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SOCIAL VALUE

CSR

INDIVIDUAL ATTITUDE

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Value

• Social -- the principles, standards, or quality which guides human actions

• Economic -- the market or estimated worth of commodities

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Social Values• The quality (positive or negative) that

renders something desirable or valuable

From: http://en.wikipedia.org/wiki/Values

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Social Values• The quality (positive or negative) that renders something desirable or

valuable

• Principles, standards or qualities considered worthwhile or desirable by the person who holds them.

From: http://en.wikipedia.org/wiki/Values

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Social Values• The quality (positive or negative) that renders something desirable or

valuable• Principles, standards or qualities considered worthwhile or desirable

by the person who holds them.

• Those qualities of behavior, thought, and character that society regards as being intrinsically good, having desirable results, and worthy of emulation by others.

From: http://en.wikipedia.org/wiki/Values

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Social Values• The quality (positive or negative) that renders something desirable or valuable• Principles, standards or qualities considered worthwhile or desirable by the person who

holds them.• Those qualities of behavior, thought, and character that society regards as being

intrinsically good, having desirable results, and worthy of emulation by others.

• Values are our subjective reactions to the world around us. They guide and mold our options and behavior. Values have three important characteristics.– Developed early in life and are very resistant to change. – Define what is right and what is wrong. – Cannot be proved correct or incorrect, valid or invalid,

right or wrong. Values tell what we should believe, regardless of any evidence or lack thereof.

From: http://en.wikipedia.org/wiki/Values

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Enterprise value & social valueExcess Cash Generated,not including:• Grants and Subsidies• Expenses directly

associated with social mission=Enterprise Value

Blended Value

Expenses directly associated with social mission=Social Value

(Remove Long-Term Debt)

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Blended Value

Ble

nded

Valu

e

Economic SocialValueValue

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List of Values of Society

• Duty • Education (Right to, need of, value in) • Efficiency• Loyalty • Environmental, Concern for • Equal Opportunity • Equality • Rule of, Respect for Law • Respect for Others (individuals, cultures, races) • Respect for the Individual

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ATTITUDES determine

ALTITUDES

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ATTITUDE DEFINITION

• Attitude is a learned predisposition….

• Which shows a person’s tendency to respond to an..

• Object in a ….

• Consistently..

• Favourable or unfavourable manner….

• Within a given situation.

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Summing up….

• Where do attitudes come from?

• Information about an object• Affective reactions to an object• Learned responses to an object• Our own behaviour towards an object• Maybe our own genetic make-up

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What is an Attitude?

• Goldstein..”an evaluation of other people, objects, and issues.”

• Attitudes conceptualised to involve 3 components:

• Cognitive aspect (what you think about the object, person, issue);

• Affective aspect (how you feel about the object, person, issue);

• Behavioural aspect (how you act or react to the object, person, issue);

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0011 0010 1010 1101 0001 0100 1011COMPONENT CHARACTERISTICS EXAMPLES

Affect Emotional Reactions

“I like….”, “…..makes me angry”

Cognition Internalized mental representations, beliefs, thoughts

"My co-workers should ..."; -or- "If .... then ...."

Behaviour The tendency to respond or overtly act in a particular way toward the attitude object

"I always do ...."; -or- ".... makes me angry"

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Relevance to OB

• Our interest: job - related attitudes

• Job satisfaction• Job involvement• Organisational commitment

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0011 0010 1010 1101 0001 0100 1011Types of Attitudes

• Job satisfaction

• Job involvement

• Organizational

commitment

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Job Satisfaction

"the extent to which people like (satisfaction) or dislike (dissatisfaction) their jobs" 

Job satisfaction leads people to positive attitude.

Job dissatisfaction leads employee to negative attitude.

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Job Involvement

Employee involvement is creating an environment in which people have an impact on decisions and actions that affect their jobs.

This involvement increases ownership and commitment, retains your best employees, and fosters an environment in which people choose to be motivated and contributing.

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Organizational Commitment

Strength of the feelings of responsibility that an employee has towards the mission of the organization.

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ProductivityProductivity

AbsenteeismAbsenteeism

TurnoverTurnover

Job

Satisfaction

and Employee

Performance

Job

Satisfaction

and Employee

Performance

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Responses to Job Dissatisfaction

Destructive

Active

Passive

Constructive

Exit Voice

Neglect Loyalty

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The greatest discovery of my generation is that human beings can alter their lives by altering their attitudes of mind.William James (An American philosopher-1842-1910)

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Weakness of attitude becomes weakness of character.“Albert Einstein”

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If you can't change your fate, change your attitude.Amy Tan (Chinese author – 1980)

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Main Concepts of CSR

CSR (Carrol, 1979)

Firms have responsibilities to societies including economic, legal, ethical and discretionary (or philanthropic).

- See also DeGeorge (1999) on the “Myth of the Amoral Firm”

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Key Issues in CSR• Labour rights:

– child labour – forced labour – right to organise – safety and health

• Environmental conditions– water & air emissions– climate change

• Human rights

• Poverty Alleviation– job creation– public revenues– skills and technology

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Economic Responsibilities

Legal Responsibilities

Social Responsibilities

Ethical Responsibilities

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CSR Management:Management structure

Board of Directors

President & CEO

Group Presidents

Chief Financial Officer

VP of Human Resources

General Counsel

Corporate Responsibility

Officer

Steering Committee

Audit Committee of Board

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CSR Management:Plan, Do, Check, Act method

Plan

• Consult stakeholders

• Establish code of conduct

• Set targets

Do

• Establish management systems and personnel

• Promote code compliance

Check

• Measure progress

• Audit

• Report

Act

• Corrective action

• Reform of systems

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Sphere of Influence

Who – is to be influenced?

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CSR Management:Governing the value chain

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SOME EXAMPLES

• HUL(Hindustan Unilever Ltd.)

Project Shakti

To improving their livelihood and the standard of living in rural communities

• Dabur Sudesh-welfare Organisation

Jayanti Gramin Vikas Swarojgar Yogina

Initiative which was designed for the economic development and upliftment of families living below the poverty line.

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Mahindra & Mahindra:- (Nanhi Kali) To transform the lives of india through education.

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Implications for Development

• Affect of CSR – labour conditions (e.g. right to

organise, wages)– environmental controls– transfer of new management

techniques

Impact on economic development & national competitiveness???

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Implications for Development:is CSR good for growth?

“…[CSR] is liable to hold back the development of poor

countries through the suppression of employment opportunities

within them.”

David Henderson

“[CSR]’s adoption would reduce competition and economic freedom, and undermine the market economy.”