CC 504 CSR an der Universität Mannheim

Development in such a way that present needs are met, but the ability to meet the needs of future generation aren’t harmed.

It refers to consider the three aspects of sustainability in an accounting perspective: environmental, societal and financial

Climate change (get carbon free), extinct species (don’t start Deepsea mining) and global water crisis (reduce wastewater pollution)

Governments can introduce a strict framework which forces companies/consumers to behave environment friendly, but they may face backlash and lose their voters. Consumer can be addressed by NGOs through marketing campaigns, but consumer often don’t follow through with their attitude. Companies can invest in carbon free technologies, but may lose market shares/ competitive advantages, because they limit their resources in other areas

Consumer have the intention to act environment-friendly/social, but dont transfer their intention into actual behavior

Company spread false or misleading information about their goals, strategies or actions to save the environment/act social responsible or they may use philantrpic actions o cover up their misdeeds

A separate entity which is independent of who works in them, thus perceptual independent. They are considered an artificial person by the law and managers have a fiduciary duty to protect the investments of the shareholders

According to Friedman, companies have to increase the shareholder value. To do that, they have to ac according to the alw and thical standards, but always with profit maximization in mind. Everything else isn’t in the jurisdiction of the manager. According to Caroll, companies have first to be profitable, then obey the law, act ethical and be a good citizen.

Narrow CSR view: economical responsibility; Wider CSR view: Societal responsibility

Internal: Manager, Owner and employees. External: Shareholder, Costumer, Society, Vendor, Government and Investors

Instead of just profit-maximization, managers have to take the interest of all stakeholders into account. A conflict could arise, e.g. when the company wants to outsource some jobs and thus, fire some of their employees.

Natural resources ae going to be depleted by 2072