Firms' relationships with key stakeholders are increasingly threatened by privacy concerns. Given the role of firm corporate social responsibility (CSR) initiatives in strengthening and enhancing these relationships, this article examines the intersection between privacy issues and CSR activities, and creates a framework for assessing privacy-related activities as an element of broader CSR strategy. Specifically, the present research considers a firm versus customer focus in privacy-related activities, as well as privacy-related activities in the form of business practices versus goods and services. We identify four areas of overlap between CSR and privacy. We highlight the potential opportunities to better manage privacy-related issues of stakeholders, and integrate these concerns into the broader CSR agenda.
It is year-end 2013 and management at Gabriel Resources, a Canadian junior mining corporation, is attempting to handle investor relations and political tensions surrounding its Rosia Montana mine project in Romania. Recently, the Romanian Parliament voted overwhelmingly against granting the final permit for the gold and silver mine until a more thorough environmental and legal framework is established. Although the company promises that its project will bring significant financial benefits to the state and needed infrastructure improvements and employment in the region, both national and international civilian and non-governmental organizations have protested vociferously against a development that they see harming not only the fragile geographic ecosystem but also historical artifacts that have been a major tourist draw. The draft bill was set to allow the company to begin work on developing the potentially lucrative mine, which has been 15 years in the making and has not yet generated any revenues. Investors are worried and the company's share price is sinking. How can the company calm shareholder panic and negative stock price movement? What can it do to persuade the Romanian government and people to support the mine?
It is year-end 2013 and management at Gabriel Resources, a Canadian junior mining corporation, is attempting to handle investor relations and political tensions surrounding its Rosia Montana mine project in Romania. Recently, the Romanian Parliament voted overwhelmingly against granting the final permit for the gold and silver mine until a more thorough environmental and legal framework is established. Although the company promises that its project will bring significant financial benefits to the state and needed infrastructure improvements and employment in the region, both national and international civilian and non-governmental organizations have protested vociferously against a development that they see harming not only the fragile geographic ecosystem but also historical artifacts that have been a major tourist draw. The draft bill was set to allow the company to begin work on developing the potentially lucrative mine, which has been 15 years in the making and has not yet generated any revenues. Investors are worried and the company’s share price is sinking. How can the company calm shareholder panic and negative stock price movement? What can it do to persuade the Romanian government and people to support the mine? Spreadsheet for students is available, see 7B14N025.
A strong reputation is widely acknowledged to be the most valuable asset of a firm, and sustainability has become an important component of corporate reputation. Many stakeholders, from customers to investors to employees to purchasing managers, report that sustainability is an important factor in their decision-making processes. However, sustainability messages have become ubiquitous-almost table stakes-for most large firms. In such an active marketplace, especially for firms who have not pursued leadership positions, it is difficult for companies to use sustainability to create meaningful differentiation from competitors and thus benefit from their investments. There is often a major gap between stakeholder perceptions and firm performance. Firms that integrate sustainability into their culture and business practices are better able to integrate sustainability messaging into mainstream communications
Managers are encouraged to develop deeper, collaborative relationships with NGOs as they execute their CSR strategies, and they have benefited from guidance to date that has focused on the dyadic relationships between a single firm and a single NGO. However, corporate relationships in CSR can include broader collaborations with both other firms and multiple NGOs. This article provides a framework for examining a range of collaboration opportunities and provides managers guidance for matching CSR strategies with the goals of the firm. The framework focuses on specific strategies that firms can employ to help ensure that returns from investments in CSR are maximized.