Corporate Social Responsability in the Energy Field Conf. Univ. Dr. Corina Pelau Asist. Univ. Dr. Catalina Alexandra Chinie Corina Pelau & Alexandra… [605260]

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Corporate Social Responsability
in the Energy Field
Conf. Univ. Dr. Corina Pelau
Asist. Univ. Dr. Catalina Alexandra Chinie
Corina Pelau & Alexandra Catalina Chinie 2Content
0. Introduction
1. The history of CSR
2. The development of CSR within the energy sector
3. Value from CSR within the energy sector
4. Opinions and critics related to CSR within corpor ations
5. Top Managers as drivers for Corporate Social Resp onsibility
6. Consumers as drivers of Corporate Social Responsi bility
7. The future of CSR

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Critics of Milton Friedman
(1960-1980)
• Milton Friedman sustains the theory of Shareholder Value
• According to him the economic-financial goal of th e company is in
contradiction with the goals of social responsibili ty
⇒Managers focused on the economic goals of companies by
respecting the law and ethical principles
• According to Friedman the implication of managers is restricted to
the reduction of costs; each individual can be resp onsible by doing
his job well and by respecting the others;
Corina Pelau & Alexandra Catalina Chinie 3
Critics of Milton Friedman
(1960-1980)
• According to Friedmann in order to develop an effi cient CSR the
companies have to fulfill the following principles:
/square4Identification and measurement of the impact of CSR activities
on the company and in the society
/square4Definition of the motivation behind the CSR
/square4Improvement of legislation in order for companies t o do those
CSR activities which are really needed in the socie ty and not
only based on the manager’s opinions
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Perceptions on CSR
CSR is traditionally understood in terms of two con flicting perspectives:
• Ethical-political – perspective encourages the atti tude to social
responsibility from an ethical perspective. In this case there is
encouraged the detection of problems and not necess arily that of
the solutions.
• Entrepreneurship perspective – this perspective bel ieves that social
responsibility activities do not damage profitabili ty, but the primary
purpose remains the company's shareholders meeting
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The relation between CSR and the
companies image
• In the 1980’s Navarro has discovered that there is a
relation between the charity donations of companies and
their profit; therefore companies with higher donatio ns
have also higher profits
• => CSR activities should be considered as marketing
costs
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Impact on the
motivation of employees
• Several studies have shown that the first CSR activitie s
were implemented in order to increase the motivation of
the employees
• Nowadays, behind all the philanthropic ideas sustained
by CSR, there might also be an influence on the
motivation of employees
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CSR as a
change agent of the society
• CSR measures have a contribution to the modernizat ion, social
development and the legitimacy of corporations, as old rules are not
valid anymore.
• Tendencies in our nowadays society:
/square4Increasing the feminist movement
/square4Moves on civil rights
/square4homosexual movement
/square4Resource exploration in development
Corina Pelau & Alexandra Catalina Chinie 8

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Implications for
an open-minded society
• Creating a civil society requires the fulfillment of the following
cumulative conditions: dialogue, pluralism and legi timacy
• Tactically of a corporation that embrace CSR princ iples must
demonstrate legitimacy through transparent dialogue and
communication skills;
• a key feature of dialogue is the concept of "compr omise" and desire
to understand the other's point of view.
Corina Pelau & Alexandra Catalina Chinie 9
Implications for
an open-minded society
• Therefor companies should focus on the following:
/square4Collaboration with employees
/square4Dialogue with customers
/square4Respect for the environment
/square4decisional transparency
• Experts encourage:
/square4open thinking leading to dynamism,
/square4removing bureaucracy,
/square4trust in communication and cooperation,
/square4flexibility against routine,
/square4culture,
/square4consciousness,
/square4spontaneous interactions.
Corina Pelau & Alexandra Catalina Chinie 10

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Critics to CSR
• CSR allows businesses to project positive image by doing very little.
• the level of publicity associated with the concept of CSR creates an
impression that the majority of businesses are seri ously engaged in
CSR-related activities, whereas the reality is quit e different.
• CSR activities engaged in by some businesses contr adict with their
actual business practices and tendencies of their b usinesses
• the influence of large businesses and multinationa l corporations
increases in society with their active engagement i n CSR issues
• CSR is an empty promise and it is only an effectiv e public relations
tool
(Source: Dudovskiy, 2012, online at: http://research-met hodology.net/criticism-associated-with-
corporate-social-responsibility-csr/)
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Critics to CSR
• The people responsible to manage companies only ca re about one
purpose: maximizing profit. The managers have diver sified
preferences to promote civic purposes. Their abilit y to achieve non-
financial objectives are restrained by competitive pressures
unfaltering their personal commitments.
• It cannot be a business's financial interest to ac t responsible.
Companies have been pressurized by activists, consu mers,
employees and investors who make significant change s in corporate
policies.
• Corporate Social Responsibility is seen as caterin g to public
relational purposes. The corporations believe in us ing it as a means
of preventing governments from implementing effecti ve regulations.
(Source: online at: http://socialresponsibility.vinsign.co m/Criticisms-of-Corporate-Social-
Responsibility.html)
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Examples Sustainability Reporting
for Carbon Emissions
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(Source: The KPMG Survey on Corporate Social Responsibil ity, 2015)

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Corina Pelau & Alexandra Catalina Chinie 15
(Source: The KPMG Survey on Corporate Social Responsibil ity, 2015)
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(Source: The KPMG Survey on Corporate Social Responsibil ity, 2015)