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Ing. Katarína Dr ienik ová Prof. Ing. Peter Sakál, CSc.

MULTICRITERIA DECISION WITHIN THE CSR (CORPORATE SOCIAL RESPONSIBILITY) STRATEGY OF MACHINE INDUSTRIAL COMPANIES. Ing. Katarína Dr ienik ová Prof. Ing. Peter Sakál, CSc.

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Ing. Katarína Dr ienik ová Prof. Ing. Peter Sakál, CSc.

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  1. MULTICRITERIA DECISION WITHIN THE CSR (CORPORATE SOCIAL RESPONSIBILITY) STRATEGY OF MACHINE INDUSTRIAL COMPANIES Ing. Katarína Drieniková Prof. Ing. Peter Sakál, CSc. Moscow 2012

  2. This article was supported by the Slovak Research and Development Agency under the contract No. LPP-0384-09: “Koncept HCS modelu 3E vs. koncept Corporate Social Responsibility (CSR).” The paper is also a part of submitted KEGA project No. 037STU-4/2012 “Implementation of the subject “Corporate Social Responsibility Entrepreneurship” into the study programme Industrial management in the second degree at MTF STU Trnava www.scss.sk

  3. „If companies believe they are in business to serve people, to help solve problems, to use and employ the ingenuity of their workers to improve the lives of people around them by learning from the nature that gives us life, we have a chance.“ Paul Hawken

  4. Theory 1 Multicriteria aspect in decision-making process -AHP method2 Concept of Corporate social responsibility (CSR)3 Stakeholders4 Pilot questionnaireII. Project of the thesis1 The main goal of the thesis2 Partial goals of the thesis 3 Working hypotheses 4 Structure of the thesis Content

  5. Theory

  6. 1.1 Multicriteria aspect in decision-making process Analytic hierarchy process (AHP) To find an optimal solution of the problem that sets to more than one defined criteria is the working out of the multicriteria decision task. Analytic Hierarchy Process is the method that simplify and accelerate all process of decision making within complicated situations. It´s the method of decomposition of complicate unstructured situation to elementary components, that creates the hierarchy system. Through subjective evaluation in pairwise comparison, numerical values are given to individual components, which presents their relative importance.

  7. 1.1 Analytický hierarchický proces (AHP) • Thomas. L. Saaty(60th-70th of 20thcentury) • Expert Choice

  8. 1.2 The Concept of Corporate Social Responsibility „Corporate social responsibility is a concept wherebycompanies integrate social and environmental concerns in their business operationsand in their interaction with their stakeholders on a voluntary basis “1. 1Green Paper. Promoting a European Framework for Corporate Social Responsibility. 2001

  9. 1.2 The Concept of Corporate Social Responsibility CSR by ISO 26 000 (2010)2 Zodpovednosť organizácie za vplyvy jej rozhodnutí a aktivít na spoločnosť a životné prostredie na základe transparentného a etického správania, ktoré: • prispieva k UR vrátane zdravia a blahobytu v spoločnosti, • zohľadňuje očakávania zúčastnených subjektov, • je v súlade s príslušnou legislatívou a medzinárodnými normami v oblasti správania, • je integrované do celej organizácie a uplatňované v jej vzťahoch. Kritika ISO 26 000 - ani v jednej svojej časti nerieši otázku obohacovania sa nadnárodných spoločností na úkor chudobnejších spoločenských vrstiev, resp. svojich zamestnancov. 2STN ISO 26000. Usmernenie k spoločenskej zodpovednosti. Bratislava: SÚTN. 2011, 120 s.

  10. 1.3 Stakeholders any group or individual who can affect or is affected by the achievement of the organization objectives (Freeman, 1984) Those groups without whose support the organization would cease to exist (Stanford Research Institute, 1963) Any individual, group of individuals or an organization which can affect or be affected by company activities

  11. 1.3 Stakeholders Stakeholders engagement to CSR activities

  12. 1.4 Pilot questionnaire • In nearly 65% of companies the topic of CSR is discussed and nearly 90% of companies solves the problems of local community also. • Companies which strategy is based on SD/CSR say it's because of enhanced brand image and reputation, enhanced relations with employees and local community, effort to sustainable development. • Companies don't use any software in strategic decision making processes, the major decision criteria are following: quality, price, time, region, legislative, flexibility, level of risk, market opportunities, ... • At least one third of asked companies use multicriteria optimization methods, they use mainly the method of pairwise comparison, method of decision-making matrix and proportionately index method.

  13. 1.4 Pilot questionnaire • More than one half of respondents stated they identify and classify stakeholders (mainly shareholders, employees, customers, competitors and managers). • Only 5 companies have also defined stakeholders goals. • Only 36% respondents stated that the importance of interests of various stakeholders isn't the same, the most important interests due to the business activities have shareholders, managers, customers, state and its institutions and competitors. • Only shareholders and managers are engaged to decision making. • Only 10 companies agree with the statement that stakeholders representative would be glad to be engaged to strategic decision making .

  14. Project of the thesis

  15. 2.1 The main goal of the thesis The main of my thesis on the basis of theoretical analysis and analysis and mapping of decision making processes in industrial companies to

  16. 2.2 Partial goals of the thesis • On the basis of studying literature and other resources is to analyze theoretical outputs and to make complex survey of the following topics: stakeholders concept, concept of corporate social responsibility, multicriteria decision making specifically AHP method. • To analyze current state of CSR concept, multicriteria decision methods usage (AHP method) through the research in Slovak (Czech) industrial companies.

  17. 2.2 Partial goals of the thesis • To suggest decision criteria of key stakeholders for the need of the AHP method in context with CSR strategy. • To suggest usage of software Expert Choice in decision making process in a company. • To evaluate and to verify outputs in selected companies.

  18. 2.3 Working hypotheses • Majority of the companies by implementing CSR principles want to help to SD. • Companies don't perceive stakeholders as the part of the concept of corporate social responsibility. • Majority of Slovak industrial companies identify stakeholders but don't engage them to decision making. • Majority of industrial companies believe the interests of individual stakeholders are equally important to company.

  19. 2.3 Working hypotheses • Companies that don't have effective communication with stakeholders can't engage representatives of keystakeholders to strategic decision making in effective way. • Companies that don't engage representatives of stakeholders to strategic decision making are not helpful in sustainable development. • Majority of Slovak industrial companies perceive their competitors as an important stakeholder.

  20. 2.4 Structure of the thesis 1. chapter The main goal, partial goals, working hypotheses of the thesis. 2. chapter Methods used in the thesis.

  21. 2.4 Methods used in the thesis • system approach • process approach • analysis and synthesis • comparisons • inductionand deduction • AHP method • graphical methods • creative thinking methods • statistics • questionnaire

  22. 2.4 Structure of the thesis 3. chapter Analysis of the theory related to the topic of stakeholders in response to CSR and multicriteria decision. 4. chapter Analysisofcurrent state ofthestakeoldersconcept in conditionsofSlovakaindustrialcomapanies. Jadrom tejto kapitoly budú výsledky získané prostredníctvom dotazníkového prieskumu v slovenských priemyselných podnikoch, zároveň budú podporené aj výsledkami získanými na základe nepriameho výskumu prostredníctvom dostupných informačných zdrojov. Zároveň v rámci tejto kapitoly potvrdím alebo vyvrátim stanovené pracovné hypotézy.

  23. 2.4 Tézy a štruktúra DDP 5. kapitola Návrh kritérií rozhodovania kľúčových stakeholderov pre potrebu metódy AHP v kontexte so SZP a návrh využitia softvéru Expert Choice v stratégii SZP priemyselných podnikov 6. kapitola Daná kapitola bude zameraná na zosumarizovanie výstupov DDP vzhľadom k stanoveným cieľom a na zhodnotenie prínosov tejto práce nielen z teoretického, ale i praktického hľadiska.

  24. Thank You for Your Attention!katarina.drienikova@stuba.sk Student publlications : http://publview.stuba.sk/view_publ.php?dv=1&kd=-2&roh=-1&a=80764&nz_typ=4

  25. Bibliography MLYNAROVIČ, V., HOZLÁR, E. Viackriteriálne rozhodovanie. Bratislava: EUBA. 1993, OCELÍKOVÁ, E. Multikriteriálne rozhodovanie. Košice: ALFA, 2004. 87 on line.<http://www.business.pitt.edu/faculty/saaty.php> on line <http://www.isahp.org/about-saaty.php> GRÜNING, R., KÜHN, R. Successful Decision-making. A systematic Approach to Complex Problems. RAMÍK, J. Analytický hierarchický proces (AHP) a jeho možnosti uplatenění při hodnocení a podpoře rozhodování. ROHÁČOVÁ, I., MARKOVÁ Z. Analýza metódy AHP a jej potenciálne využitie v logistike. BHUSHAN, N., KANWAL, R. Strategic Decision Making RAMÍK, J., PERZINA. Moderní metody hodnocení a rozhodování. OLAWOYIN, R., OYEWOLE, S.A. An Exploration of the Analytic Hierarchy Process and its Utilization for Decision-Making in Energy Resource Management. • 513/1991 Zb. z., Zákon zo dňa 5. novembra 1991 Obchodný Zákonník. • HORÁK, R. Management, Brno: 2008 • MÁCA, M., LEITNER B. Operačná analýza I. Deterministické metódy operačnej analýzy. • SEDLÁK, M. Manažment. Bratislava: IURA EDITION, s.r.o., 2001, 378 • MAJTÁN, M., a kol. Manažment. Bratislava: SPRINT, 2005, 429 s., • SZABO, Ľ. Rozhodovanie v podnikovom manažmente. Bratislava : Vydavateľstvo EKONÓM. 2001, 149S., • SEKERA, B. Využitie exaktných metód v EMS priemyselných podnikov. • KOLČAVOVÁ, A. Kvantitativní metody v rozhodování. Studijní pomůcka pro distanční studium. • FOTR, J. a kol. Manažerské rozhodování : postupy, metody a nástroje. • RAMÍK, J. Analytický hierarchický proces (AHP) a jeho využití v malém a středním podnikání.

  26. Bibliography PENG, J. Research on the Optimization of Green Suppliers Based on AHP and GRA. BABAK, D. R., TURAN, E. E. ERP System Selection by AHP Method: Case study from Turkey. WEI, CH. CH., CHIEN, CH. F., WANG, M. J. J. An AHP-based approach to ERP system selection. CEBECI, U. Fuzzy AHP-based decision support system for selecting ERP systems in textile industry by using balanced scorecard. DANNER, M., a kol. Integrating patients´views into health technology assessment: Analytic hierarchy process (AHP) as a method to elicit patient preferences. GURUMURTHY, A., KODALI, R. An application of Analytic Hierarchy Process for Selection of a Methodology to Improve the Product Development Process. GHAMSOGAR, M., HAGHYBY, M., MEHRDOUST, F., ARSHAD, N. Multicriteria Decision Making Based on Analytical Hierarchy Process (AHP) in GIS for Tourism. • STEIGUER, J.E., DUBERSTEIN, J., LOPES, V. The Analytic Hierarchy Process as a Means for Integrated Watershed Management . • CHUDADA, M., TARABOVÁ, Z. Aplikácia AHP metódy pri hodnotení dopravného procesu. • A decision support system for supplier selection for Indian textile industry using analytic hierarchy process based on fuzzy simulation. • TAM, M.C.Y., TUMMALA, R. V. M. An application of the AHP in vendor selection of a telecommunications system. • KUMAR, S. , PARASHAR, N., HALEEM, A. Analytical Hierarchy Process Applied to Vendor Selection Problem: Small Scale, Medium Scale and Large Scale Industries. application of the AHP in vendor selection of a telecommunications system. • CHAKRABORTY, T. , GHOSH, T., K DAN, P. Application of Analytic Hierarchy Process and Heuristic Algorithm in Solving Vendor Selection Problem.

  27. Bibliography Definícia zodpovedného podnikania. [online] Green Paper. Promoting a European Framework for Corporate Social Responsibility. STN ISO 26000. Usmernenie k spoločenskej zodpovednosti. Bratislava: SÚTN. 2011, 120 s. Zabezpečiť inteligentný, udržateľný a inkluzívny rast. Piata správa o hospodárskej, sociálnej a územnej súdržnosti. CSR Europe. Enterprise 2020. PRSKAVCOVÁ, M. , MARŠÍKOVÁ, K., ŘEHOŘOVÁ, P., ZBRÁNKOVÁ, M. Spoločenská odpovědnost firem, lidský kapitál, rovné příležitosti a environmentální management s využitím zahraničních zkušeností. PRACHAŘ, J., RYŠÁNEK, P., STRAKA, V., ZAJÍC, J. Spoločenská odpovědnost organizací (CSR) - Aplikace a hodnocení. STEINEROVÁ, M., MAKOVSKI, D. Koncept CSR v praxi – průvodce odpovědným podnikáním. [online]. ZELENÝ, J. Orientácia v oblasti systémového inžinierstva – základ úspešného environmentálneho inžiniera II. • KRISHNAN, P. V., RAMNATH, V. B., PILLAI, M. K. Mathematical Model Using AHP to optimize the Organizational Financial Performance. • HOKEY, M. Evaluating the comparative service quality of supermarkets using the analytic hierarchy process. • XIANYONG, M. a kol. The optimization of regional lightning risk assessment based on AHP and fuzzy comprehensive evaluation. • Expert Choice – Vícekriteriální výběr z alternativ. Stručný prúvodce programem . • HOHNEN, P.Corporate Social Responsibility: An Implementation Guide for Business. • BRUNDTLAND, G. H. Our Common Future: Report of the World Commission on Environment and Development. 1987 • NOVÁČEK, P. Udržitelný rozvoj. • CARROLL, A. B. Corporate Social Responsibility. Evolution of a Definitional Construct. • KAŠPAROVÁ, K. Vývoj CSR a její konkurenční koncepty.

  28. Bibliography • PAVLÍK, M., BĚLČÍK, M. a kol. 2010. Společenská odpovědnost organizace. CSR v praxi a jak s ním dál. • TRNKOVÁ, J. Společenská odpovědnost firem. Kompletní průvodce tématem a závěry z průzkumu v ČR. • PORTER, M., KRAMER, M. Creating Shared Value. • SAKÁL, P. Strategický manažment v praxi manažéra. • FRIEDMAN, A. L., MILES, S. Stakeholders. Theory and Practice. • CHINYIO, E., OLOMAIYE, P. Construction Stakeholder Management. • ZELENÝ, J. Environmentálne manažérstvo a spoločenská zodpovednosť (organizácií). • MALAJI, A. D. Corporate Social Responsibility. • BUSSARD, A., MARČEK, E., MARKUŠ, M., BUNČÁK, M. Spoločenská zodpovednosť podnikania. Prehľad základných princípov a príkladov. • ZELENÝ, J. a kol. 2010. Environmentálna politika a manažérstvo organizácií. (6. diel, Environmentálna politika, manažérstvo a stakeholder manažment) • RECKLIES, D. 2001. online. [cit 2011-27-07]. http://www.themanager.org/resources/Stakeholder%20Management.htm • AA 1000 Stakeholder Engagement Standard. Accountability. London. 2011

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