Post on 14-Nov-2014
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Corporate social responsibility
What is CSR?
The entirety of CSR can be discerned from the three words contained
within its title phrase:
‘corporate,’ ‘social,’ and ‘responsibility.’ Therefore, in broad terms, CSR
covers the
responsibilities corporations (or other for-profit organizations) have to the
societies within which
they are based and operate.
More specifically, CSR involves a business identifying its stakeholder
groups and incorporating
their needs and values within the strategic and day-to-day decision-
making process.
• Pyramid of CSR
• Philanthropic Responsibilities
Be a good corporate citizen.
• Ethical Responsibilities
Be ethical.
• Legal Responsibilities
Obey the law.
• Economic Responsibilities
Be profitable.
CSR in Equation Form Is the Sum of:
Economic Responsibilities (Make a profit)
Legal Responsibilities (Obey the law)
Ethical Responsibilities (Be ethical)
Philanthropic Responsibilities (Good corporate citizen)
CSR and its Integration into Companies Work Culture
The first step is a written policy statement on CSR, which should be tracked through
the year
and the progress noted in the company’s annual report.
• The CSR activities may also be included in both internal and external newsletters,
press
releases notes, etc, to make the employees and public aware of the initiatives.
• The company must also entrust specific CSR tasks to certain members in the
organization.
The learning experiences should also be documented while going through the CSR
activities
to make others learn from it.
• The top management provides the required thrust and focus to a company’s but
special
staffing has become a norm.
Dimensions of CSR and relevance for emerging markets
SOCIAL CSR ASPECTS
Human rights
Companies:
1. do whatever they can to promote human rights in those countries where they operate. In areas
of conflict, where gross violations of human rights occur, extra care should be taken with
respect to honouring basic human rights.
2. investigate the impact of any business operation on a given country’s human rights situation
before launching business activities there.
3. include an explicit reference to the Universal Declaration of Human Rights of the United
Nations or other international human rights treaties in a code of conduct (with respect to both
employees and all members of the community in which the corporation operates).
National sovereignty and local communities
Companies:
ensure respect for the national sovereignty and local communities
Labour
Companies:
1. respect and ensure the freedom of association and right to collective bargaining.
2. do not engage or support the use of forced labour.
3. contribute to the abolition of child labour.
4. do not discriminate with respect to employment and occupation.
5. ensure security of employment.
6. ensure a living wage.
7. ensure occupational health and safety.
8. respect maximum number of working hours.
9. provide training.
10. guarantee handling of complaints.
11. provide timely information on reorganisations and the right to collective discharge and
redundancy schemes.
12. do not use the threat to transfer the operations of the company to other countries as a means
for influencing the negotiations with trade unions or employees.
13. do not use double standards.
14. employ and train local staff as much as possible.
15. enable worker representatives to negotiate and confer with decision makers.
Consumer protection Companies:
1. ensure access to essential goods and services.
2. ensure the right to safety, with respect to:
a. physical safety
b. safety and quality of consumer goods and services
c. food, water and pharmaceuticals
3. ensure the right to information.
4. ensure the right to choice in the market place.
5. ensure the right to be heard.
6. ensure the right to obtain redress.
7. respect the right to consumer education.
8. promote sustainable consumption.
9. respect the right to privacy.
ENVIRONMENTAL CSR ASPECTS Companies:
1. respect the principle of preventive action.
2. support a precautionary approach to environmental challenges.
3. rectify environmental damage as a priority at source.
4. respect the principle that the polluter bears the environmental costs.
5. promote greater environmental responsibility.
6. encourage the development and diffusion of environmentally friendly technologies.
7. contribute to the preservation of biodiversity.
8. reduce energy use.
9. limit or alter material use.
10. reduce water use.
11. limit emissions.
12. reduce waste.
ECONOMIC CSR ASPECTS Contribution to development
Companies:
1. contribute to equal access to health facilities.
2. contribute to access to basic food, housing, sanitation and sufficient safe drinking
water.
3. contribute to education and access to information with respect to essential health
problems in de community.
4. promote respect for other socio-economic rights, like the right to work, social
security, maternity leave, to take part in cultural life.
Corruption Companies:
1. do not offer, nor give in to demands to pay bribes to public officials or employees of business
partners.
2. do not demand bribes to obtain or retain business or other improper advantage.
Fair competition
Companies:
1. conduct activities in a competitive manner.
Taxation
Companies:
1. contribute to public finances of host countries.
Science and technology
Companies:
1. transfer S&T in order to contribute to the development of local and national innovative
capacity.
Why is CSR relevant today?
CSR as a strategy is becoming increasingly important
for businesses today because of three
identifiable trends:
• Changing social expectations
• Increasing affluence
• Globalization
Arguments Against
• Restricts the free market goal of profit maximization
• Business is not equipped to handle social activities
• Dilutes the primary aim of business
•
Increase business power
• Limits the ability to compete in a global marketplace
Arguments For
• Addresses social issues business caused and allows
business to be part of the solution
• Protects business self-interest
•
Limits future government intervention
• Addresses issues by using business resources and
expertise
• Addresses issues by being proactive
Business Responsibilities in the 21st Century
• Demonstrate a commitment to society’s values and
contribute to society’s social, environmental, and
economic goals through action.
• Insulate society from the negative impacts of
company operations, products and services.
• Share benefits of company activities with key
stakeholders as well as with shareholders.
• Demonstrate that the company can make more money
by doing the right thing.
Implementing CSR: Key steps
Ensure the commitment of top management, and particularly the CEO, is
communicated
throughout the organization
• Appoint a CSR position at the strategic decision-making level to manage the
development of policy and its implementation
• Develop relationships with all stakeholder groups and interests (particular relevant
NGOs)
• Incorporate a Social or CSR Audit within the company’s annual report
• Ensure the compensation system within the organization reinforces the CSR policies
that
have been created, rather than merely the bottom-line
• Any anonymous feedback/whistle-blower process, ideally overseen by an external
ombudsperson, will allow the CSR Officer to operate more effectively