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BADM Senior Seminar: Sustainable Business

Sustainable Business and Corporate Social Responsibility

Concepts

 

PLEETS

Sometimes referred to as a PESTEL analysis, PLEETS is an acronym that stands for Political, Legal, Economic, Environmental, Technical, and Social provides a framework of factors to examine that influence an organization.

 

Porter's Industry Model

A tool, sometimes called the Five Forces Model, to help gather and organize information about an industry. The 5 parts are: buyers, suppliers, new entrants, substitutes, and rivalry.

 

Porters five forces

"Porter's Five Forces " (CC BY-SA-3.0) by Grahams Child

Product Life Cycle Model

A framework that breaks down the six stages of a product's life cycle. These stages are 1) Extraction 2) Processing 3) Manufacturing 4) Wholesale/Retail 5) Purchase/Consume 6) Dispose/Recycle

Chandler, Strategic Corporate Social Responsibility, 4th edition. © SAGE Publications, 2017.

Vertical/Horizontal Integration Strategies

Vertical and horizontal integration refers to the process by which a company expands itself. In vertical integration, a company expands itself by purchasing different parts of the same production line, i.e. when Apple produces the fingerprint sensors used in their iPhones. The end goal is for a company to own the production line from inception to the end of production without having to rely on other companies for materials or services. Horizontal integration is when a business expands by purchasing another similar company in the same industry, i.e. when the Italian car company Fiat bought the American car company Chrysler as means to increase their share of the automobile market and to introduce their cars to American consumers. Horizontal integration is often done as a means to break into regional markets. 

Investopedia on Vertical Integration

Investopedia on Horizontal Integration

Key Terms

All definitions are from Chandler, D., & Werther, Jr., W. B. (2014). Strategic corporate social responsibility: Stakeholders, globalization, and sustainable value creation. Los Angeles, CA: SAGE.

Sustainability - "development that meets the needs of the present without compromising the ability of future generations to meet their needs"

Corporate Social Responsibility (CSR)- "A view of the corporation and its role in society that assumes a responsibility among firms to pursue goals in addition to profit maximization and a responsibility to a firm's stakeholders to hold the firm accountable for its actions"

Corporate Social Performance- "The performance benefits to the firm (often measured in traditional financial or accounting metrics) gained from the implementation of its CSR program."

Globalization- "the process, facilitated by rapidly improving communication technologies, transportation, trade, and capital flows, that allows a firm's operations to transcend national boundaries, and facilitates greater interaction among people, societies, cultures, and governments worldwide."

Transparency- "the extent to which organizational decisions and operating procedures are open or visible to outsiders". 

Values-based Business- "a for-profit firm that is founded on a vision and mission based on social values and the other four principles that define conscious capitalism: Higher purpose, Stakeholder interdependence, Conscious leadership, and Conscious culture."

Sustainability

Word cloud with words related to sustainability

Sustainable Companies

Related Industries

Energy

Packaging

Plastics

Agriculture

Automobiles

Mobile Technology

Fishing

Meat production

CSR & Sustainability Certification Organizations

Logos of sustainability certification groups