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References for Questions (A-F) come from Part 7: Implementation,…
References for Questions (A-F) come from Part 7: Implementation, Strategy, and Stakeholder Duties from Business Ethics: 100 Questions (https://boisestate.pressbooks.pub/businessethics/part/duties-ethics-and-strategy/)
[A]
For the company COTY Inc., what are its core business operations? What value do they bring to its customers?
For two of COTY Inc’s., stakeholders, what value do these core operations bring? (Examples of COTY Inc., stakeholders are shareholders/investors, customers, employees, suppliers, and retail partners).
[B]
For the company COTY Inc., find the company’s vision and/or mission statement. How do the company’s core operations implement these statements? If you can’t find specific statements, infer what the company would likely consider its vision or mission based on the information available.
Consider an issue or challenge the company COTY Inc., is facing. How might viewing that issue through a lens of ethics or stakeholder theory influence the company’s strategy or tactics?
[C]
Compare what it takes to enter the market of vehicle manufacturing versus app development. Which market is more likely to see a new entrant if existing firms are not responsive to stakeholders?
[D]
Consider the purchasing decisions of a typical college student. What role do each of the principles from behavioral economics above play in these decisions?
[E]
Milton Friedman’s response to the discussion below (Can stakeholder and shareholder interests align?) might be that business do create social value when they create economic value, because economic value only exists it creates value for consumers. How might you respond?
External reference: Can stakeholder and shareholder interests align?
Yes! The central tension throughout this text has been the exploration of how profit-seeking behaviors and fiduciary theories compare and contrast with behaviors that create social value. These two principles face tension: for corporations, shareholder primacy has powerful sway over corporate imaginations, even if its legal roots have significant and debatable nuance. For other business entities, duties towards other owners may create similar concerns. While the law may not fully resolve the tension between creating business and social value, the principles in this text can be applied to remove the dichotomy itself. As companies respond to their stakeholders, implement ethical practices, and practice strategic philanthropy, they can create economic and social value at the same time. Responsiveness to consumers can create products that add value to their lives. Caring about employees as means rather than as ends can create loyalty and productivity. Listening to shareholders may help direct the company in profitable directions. Engaging local communities can avoid losing a social license to operate with its attendant benefits. Doing these things requires commitment, creativity, and long-term thinking, but the rewards are well worth the costs.
[F]
If you worked for a company that does not follow the principles (listed below), yet are not at the management level to make change, how might you as an employee incorporate the strategic principles from this Part?
Strategic practice of CSR / ESG issues goes beyond occasional charity work. It integrates these principles throughout the firm.
One way to implement these principles is through use of a “CSR Filter” which mediates the firms mission and vision, through the lens of stakeholders, to the firms strategy and tactics.
Many barriers exist towards fully resolving CSR concerns, such as information asymmetry, market power, consumer heuristics, and information salience.
To help overcome these challenges, both companies and individuals need to focus on integrating ethical behaviors deep into their routines, from the top of the organization down.
Corporate philanthropy can be a valuable tool to create both social and business value.
Ultimately, consumers determine the kind of business environment they wish to have through their purchasing decisions. Consumer social responsibility must accompany corporate social responsibility.
[G]
Please read the Harvard Business Review Coursepack: Competitive Advantage of Corporate Philanthropy. And answer the following question below.
(Links to an external site: https://hbr.org/2002/12/the-competitive-advantage-of-corporate-philanthropy)
1. Find an example of a local company in Boise, Idaho, practicing philanthropy. Use the reading to suggest whether it is strategic philanthropy or not, and why.
