EWMBA 207B

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EWMBA 207B

• 5th Lecture April 17
• Ellen Weinreb

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Agenda for Class 5

• 600-615 Lecture and Final Paper
• 615-645 Merck Discussion
• 645-700 Videos
• Merck
• Johnson Johnson
• 700-715 Wrap Up Discussion
• 715-730 Evaluations

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Topline Findings
April 15, 2003
Topline Findings from the 2003 CSR Monitor
Research Program
date
test

• 12,000
• 21,000 interviews across 21 countries with
  consumers, shareholders and employees

Presented byChris Coulter,Director, CSR Monitor
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Trust in Institutions to Operate in Societys
Best Interests
2002
Proportional Global Ratings (n36,000 across 47
Countries)
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Role of Large Companies in Society
1999 - 2003
Average of G20 Countries Surveyed
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Is CSR about Opportunity or Avoiding Costs?
August 2002
Survey of 212 Business Leaders Across 50 Countries
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Companies Communicate Honestly aboutTheir CSR
Performance
2003
Average of G20 Countries Surveyed
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The Reputation Driver An Issues Management
Research Tool by Environics International
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Key Take Aways

• A crossroads around globalization CSR is
  critical
• Expect intensification of anti-globalization
  movement
• NGO engagement/partnerships are vital
• Perceptions of CSR affected by fiduciary
  responsibility agenda, declines in corporate
  trust, etc.
• Consumer behavior is volatile, but expectations
  remain significant and consistent
• Opportunity for leadership within grasp, but
  challenges exist around communications
• Time to go on the offensive - build credible
  programs, increase communications, and get
  serious about understanding what matters to
  stakeholders

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Merck
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Source Ellen Weinreb interview with Brenda
Collatrella at Merck, August 2001
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Is it ethical?(To answer, weigh the effects on
customers, employees, the community, the
environment, and suppliers against the benefit to
the shareholders?)
Yes--------------gt Do It
No--------------gt Dont do itt
Yes---------gt
Does it maximize shareholder value?
Yes--------------gt Dont do itt
No-----------gt
Would it be ethical not to take action? (To
answer, weigh the harm or cost that would be
imposed on shareholders against the cost and
benefits to other stakeholders
Do it but disclose the effect of the action on
shareholders.
No---------gt
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• We try not to forget that medicine is for the
  people. It is not for the profits. The profits
  follow, and if we remembered that, they have
  never failed to appear. The better we have
  remembered it, the larger they have been.
• George W. Merck, son of founder and former Chair,
  Merck

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Key Learning Points Merck

• Employees are critical moral claimants
• A corporations culture shapes its values
  consistency matters
• A corporations social responsibility should be
  linked to its core competence.
• Corporations have more potential to behave
  ethically than they often realize.
• Good Ethics may not pay but bad ethics costs