MGMT 3020 Chapter 2: Textbook notes Topic 1.1 - chapter 2
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Topic 1.1 Text Book Notes (Ch 2)
The Driving Forces of CSR
Affluence – The state of having a great deal of money, wealth
•affluent societies, where people have jobs, savings and security and can afford to choose
between, for example a low-cost polluting car or a high cost clean car.
•This type of society allows for more strict green policies to protect the environment
•affluence leads to a more civil society, which leads to more rapidly shifting attention to
Sustainability – the ability to be maintained at a certain rate or level
•heightened affluence and changing societal expectations is enhanced by a growing concern for
•stakeholder awareness of sustainability issues will ensure that companies concerned with the
issues and making a difference within their business model to make an effort for change will
prosper compared to companies not making an effort to change.
Globalization - the process by which businesses or other organizations develop international
influence or start operating on an international scale.
•Magnifies the complexity of the business, adding new laws / regulations, social norms that must
be understood, and new stakeholders with vastly different cultures and ideas
•use of the internet allows stakeholders affected by the global companies to communicate and
keep the company in check
•transforms the CSR debate because a domestic view is no longer the only lense with which CSR
should be viewed
•globalization allows stakeholders across different cultures to express their concerns directly
•Firm that exhibit openness have found that they can better compete for profitable
•firms that appear adaptive and responsive to societal claims will be ever more successful
•the growing influence of the internet ensures that CSR lapses are brought public instantly and
can cause irreversible damage to companies
•the internet has empowered individuals because of the vast amounts of information we have
•brands are a focal point for companies, being a good brand in the consumers mind gives them a
•the best was for a firm to protect it’s brand is to invest in a CSR perspective throughout its
•brands are built: based on ideals, perceptions and concepts that usually appeal to stakeholders’
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