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Summary Definitions to study by heart

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Most important definitions of BS&S course, course grade: 8,5, to be combined with my other document of Lecture and Reading Summary

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  • 15 juni 2021
  • 14
  • 2020/2021
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linaknirsch1
Lecture 1:

CSR= “A concept whereby companies integrate social and environmental concerns in their business
operations and in their interaction with their stakeholders on a voluntary basis and in a context specific
way.” (Adapted from European Commission 2001 and Aguinis & Glavas, 2012)

CS (Corporate Sustainability)= means managing a firm in such a way that its activities meet the needs of
the present, without compromising the ability of future generations to meet their needs”.

CS und CSR definitions
Main elements?
1. Triple Bottom Line: economic, social & environmental dimensions, 2. Stakeholder, 3. Voluntary, 4. Context-
specificity, 5. Managing externalities/impacts, 6. Rooted in values and ethics

Ethical theories
Ethical Absolutism: There are eternal, universally applicable moral principles. Right and wrong are objective
qualities that can be determined. -- This is an extreme
• Traditional ethics tends to be absolutist

Ethical Relativism: Other extreme. Morality is context dependent and subjective. No universal right or wrong.
Moral judgement cannot be made from outside because it is culture dependent. (Descriptive relativism is just that
difficult cultures have different ethics)
• Contemporary ethics tends to be more relativest

Pluralism: In Between relativism and absolutism.
vv
Traditional Ethical Theories:

CONSEQUENTIALIST THEORIES= NON CONSEQUENTIALIST=
Theories that base moral judgements on the Theories that base the moral judgement on the
outcomes of a certain action underlying principles, not because of the consequences
If the outcome is desirable then it was morally it produces Ethics of duty, Ethics of right and justice
okay, if not it wasn't Egoism, Utilitarianism

Egoism= maximize out utility, pursuing own interest Ethics of right and justice= respect basic rights; choosing
under the “veil of ignorance” respect for human beings

Utilitarianism= maximze collective utility; pursuing Ethics of duties= categorical imperatives: act only according
interests of the community to that maxim by which you can at the same time will that it
should become universal law Man in rational moral actor

, Ecological responsiveness= “a set of corporate initiatives aimed at mitigating a firm’s impact on the natural
environment”.

Four drivers of ecological response:
• Legislation
o Escalating penalties, fines, legal costs.
• Stakeholder pressures
o Managers can avert negative attention and build stakeholder support by being responsive (but
this has little effect)
• Economic opportunities
o By intensifying production processes firms reduce their environmental impacts while
simultaneously lowering the costs of inputs and waste disposal. Revenues can be improved
through green marketing
• Ethical motives
o Respond because it is the right thing to do

Three motivations for corporate ecological responsiveness:
• Legitimation
o Desire for firm to improve the appropriateness of its actions within an established set of
regulations, norms, values or beliefs
o Complying with institutional norms regulations “compliance”
o Not proactive but reactive
o Focused on the stakeholders most influential in prescribing or articulating legitimacy concerns
o Reduce the costs and risks of non compliance
o Meet standards rather than exceed them
• Ecological responsibility
o Motivation that firm has for its social obligations and values - right thing to do
o High employee morale and
satisfaction are short term benefits
• Competitiveness
o Efficiency gains
o Pay more attention to cost benefit
analysis
o Social initiatives are only
undertaken if they enhance a firm's
financial performance

Three relevant contexts of these motivations:
- Ecological context:
Issue salience= Extent to which a specific ecological issue has meaning for organizational constituents
(Certainty, transparency, and emotivity)
- Organizational field context:
Field cohesion= Intensity and density of formal and informal network ties between constituents and the
organizational field
- Individual context:
Individual concern= Degree to which organizational members value the environment and the degree of
discretion they possess to act on their environmental issues

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