Strategic Corporate

Social

Responsibility

Stakeholders, Globalization, a/icZ

Sustainable Value Creation

Third Edition

David Chandler
University of Colorado Denver

William B. Werther, Jr.

University of Miami

USAGE
Los Angeles |London |New Delhi
Singapore |Washington DC

TABLE OF CONTENTS

List of Figures

CSR Newsletters

xii

Glossary of Terms
CSR Terms
Strategy Terms

xv
xv
xxi

Foreword by Mallen Baker

xxiv

Preface: Why CSR Matters

xxvii

Plan of the Book

xxxvi

Acknowledgements
Notes and References
Part I: Strategic Corporate Social Responsibility
Chapter 1: What is CSR?
Corporate Social Responsibility
Strategy and CSR
The Evolution of CSR
Culture and Context
Foundations of CSR
An Ethical Argument for CSR
A Moral Argument for CSR
A Rational Argument for CSR
An Economic Argument for CSR
Five Driving Forces of CSR
Affluence
Sustainability

xl
xlii
1
3
6
11
13
19
21
21
24
26
29
31
31
32

Globalization
Media
Brands
Next Steps
Questions for Discussion and Review
Notes and References
Chapter 2: Strategy + CSR: A Stakeholder Perspective
What is Strategy?
Competing Strategy Perspectives
The Resources Perspective
Limitations of the Resources Perspective
The Industry Perspective
Limitations of the Industry Perspective
A Stakeholder Perspective
Prioritizing Stakeholders
The Integration of Strategy and CSR
Combining the Resources and Industry Perspectives
Integrating CSR
Strategic CSR
CSR Perspective
Core Operations
Stakeholder Perspective
Medium to Long Term
Next Steps
Questions for Discussion and Review
Notes and References
Chapter 3: CSR: Whose Responsibility?
CSR: A Corporate Responsibility?
Milton Friedman vs. Charles Handy
CSR: A Stakeholder Responsibility?
Caring Stakeholders
Proactive Stakeholders
Transparent Stakeholders
The Walmart Paradox
Is Walmart Good for Society?
Prices
Suppliers
Jobs
Competitors
Quality and Variety

32
32
34
34
35
36
44
45
46
47
48
49
52
53
56
61
61
62
65
65
67
68
69
76
76
77
84
87
87
89
93
96
98
102
105
106
107
108
109
110

Walmart Is No. 1 ... Today

Walmart and Sustainability
Walmart and Greenwash
So, Whose Responsibility is CSR?
Next Steps
Questions for Discussion and Review
Notes and References

111
112
117
120
122
123
124

Chapter 4: CSR as a Strategic Filter

CSR + A Strategic Lens
The CSR Filter
Structure
Competencies
Strategy
CSR Filter
Environment
The Five Driving Forces of CSR
Affluence
Sustainability
Globalization
Media
Brands
The Market for CSR
CSR Price Premium
CSR Market Abuse
Strategic CSR
Next Steps
Questions for Discussion and Review
Notes and References

133
134
135
137
138
139
141
142
144
145
148
151
156
163
165
165
167
169
172
173
173

Chapter 5: Implementing CSR

The CSR Threshold
Variation Among Companies
Variation Among Industries
Variation Among Cultures
CSRIntegral to the Firm
Implementation: Short to Medium Term
Executive Investment
CSR Officer
CSR Vision
Performance Metrics
Integrated Reporting
Ethics Code and Training

181
181
183
186
187
190
191
191
194
197
198
199
203

Ethics Helpline
Organizational Design
Implementation: Medium to Long Term
Stakeholder Involvement
Manage the Message
Corporate Governance
Activism and Advocacy
Implementation: Embedding CSR
Strategic Planning
Firm Action
Conscious Capitalism
Values-based Business
Next Steps
Questions for Discussion and Review
Notes and References

205
206
206
206
207
208
209
210
212
213
214
216
222
222
223

Part II: CSR: Issues and Case-studies

233

Chapter 6: Organizational Issues and Case-studies

Corporate Governance
Case Study: Split CEO/Chair
Corporate Rights
Case Study: Citizens United
Employees
Case Study: John Lewis Partnership
Executive Pay
Case Study: Stock Options
Investor Activism
Case Study: Social Impact Bonds
Social Entrepreneurship
Case Study: The Body Shop
Wages
Case Study: McDonald's
Notes and References

237
237
241
247
250
259
263
272
274
285
293
302
308
313
319
326

Chapter 7: Economic Issues and Case-studies

Corruption
Case Study: FCPA
Ethical Consumption
Case Study: Conflict Minerals
Ethical Sourcing
Case Study: Starbucks
Financial Crisis
Case Study: Countrywide

347
347
351
360
371
378
385
391
398

Microfinance
Case Study: Grameen Bank
Profit
Case Study: Unilever
Supply Chain
Case Study: Foxconn
Notes and References

406
406
417
421
428
434
440

Chapter 8: Societal Issues and Case-studies

Accountability
Case Study: Lifecycle Pricing
Compliance
Case Study: Nudge
Corporate Responsibilities
Case Study: Benefit Corporations
Media
Case Study: CNBC
Religion
Case Study: Islamic Finance
Sustainability
Case Study: e-Waste
Values
Case Study: Ben & Jerry's
Notes and References

463
463
473
480
485
493
497
506
508
515
524
535
544
554
561
567

Company Index

591

Subject Index

594

About the Authors

616