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CEO CSR Activities Discussion Questions

Discussion Questions

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21 views

CEO CSR Activities Discussion Questions

Discussion Questions

Uploaded by

freds32malingu
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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CEO CSR Activities Discussion Questions

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Question 1 Discussion
Companies engage in corporate social responsibility (CSR) activities to demonstrate their
concerns as corporate citizens who care about the sustainability of the planet. Through their
sustainability reporting, these companies based on the direction of their chief executive officers
(CEOs) engage in CSR activities to show their concern for the communities they serve and, their
need to protect and sustainably use the planet and its resources. However, CEOs who emphasize
CSR activities can suffer since the core role of any business enterprise is to increase its bottom
line or profits and create shareholder value (Furhrmans, 2017). The financial performance
aspects of the company focus on increasing shareholders' value through increased profitability.
Opponents of CSR argue that resources diverted to CSR initiatives may not yield short-term
returns or might have negative effects on the firm's profitability. The implication is that CSR
diminishes the shareholders' value and expectations to get returns from their investment.
Therefore, CEOs must balance these aspects and engage in necessary activities like CSR since
when the company's financial performance suffers, shareholders will hold the CEO responsible
and accountable for the wrong priorities.
Stakeholder pressure and confusion may also contribute to the CEO's backlash for
concentrating on CSR activities at their expense. For instance, investors prioritize profits over
CSR activities and if such activities do not align with return on investment (ROI) they will seek
the removal of the CEO. On their part, employees as internal stakeholders have expectations
concerning such activities (Furhrmans, 2017). Therefore, when the CEO fails to meet these
expectations and the CSR initiative negatively impacts their job security and benefits, they could
get dissatisfied and reduce their productivity and performance.
Question 2: Protection of CEO
CEOs who participate in CSR activities focus on both the short and long-term goals and
objectives of the organization. However, their engagement in CSR requires protection as
described in the article to avoid unceremonious exits from the company. The first step is to
develop an organizational culture that values CSR and provides a policy framework that can be
shared with all stakeholders concerning the role of the CEO in implementing such activities
(Yan, 2019). The policy should establish clear metrics to evaluate the impact of CSR initiatives
on the performance of the organization and the fulfillment of stakeholders' expectations. Through
the policy, stakeholders, especially shareholders can understand and appreciate the role of CSR
activities. The second step is effective communication to ensure transparency and embracing of
the CSR initiative by all stakeholders to address any concerns and confusion that they may have
when the companies implement such activities. The CEO and the company must effectively
articulate the value of CSR activities and how they align with the company's core values,
mission, and strategic objectives. Thirdly, the engagement of shareholders through effective
communication and their participation will ensure that the CEO and the company get their
support for the CSR initiatives.
The motivation for the protection of the CEO who invests in CSR programs emanates
from recognition of the long-term positive effects of such investment on the company, its
shareholders other stakeholders, and society. Through the integration of CSR into the company's
policy and organizational culture, the company will reduce and mitigate its risks. The company
will enhance its reputation as a concerned corporate citizen keen on protecting the environment
and its inhabitants (Lee et al., 2022). CSR activities are long-term initiatives that enhance the
reputation of companies and CEOs who implement them mean well for the organization's
profitability and continued performance.
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References
Furhrmans, V. (2017 October 17). When Doing Good Ends Badly for CEOs. Social
responsibility can protect executives during prosperity, and endanger them when profits
fall.
Lee, S. M., Sinha, P. N., Bae, J. E., & Lee, Y. K. (2022). Does CEO tenure moderate the link
between corporate social responsibility and business performance in small and medium-
sized enterprises? Frontiers in Psychology, 13, 1037245. DOI:
10.3389/fpsyg.2022.1037245
Yan, M. (2019). Corporate Social Responsibility versus Shareholder Value Maximization:
Through the Lens of Hard and Soft Law. Northwestern Journal of International Law and
Business, 40(1). https://scholarlycommons.law.northwestern.edu/njilb/vol40/iss1/2

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