The CSR Newsletters are a freely-available resource generated as a dynamic complement to the textbook, Strategic Corporate Social Responsibility: Sustainable Value Creation.

To sign-up to receive the CSR Newsletters regularly during the fall and spring academic semesters, e-mail author David Chandler at david.chandler@ucdenver.edu.

Monday, May 11, 2020

Strategic CSR - Sustainable Value Creation

 
This is the last CSR Newsletter of the Spring semester.
Have a great summer and I will see you in the Fall!
 
 
Over the summer, I am happy to announce I will have a new book published by Routledge, titled Sustainable Value Creation. The book's website was recently launched:
 
 
This is the second edition of a book that I had previously published as part of the UN PRME book series at Business Expert Press. It is much shorter than my Sage book and not a traditional textbook format. I use it in my Executive MBA course and find the shorter format works well. The cover is below and the TOC is below that, FYI. If anyone has any questions, please let me know.
 
 
Hope you all have a great summer.
Take care
David
 
David Chandler
© Sage Publications, 2020
 
Instructor Teaching and Student Study Site: https://study.sagepub.com/chandler5e 
Strategic CSR Simulation: http://www.strategiccsrsim.com/
The library of CSR Newsletters are archived at: https://strategiccsr-sage.blogspot.com/
 

Sustainable Value Creation: ToC
 
Introduction:  Corporate Social Responsibility
  • Defining CSR
  • Measuring CSR
  • Profiting from CSR
  • Sustainable Value Creation

Principle I:  Business is social progress
  • For-profit firms
  • Business is ethical and moral
  • Self-interest and public interest

Principle 2:  Shareholders do not own the firm
  • Limited liability
  • A legal person
  • The business judgment rule
  • Stakeholders, not shareholder

Principle 3:  Prioritizing competing stakeholder interests is difficult
  • Stakeholder theory
  • Prioritizing stakeholders
  • A decision-making model

Principle 4:  CSR is a stakeholder responsibility
  • Corporate social responsibility
  • Corporate stakeholder responsibility
  • Stakeholder democracy 

Principle 5:  Market-based solutions are optimal
  • Imperfect markets
  • Unintended consequences
  • Behavioral economics

Principle 6:  Profit = total value
  • Economic value + social value
  • Profit optimization
  • Production value and consumption value

Principle 7:  The free market is not free
  • Free markets
  • Externalities
  • Lifecycle pricing

Principle 8:  Only business can save the planet
  • Sustainability
  • Waste
  • Materialism
  • Scale

Principle 9:  Value creation is not a choice
  • Not philanthropy, but core operations
  • Not caring capitalism, but market capitalism
  • Not sharing value, but creating value

Principle I0:  The business of business is business
  • Milton Friedman
  • The purpose of the firm

Conclusion:  Sustainable Value Creation
  • Defining SVC
  • Enlightened management
  • Final thoughts

Thursday, May 7, 2020

Strategic CSR - COVID-19 (II)

As Governor of the Bank of England, from 2013-2020, Mark Carney did much to focus attention on the growing financial implications of climate change for businesses (and, by extension, governments). The article in the url below shows how he continues to use his platform (post-BofE) to advance related issues—in this case, discussing the potential economic implications of COVID-19. In particular, he touches on a debate I have long struggled with—determining where 'value' ends and 'values' begin:
 
"Value will change in the post-covid world. On one level, that's obvious: valuations in global financial markets have imploded, with many suffering their sharpest declines in decades. More fundamentally, the traditional drivers of value have been shaken, new ones will gain prominence, and there's a possibility that the gulf between what markets value and what people value will close."
 
Carney was invited to write this column by The Economist and uses the opportunity to advance an idea originally put forward by the philosopher, Michael Sandel:
 
"This points to a final, deeper issue. … in recent decades, subtly but relentlessly, we have been moving from a market economy to a market society. Increasingly, to be valued, an asset or activity has to be in a market. For example, Amazon is one of the world's most valuable companies, yet the Amazon region appears on no ledger until it is stripped of its foliage, and converted to farmland. The price of everything is becoming the value of everything."
 
Carney sees the shared commitment and sacrifice that characterized the overwhelming public response to COVID-19 as an indication that this imbalance may be shifting:
 
"This crisis could help reverse that relationship, so that public values help shape private value. When pushed, societies have prioritised health first and foremost, and then looked to deal with the economic consequences. In this crisis, we know we need to act as an interdependent community not independent individuals, so the values of economic dynamism and efficiency have been joined by those of solidarity, fairness, responsibility and compassion."
 
At a more fundamental level:
 
"All this amounts to a test of stakeholder capitalism. When it's over, companies will be judged by … how they treated their employees, suppliers and customers, by who shared and who hoarded. After the covid crisis, it's reasonable to expect people to demand improvements in the quality and coverage of social support and medical care, greater attention to be paid to managing tail risks, and more heed to be given to the advice of scientific experts."
 
Hmmm. I hope so, but we'll see. The key, of course, is the extent to which we will remember and will reward those "who shared" and punish those "who hoarded." The ultimate test, as Carney argues, is and will continue to be climate change:
 
"The great test of whether this new hierarchy of values will prevail is climate change. After all, climate change is an issue that (i) involves the entire world, from which no one will be able to self-isolate; (ii) is predicted by science to be the central risk tomorrow; and (iii) we can only address if we act in advance and in solidarity."
 
Take care
David
 
David Chandler
© Sage Publications, 2020
 
Instructor Teaching and Student Study Site: https://study.sagepub.com/chandler5e 
Strategic CSR Simulation: http://www.strategiccsrsim.com/
The library of CSR Newsletters are archived at: https://strategiccsr-sage.blogspot.com/

Putting values above valuations
By Mark Carney
April 18, 2020
The Economist
Late Edition – Final
52
 

Monday, May 4, 2020

Strategic CSR - Disney

The article in the url below says something interesting about our society. At least, it says something about Disney, the company, and the place it holds in people's minds (and hearts):
 
"At 7:30 in the morning on a recent Saturday, 14 people gathered on the 10th floor of Disney's Riviera Resort in Orlando, Fla. … These 14 adults — a mix of stay-at-home moms, young professionals without children and middle-aged parents from across the country — aren't just Disney fans. They are now considered experts."
 
They are experts because they had been selected and trained for part-time jobs helping holidayers plan their vacations with Disney. But, they are not only experts – these people are serious fans. Given the current shut-down of, essentially, the whole vacation industry, Disney will need fans like this when everything starts back up again:
 
"During breakfast, Mickey Mouse walked into the restaurant and most members of the group rushed to give him a hug and take photos. When Minnie Mouse arrived, others got up, complimented her dress, hugged her and asked for pictures. Group shots, selfies and posed photos were all taken. By 8:15 a.m., when Donald and Daisy Duck arrived, the panelists were too excited to contain themselves — they clapped and danced to the music as the characters put on a performance."
 
And, because there are so many fans out there, this was not an easy job to get. First, there was the training:
 
"The group had been together in Orlando since Wednesday, receiving training about how to be panelists. They learned how to ask each other for help, how to answer a question politely, how to urge someone to try something new."
 
But before that, there was the application process:
 
"They beat out more than 10,000 other applicants to become members of the 2020 Disney Parks Moms Panel, a website where people planning to go on a Disney cruise, or visit a Disney park or Disney Vacation Club in the United States, can ask questions and get responses from these experts. The company will announce the panelists on Wednesday morning. Eleven of this year's new panelists are women, three are men and two are not parents. The panel also has an additional 28 panelists returning from previous years."
 
OK, that's a little weird but, so far, so good, right? Or, maybe it gets weirder. What is interesting about this particular job is not so much what is expected of each employee, but their compensation package:
 
"The panelist position, while a Disney contractor role with an intensive application process, is not paid. In exchange for answering these questions every week, the panelists get a free stay at a Disney park or vacation club of their choice for five nights and can bring three people along. For this group, the trip is more than enough payment."
 
The idea that avid 'fans' would work for Disney for free reminded me of a Southwest case that I teach in my strategy class where the firm's passengers routinely take paid holidays from their jobs to help Southwest recruit new flight attendants. When asked why in the case, one respondent says, "Well, this is my airline, too." I am always left amazed that you just can't buy an endorsement like that. Who would do that for United, American, or Delta? And, what does it say about Southwest (and Disney for that matter) that that is the case? At some level, it has to speak to the culture the organization has created, combined with the meaningfulness that we crave in our lives. Those firms that can create significant overlap between the way we work and the way we live are doing something special:
 
"For [the] panelists, who like Dr. Chlon work full-time, working for Disney in this capacity is something of an honor. It's also an opportunity to contribute to a company that has sentimental and nostalgic meaning."
 
And that enthusiasm is conveyed through these volunteers:
 
"This is why the panelists aren't paid, according to [Leanne O'Regan, director of public relations for Disney Parks, Experiences and Products]. There is an 'authenticity of getting advice from someone who isn't being paid to give you advice,' she said. 'We want them to be honest when they answer questions.'"
 
On the other hand, however, this story also reminded me of the AoM meeting that was held a few years ago in Orlando at Disney World, and what an unmitigated disaster it was. Disney is, if nothing else, a company created by management consultants. And their attempts to get us to part with more money than we would otherwise voluntarily do was so transparent as to be insulting. Maybe it is the cynic in me, but every time someone at Disney told me to have "a wonderful Disney day," my heart sank. Clearly, however, many people out there are not management professors and simply love what it is that Disney does:
 
"This year, Disney put out the call for applications in August and kept the application portal open for one week in September. Many people apply for years before becoming panelists. Tamela Hansen, 45, finally made it onto the panel after 12 years of applying. Ms. Hansen said that she feels like she has been preparing to be a panelist for her whole life; she knew her time would eventually come. After all, she has been to Disney World from Alabama, where she grew up and currently lives, at least 100 times."
 
My question, therefore: Is Disney different from Southwest, or are they both tapping into something similar and fundamental? If so, why do I (largely) enjoy interacting with Southwest (apart from some of those annoying safety videos on YouTube), while Disney makes me feel weird?
 
Take care
David
 
David Chandler
© Sage Publications, 2020
 
Instructor Teaching and Student Study Site: https://study.sagepub.com/chandler5e 
Strategic CSR Simulation: http://www.strategiccsrsim.com/
The library of CSR Newsletters are archived at: https://strategiccsr-sage.blogspot.com/

Work for Disney without Pay? 10,000 Applied
By Tariro Mzezewa
January 19, 2020
The New York Times
Late Edition – Final
TR1, TR8