Summary Strategic Corporate Social Responsibility by David Chandler 5th Edition, Chapter 1-12

In Part I, the first two chapters of Strategic CSR lay the foundation for the book. In particular, Chapter 1 defines CSR, providing detail about where this subject came from and how it has evolved. In discussing this history, four arguments for CSR are presented (ethical, moral, rational, and economic), which cover the breadth of how this subject has traditionally been taught. Chapter 2 builds on this foundation to discuss the key drivers of CSR today—affluence, sustainability, globalization, communication, and brands. As each driver has become a defining characteristic of business, it increasingly alters stakeholder expectations of the for-profit firm. Part II reflects the importance of a stakeholder perspective to the intellectual framework underpinning strategic CSR. Though firms are economic entities that exist to meet specific operational goals, the most effective way to achieve these goals is by considering the needs and values of the broad range of groups that have a stake in the outcome. Chapter 3 launches this argument by defining who qualifies as a stakeholder and by presenting the core model that describes the relationships these actors have with firms. Moreover, Chapter 3 presents a model that allows managers to prioritize among stakeholders when their interests conflict. Chapter 4 extends stakeholder theory further by arguing that, in addition to firms’ duty to listen to their stakeholders, stakeholders have an equal (if not more important) responsibility to hold firms to account for their actions. 40 Part III is new to the fifth edition of Strategic CSR and presents a legal perspective. Chapter 5 opens this discussion by investigating the evolution of corporate rights and responsibilities (what the firm can do and what it has to do) in the context of corporate governance. By understanding this historical and legal framework, we better understand firms’ motivations and guiding principles. Chapter 6 extends this discussion by revealing the history of the corporation in order to challenge the myth that prevents the widespread adoption of a stakeholder perspective—that the fiduciary responsibility of managers and directors is to operate the firm in the interests of its shareholders. In the United States (and many other countries), this widespread belief is not grounded in legal reality. Part IV explores CSR from a behavioral perspective—a nonrational (i.e., human) explanation for organizational actions. In particular, Chapter 7 discusses the motivating role of profit in the broader discussion about capitalism that emerged following the Financial Crisis—investigating the extent to which our current economic model should be reformed. It also challenges the common refrain that firms have long focused on producing economic value and today must also produce social value. In reality, there is no economic value and no social value—there is only value, which the firm creates (or destroys) for each of its stakeholders. Chapter 8 introduces the concept of behavioral economics and discusses how this exciting field can advance the value creation process. This chapter also looks at the variety of ways in which we measure CSR, a task that is essential in order to hold firms to account for their CSR performance. Before we can develop an effective CSR measure, however, all costs need to be included in the production process. This is achieved via the concept of lifecycle pricing. Part V reflects the origins of strategic CSR. Although the ideas discussed in this book are relevant across functional areas in the business school, they find a natural home within strategic management. Chapter 9 introduces the discussion at the intersection of strategy and CSR by examining the three pillars of strategy—analysis, formulation, and implementation. It discusses why traditional analytical tools (principally, the resource and industry perspectives) are no longer sufficient to succeed in business today and why a CSR perspective is increasingly essential. Further, it introduces the concept of the CSR Threshold, which helps with both strategic analysis and strategy formulation, and explains 41 how a CSR Filter enables decision making as part of strategy implementation. Chapter 10 extends this discussion by defining strategic CSR in terms of its five foundational components—incorporating a holistic CSR perspective within the firm’s strategic planning and core operations so that the firm is managed in the interests of its broad set of stakeholders to optimize value over the medium to long term. Part VI concludes Strategic CSR by demonstrating how firms can embed a strategic CSR perspective throughout the organization by building values-based businesses that serve the interests of their broad range of stakeholders. Chapter 11 leads off this section by investigating the origins of sustainability and its relevance to firms today, but also highlighting the inadequate efforts made to date to create an environmentally sustainable economy. Chapter 12 rounds out Part VI by summarizing the ideas discussed in this book in terms of the ultimate outcome of strategic CSR—sustainable value creation. Also new to this edition, the appendix tackles the challenge of implementing a strategic CSR perspective throughout the firm. While the first six parts of the book detail the key components of the strategic CSR framework, ultimately this book is a practical tool. It is intended to equip managers and executives with the knowledge they need to run the firm in the interests of its broad set of stakeholders. To this end, it is just as important to be able to do strategic CSR (to implement it) as to know what it is. Case Studies The case studies that complete the first five parts of Strategic CSR reflect the extent to which CSR affects all aspects of a firm’s operations. Part I finishes with a discussion about the prominence of religion in society and business, and the emergence of Islamic finance. The stakeholder perspective in Part II is complemented with a case study that emerges from the crisis of capitalism that occurred in the aftermath of the Financial Crisis. The new Part III contains a case study that looks at our evolving perceptions of the media (in particular, social media), and the implications for privacy of the rise of firms such as Facebook. A case study about social i