Les parties prenantes - Cours Belles Histoires

ESSEC Impact Initiative

14 Jan 202108:41

Summary

TLDRThis video addresses the sustainable development goals as one of the century's greatest challenges. It emphasizes the role of businesses in achieving these goals, moving beyond Milton Friedman's profit-maximization view to Edward Freeman's stakeholder theory. The video outlines steps for effective stakeholder management, including identification, interest assessment, opportunity and challenge analysis, responsibility evaluation, and strategic planning. It also discusses engagement approaches, from defensive to offensive, and how companies like SFR and CAMIF integrate stakeholders into governance and operations to create shared value, aligning with Porter's concept of shared value from the Harvard Business Review.

Takeaways

🌍 The sustainable development goals (SDGs) are considered one of the biggest challenges of our century, aiming to unite various stakeholders to address social and environmental crises.
🏭 Businesses are seen as key drivers in achieving SDGs, with the primary goal of eradicating poverty, and they must consider a variety of stakeholders beyond just shareholders.
📚 The debate on the role of corporations in society dates back to the 19th century, evolving from a paternalistic view to a more inclusive understanding of stakeholders' importance.
🏅 Milton Friedman's 1970 assertion that the sole responsibility of a corporation is to increase its profits, within legal and ethical boundaries, has been a significant perspective.
🤝 Edward Freeman introduced the stakeholder theory in 1984, challenging Friedman's view by arguing that businesses have a moral obligation to consider the interests of all stakeholders affected by their actions.
🔍 Identifying and classifying stakeholders is crucial for effective stakeholder management, which includes organizational, economic, and societal stakeholders.
📊 The process of managing stakeholders involves five key steps: identification, interest assessment, opportunity and threat analysis, responsibility evaluation, and strategic planning.
🗣️ Engaging in dialogue with stakeholders can be defensive or offensive, aiming to mitigate risks or to enhance the company's social responsibility and value creation.
💡 The concept of shared value, as proposed by Porter and Kramer, emphasizes the importance of considering both financial performance and social/environmental impact in business activities.
🔄 Stakeholder inclusion in governance and operations can strengthen a company's capacity to act and ensure alignment with its social mission, as exemplified by companies like Camif.

Q & A

What are the sustainable development goals mentioned in the video?
-The video refers to the sustainable development goals as one of the greatest challenges of our century, aiming to save the world, as cited by the UN.
How have businesses been considered in achieving sustainable development goals?
-Businesses are considered as key drivers in achieving sustainable development goals, with the eradication of poverty being one of the primary objectives.
What is the historical perspective on the role of businesses in society according to the video?
-The role of businesses in society dates back to the 19th century, with the paternalistic approach of industrialists, and a consensus in the 1970s that businesses should consider stakeholders beyond shareholders.
What was Milton Friedman's view on the social responsibility of a corporation?
-Milton Friedman, who won the Nobel Prize in Economics in 1976, argued in 1970 that the social responsibility of a corporation is to increase its profits, while adhering to the law and not violating international social standards.
How does Edward Freeman's stakeholder theory contrast with Milton Friedman's view?
-Edward Freeman's stakeholder theory suggests that multiple groups can have moral claims on a corporation due to the potential impact of its decisions and activities, contrasting with Friedman's view that only shareholders have such claims.
What are the two main opposing views on the role of corporations in society presented in the video?
-The video presents two views: Milton Friedman's instrumental view, which focuses on maximizing profits within legal and social standards, and Edward Freeman's ethical view, which emphasizes the need for corporations to address justice and include stakeholders in their decisions.
What are the five steps identified for effective stakeholder management according to the video?
-The steps are: 1) identifying all stakeholder groups, 2) identifying interests of each group, 3) analyzing opportunities and challenges that stakeholders represent, 4) analyzing the company's responsibilities towards stakeholders, and 5) implementing a strategic plan to leverage opportunities and mitigate threats.
How are stakeholders classified in the context of the video?
-Stakeholders are classified into three categories: organizational stakeholders who are part of the organization, economic stakeholders who enable the company's economic activity, and societal stakeholders such as the state, local authorities, and NGOs.
What is the difference between a defensive and offensive approach to stakeholder dialogue according to the video?
-A defensive approach focuses on managing risks to the company's reputation or project success, while an offensive approach uses stakeholder engagement to enhance the company's commitment to social responsibility and create shared value.
What is the significance of the materiality matrix in corporate social responsibility strategy?
-The materiality matrix is a key tool in defining priority issues based on their importance to internal and external stakeholders and their impact on the company's economic success.
How can stakeholders be integrated into a company's governance and operations?
-Stakeholders can be integrated into governance through structures like advisory committees or by involving them in strategic planning and operations, as exemplified by companies like Camif, which created a 'cellule aux os' (skeleton cell) governance committee.

Outlines

00:00

🌍 Sustainable Development Goals and Corporate Responsibility

The paragraph introduces the Sustainable Development Goals (SDGs) as one of the biggest challenges of our century. It highlights the importance of bringing together all stakeholders to address social and environmental crises. The role of businesses in achieving SDGs is emphasized, with a historical overview of corporate responsibility. The debate between Milton Friedman's profit-maximization view and Edward Freeman's stakeholder theory is presented, with the latter arguing for considering a broader range of stakeholders in corporate decisions. The concept of Corporate Social Responsibility (CSR) is linked to ethical behavior and managing relationships with internal and external stakeholders beyond shareholders.

05:02

🤝 Stakeholder Engagement and CSR Strategy

This paragraph delves into the practical application of stakeholder theory in business management. It outlines five key steps for effective stakeholder management: identifying stakeholder groups, understanding their interests, analyzing opportunities and challenges they present, assessing the company's responsibilities towards them, and developing a strategic plan to leverage opportunities and mitigate threats. The importance of dialogue with stakeholders is discussed, with examples of defensive and offensive approaches. The concept of 'shared value' is introduced, emphasizing the balance between financial performance and social/environmental impact, as proposed by Porter in the Harvard Business Review.

Mindmap

Keywords

💡Sustainable Development Goals (SDGs)

The Sustainable Development Goals are a collection of 17 global goals set by the United Nations to address major social, economic, and environmental challenges by the year 2030. In the video, the SDGs are mentioned as one of the greatest challenges of our century, highlighting the urgency and importance of these goals in shaping a sustainable future.

💡Stakeholder Theory

Stakeholder Theory is a concept in corporate governance and justifies corporate decisions and actions affecting stakeholders. The video discusses this theory as a framework for businesses to consider their impact on various stakeholders, not just shareholders, which is crucial for achieving sustainable development.

💡Milton Friedman

Milton Friedman was an economist known for his advocacy of free markets and minimal government intervention. In the video, he is mentioned for his view that the sole responsibility of a corporation is to increase its profits, which contrasts with the broader stakeholder perspective.

💡Edward Freeman

Edward Freeman is a proponent of Stakeholder Theory and introduced the term 'stakeholder' into mainstream business discourse. The video references Freeman's argument that businesses should consider the interests of multiple stakeholders, not just shareholders, which is a fundamental shift from Friedman's profit-maximization view.

💡Corporate Social Responsibility (CSR)

Corporate Social Responsibility refers to a company's commitment to operate ethically and contribute to social and environmental well-being. The video connects CSR with the broader concept of stakeholder management, emphasizing that businesses should manage their relationships with all stakeholders responsibly.

💡Materiality Matrix

A Materiality Matrix is a tool used in strategic management to identify and prioritize issues that are most significant to a company's stakeholders and its success. The video explains that this matrix helps businesses to focus on key issues, such as eco-design of products or responsible sourcing, which are important for both stakeholders and the company's economic success.

💡Pluralism

Pluralism in the context of the video refers to the consideration of multiple stakeholders with diverse interests. It is a key aspect of Stakeholder Theory and is highlighted as necessary for businesses to address the complex social and environmental challenges of our time.

💡Paternalism

Paternalism in the script refers to the historical approach of 19th-century industrialists who took care of their workers' welfare as part of their social responsibility. This concept is contrasted with modern views on CSR, where businesses are expected to engage with a broader range of stakeholders beyond just their employees.

💡Shared Value

Shared Value is a concept introduced by Porter and Kramer in 2011, which argues that businesses should create economic value in a way that also addresses social and environmental issues. The video mentions this concept as a way for companies to create value that is beneficial not only to their shareholders but also to society and the environment.

💡Engagement

Engagement in the video refers to the active involvement of stakeholders in a company's activities. It is seen as a way for businesses to understand and address the interests of various stakeholders, which is essential for effective CSR and sustainable development.

💡Governance

Governance in the context of the video pertains to the structures and processes by which businesses are directed and controlled. It is mentioned in relation to how some companies involve stakeholders in their governance, such as CAMIF's 'cellule aux os', which includes representatives from various stakeholders to ensure the company's social mission is upheld.

Highlights

Introduction to sustainable development goals as one of the greatest challenges of our century.

Innovation in water management has brought together various stakeholders to address social and environmental crises.

Businesses are seen as key drivers in achieving sustainable development goals, particularly in eradicating poverty.

The role of corporations in society dates back to the 19th century, evolving from paternalistic views to modern perspectives.

Milton Friedman's 1970 assertion that the sole social responsibility of a corporation is to increase its profits.

Edward Freeman's counter to Friedman's view with the Stakeholder Theory, emphasizing moral claims of various groups on a company.

Stakeholder Theory suggests that businesses should consider a plurality of stakeholders beyond just shareholders.

Difficulties in Stakeholder Theory arise from the varying influence and demands of different stakeholders.

The concept of Corporate Social Responsibility (CSR) is tied to ethical behavior and responsible management of relationships with stakeholders.

Five key steps for effective stakeholder management: identification, interest identification, opportunity and challenge analysis, responsibility analysis, and strategic planning.

Classification of stakeholders into organizational, economic, and societal categories.

Dialogue with stakeholders can be defensive, focusing on risk management, or offensive, seeking to enhance CSR and societal engagement.

The importance of dialogue in managing risks to a company's reputation and project success.

Examples of proactive stakeholder engagement, such as SFR's program allowing employees to contribute to societal causes.

Different levels of dialogue with stakeholders, ranging from simple consultation to collaboration and multi-party initiatives.

The Materiality Matrix as a key tool in CSR strategy development, defining priority issues based on stakeholder importance and impact on business success.

Integration of stakeholders in corporate governance and operations, as seen in Camif's creation of a 'cellule aux os' committee.

The necessity for businesses to consider stakeholder viewpoints and interests in daily operations for shared value creation.

Shared value concept by Porter, emphasizing equal importance on financial performance and social/environmental impact.