/vogel_david.pdf
Case: Nike Considered: Getting Traction on
Sustainability.This case can be downloaded for
free from MIT
at
https://mitsloan.mit.edu/MSTIR/sustainability/NikeConsidered/Pages/default.aspx
Optional
K. Bondy, David Matten and Jeremy Moon, “The Adoption of Voluntary
Codes of Conduct in MNCs”: A three country comparative study. In
Business and Society Review 109(4): 449-477.
Session 6: CSR and board of directors.
Andrea Beltratti 2005, “The complementarity between Corporate
Governance and Corporate Social Responsibility”, Geneva
Papers, 30.
Leonhard and Rangan, “Corporate social responsibility strategy and
boards of directors (boardroom briefing)”. The article can be
downloaded at
http://www.hbs.edu/socialenterprise/resources/corporate.html
Phil Mirvis, “Profile of Practice”, 2008 (this article will be
uploaded on the electronic system)
Strandberg, “The role of the board of directors in corporate
social responsibility” (report), June 2008. The report can be
downloaded at:
http://www.corostrandberg.com/pdfs/08-169The_Role_of_the_Board_of_Directors_in_%20CSR_Report_WEB28.pdf
Case:
Khurana, R. and James Weber (2007). “Tyco International –
Corporate Governance”. Harvard Business School, 4-408-059.
Sessions 7 and 8: CSR and domestic institutions and
regulation.
In sessions 7 and 8 we explore the growing interrelationship
between private and government regulatory frameworks.
Campbell, J. (2007). “Why Would Corporations Behave in Socially
Responsible Ways? An Institutional Theory of Corporate Social
Responsibility”. In Academy of Management Review, 32:
946-967.
Jette Steen Knudsen and Jeremy Moon (2012). “Corporate Social
Responsibility as Mutual Governance. International Interactions of
Government, Civil Society and Business”
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2139861
Dirk Matten and Jeremy Moon (2008). “Implicit” and “Explicit” CSR:
A Conceptual Framework for a Comparative Understanding of Corporate
Social Responsibility. In Academy of Management Review,
Vol. 33, No. 2: 404-424.
Gregory Jackson and Androniki Apostolakau (2010) “Corporate Social
Responsibility in Western Europe: An Institutional Mirror or
Substitute?” In Journal of Business Ethics, 94.
Andreas Scherer and Guido Palazzo (2011). “The New Political Role
of Business in a Globalized World: A Review of New Perspectives on
CSR and its Implications for the Firm, Governance and Democracy”.
In Journal of Management Studies 48(4): 899-931.
Optional
Maria Gjølberg (2009), “The origin of corporate social
responsibility: global forces or national legacies?” In
Socio-Economic Review, 7.
Session 9: The crystal ball: New CSR issues and
challenges?
We will continue our discussion from session 7 on private
regulation. We will close the course by discussing new potential
CSR issues and challenges (internet censorship in China is one such
possible challenge).
Mike Valente and Andrew Crane (2010), “Public Responsibility and
Private Enterprise in Developing Countries”. In California
Management Review, Vol. 52, No. 3.
Internet Censorship in China:
Case: Global Corporate Social responsibility vs. Local Legal
Compliance: A Case of Internet Censorship in China: 706-061-1
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