SRGG

• formal system of oversight, accountability and control for organizational decisions and resources

  Corporate Governance
• system of rules, practices and processes by which a company is directed and controlled

  Corporate Governance
• places the board of directors in position to balance the interest and conflicts

  Stakeholder Model
• U.S SEC is formed to allow shareholder resolution to be brought to a vote of all shareholders

  1932
• goal of business is to align the interest of principals and agents

  Mid 1900s
• board of directors play a greater role in strategy formulation

  Mid 1990s
• maximizes wealth for investors and owners

  Shareholder Model
• develop and improves the formal system of performance accountability of management and shareholders

  Shareholder Model
• aligning investor and management interest

  Shareholder Model
• consider the interest of employees, suppliers, government and communities

  Stakeholder Model
• focuses on continuous improvement, accountability and engagement with internal and external

  Stakeholder Model
• assume legal responsibility for firms resources and decisions

  Board of Directors
• monitor decisions made by managers

  Board of Directors
• set of standards for a companys operation that socially conscious investor use to screen invesments

  ESG
• evaluate environmental risk that might affect companys income

  Environmental Criteria
• look at the companys business relationships

  Social Criteria
• used to safeguard corporate assets and resources and protect the reliability of organizational information

  Controls
• basis for an effective corporate governance framework

  OECD
• failure to understand and manage ethical risks in 2008-2009

  Financial Misconduct
• concern of businesses for the welfare of the society

  Social Responsibilities
• the adoption by a business of a strategic focus for fulfilling the economic, legal, ethical and philanthropic responsibilities expected by stakeholders

  Social Responsibilities
• formal commitment from top management

  Adopts a Strategic Focus
• depends on collaboration and coordination of business

  Adopts a Strategic Focus
• large companies create specific positions and departments for social responsibility programs

  Adopts a Strategic Focus
• provides ROI for owners

  Fulfills Societal Expectations
• obeys the law and regulatory agencies

  Fulfills Societal Expectations
• this approach recognize other stakeholders and explicitly acknowledges the dialog

  Stakeholder Orientation
• pressure that a stakeholder exerts on managers and organization

  Urgency
• extent to which coercive, utilitarian or symbolic means can be used to impose stakeholders view on organization

  Power
• process of handling a high impact event characterized by ambiguity and need for swift action

  Crisis Management
• denying responsibilities and doing less than required

  Reactive Behavior
• accept responsibility and doing only what is required

  Accomodative Behavior
• Business self-regulation with the aim of being socially accountable

  Corporate Social Responsibility
• Is a manifestation of a business recognition of a duty to the world and the potential to be a power for good

  Corporate Social Responsibility
• When was the CSR began?

  late 1800
• The term "Corporate Social Responsibility" coined on what year

  1953
• During this year CSR was limited to human and labor rights, pollution and waste management

  1980
• 90% of consumers would purchase a product because a company supported an issue they care about
• 75% of consumers would refuse to buy a product if the company has different stance on issue
• It demonstrates on organizations hierarchy of responsibilities

  Carroll's Pyramid of CSR