Notes de cours
corporate social responsibility
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- Vrije Universiteit Brussel (VUB)
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CORPORATE SOCIAL RESPONSIBILITY – SUMMARY2024 – 2025
Professor: Philippe Maurice EISELEIN
Made by: Margot De Munck
1
,Contents
CORPORATE SOCIAL RESPONSIBILITY – SUMMARY ................................................. 1
2024 – 2025 ....................................................................................................................... 1
.......................................................................................................................................... 1
Corporate Social Responsibility ............................................................................................. 7
1. Chapter 1: Definitions and meaning: .............................................................................. 7
1.1 The theory on CSR:................................................................................................ 7
1.2 Terms for CSR ....................................................................................................... 7
1.3 A. Dahlsrud-Paper.................................................................................................. 8
1.3.1 Dimensions .................................................................................................... 8
1.3.2 Definition – refers: ......................................................................................... 8
1.3.3 According to the European Commission: What is CSR? ................................. 8
1.3.4 Pay attention to: (in the article) ....................................................................... 8
1.4 Definition CSR ...................................................................................................... 9
1.4.1 Key responsibilities and components .............................................................. 9
1.4.2 Proposed definition......................................................................................... 9
1.4.3 Benefits of CSR.............................................................................................10
1.4.4 Relevance and concept ..................................................................................10
1.5 What if… (non discussed) .....................................................................................11
1.6 Extra: historical review (min 1:00:00 – class 1) .....................................................11
1.6.1 Early CSR Forms (20th Century) ...................................................................12
1.6.2 Caroll’s CSR Pyramid (1979) ........................................................................14
1.6.3 Strategic CSR and corporate objectives (1990’s) ...........................................15
1.6.4 Contemporary CSR: Aligning Social Goals with strategy ..............................16
1.6.5 The rise of sustainability ................................................................................16
1.6.6 A small reflection… ......................................................................................17
1.7 Comments: ............................................................................................................17
1.8 Case study: TRIDOS BANK .................................................................................18
1.8.1 Background ...................................................................................................18
1.8.2 Discussion questions .....................................................................................18
1.8.3 Background ...................................................................................................18
1.8.4 Discussion questions - answers ......................................................................19
1.8.5 What did we learn last time – Recap class 2 from class 1 ...............................20
2. Chapter 2: CSR and Stakeholder Theories.....................................................................23
2.1 Four theoretical perspectives .................................................................................23
2.1.1 Instrumental theory........................................................................................23
2.1.2 Political theory: .............................................................................................23
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, 2.1.3 Integrative theory: .........................................................................................24
2.1.4 Ethical theory: ...............................................................................................24
2.1.5 Which one do you consider as most important theory/perspective? ................25
2.1.6 Strength and weaknesses of 4 theories ...........................................................25
2.1.7 Exam question on deciding between the right theory .....................................26
2.1.8 Stakeholders engagement ..............................................................................27
2.2 Stakeholder Theoretical Perspectives ....................................................................27
2.2.1 Freeman’s Stakeholder Theory 1984 .............................................................27
2.2.2 Clarkson – 1995 ............................................................................................29
2.2.3 Common characteristics Freeman and Clarkson .............................................29
2.2.4 Rowley – 1977 ..............................................................................................29
2.2.5 Mitchell, Agle and Wood’s Model of Stakeholder Salience – 1997................30
2.2.6 Frooman’s Typology of Influence Strategies – 1999 ......................................31
2.2.7 Jawahar & McLaughlin – 2001 ......................................................................31
2.2.8 Hart & Sharma’s - 2004.................................................................................32
2.2.9 Sethi – 1979 ..................................................................................................34
2.2.10 Frederick’s - 2006 .........................................................................................35
2.2.11 Harrison, Bosse, Phillips – 2010 ....................................................................35
2.2.12 Clarkson’s Principles – 1995 .........................................................................36
2.2.13 Normative, Descriptive, Instrumental Stakeholder Theory .............................36
2.2.14 Conclusion table all theories (self-made) .......................................................38
2.3 Recap class 2.........................................................................................................39
2.3.1 CSR could be considered from four theoretical perspectives. Which ones? ....39
2.3.2 CSR has evolved and managing stakeholders has become an art. Which models
may you use to identify, prioritize, manage or engage stakeholders? .............................40
3. Theoretical Foundations and communication of CSR ....................................................42
3.1 CSR Strategies and Risk........................................................................................42
3.1.1 Organizational Risks: ....................................................................................42
3.1.2 Relational Risks ............................................................................................44
3.1.3 Mitigation Strategies for CSR Risks – applying generic principles ................45
3.2 Communicating CSR ............................................................................................47
3.2.1 Crucial role of CSR communicating ..............................................................47
3.2.2 Channels for CSR communicating .................................................................48
3.2.3 What is GRI ..................................................................................................49
3.2.4 What is CSRD ...............................................................................................55
3.2.5 ESG Definition and Scope .............................................................................56
3.2.6 Navigating the minefield of CSR Communications ........................................61
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, 3.3 What social enterprises can teach corporates .........................................................62
3.3.1 Communication for social enterprises ............................................................62
4. Case Study - Unilever’s Sustainability Plan (Group Work) ...........................................66
4.1 Paper – ChatGPT – Summary................................................................................66
4.1.1 Introduction ...................................................................................................66
4.1.2 Major Issues in Unilever ................................................................................66
4.1.3 Action been Taken to Achieve the Goals .......................................................67
4.1.4 Shortfalls of Unilever’s Strategy ....................................................................68
4.1.5 Alternative Solution of this New Strategy ......................................................69
4.1.6 Conclusion ....................................................................................................69
4.2 Class – Discussion and Answers ...........................................................................70
4.2.1 Strategy and Purpose .....................................................................................70
4.2.2 Social Impact and Human Rights ...................................................................71
4.2.3 Environmental Sustainability and Sourcing ...................................................73
5. Pitching ........................................................................................................................74
5.1 Why do we pitch ...................................................................................................74
5.1.1 To who are we pitch ......................................................................................74
5.1.2 Why are you pitching ....................................................................................74
5.1.3 Ask yourself ..................................................................................................74
5.1.4 Good versus Bad ...........................................................................................74
5.1.5 Pitching heuristics .........................................................................................75
5.1.6 Dealing with unreasonable people .................................................................76
5.1.7 What if you’re uncomfortable ........................................................................76
5.2 Needs – Approach - Benefits .................................................................................77
6. Social Entrepreneurship: ...............................................................................................78
6.1 Introduction / Concept ...........................................................................................78
6.2 Social Entrepreneurship ........................................................................................79
6.2.1 Link between social entrepreneurship and CSR .............................................79
6.2.2 Theoretical nuances of social entrepreneurship ..............................................80
6.2.3 Variety of Social Entrepreneurs on the For-Profit vs Non-Profit Spectrum ....81
6.3 Typology of S.E. ...................................................................................................84
6.3.1 Nine fundamental business models of social entrepreneurs (Alter, 2007) .......85
6.4 Social Entrepreneurs & measuring their impact .....................................................87
6.4.1 Social Impact Assessment .............................................................................87
6.4.2 Three pillars of SE theory of change ..............................................................87
6.4.3 Impact Value Chain .......................................................................................87
6.5 Developing a Social Business plan ........................................................................88
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, 6.6 Challenges and critical success factors of S.E. .......................................................89
6.6.1 SE – main challenges identified .....................................................................89
6.6.2 Challenges according to literature ..................................................................89
6.6.3 Support for the different needs.......................................................................91
6.6.4 How to support SE’s......................................................................................92
6.7 S.E. around the world ............................................................................................92
6.8 What is an ecosystem ............................................................................................93
6.8.1 Domains of the Entrepreneurship Ecosystem .................................................94
6.8.2 Interaction effects of sub ecosystems .............................................................95
6.8.3 Creating an ecosystem ...................................................................................96
6.8.4 Incubators......................................................................................................97
6.9 Conclusions ..........................................................................................................98
7. Ethical. Global, Developing and Cultural Aspects of CSR ............................................99
7.1 Ethical Principles ..................................................................................................99
7.1.1 Ethical definiton ............................................................................................99
7.1.2 Ethical principles – how to decide?.............................................................. 101
7.2 Decision-making framework ............................................................................... 102
7.2.1 Decision-making framework: Utilitarians .................................................... 102
7.2.2 Decision-making framework: Kantian ethics ............................................... 103
7.2.3 Decision making framework – virtue ethics ................................................. 103
7.3 Global, developing and cultural aspects of CSR .................................................. 104
7.3.1 Global, developing and cultural aspects - Challenges ................................... 105
7.3.2 Global, developing and cultural aspects – Opportunities .............................. 105
7.4 Interconnectivity between ethics, global strategies and cultural influences in CSR
107
8. Shared Value, ISO26000 And Managerial Systems of CSR ........................................108
8.1 Shared value Creation ......................................................................................... 108
8.1.1 Generic Business model: ............................................................................. 109
8.1.2 Creating shared value: ................................................................................. 110
8.1.3 Defining Shared Value Creation .................................................................. 111
8.1.4 CSV Framework.......................................................................................... 111
8.1.5 CSV VS CSR .............................................................................................. 111
8.1.6 Principles of sustainable business model:..................................................... 113
8.1.7 Case: Close The Gap ................................................................................... 113
8.2 ISO 26000: Core subjects and principles ............................................................. 115
8.2.1 ISO 26000 ➔ Maatschappelijk verantwoord ondernemen ........................... 116
8.2.2 SCOPE (SEE SLIDE).................................................................................. 116
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, 8.2.3 terms and definitions of CSR ....................................................................... 116
8.2.4 Recognizing social responsibility and engaging stakeholders ....................... 117
8.2.5 Different Core subjects and Issues topics ..................................................... 117
8.3 Managerial systems of CSR ................................................................................ 117
8.3.1 Definition ....................................................................................................117
8.3.2 Importance of IMS in modern business practices .........................................117
8.3.3 Levels of integration .................................................................................... 118
8.3.4 PDCA cycle (Plan Do Check Act) ............................................................... 118
8.3.5 Management ................................................................................................ 119
9. Governance................................................................................................................. 120
9.1 Sustainability battle ............................................................................................. 120
9.2 What about corporate sustainability? ................................................................... 121
9.2.1 Everyone is responsible: .............................................................................. 121
9.3 On voluntarism and the role of governments in CSR: Toward a contingency
approach: ........................................................................................................................ 122
9.3.1 Introduction:................................................................................................ 122
9.3.2 What is government? ................................................................................... 124
10. Critical review, the future of CSR, How to prepare for the exam ............................. 126
10.1 Topics discussed over the semester ..................................................................... 126
10.2 Exam .................................................................................................................. 126
10.3 The future of CSR ............................................................................................... 126
10.3.1 PESTEL framework to future of CSR .......................................................... 126
10.3.2 Main challenges of CSR .............................................................................. 127
10.3.3 Questions ....................................................................................................127
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