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Friday, August 20, 2010
The Future of Corporate Social Responsibility: Cross Company CSR
Imagine a manufacturing company in the business of producing and marketing farm implements. Business growth for this company, let’s call it Quality Tools Limited, depends amongst other factors, on the level of education (and hence comprehension) the potential buyers – the farmers – have, in order that they may better understand both the usage and the benefits of the implements the company markets. It therefore makes good business sense for Quality Tools to enact a literacy programme in the target market areas under its CSR (corporate social responsibility) umbrella. This will serve as capacity building of the farming community – enhancing their productivity, which will pay back into the company’s business. The idea is evaluated thoroughly and Quality Tools decides to undertake the literacy intervention at two levels – for the short to medium term an adult literacy programme that seeks to make present day farmers (customers) more efficient. And looking at it long-term, a primary and secondary education programme to prepare tomorrow’s generation (future customers) to be more educated and empowered agriculturists.
All very well, but the company then discovers that the optimum level intervention required for this initiative is going to cost well beyond what it can make available from its CSR portfolio. What is to be done?
Mull Over That. Fresh Thought Process:
Now imagine another company, Farm Fresh Foods Limited, a food processing company that purchases the produce of the same farming community. Let us say the farmers are growing orchard crops that the food processing company purchases to produce its range of popular jams. Over a period Farm Fresh Foods has been experiencing a loss of consistency in both quality and in quantity of the produce – causing supply shortages not infrequently and a high rejection rate owing to quality at times being below minimum acceptable standards.
This is a serious issue for both the farmers and the company. Farm Fresh Foods considers how the situation can be improved and reaches the conclusion that for long-term sustainable growth, the farmers really need to be educated at least to a level where they can read and understand a step by step set of instructions. This, will produce better and more consistent quality of produce and a higher quantity too. So the company consults suitable education service providers who come up with a programme that is at two levels – a primary and secondary education level to prepare tomorrow’s generation to be more educated and empowered agriculturists, and an adult literacy level that seeks to make present day farmers (raw material suppliers) more efficient.
Again, all very well. But when the details are worked out, the cost of the programme turns out to be prohibitive. Farm Fresh Foods can start off something at a lower level to match its available budget. But then this is not expected to make enough of a difference to justify starting the programme at all. So what is to be done?
Synergizing for Optimal and Wider Benefits
Ironically enough, while the 2 companies are individually trying to figure out a solution, not knowing that both of them are facing the same issue, it is their common stakeholder, the farming community that comes up with one. Separately executives of Quality Tools and Farm Fresh Foods have spoken to the community elders of the need to do capacity building of the people and the elders had bought into the idea.
This, the elders remember. When both companies eventually show reluctance in matching their promises with deeds because of financial constraints, the community leaders have a clear message for them. Join hands, they tell Quality Tools and Farm Fresh Foods. Pool in all resources – funds, management’s time and project management expertise and go for the establishment of the educational facilities together.
The idea is simple, yet exciting. The farming community is part of the value chain of both companies, divergent as their businesses may be. It serves both of them to strengthen it. And perhaps because their businesses are so different, there is no apparent competition or negative fall-out of a joint CSR initiative.
Soon enough a primary school is built which educates the community’s children in the daytime. This then serves as an adult literacy centre in the evening, when the children’s elder siblings and parents end their day’s work in the fields and are able to take classes. Even the physical space is thus optimized. A little after the project takes off, the ground-breaking for the secondary school is performed.
Revolutionizing CSR
What happened here? Well, we have just advocated a hypothetical, yet very possible in the real world, concept which can be developed as a new dimension for the future of CSR. We will call it simply by what it is – Cross Company CSR. The coming together of two or more companies for executing CSR initiatives which are of benefit to all and which can best be better executed by combining resources.
The general trend has been for more and more companies to get on the CSR bandwagon. Some have done it for the photo opportunity and have not progressed much beyond corporate philanthropy.
Others have advanced to more elaborate initiatives, while a few have even gone the whole 9 yards and built CSR seamlessly into their business operations. They have strategically pursued the triple bottom-line and have demonstrated that their CSR models are indeed sustainable. But even the top CSR champions have done it more or less alone. Examples of joint CSR programmes will be hard to find, at least in terms of these being strategically planned sustainable initiatives. More likely they would have come about, almost accidentally, to suit the expediency of a particular situation. This by itself hints at the initiative being non-sustainable, with one reason possibly being that it benefits one partner over the others much more, after the initial phase.
In the related world of corporate philanthropy however, one finds that two or several companies joining hands to support a cause is a common enough phenomena. Fundraisers are perhaps the best example, where several companies will take high priced tables at a soiree, which cannot take place to start with unless a minimum number of tables are taken up. Then there are numerous other examples from the world of sports, arts and culture, education and still others, where companies have pooled in mainly one resource – cash – to achieve a goal that cannot be achieved singly. It is another matter that such philanthropic bonding may do something for the image of the companies involved, but it will do very little if anything at all for the companies’ triple bottom-lines.
Benefits of Cross Company CSR
It is therefore now time for CSR to dynamically evolve to another level. Cross-Company CSR has obvious benefits. The benefits increase exponentially over time. Synergy, personified. Greater economies of scale can be achieved. Optimization of resources can be targeted. The spread in terms of the number of people benefiting will be far larger. And not least, the sustainability of the now-collective initiative is stronger.
The Way Forward?
We at tbl propose the commencement of an immediate dialogue between companies that are serious to explore Cross-Company CSR as a workable strategy for the future. Such dialogue can be initiated by any company, or by an independent body that takes on the task of research to identify possible areas of Cross-Company CSR cooperation, and then goes on to approach likely corporate partners with a view to setting up partnerships between like-minded companies. We believe that even if two companies make a start and launch a pilot project successfully, others will observe and draw learning. A momentum will be unleashed.
Our CCC Model
By Khadeeja balkhi
for tbl
We humbly share with you the outline of a model that we are currently experimenting with, on the ground.
The brilliantly simple observation this is based upon is: many of us businesspeople are working with the same groups, but separately.
Of course, we do know of some companies that are experimenting with this kind of collaboration. And here we begin to present a structure for that forward thinking. One that we hope will keep your commitment to triple bottom-line value creation focused and growing.
The model?s focus is the ?value chain? of an underprivileged stakeholder group.
The first point for action is identifying how you, as a company, can add value to that stakeholder group, within your business?s value chain. When you interact with a group, as a business entity, you do it because – theoretically at least – both parties are adding value to each other (as opposed to one party exploiting the other, as we?d like not to think may be the case with our corporate cohorts).
So, for example, if you?re a manufacturer of agri-tools (Quality Tools Limited in our model), it?s in your business?s best interest, short and long-term, that your customers understand the processes surrounding the application of your tools, even if seemingly simple. Then you help build the foundation for them to gradually upgrade to tools that further improve their productivity and so on. Who is your customer? The farmer. So, you understand that a viable value chain must have some manifestation of farmer capacity building in it.
Then, the CCC idea to extend your impact, is, to collaborate with other companies who also interact with this stakeholder group. Thereby efficiencies of scale and scope are built, in the case of our model, towards the larger upliftment of a farming community. Together, you exponentialize the impact of your efforts.
The bottom-line: pooling hearts, minds and pockets with our corporate brethren towards a much larger ?value chain?.
We at tbl, find beauty in simple things. We?ve tried to keep the concept-model basic, so the idea is not lost.
Having said that, we can?t wait to delve deeper into it with those of you who are willing to experiment at the cutting edge.
All very well, but the company then discovers that the optimum level intervention required for this initiative is going to cost well beyond what it can make available from its CSR portfolio. What is to be done?
Mull Over That. Fresh Thought Process:
Now imagine another company, Farm Fresh Foods Limited, a food processing company that purchases the produce of the same farming community. Let us say the farmers are growing orchard crops that the food processing company purchases to produce its range of popular jams. Over a period Farm Fresh Foods has been experiencing a loss of consistency in both quality and in quantity of the produce – causing supply shortages not infrequently and a high rejection rate owing to quality at times being below minimum acceptable standards.
This is a serious issue for both the farmers and the company. Farm Fresh Foods considers how the situation can be improved and reaches the conclusion that for long-term sustainable growth, the farmers really need to be educated at least to a level where they can read and understand a step by step set of instructions. This, will produce better and more consistent quality of produce and a higher quantity too. So the company consults suitable education service providers who come up with a programme that is at two levels – a primary and secondary education level to prepare tomorrow’s generation to be more educated and empowered agriculturists, and an adult literacy level that seeks to make present day farmers (raw material suppliers) more efficient.
Again, all very well. But when the details are worked out, the cost of the programme turns out to be prohibitive. Farm Fresh Foods can start off something at a lower level to match its available budget. But then this is not expected to make enough of a difference to justify starting the programme at all. So what is to be done?
Synergizing for Optimal and Wider Benefits
Ironically enough, while the 2 companies are individually trying to figure out a solution, not knowing that both of them are facing the same issue, it is their common stakeholder, the farming community that comes up with one. Separately executives of Quality Tools and Farm Fresh Foods have spoken to the community elders of the need to do capacity building of the people and the elders had bought into the idea.
This, the elders remember. When both companies eventually show reluctance in matching their promises with deeds because of financial constraints, the community leaders have a clear message for them. Join hands, they tell Quality Tools and Farm Fresh Foods. Pool in all resources – funds, management’s time and project management expertise and go for the establishment of the educational facilities together.
The idea is simple, yet exciting. The farming community is part of the value chain of both companies, divergent as their businesses may be. It serves both of them to strengthen it. And perhaps because their businesses are so different, there is no apparent competition or negative fall-out of a joint CSR initiative.
Soon enough a primary school is built which educates the community’s children in the daytime. This then serves as an adult literacy centre in the evening, when the children’s elder siblings and parents end their day’s work in the fields and are able to take classes. Even the physical space is thus optimized. A little after the project takes off, the ground-breaking for the secondary school is performed.
Revolutionizing CSR
What happened here? Well, we have just advocated a hypothetical, yet very possible in the real world, concept which can be developed as a new dimension for the future of CSR. We will call it simply by what it is – Cross Company CSR. The coming together of two or more companies for executing CSR initiatives which are of benefit to all and which can best be better executed by combining resources.
The general trend has been for more and more companies to get on the CSR bandwagon. Some have done it for the photo opportunity and have not progressed much beyond corporate philanthropy.
Others have advanced to more elaborate initiatives, while a few have even gone the whole 9 yards and built CSR seamlessly into their business operations. They have strategically pursued the triple bottom-line and have demonstrated that their CSR models are indeed sustainable. But even the top CSR champions have done it more or less alone. Examples of joint CSR programmes will be hard to find, at least in terms of these being strategically planned sustainable initiatives. More likely they would have come about, almost accidentally, to suit the expediency of a particular situation. This by itself hints at the initiative being non-sustainable, with one reason possibly being that it benefits one partner over the others much more, after the initial phase.
In the related world of corporate philanthropy however, one finds that two or several companies joining hands to support a cause is a common enough phenomena. Fundraisers are perhaps the best example, where several companies will take high priced tables at a soiree, which cannot take place to start with unless a minimum number of tables are taken up. Then there are numerous other examples from the world of sports, arts and culture, education and still others, where companies have pooled in mainly one resource – cash – to achieve a goal that cannot be achieved singly. It is another matter that such philanthropic bonding may do something for the image of the companies involved, but it will do very little if anything at all for the companies’ triple bottom-lines.
Benefits of Cross Company CSR
It is therefore now time for CSR to dynamically evolve to another level. Cross-Company CSR has obvious benefits. The benefits increase exponentially over time. Synergy, personified. Greater economies of scale can be achieved. Optimization of resources can be targeted. The spread in terms of the number of people benefiting will be far larger. And not least, the sustainability of the now-collective initiative is stronger.
The Way Forward?
We at tbl propose the commencement of an immediate dialogue between companies that are serious to explore Cross-Company CSR as a workable strategy for the future. Such dialogue can be initiated by any company, or by an independent body that takes on the task of research to identify possible areas of Cross-Company CSR cooperation, and then goes on to approach likely corporate partners with a view to setting up partnerships between like-minded companies. We believe that even if two companies make a start and launch a pilot project successfully, others will observe and draw learning. A momentum will be unleashed.
Our CCC Model
By Khadeeja balkhi
for tbl
We humbly share with you the outline of a model that we are currently experimenting with, on the ground.
The brilliantly simple observation this is based upon is: many of us businesspeople are working with the same groups, but separately.
Of course, we do know of some companies that are experimenting with this kind of collaboration. And here we begin to present a structure for that forward thinking. One that we hope will keep your commitment to triple bottom-line value creation focused and growing.
The model?s focus is the ?value chain? of an underprivileged stakeholder group.
The first point for action is identifying how you, as a company, can add value to that stakeholder group, within your business?s value chain. When you interact with a group, as a business entity, you do it because – theoretically at least – both parties are adding value to each other (as opposed to one party exploiting the other, as we?d like not to think may be the case with our corporate cohorts).
So, for example, if you?re a manufacturer of agri-tools (Quality Tools Limited in our model), it?s in your business?s best interest, short and long-term, that your customers understand the processes surrounding the application of your tools, even if seemingly simple. Then you help build the foundation for them to gradually upgrade to tools that further improve their productivity and so on. Who is your customer? The farmer. So, you understand that a viable value chain must have some manifestation of farmer capacity building in it.
Then, the CCC idea to extend your impact, is, to collaborate with other companies who also interact with this stakeholder group. Thereby efficiencies of scale and scope are built, in the case of our model, towards the larger upliftment of a farming community. Together, you exponentialize the impact of your efforts.
The bottom-line: pooling hearts, minds and pockets with our corporate brethren towards a much larger ?value chain?.
We at tbl, find beauty in simple things. We?ve tried to keep the concept-model basic, so the idea is not lost.
Having said that, we can?t wait to delve deeper into it with those of you who are willing to experiment at the cutting edge.
See you at the C3 Roundtable!
The Emergence and Growth of Global Responsibility
In recent years there has been a dramatic expansion of what we have named the Global Responsibility (GR) industry. It has grown through the emergence of a variety of unprecedented management and organizational models/approaches, including commonly called: Business Ethics, Corporate Citizenship, Corporate Social Responsibility (CSR), Eco-Efficiency, For-Benefits, Fourth Sector, Social Enterprise, Sustainability, and many more bearing different names. Although these innovative management and organizational approaches/models generally seek the same purpose, they emphasize or embody different aspects thus limiting their usefulness for tackling systemic problems.
This unprecedented change, rather than spearheaded internally by management, is increasingly pioneered externally by the stakeholders of organizations—including groups such as: consumers/customers, investors, media, activists and concerned citizens. Isolated from each other, these groups are progressively putting more pressure on organizational leaders to change both how companies make their profits and what they do with them. But the need for new relevant models and tools for implementation has brought forth an outburst of incomprehensive top-down management models that are exclusive, limited in scope, fragmented and disconnected from one another and business strategies. Some even set businesses against certain stakeholder groups, rendering each counterproductive.
In recent years there has been a dramatic expansion of what we have named the Global Responsibility (GR) industry. It has grown through the emergence of a variety of unprecedented management and organizational models/approaches, including commonly called: Business Ethics, Corporate Citizenship, Corporate Social Responsibility (CSR), Eco-Efficiency, For-Benefits, Fourth Sector, Social Enterprise, Sustainability, and many more bearing different names. Although these innovative management and organizational approaches/models generally seek the same purpose, they emphasize or embody different aspects thus limiting their usefulness for tackling systemic problems.
This unprecedented change, rather than spearheaded internally by management, is increasingly pioneered externally by the stakeholders of organizations—including groups such as: consumers/customers, investors, media, activists and concerned citizens. Isolated from each other, these groups are progressively putting more pressure on organizational leaders to change both how companies make their profits and what they do with them. But the need for new relevant models and tools for implementation has brought forth an outburst of incomprehensive top-down management models that are exclusive, limited in scope, fragmented and disconnected from one another and business strategies. Some even set businesses against certain stakeholder groups, rendering each counterproductive.
Key Concepts
Meanwhile, we face the same detrimental social issues that we did decades ago, except that now the problems are much more formidably vast, systemic, costly and dangerous. The social and ecological impacts of corporate decisions are now threatening the very survival of our planet. At the same time companies are missing advantageous opportunities to innovate, increase their competitive advantage and benefit stakeholders, society at large and the eco-system—largely because sustainable development is too complex and multidimensional to be solved by any single group, initiative or organization.
VIAGlobus is a vast one-stop, results-driven business and social networking service for every type of stakeholder and management and organizational model/approach, to make GR a universal tool that integrates and innovates for enhanced profits and socially, ethically, and environmentally responsible leadership and organizations.
This unprecedented change, rather than spearheaded internally by management, is increasingly pioneered externally by the stakeholders of organizations—including groups such as: consumers/customers, investors, media, activists and concerned citizens. Isolated from each other, these groups are progressively putting more pressure on organizational leaders to change both how companies make their profits and what they do with them. But the need for new relevant models and tools for implementation has brought forth an outburst of incomprehensive top-down management models that are exclusive, limited in scope, fragmented and disconnected from one another and business strategies. Some even set businesses against certain stakeholder groups, rendering each counterproductive.
Key Concepts
Meanwhile, we face the same detrimental social issues that we did decades ago, except that now the problems are much more formidably vast, systemic, costly and dangerous. The social and ecological impacts of corporate decisions are now threatening the very survival of our planet. At the same time companies are missing advantageous opportunities to innovate, increase their competitive advantage and benefit stakeholders, society at large and the eco-system—largely because sustainable development is too complex and multidimensional to be solved by any single group, initiative or organization.
VIAGlobus is a vast one-stop, results-driven business and social networking service for every type of stakeholder and management and organizational model/approach, to make GR a universal tool that integrates and innovates for enhanced profits and socially, ethically, and environmentally responsible leadership and organizations.
Corporate Social Responsibility
Our Triple Bottom Line
We believe that our commitment to the Triple Bottom Line - social responsibility, environmental soundness, and economic viability - makes good business sense, so we have made it a top priority.
At The Conference People, we take all our commitments very seriously, especially our commitment to people. We also take particular interest in the preservation and restoration of the global environment. We seek to minimise the ecological impact of the events we manage worldwide by minimising emissions and the consumption of energy and raw materials.
We believe that our commitment to the Triple Bottom Line - social responsibility, environmental soundness, and economic viability - makes good business sense, so we have made it a top priority.
At The Conference People, we take all our commitments very seriously, especially our commitment to people. We also take particular interest in the preservation and restoration of the global environment. We seek to minimise the ecological impact of the events we manage worldwide by minimising emissions and the consumption of energy and raw materials.
Social
We work to continuously improve our social performance by integrating social, human rights and health and safety considerations into our daily business.
Environmental
We work to continuously improve our environmental performance by setting high objectives and integrating sustainable processes into our daily business.
Financial
We work to continuously improve our financial performance by setting high objectives for growth whilst delivering competitive solutions to our clients.
A business that makes nothing but money is a poor kind of business
WHAT IS CSR?
Starbucks emphatically makes a point to educate consumers about their free trade coffee offerings; IKEA monitors and prohibits suppliers in India from enacting child labor practices and offers financial incentives to provide the children of employees with education opportunities; and PepsiCo disbanded operations in countries displaying gross human rights violations as they did in Burma (Vogel). These are all examples of corporate social responsibility, a postmodern revolution in how companies conduct business. Corporate social responsibility (CSR) is, "the intelligent and objective concern for the welfare of society which restrains corporate behavior from ultimate destructive activities, no matter how immediately profitable and which leads in the direction of positive contributions to human betterment" (Nwachukwu). CSR involves practices that go beyond the basic legal obligations required of a company towards its employees or the communities in which it operates and instead facilitates corporate decision makers to take action that simultaneously protects and improves the welfare of society as a whole along with their own interests (Wulfson). Essentially, CSR is a framework for an organization taking responsibility for the impact of its activities upon its employees, customers, community and the environment.
WHY CSR IS IMPORANT
Several factors contribute to the importance of CSR. Most importantly, CSR should not just be another department in a large corporation or a policy it chooses to pursue some of the time. Companies cannot only employ CSR strategies when they have the economic means to do so or when business is good and disband CSR policies when business is slow, but rather; CSR must be engrained as a central value of a company no matter what the economic times are like.
The most important reason CSR is taking prominence in the corporate world is because evidence suggests that companies that pursue CSR strategies are more profitable than those who do not. Moreover, CSR has gained prominence because the Internet and mass media, empowered by globalization, make it difficult for companies to bury or hide detrimental social practices. Preserving and maintaining a healthy company image is one reason for the prevalence of CSR.
Lastly, the awareness of a duty to the communities in which companies operate is emerging. Corporations understand their roles as global citizens and CSR allows them to positively facilitate relationships with the communities in which they operate. Current World Wild Life CEO Carter Roberts epitomizes this point, “Companies still thinking about the environment and the community as social responsibilities rather than business imperatives are living in the dark ages.”
Starbucks emphatically makes a point to educate consumers about their free trade coffee offerings; IKEA monitors and prohibits suppliers in India from enacting child labor practices and offers financial incentives to provide the children of employees with education opportunities; and PepsiCo disbanded operations in countries displaying gross human rights violations as they did in Burma (Vogel). These are all examples of corporate social responsibility, a postmodern revolution in how companies conduct business. Corporate social responsibility (CSR) is, "the intelligent and objective concern for the welfare of society which restrains corporate behavior from ultimate destructive activities, no matter how immediately profitable and which leads in the direction of positive contributions to human betterment" (Nwachukwu). CSR involves practices that go beyond the basic legal obligations required of a company towards its employees or the communities in which it operates and instead facilitates corporate decision makers to take action that simultaneously protects and improves the welfare of society as a whole along with their own interests (Wulfson). Essentially, CSR is a framework for an organization taking responsibility for the impact of its activities upon its employees, customers, community and the environment.
WHY CSR IS IMPORANT
Several factors contribute to the importance of CSR. Most importantly, CSR should not just be another department in a large corporation or a policy it chooses to pursue some of the time. Companies cannot only employ CSR strategies when they have the economic means to do so or when business is good and disband CSR policies when business is slow, but rather; CSR must be engrained as a central value of a company no matter what the economic times are like.
The most important reason CSR is taking prominence in the corporate world is because evidence suggests that companies that pursue CSR strategies are more profitable than those who do not. Moreover, CSR has gained prominence because the Internet and mass media, empowered by globalization, make it difficult for companies to bury or hide detrimental social practices. Preserving and maintaining a healthy company image is one reason for the prevalence of CSR.
Lastly, the awareness of a duty to the communities in which companies operate is emerging. Corporations understand their roles as global citizens and CSR allows them to positively facilitate relationships with the communities in which they operate. Current World Wild Life CEO Carter Roberts epitomizes this point, “Companies still thinking about the environment and the community as social responsibilities rather than business imperatives are living in the dark ages.”
An example of CSR in practice: The Olympic Games
Since the early 1990’s when sustainable practices and corporate social responsibility models got pushed into the forefront in many national and international organizations, the Olympic movement began openly acknowledging the role of community members as stakeholders in the organizing and hosting of the Games. In 1999, the International Olympic Committee (IOC) adopted a modified version of United Nations Environment Programme’s (UNEP) Agenda 21. Agenda 21: Sport for Sustainable Development is described as a bid to “encourage members of the Movement to play an active part in the sustainable development of our planet” and emphasizes 3 main objectives of “improving socio-economic conditions, conservation and management of resources for sustainable development and strengthening the role of major groups” (Agenda 21, p. 23). The concept of corporate social responsibility (CSR) has also gained importance amongst sporting organizations (Babiak & Wolfe, 2006), CSR is the perspective that corporations hold a responsibility to work towards meeting the needs and interests of all stakeholders, where stakeholders are considered to be any individual or group that can affect or is affected by the focal organization’s actions. Misener (2008, NASSM abstract) points out that the strategic plans and initiatives developed by both organizing committees (VANOC & LOCOG) for the upcoming Vancouver and London Olympic Games in 2010 and 2012 respectively, represent a CSR approach – where steps have been taken to outline a commitment to various social and environmental interests - rather than just the bottom line of corporate interests.
Unfortunately, it seems that a commitment to CSR does not automatically accrue to actual CSR practices. Giving a brief overview of her preliminary results, Misener (2008, NASSM conference) revealed that the CSR adopted by VANOC and LOCOG are most likely being used as part of social marketing for the event - to decrease criticisms and enhance reputations – in support of elite stakeholders rather than in support of the involvement of other community members. Gruneau (2002) argues a similar point when writing about mega event organizing in general, suggesting that “local politicians and media often focus on the interests and enthusiasms of the developers, property owners and middle class consumers as ‘synonymous with the well-being of the city” (P. 84). Researchers have described the manner in which the Olympic Games are organized and managed as being somewhat problematic and incompatible with a community engagement approach (Roche, 2002). Olympic scholars have clearly highlighted concerns about the level of stakeholder involvement in Games organizing, as Whitson and Horne (2006) suggest “Olympic hosting should be the subject of a full and inclusive public debate, in which citizens in every social location have opportunities to participate” (p. 77). They have also recognised the factors that are potentially limiting this involvement; sighting the use of Olympism rhetoric to promote the Games, lack of accountability and transparency in the organization of the Olympic Movement among some of the issues that are currently creating a Games which are not inclusive of CSR and sustainable practices. It perhaps because of these limited opportunities for community input, in addition to the undeniable social, environmental and economic impacts of the Games that CSR practices are somewhat limited despite their stated commitments to that ideal.
Since the early 1990’s when sustainable practices and corporate social responsibility models got pushed into the forefront in many national and international organizations, the Olympic movement began openly acknowledging the role of community members as stakeholders in the organizing and hosting of the Games. In 1999, the International Olympic Committee (IOC) adopted a modified version of United Nations Environment Programme’s (UNEP) Agenda 21. Agenda 21: Sport for Sustainable Development is described as a bid to “encourage members of the Movement to play an active part in the sustainable development of our planet” and emphasizes 3 main objectives of “improving socio-economic conditions, conservation and management of resources for sustainable development and strengthening the role of major groups” (Agenda 21, p. 23). The concept of corporate social responsibility (CSR) has also gained importance amongst sporting organizations (Babiak & Wolfe, 2006), CSR is the perspective that corporations hold a responsibility to work towards meeting the needs and interests of all stakeholders, where stakeholders are considered to be any individual or group that can affect or is affected by the focal organization’s actions. Misener (2008, NASSM abstract) points out that the strategic plans and initiatives developed by both organizing committees (VANOC & LOCOG) for the upcoming Vancouver and London Olympic Games in 2010 and 2012 respectively, represent a CSR approach – where steps have been taken to outline a commitment to various social and environmental interests - rather than just the bottom line of corporate interests.
Unfortunately, it seems that a commitment to CSR does not automatically accrue to actual CSR practices. Giving a brief overview of her preliminary results, Misener (2008, NASSM conference) revealed that the CSR adopted by VANOC and LOCOG are most likely being used as part of social marketing for the event - to decrease criticisms and enhance reputations – in support of elite stakeholders rather than in support of the involvement of other community members. Gruneau (2002) argues a similar point when writing about mega event organizing in general, suggesting that “local politicians and media often focus on the interests and enthusiasms of the developers, property owners and middle class consumers as ‘synonymous with the well-being of the city” (P. 84). Researchers have described the manner in which the Olympic Games are organized and managed as being somewhat problematic and incompatible with a community engagement approach (Roche, 2002). Olympic scholars have clearly highlighted concerns about the level of stakeholder involvement in Games organizing, as Whitson and Horne (2006) suggest “Olympic hosting should be the subject of a full and inclusive public debate, in which citizens in every social location have opportunities to participate” (p. 77). They have also recognised the factors that are potentially limiting this involvement; sighting the use of Olympism rhetoric to promote the Games, lack of accountability and transparency in the organization of the Olympic Movement among some of the issues that are currently creating a Games which are not inclusive of CSR and sustainable practices. It perhaps because of these limited opportunities for community input, in addition to the undeniable social, environmental and economic impacts of the Games that CSR practices are somewhat limited despite their stated commitments to that ideal.
Corporate Social Responsibility
Definition
"Corporate social responsibility (CSR) is a concept whereby organisations consider the interests of society by taking responsibility for the impact of their activities on customers, suppliers, employees, shareholders, communities and other stakeholders, as well as the environment. This obligation is seen to extend beyond the statutory obligation to comply with legislation and sees organisations voluntarily taking further steps to improve the quality of life for employees and their families as well as for the local community and society at large."
EOL has made a strong and on-going commitment to meet the above criteria and to ensure that its clients also meet the exacting standards that must be met in the responsible disposal of IT and general office electrical equipment and data erasure. To assist our clients we steer them through the relevant legislation, including WEEE (Waste Electronic and Electrical Equipment) Directive, Data Protection Act, Hazardous Waste Act and other EU legislation.
EOL operates a zero landfill policy and our aim is to reuse 90% of all IT equipment collected, the remaining 10% goes to our waste management partners for further refinement. We understand the issues and responsibilities placed on us by the Landfill Regulation Act, so we ensure that all our partners are processing our waste correctly. We use our internal audits and BS EN ISO 14001 Environmental Standard to maintain awareness and monitor any risks in the process.
Environment Agency On-Going Audit
EOL is one of the largest independent IT recyclers in the UK and we are regularly audited by the Environment Agency (EA) who monitor our systems and compliance. Our high level of competence is so well considered by the EA that they have used EOL as a case study because of our positive environmental efforts and impact, the good work we carry out in the community and for the investment we put into training our staff.
Compliance
Our processing structure is reassuring to all our clients. They have the knowledge and confidence that we are fully compliant with legislation and continue to be a trusted and responsible organisation. Our supplier audits run hand in hand with our own Quality Management Standard as part of our BS EN ISO 9001 (GB 9542) accreditation and Environmental Management Standard BS EN ISO 14001 (GB 9541). We are also registered under the Data Protection Act 1998.
Data & Identification Security
The protection of our clients' data and identification is paramount and we believe that it is of the utmost importance that our procedure and insurances reflect this.
We ensure that all existing data and forms of identification are fully erased from hard disks, storage media and hardware using documented, quality controlled processes that exceed the highest security standards, including Infosec 5 and international defence standards.
We use exacting, quality-controlled, fully documented procedures to ensure 100% erasure of your data and identification. Below is an example of our processes relating to data & identification erasure:
An Infosec standard wipe of the hard drive is carried out using Blancco Software via the LAN connection.
When successful, a "Hard Drive Sanitised" label is attached to the item and a software generated certificate produced as confirmation of erasure. The Engineer enters their name and date within the Data Erasure field as part of our internal recording and audit process.
Once wiped, tested and asset recorded any complete PC units for re-sale are then passed to our Equipment Preparation Department where all signs of previous ownership are removed or disguised.
If the drive fails to wipe, it is removed from the PC Department and securely transferred to our Parts Department.
Here it is connected to a US DoD 5220.22-M approved WipeMaster Wiping Rig where a second attempt to wipe the drive is carried out.
If this fails to remove the data, then entire hard drive is degaussed to the same Infosec standards.
All degaussed drives are securely transported to our specialist metals recycling partner, using EOL transport and personnel, where they are ground down to their final powder state.
EOL in the Community
In its own right, EOL works with a number of local charities and educational facilities to provide IT equipment for needy causes. In particular we work with RevITalise which is a local sheltered factory where we provide equipment and technical support.
In addition, as part of our standard disposal agreement, we are happy to facilitate a donation of 10% of a client's collection to a charitable or educational organisation of the client's choice.
Client Staff Purchase Scheme
We are able to offer contracted clients a Staff Purchase Scheme which allows their staff to purchase refubished IT equipment at an attractive discount over and above our already competitive retail prices.
EOL and its staff
EOL firmly believes in promoting from within its own organisation wherever possible and, where required, putting in to place the necessary training to the benefit of all our staff. We work closely with a local training company to enable our younger members of staff to work towards qualifications in IT, Warehousing, Business Administration and Customer Service.
"Corporate social responsibility (CSR) is a concept whereby organisations consider the interests of society by taking responsibility for the impact of their activities on customers, suppliers, employees, shareholders, communities and other stakeholders, as well as the environment. This obligation is seen to extend beyond the statutory obligation to comply with legislation and sees organisations voluntarily taking further steps to improve the quality of life for employees and their families as well as for the local community and society at large."
EOL has made a strong and on-going commitment to meet the above criteria and to ensure that its clients also meet the exacting standards that must be met in the responsible disposal of IT and general office electrical equipment and data erasure. To assist our clients we steer them through the relevant legislation, including WEEE (Waste Electronic and Electrical Equipment) Directive, Data Protection Act, Hazardous Waste Act and other EU legislation.
EOL operates a zero landfill policy and our aim is to reuse 90% of all IT equipment collected, the remaining 10% goes to our waste management partners for further refinement. We understand the issues and responsibilities placed on us by the Landfill Regulation Act, so we ensure that all our partners are processing our waste correctly. We use our internal audits and BS EN ISO 14001 Environmental Standard to maintain awareness and monitor any risks in the process.
Environment Agency On-Going Audit
EOL is one of the largest independent IT recyclers in the UK and we are regularly audited by the Environment Agency (EA) who monitor our systems and compliance. Our high level of competence is so well considered by the EA that they have used EOL as a case study because of our positive environmental efforts and impact, the good work we carry out in the community and for the investment we put into training our staff.
Compliance
Our processing structure is reassuring to all our clients. They have the knowledge and confidence that we are fully compliant with legislation and continue to be a trusted and responsible organisation. Our supplier audits run hand in hand with our own Quality Management Standard as part of our BS EN ISO 9001 (GB 9542) accreditation and Environmental Management Standard BS EN ISO 14001 (GB 9541). We are also registered under the Data Protection Act 1998.
Data & Identification Security
The protection of our clients' data and identification is paramount and we believe that it is of the utmost importance that our procedure and insurances reflect this.
We ensure that all existing data and forms of identification are fully erased from hard disks, storage media and hardware using documented, quality controlled processes that exceed the highest security standards, including Infosec 5 and international defence standards.
We use exacting, quality-controlled, fully documented procedures to ensure 100% erasure of your data and identification. Below is an example of our processes relating to data & identification erasure:
An Infosec standard wipe of the hard drive is carried out using Blancco Software via the LAN connection.
When successful, a "Hard Drive Sanitised" label is attached to the item and a software generated certificate produced as confirmation of erasure. The Engineer enters their name and date within the Data Erasure field as part of our internal recording and audit process.
Once wiped, tested and asset recorded any complete PC units for re-sale are then passed to our Equipment Preparation Department where all signs of previous ownership are removed or disguised.
If the drive fails to wipe, it is removed from the PC Department and securely transferred to our Parts Department.
Here it is connected to a US DoD 5220.22-M approved WipeMaster Wiping Rig where a second attempt to wipe the drive is carried out.
If this fails to remove the data, then entire hard drive is degaussed to the same Infosec standards.
All degaussed drives are securely transported to our specialist metals recycling partner, using EOL transport and personnel, where they are ground down to their final powder state.
EOL in the Community
In its own right, EOL works with a number of local charities and educational facilities to provide IT equipment for needy causes. In particular we work with RevITalise which is a local sheltered factory where we provide equipment and technical support.
In addition, as part of our standard disposal agreement, we are happy to facilitate a donation of 10% of a client's collection to a charitable or educational organisation of the client's choice.
Client Staff Purchase Scheme
We are able to offer contracted clients a Staff Purchase Scheme which allows their staff to purchase refubished IT equipment at an attractive discount over and above our already competitive retail prices.
EOL and its staff
EOL firmly believes in promoting from within its own organisation wherever possible and, where required, putting in to place the necessary training to the benefit of all our staff. We work closely with a local training company to enable our younger members of staff to work towards qualifications in IT, Warehousing, Business Administration and Customer Service.
East West Executive Travellers Corporate Social Responsibility
The dominance of and interest in corporate social responsibilty, environmental and social issues have been fast and furious in the wake of corporate scandals and environmental catastrophes.
With increasing priorities towards corporate social responsibility and no clear definitions, it seems that many are embracing the cause but few with real commitment.
As creators of corporate and leisure travel experiences, we are inevitably connected to the community and people in the destinations that we operate in. Inspired by a mission to celebrate life and connect people, we want to engage people towards our cause for the elderly through the Tsao Foundation's partner-in-care program, one whose mission is to promote successful ageing.
Largely neglected by the community, this is the group that have built our present and continue to have much to contribute, and our intention is to garner collective action both internally and externally for a meaningful impact.
Our core participation is through our C.A.R.E program: Caring, Attending, Reaching...for the Elderly & Environment. Our logo, represents the dynamism of a collective community or people sharing a vision and embracing a cause.
We contribute $1 for every individual we connect through our programmes to the Tsao Foundation Partner-in-care programme that supports the Hua Mei Community Clinics.
With increasing priorities towards corporate social responsibility and no clear definitions, it seems that many are embracing the cause but few with real commitment.
As creators of corporate and leisure travel experiences, we are inevitably connected to the community and people in the destinations that we operate in. Inspired by a mission to celebrate life and connect people, we want to engage people towards our cause for the elderly through the Tsao Foundation's partner-in-care program, one whose mission is to promote successful ageing.
Largely neglected by the community, this is the group that have built our present and continue to have much to contribute, and our intention is to garner collective action both internally and externally for a meaningful impact.
Our core participation is through our C.A.R.E program: Caring, Attending, Reaching...for the Elderly & Environment. Our logo, represents the dynamism of a collective community or people sharing a vision and embracing a cause.
We contribute $1 for every individual we connect through our programmes to the Tsao Foundation Partner-in-care programme that supports the Hua Mei Community Clinics.
Corporate Social Responsibility
Corporate Social Responsibility
MCS believes it has a responsibility to its stakeholders, partners, employees, customers, shareholders, suppliers and others. It matters then how its entire partner network feels about MCS as a great place to work and that customers see they are treated with respect and dignity.
Creating a more sustainable approach to high-quality software and services is an important issue too. MCS also believes that a company has a social goal, by contributing positively to local communities and organizations.
Village Reconstruction Organisation
An example of this social involvement is our move in May 2007 to a new building in Wilrijk (Antwerp). MCS took this opportunity to put its Corporate Social Responsibility in the spotlight. If you wanted to do so, you could make a donation to a good cause. MCS selected the VRO organisation headed by the 86 year old father Michael Windey from Belgium. VRO stands for Village Reconstruction Organisation and is a movement, established in 1969 by the father, for fighting poverty in India.
Confronted with the hopeless situation of the poor population, father Windey decided to work out a unique concept. With the aid of numerous volunteers and the local population entire villages were constructed. This gave the chance to the villagers to develop themselves and to escape from poverty. Supported by several European countries, the VRO movement already built 25.000 houses.
Thanks to your generous gifts and a contribution by MCS, a cheque of 5.000,- EUR could be handed over to VRO. Some time ago father Windey stayed a while in Belgium. He seized the opportunity to thank personally the people from MCS. He also gave a full account about his movement and its results. VRO and MCS wish to thank the contributors for their gifts.
MCS plans on contributing even more in the future and expanding a continuous collaboration between profit and non-profit organizations.
MCS finances via Incofin entrepreneurs in developing countries
“Adding value for all stakeholders.” That is our mission. However, this social role exceeds our immediate surroundings. As you could read in a previous newsletter MCS helps fighting poverty in India with the VRO project founded by Father Windey. In 2008 MCS pledged itself to a new initiative. Via Incofin MCS supports small entrepreneurs and farmers in developing countries through ‘microfinancing’.
This way of investing doesn’t concern large amounts of money, but deals with a totally different kind of return. MCS believes in the Incofin project where microfinance institutions invest in the dynamics and opportunities of developing countries such as Ghana, Nigeria, Kenya, Kazachstan, Argentina, ...
What is microfinancing?
Microfinance institutions (MFI) are also known as ‘banks for the poor’. They grant micro credits (loans) to entrepreneuring people left out in the cold by the usual channels. With a local network and presence on markets and in village centers they are familiar with the needs and necessities of the small entrepreneur offering proper financial products. It allows the entrepreneur to start or expand an own business, to buy materials, to fix machinery … Women represent 80% of the microfinance customers.
How does it work?
Socially-motivated investors, individuals or organizations choose among different investment funds, hence become shareholder. Incofin then manages these funds and invests in microfinance institutions in developing countries by granting loans and acquiring participations. These microfinance institutions grant small credits varying from € 80 to € 2.000 to local entrepreneurs.
Incofin links the demand for capital to the supply of investors. By channeling capital to microfinance institutions, Incofin allows poor people in developing countries to have access to appropriate financial services. In return the investor gets a limited financial as well as social return.
“Adding value for all stakeholders.” That is our mission. However, this social role exceeds our immediate surroundings. As you could read in a previous newsletter MCS helps fighting poverty in India with the VRO project founded by Father Windey. In 2008 MCS pledged itself to a new initiative. Via Incofin MCS supports small entrepreneurs and farmers in developing countries through ‘microfinancing’.
This way of investing doesn’t concern large amounts of money, but deals with a totally different kind of return. MCS believes in the Incofin project where microfinance institutions invest in the dynamics and opportunities of developing countries such as Ghana, Nigeria, Kenya, Kazachstan, Argentina, ...
What is microfinancing?
Microfinance institutions (MFI) are also known as ‘banks for the poor’. They grant micro credits (loans) to entrepreneuring people left out in the cold by the usual channels. With a local network and presence on markets and in village centers they are familiar with the needs and necessities of the small entrepreneur offering proper financial products. It allows the entrepreneur to start or expand an own business, to buy materials, to fix machinery … Women represent 80% of the microfinance customers.
How does it work?
Socially-motivated investors, individuals or organizations choose among different investment funds, hence become shareholder. Incofin then manages these funds and invests in microfinance institutions in developing countries by granting loans and acquiring participations. These microfinance institutions grant small credits varying from € 80 to € 2.000 to local entrepreneurs.
Incofin links the demand for capital to the supply of investors. By channeling capital to microfinance institutions, Incofin allows poor people in developing countries to have access to appropriate financial services. In return the investor gets a limited financial as well as social return.
The BUSINESS of doing GOOD
THE 21ST CENTURY IS PROVING A BOOM TIME for philanthropy, social enterprise and corporate social responsibility (CSR). Two of the world’s richest men, Bill Gates and Warren Buffett, are vying to give away their fortunes. Innovation is blossoming in clean-tech and socially minded businesses. And companies are increasingly boosting efforts in CSR as consumers demand more ethically sourced goods.
John Elkington, founder of CSR consultancy SustainAbility and bestselling author, says: “The willingness of people to help very much depends on their perception of the risk to themselves and the extent to which they can develop some degree of empathy. Television, the internet, foreign travel and issues like the tsunami have opened our minds to the fact that there are huge numbers of people who don’t have the capacity to live like people in the developed world do.”
The amounts people are willing to give have ballooned in recent years, spurred on by the generosity of a select few. Gates famously upped the ante with his fabulously wealthy foundation, which is aiming to give away US$3 billion a year by 2009, more than any other foundation anywhere.
Elkington says: “The new economy period was driven by a set of entrepreneurs. Bill Gates in the very early stages, and more recently [Larry] Page and [Sergey] Brin at Google. They made huge amounts of money very, very fast. Unlike the Carnegies and the Rockefellers they did not wait until they died to give it away, but did it while they could take an active interest and a role in the area of philanthropy and venture philanthropy.”
The former Microsoft chief executive is a prime example of a corporate hero who has left the business world in order to focus on his charity work. The hope is that he can foster the efficiency of the private sector in his foundation, which focuses on global health challenges.
John Elkington, founder of CSR consultancy SustainAbility and bestselling author, says: “The willingness of people to help very much depends on their perception of the risk to themselves and the extent to which they can develop some degree of empathy. Television, the internet, foreign travel and issues like the tsunami have opened our minds to the fact that there are huge numbers of people who don’t have the capacity to live like people in the developed world do.”
The amounts people are willing to give have ballooned in recent years, spurred on by the generosity of a select few. Gates famously upped the ante with his fabulously wealthy foundation, which is aiming to give away US$3 billion a year by 2009, more than any other foundation anywhere.
Elkington says: “The new economy period was driven by a set of entrepreneurs. Bill Gates in the very early stages, and more recently [Larry] Page and [Sergey] Brin at Google. They made huge amounts of money very, very fast. Unlike the Carnegies and the Rockefellers they did not wait until they died to give it away, but did it while they could take an active interest and a role in the area of philanthropy and venture philanthropy.”
The former Microsoft chief executive is a prime example of a corporate hero who has left the business world in order to focus on his charity work. The hope is that he can foster the efficiency of the private sector in his foundation, which focuses on global health challenges.
Brin and Page remain at Google, but they are increasingly blurring the line between the for-profit and non-profit worlds. Earlier this year, the internet giant unveiled US$30 million in grants and investments to fund efforts to create systems to help predict and prevent disease pandemics, to empower the poor with information about public services and to create jobs by investing in small- and medium-sized businesses in the developing world. This came on top of previously announced initiatives to accelerate the commercialisation of plug-in cars and make renewable energy cheaper than coal.
A similar pattern can be seen across the globe. One of Europe’s hottest business executives of the 1990s, Percy Barnevik, has switched his focus from commercial interests to poverty relief. The former chairman and chief executive of Swiss-Swedish engineering group ABB, and former chairman of drugs giant AstraZeneca, quit the corporate world to found Hand in Hand International, which extends small loans to poor women, giving them the means to lift themselves out of poverty. In the five years since launching, the charity has spawned almost 500 mediumsized businesses in the impoverished southern Indian state of Tamil Nadu, as well as 100,000-plus family enterprises. Barnevik makes a point of stressing that he is simply applying strict business practices to his charity work.
A similar pattern can be seen across the globe. One of Europe’s hottest business executives of the 1990s, Percy Barnevik, has switched his focus from commercial interests to poverty relief. The former chairman and chief executive of Swiss-Swedish engineering group ABB, and former chairman of drugs giant AstraZeneca, quit the corporate world to found Hand in Hand International, which extends small loans to poor women, giving them the means to lift themselves out of poverty. In the five years since launching, the charity has spawned almost 500 mediumsized businesses in the impoverished southern Indian state of Tamil Nadu, as well as 100,000-plus family enterprises. Barnevik makes a point of stressing that he is simply applying strict business practices to his charity work.
These high-profile career U-turns have, in turn, spurred on a new generation of innovators and entrepreneurs seeking solutions to social and environmental problems. Their version of philanthropy is profoundly capitalist, with investment in disruptive environmental technologies and social enterprises to both make a profit and better the world.
Elkington says: “A growing interest in issues like climate change, and a growing frustration with the speed at which big multinationals can address these issues, has encouraged people to look elsewhere for solutions.” He has created an organisation to introduce innovators to big companies, policymakers and investors. Volans was launched in April with the aim to “integrate the worlds of social and environmental innovation with business-driven wealth creation”. Elkington adds that the organisation has offices in both London and Singapore because Asia is going to be the next big growth market for entrepreneurial solutions to these big issues.
Elkington believes the likes of Muhammad Yunus, who won the Nobel Peace Prize in 2006 for championing the cause of microcredit, have boosted the profile of social entrepreneurs around the globe. Yunus’ Grameen Bank has now formed a joint venture with French multinational Danone to sell nutritious food to the poor. This is part of a broader growing trend for major corporations to seek out partners in order to integrate CSR into their way of doing business.
C.K. Prahalad of the University of Michigan’s Ross School of Business, and Jeb Brugmann, a sustainable development specialist, highlight oil giant BP’s arrangements with NGOs to distribute stoves in rural India and Dutch bank ABN AMRO’s collaboration on microfinance in Latin America with ACCION International, an NGO that is itself beginning to develop a multinational business.
They wrote in the Harvard Business Review: “CSR started as a way for companies to gather intelligence about NGOs and manage their reputations. It has wound up providing them with the tools they need to pursue business opportunities in untapped markets.” These corporations have recognised the business need to focus on CSR and are increasingly formalising their activity in the area. More than 3,200 have signed up to a United Nations initiative known as the Global Compact. This was launched in 2000 after then UN secretary-general Kofi Annan challenged business leaders to join an international voluntary initiative to support universal environmental and social principles. But the scheme has been criticised for having no teeth. Companies need only to sign up to ten broad principles, which many subsequently ignore.
John Ruggie, the UN secretary-general’s special adviser on business and human rights, has conducted a major review of business and human rights with a view to drawing up international standards of responsibility and accountability for businesses. He reported to the Human Rights Council in 2007, but requested another year to assess “the major legal and policy measures that states and other social actors could take, together with views and recommendations about which options or combinations might work best to create effective remedies on the ground”.
“Asia is going to be the next big growth market for entrepreneurial solutions to a range of different social and environmental issues” - John Elkington
In the absence of definitive standards, companies are increasingly finding their own way of focusing on the so-called triple bottom line of “people, planet, profit”.
A 2007 report into corporate community investment, based on a study of more than 100 large Australian companies, says that: “business commitment, scope, focus and diversity of corporate community investment activities in large Australian companies continue to increase and deepen. Corporate community investment continues to progress from an activity on the periphery of business to a core business activity.” The study notes that 93% of companies surveyed were driven by the business case for investment in the community. Christine Charles, global group executive of sustainable development at Newmont Mining, has said that short-term investors often considered CSR as anathema to profitability because a company spent money without any direct returns, but long-term investors recognised it as a sign of intelligent foresight.
At a conference on corporate responsibility and sustainability hosted by the Committee for Economic Development of Australia in Melbourne earlier this year, Charles said: “I think one of the things shareholders want to look at is, do you (the company) understand the environment you are in? Can you get projects permitted? Can you have sustainable operations? And they are all things that are at the core of corporate responsibility.”
Other motives cited in the report include building a positive brand reputation. Westpac, for example, uses its CSR policy as a marketing tool, notably with its “Every generation should live better than the last” campaign. It is not clear, however, whether this focus will last under new chief executive Gail Kelly.
A spokeswoman for the bank said in a statement: “Sustainability is and will remain a core part of how we do things at Westpac. It is central to how we go about our business. [It has] delivered the bank a very meaningful competitive advantage that will continue to be an integral part of our brand proposition going forward.
“But there is no doubt that under [Kelly], Westpac has a heightened focus on customer service. So it wouldn’t be a surprise to see… aspects of this reflected in our marketing.”
Companies said they were also strongly motivated by staff demands for them to be involved in these activities. Rob Hunt, the managing director of Australia’s Bendigo Bank, cites the less tangible concept that healthy businesses thrive only in healthy communities.
“We feel the [community] investments made are enabling us to produce much improved outcomes for all stakeholders, while still providing an excellent platform for continuing the creation of shareholder value on a more sustainable basis.
“Because of the strong commercial base to the model, we are confident it not only generates a sustainable solution, but also provides a strong source of local revenue – revenue that then can be leveraged, match funded, or directed to substantial community projects, with the resultant multiplier benefit to the local economies.”
Ultimately CSR may become so fully entrenched in business that companies will no longer need a head of CSR. Elkington says: “It’s rather like quality; in the end it becomes part of the way people do business. But the vast majority of companies in the world are not yet aware of most of these issues, or even dealing with them.
A fraction of companies worldwide are doing something as basic as annual sustainability reporting. So huge rafts of new companies are going to come into this space.”
But he is pragmatic about the short-term future of the sector. “We are headed into a recession that is going to go far deeper than people realised. We are closer to the ’80s than people think we are. At that time what suffered among many other things were the departments that companies had set up to deal with environment, health and safety. The pressures didn’t go away, but the departments did.
“Exactly the same pattern will be seen in relation to CSR. CSR is going to go on a global diet over the next few years. The people doing that sort of work in companies will be under pressure.”
“A fraction of companies worldwide are doing something as basic as annual sustainability reporting. So huge rafts of new companies are going to come into this space.” - John Elkingto
Elkington says: “A growing interest in issues like climate change, and a growing frustration with the speed at which big multinationals can address these issues, has encouraged people to look elsewhere for solutions.” He has created an organisation to introduce innovators to big companies, policymakers and investors. Volans was launched in April with the aim to “integrate the worlds of social and environmental innovation with business-driven wealth creation”. Elkington adds that the organisation has offices in both London and Singapore because Asia is going to be the next big growth market for entrepreneurial solutions to these big issues.
C.K. Prahalad of the University of Michigan’s Ross School of Business, and Jeb Brugmann, a sustainable development specialist, highlight oil giant BP’s arrangements with NGOs to distribute stoves in rural India and Dutch bank ABN AMRO’s collaboration on microfinance in Latin America with ACCION International, an NGO that is itself beginning to develop a multinational business.
They wrote in the Harvard Business Review: “CSR started as a way for companies to gather intelligence about NGOs and manage their reputations. It has wound up providing them with the tools they need to pursue business opportunities in untapped markets.” These corporations have recognised the business need to focus on CSR and are increasingly formalising their activity in the area. More than 3,200 have signed up to a United Nations initiative known as the Global Compact. This was launched in 2000 after then UN secretary-general Kofi Annan challenged business leaders to join an international voluntary initiative to support universal environmental and social principles. But the scheme has been criticised for having no teeth. Companies need only to sign up to ten broad principles, which many subsequently ignore.
“Asia is going to be the next big growth market for entrepreneurial solutions to a range of different social and environmental issues” - John Elkington
In the absence of definitive standards, companies are increasingly finding their own way of focusing on the so-called triple bottom line of “people, planet, profit”.
A 2007 report into corporate community investment, based on a study of more than 100 large Australian companies, says that: “business commitment, scope, focus and diversity of corporate community investment activities in large Australian companies continue to increase and deepen. Corporate community investment continues to progress from an activity on the periphery of business to a core business activity.” The study notes that 93% of companies surveyed were driven by the business case for investment in the community. Christine Charles, global group executive of sustainable development at Newmont Mining, has said that short-term investors often considered CSR as anathema to profitability because a company spent money without any direct returns, but long-term investors recognised it as a sign of intelligent foresight.
At a conference on corporate responsibility and sustainability hosted by the Committee for Economic Development of Australia in Melbourne earlier this year, Charles said: “I think one of the things shareholders want to look at is, do you (the company) understand the environment you are in? Can you get projects permitted? Can you have sustainable operations? And they are all things that are at the core of corporate responsibility.”
Other motives cited in the report include building a positive brand reputation. Westpac, for example, uses its CSR policy as a marketing tool, notably with its “Every generation should live better than the last” campaign. It is not clear, however, whether this focus will last under new chief executive Gail Kelly.
A spokeswoman for the bank said in a statement: “Sustainability is and will remain a core part of how we do things at Westpac. It is central to how we go about our business. [It has] delivered the bank a very meaningful competitive advantage that will continue to be an integral part of our brand proposition going forward.
“But there is no doubt that under [Kelly], Westpac has a heightened focus on customer service. So it wouldn’t be a surprise to see… aspects of this reflected in our marketing.”
Companies said they were also strongly motivated by staff demands for them to be involved in these activities. Rob Hunt, the managing director of Australia’s Bendigo Bank, cites the less tangible concept that healthy businesses thrive only in healthy communities.
“We feel the [community] investments made are enabling us to produce much improved outcomes for all stakeholders, while still providing an excellent platform for continuing the creation of shareholder value on a more sustainable basis.
“Because of the strong commercial base to the model, we are confident it not only generates a sustainable solution, but also provides a strong source of local revenue – revenue that then can be leveraged, match funded, or directed to substantial community projects, with the resultant multiplier benefit to the local economies.”
Ultimately CSR may become so fully entrenched in business that companies will no longer need a head of CSR. Elkington says: “It’s rather like quality; in the end it becomes part of the way people do business. But the vast majority of companies in the world are not yet aware of most of these issues, or even dealing with them.
A fraction of companies worldwide are doing something as basic as annual sustainability reporting. So huge rafts of new companies are going to come into this space.”
But he is pragmatic about the short-term future of the sector. “We are headed into a recession that is going to go far deeper than people realised. We are closer to the ’80s than people think we are. At that time what suffered among many other things were the departments that companies had set up to deal with environment, health and safety. The pressures didn’t go away, but the departments did.
“Exactly the same pattern will be seen in relation to CSR. CSR is going to go on a global diet over the next few years. The people doing that sort of work in companies will be under pressure.”
“A fraction of companies worldwide are doing something as basic as annual sustainability reporting. So huge rafts of new companies are going to come into this space.” - John Elkingto
As part of the organisation’s CSR initiative, CWT India, along with sister companies in the worldwide group and their employees, donated significant sums of money for the rehabilitation of the tsumani-affected people in India. CWT India – in collaboration with the Confederation of Indian Industry (CII) – created two Cold Storage fish auction centres for the tsunami-affected areas of Poompuhar and Parangipettai in Tamil Nadu. This rehabilitation and reconstruction project provides long-term assistance to people in the affected area.
The programme provides displaced local fishermen with a common facility to store and auction their fish, as well as giving the homeless fishermen a consistent and profitable livelihood. The Project started in February 2006 and was completed in April 2008.
The programme provides displaced local fishermen with a common facility to store and auction their fish, as well as giving the homeless fishermen a consistent and profitable livelihood. The Project started in February 2006 and was completed in April 2008.
CSR and Sustainable Energy Sector
ESCOBALT examines the contribution Corporate Social Responsibility (CSR) can make to building a sustainable energy sector.
ESCOBALT project aims at adopting common strategies and action plans based on the CSR concept and promoting rational use of energy as the basis for CSR, thus improving the sustainability of the energy sector. This objective is reached through development of partner co-operation and discussing the opportunities and difficulties of CSR in the energy field.
In this section, you can find outputs of the project activities and discussions. For more general information on CSR - including guidelines and resources for companies - please visit here.
NATIONAL CSR SURVEY
Each of the ESCOBALT partner countries has prepared a survey on the current status of CSR in their own countries. These surveys describe the experiences that each of the countries already have in applying CSR and its pillars to the energy industry, as well as the difficulties and development focus points that can be identified. The surveys also include a list of CSR contacts in each country.
What is Corporate Social Responsibility (CSR)?
Recyclable cups, fair trade practices, health programs at work, Google’s Project 10 to the 100th - all of these are examples of CSR.
Corporate social responsibility is basically businesses taking responsibility for their actions. It’s the extra measures (beyond the law) that an organization makes to lessen the negative impact of doing business. From wikipedia:
Corporate social responsibility (CSR, also called corporate responsibility, corporate citizenship, responsible business and corporate social opportunity) is a concept whereby organizations consider the interests of society by taking responsibility for the impact of their activities on customers, suppliers, employees, shareholders, communities and other stakeholders, as well as the environment. This obligation is seen to extend beyond the statutory obligation to comply with legislation and sees organizations voluntarily taking further steps to improve the quality of life for employees and their families as well as for the local community and society at large.
When you’re shopping, does it make a difference to you that the company cares about your health, the environment and their employees?
Apparently a lot of people do nowadays! Marketing Mag just published results from a survey that reported:
Fully 90% of consumers feel it’s their duty to contribute to a better society and improve the environment; 84% feel they can personally make a difference, and 87% are willing to change their own consumption habits to help make the world a better place.
But then there are the critics. They say that most companies aren’t really serious about their CSR initiatives, that many choose self-serving ways to ‘give back’ and are merely flashy, half-hearted attempts to woo consumers.
Corporate social responsibility is basically businesses taking responsibility for their actions. It’s the extra measures (beyond the law) that an organization makes to lessen the negative impact of doing business. From wikipedia:
Corporate social responsibility (CSR, also called corporate responsibility, corporate citizenship, responsible business and corporate social opportunity) is a concept whereby organizations consider the interests of society by taking responsibility for the impact of their activities on customers, suppliers, employees, shareholders, communities and other stakeholders, as well as the environment. This obligation is seen to extend beyond the statutory obligation to comply with legislation and sees organizations voluntarily taking further steps to improve the quality of life for employees and their families as well as for the local community and society at large.
When you’re shopping, does it make a difference to you that the company cares about your health, the environment and their employees?
Apparently a lot of people do nowadays! Marketing Mag just published results from a survey that reported:
Fully 90% of consumers feel it’s their duty to contribute to a better society and improve the environment; 84% feel they can personally make a difference, and 87% are willing to change their own consumption habits to help make the world a better place.
But then there are the critics. They say that most companies aren’t really serious about their CSR initiatives, that many choose self-serving ways to ‘give back’ and are merely flashy, half-hearted attempts to woo consumers.
What is Corporate Social Responsibility?
This is the question I am starting to discuss with this first blog entry dedicated to Corporate Social Responsibility (CSR). I will only give a short introduction and follow this up with further posts on this in the future. That is why will call this post Part 1.
Corporate Social Responsibility (CSR) is a concept whereby organizations consider the interests of society by taking responsibility for the impact of their activities on customers, employees, shareholders, communities and the environment in all aspects of their operations. This obligation is seen to extend beyond the statutory obligation to comply with legislation and sees organizations voluntarily taking further steps to improve the quality of life for employees and their families as well as for the local community and society at large (CSR – Wikipedia).
I think it is fair to say that organisations mostly started to think about CSR 10-15 years ago when they began to be increasingly criticised from other groups like Greenpeace, WWF or other pressure groups to change their ways of doing business or at least change some of their ways of managing their environmental and social impacts.
CSR then really jumped on top of the global agenda when Shell was boycotted for the way it dealt with the disposal of the Brent Spar (Brent Spar).
After this boycott nearly bankrupted Shell, organisations all around the world started to take notice and developed their Plan B for public relations disasters like this.
This was when CSR was born.
This Plan B called CSR quickly developed into a more comprehensive list of actions and responsibilities and in the end to a complete management framework on how to (1) manage the expectations of your stakeholder, (2) change and manage the way you do business more responsibly and (3) take care of your environmental impacts. There are more areas to CSR but I think these three are the most known ones and good to start with when first reading about CSR.
CSR since then has grown continuously into a-must-have for organisations around the globe. No matter whether they have a complete management framework for CSR in place or a policy of some kind, CSR is different from one company to the other and needs to be a tailored approach to managing the responsibility within our society of this particular organisation. There are obviously good and bad examples in the world but overall one can say that CSR been promoting responsible business practice in the world. And this is a good thing.
This is enough for now with regards to CSR but one of the next posts will discuss the topics of CSR Reporting. CSR Reporting is in that way linked to CSR as these are the reports companies publish to communicate the their CSR activities.
Corporate Social Responsibility (CSR) is a concept whereby organizations consider the interests of society by taking responsibility for the impact of their activities on customers, employees, shareholders, communities and the environment in all aspects of their operations. This obligation is seen to extend beyond the statutory obligation to comply with legislation and sees organizations voluntarily taking further steps to improve the quality of life for employees and their families as well as for the local community and society at large (CSR – Wikipedia).
I think it is fair to say that organisations mostly started to think about CSR 10-15 years ago when they began to be increasingly criticised from other groups like Greenpeace, WWF or other pressure groups to change their ways of doing business or at least change some of their ways of managing their environmental and social impacts.
CSR then really jumped on top of the global agenda when Shell was boycotted for the way it dealt with the disposal of the Brent Spar (Brent Spar).
After this boycott nearly bankrupted Shell, organisations all around the world started to take notice and developed their Plan B for public relations disasters like this.
This was when CSR was born.
This Plan B called CSR quickly developed into a more comprehensive list of actions and responsibilities and in the end to a complete management framework on how to (1) manage the expectations of your stakeholder, (2) change and manage the way you do business more responsibly and (3) take care of your environmental impacts. There are more areas to CSR but I think these three are the most known ones and good to start with when first reading about CSR.
CSR since then has grown continuously into a-must-have for organisations around the globe. No matter whether they have a complete management framework for CSR in place or a policy of some kind, CSR is different from one company to the other and needs to be a tailored approach to managing the responsibility within our society of this particular organisation. There are obviously good and bad examples in the world but overall one can say that CSR been promoting responsible business practice in the world. And this is a good thing.
This is enough for now with regards to CSR but one of the next posts will discuss the topics of CSR Reporting. CSR Reporting is in that way linked to CSR as these are the reports companies publish to communicate the their CSR activities.
Corporate social responsibility is now a business prerequisite
Hailing from the US educational elite—Yale, Harvard, Princeton, and Brown—it is not surprising that the guests at a recent ‘Room to Read’ (RtoR) event were interested in learning about a charity that gives the lasting gift of an education. It does, however, come as a surprise to hear where the event took place.
Gucci’s Ginza cafe played host for RtoR—giving the NPO 20 percent of its sales that night, donating designer Italian bags, and offering a preview of its upcoming spring collection. So what does a fashion powerhouse like Gucci have to do with impoverished children? More than you may think.
“Gucci appeals to strong, independent, self-assured women,” say David Ray and Meg Nakajima, co-leaders of RtoR’s Tokyo chapter. “Room to Read has 6,500 girls on scholarships in nine different countries. With the life-long gift of education, these girls will grow up to be strong, self-reliant thinkers. According to research, a woman’s income increases 10 percent for every year she goes to school.”
Although recipients of an RtoR girls scholarship may not necessarily rush out to a Gucci store upon graduation, there is reasoning in Gucci’s corporate responsibility endeavors. Like other companies, Gucci is looking to align itself with charity activities that link with the business—as well as doing good.
CSR equals PR
“The fact that CSR is a PR opportunity has increased the number of companies who are willing to partner with Room to Read,” explain Ray and Nakajima. “As a global brand supporting education in Asia and Africa, we are focusing on building relationships with companies that are doing business in the countries where we build schools and fund scholarships for girls. It makes strategic sense that Room to Read tries to develop partnerships with companies like Honda and Panasonic since they have large operations in Vietnam. Developing an educated workforce is in their best interest.”
RtoR’s impact can be immediately seen—donations translate directly into schools, libraries and other educational pursuits. But for charities where the funds cannot be converted into concrete objects, how difficult is it to get the support they need?
“Amnesty International (AI) spends its income on research, campaigning, lobbying, and education (on human rights),” explains Chris Pitts, Amnesty International’s Tokyo English Network (AITEN) coordinator. “My experience is that it is much easier to get a corporate donation for say, building an orphanage in Cambodia or providing clean water to a village in Burkina Fasso, than it is to get a corporate donation to AI.” He adds, “The bigger and more international the company, the more difficult it is, because AI might be criticizing the human rights situation in a country they may be doing business with in the future.”
Gucci’s Ginza cafe played host for RtoR—giving the NPO 20 percent of its sales that night, donating designer Italian bags, and offering a preview of its upcoming spring collection. So what does a fashion powerhouse like Gucci have to do with impoverished children? More than you may think.
“Gucci appeals to strong, independent, self-assured women,” say David Ray and Meg Nakajima, co-leaders of RtoR’s Tokyo chapter. “Room to Read has 6,500 girls on scholarships in nine different countries. With the life-long gift of education, these girls will grow up to be strong, self-reliant thinkers. According to research, a woman’s income increases 10 percent for every year she goes to school.”
Although recipients of an RtoR girls scholarship may not necessarily rush out to a Gucci store upon graduation, there is reasoning in Gucci’s corporate responsibility endeavors. Like other companies, Gucci is looking to align itself with charity activities that link with the business—as well as doing good.
CSR equals PR
“The fact that CSR is a PR opportunity has increased the number of companies who are willing to partner with Room to Read,” explain Ray and Nakajima. “As a global brand supporting education in Asia and Africa, we are focusing on building relationships with companies that are doing business in the countries where we build schools and fund scholarships for girls. It makes strategic sense that Room to Read tries to develop partnerships with companies like Honda and Panasonic since they have large operations in Vietnam. Developing an educated workforce is in their best interest.”
RtoR’s impact can be immediately seen—donations translate directly into schools, libraries and other educational pursuits. But for charities where the funds cannot be converted into concrete objects, how difficult is it to get the support they need?
“Amnesty International (AI) spends its income on research, campaigning, lobbying, and education (on human rights),” explains Chris Pitts, Amnesty International’s Tokyo English Network (AITEN) coordinator. “My experience is that it is much easier to get a corporate donation for say, building an orphanage in Cambodia or providing clean water to a village in Burkina Fasso, than it is to get a corporate donation to AI.” He adds, “The bigger and more international the company, the more difficult it is, because AI might be criticizing the human rights situation in a country they may be doing business with in the future.”
Corporate Social Responsibility?
It happened to read a series of story published in Malayalam Daily-Malayala Manorama about Medicine Mafia.
It was shocking to read that any medicine can be duplicated and you can even have medicine in your own brand. It also revealed that expired medicine are not thrown out!, it come back to us in a brand new pack.
Team of Manorama have travelled to Tamil Nadu, Maharashtra, Himachal Pradesh to find the people behind the so called mafia. They have even gone for laboratory test in which they found the medicine was adulterated. Their findings;
According to them, a portion of government officials are with this mafia, enables them to do whatever they wish, for the same they are rewarded, not only the officials, doctors too are part of it.
Doctors should think about what they are doing, so many people get admission in government colleges and get appointed in government hospitals. They learn with the help of common mans’ money and earn the same. But some are not satisfied and going for extra income.
I would like to congratulate the Manorama Team for the commitment they shown towards common man. This is the best example of a Corporate Social Responsibility.
Now, we need to think why or how this adulteration or duplication happens. Most commonly used medicines like Paracetamol are made by every one in different brand names. Some are so greedy to make money and reduce the required chemical content so that the cost of medicine is less and sold in the market for same rate original has.
Expired medicines are taken back by the manufacturing company, and does not know what they do with it. For the wholesalers there is no need to sell it to third party since manufacturing company is paying them the actual cost. So expired medicine can come to the market again may be with the knowledge of manufacturing company.
Medicines of well known companies are made with different and low cost chemical combinations and it reach to market with the help of may be with C&F agents, Distributors, wholesalers etc.
Now, we need to think about well known companies, there are possibilities to duplicate their medicines, what they should do against this duplicating?
My point comes here: it is interesting to see in some companies annual report a term ‘Corporate Social Responsibility’, but do they actually have it? Need to think about it.
If a medicine or any other item is adulterated or duplicated it is going to affect common man, so the prime responsibility with corporate are to see at least their items are not duplicated or adulterated. If anything come to their notice, they should act.
Companies those who spend millions on Research & Development can also do something against this adulteration and duplication – ONLY if they wish.
If someone have a doubt about an item, there should be some mechanism with in the company to clarify the same. If not they should come up with any solution and prove that the item is not adulterated or duplicated. There are adulteration in most of the FMCG items.
I would like to share an experience;
I used to have honey every day with my medicine, I use honey of a well known company and they claim that the ‘purity is guaranteed’. I normally buy it from a local vendor. Sometimes I feel that I got a duplicate one, because;
I have visited their website and posted a feedback about the same along with the bottles batch no, expiry date etc. This is almost 10 days passed, but there is no reply from them.
What should we understand from it, do they also part of this adulteration? Don’t they have a commitment towards common man? This the situation where they should show the responsibility-the ultimate social responsibility. But I doubt whether they have it other than on a sheet of paper.
I conclude with some suggestions;
It was shocking to read that any medicine can be duplicated and you can even have medicine in your own brand. It also revealed that expired medicine are not thrown out!, it come back to us in a brand new pack.
Team of Manorama have travelled to Tamil Nadu, Maharashtra, Himachal Pradesh to find the people behind the so called mafia. They have even gone for laboratory test in which they found the medicine was adulterated. Their findings;
- Chemical/ingredient percentage is less
- Expired medicine are coming back in a new pack
- Factories does not maintain minimum hygienic requirements
- Anyone can make any medicine and market, license is not an issue at all.
According to them, a portion of government officials are with this mafia, enables them to do whatever they wish, for the same they are rewarded, not only the officials, doctors too are part of it.
Doctors should think about what they are doing, so many people get admission in government colleges and get appointed in government hospitals. They learn with the help of common mans’ money and earn the same. But some are not satisfied and going for extra income.
I would like to congratulate the Manorama Team for the commitment they shown towards common man. This is the best example of a Corporate Social Responsibility.
Now, we need to think why or how this adulteration or duplication happens. Most commonly used medicines like Paracetamol are made by every one in different brand names. Some are so greedy to make money and reduce the required chemical content so that the cost of medicine is less and sold in the market for same rate original has.
Expired medicines are taken back by the manufacturing company, and does not know what they do with it. For the wholesalers there is no need to sell it to third party since manufacturing company is paying them the actual cost. So expired medicine can come to the market again may be with the knowledge of manufacturing company.
Medicines of well known companies are made with different and low cost chemical combinations and it reach to market with the help of may be with C&F agents, Distributors, wholesalers etc.
Now, we need to think about well known companies, there are possibilities to duplicate their medicines, what they should do against this duplicating?
My point comes here: it is interesting to see in some companies annual report a term ‘Corporate Social Responsibility’, but do they actually have it? Need to think about it.
If a medicine or any other item is adulterated or duplicated it is going to affect common man, so the prime responsibility with corporate are to see at least their items are not duplicated or adulterated. If anything come to their notice, they should act.
Companies those who spend millions on Research & Development can also do something against this adulteration and duplication – ONLY if they wish.
If someone have a doubt about an item, there should be some mechanism with in the company to clarify the same. If not they should come up with any solution and prove that the item is not adulterated or duplicated. There are adulteration in most of the FMCG items.
I would like to share an experience;
I used to have honey every day with my medicine, I use honey of a well known company and they claim that the ‘purity is guaranteed’. I normally buy it from a local vendor. Sometimes I feel that I got a duplicate one, because;
- Bottle does not open easily as it happens with genuine one, I had to use knife some times.
- Taste of honey is different than the original one.
I have visited their website and posted a feedback about the same along with the bottles batch no, expiry date etc. This is almost 10 days passed, but there is no reply from them.
What should we understand from it, do they also part of this adulteration? Don’t they have a commitment towards common man? This the situation where they should show the responsibility-the ultimate social responsibility. But I doubt whether they have it other than on a sheet of paper.
I conclude with some suggestions;
- Use medicine when it is most necessary.
- If you feel any complication report with medicine/material and you can go for a laboratory test too. If the result is negative then file a case against manufacturing company.
- Always check expiry date and whether the pack carry all the necessary details.
- Spread this information.
Corporate Social Responbility ( CSR ) Indonesia
Many people think CSR is a Charity - charity or donations. According to (CSR: Meeting Changing Expectations, 1999). CSR is the continuing commitment of businesses to behave ethically and contribute to economic development, while increasing the quality of life of employees and their families, as well as local community and society in general.
There are two sides of this CSR activities, namely the positive and negative events. Positive activities can mean the companies are doing something positive and not take advantage at all from the event. For example: the company provides training to the unemployed, of these activities the company does not benefit at all. While the negative means the company can refrain from doing certain activities, which are actually beneficial in terms of business but will harm the public or any part of society. These activities could bring economic benefits but the company has reason not to do so.
Now, along with the complexity of the ownership of a business, expanding concept of CSR into their meanings, one of them is "good intentions and commitment from the company to contribute to improving the quality of community life, sustainability of community development, local economy so memberikian also contribute to the sustainability of the company. Activities are carried out in cooperation between companies and employees, their families, local communities (community), and widely in the environment "(Nurdizal M. Rachman -2005).
However, efforts to implement their own CSR is not without obstacles. From among economists themselves also appear cynical reaction. Economist Milton Friedman, for example, criticized the concept of CSR, with the argument that the company's main goal is essentially to maximize profits (returns) for owners of shares, at the expense of other things. And this makes confusion in the implementation of CSR in company policy.
There are also those who believe that CSR activities have a distinct commercial advantage behind it, namely, raising the company's reputation in the eyes of the public or the government. And this will raise the image of the company that the company will get keutungan in the long term. For example so many companies are behaving more noble, the government needs to provide facilities. One was in the form of tax incentives. Tax forms can be exceptions (tax exempt) or a tax deduction (tax reduction). Tax incentives will encourage more aggressive companies to develop CSR programs.
Examples of Corporate Social Responbility
Indonesia Learning
May your browser not support display of this image.
From the fact that the younger generation is the backbone of the future of the nation, since 2004, Indosat implement CSR programs that focus on education with the theme INDONESIA LEARNING. Preferred educational background conditions of Indonesian society which, according to statistics and research results are still far behind other countries. Yet the key to improve the quality life of the nation lies in the quality of the education community, particularly the younger generation, in order to achieve a better future.
ISMS
Indosat Science and Multimedia School
ISMS is a program of Indosat in providing science learning tools for schools across Indonesia. Through this program Indosat providing learning facilities such as laptops, wireless broadband access, projector (infocus) and software learning modules. We hope with this program, schools get a multimedia facility that can support teachers and students can more easily learn and love science. Thus, it can create intelligent generation that we all aspire.
In an effort generate a culture of innovation among the young generation of national, Indosat building a container competition in the field of wireless technology, Indosat Wireless Innovation Contest specifically targeted to the younger generation. Program that has been running for three years was enough interest to young people. This can be seen from the increase in the number of participants in each year and on every theme there. No fewer than 1,000 child domestic work is proof spirit Indonesian youth to create and innovate.
Prof. Dr. Suhono Harso Supangkat, Special Staff Communication and Information Minister, as one of the judges of the competition ever held, argued, "The works that went into the judges' table is very varied, and concern about the innovation. The process of applicative solutions offered pesertapun diverse, having an imagination. Creativity certainly have the innovation so that it produces a new product or new and better services. Work participants must also have the value of originality, ease of application, the benefits for society as well as economic value in its implementation in society. "
There are two sides of this CSR activities, namely the positive and negative events. Positive activities can mean the companies are doing something positive and not take advantage at all from the event. For example: the company provides training to the unemployed, of these activities the company does not benefit at all. While the negative means the company can refrain from doing certain activities, which are actually beneficial in terms of business but will harm the public or any part of society. These activities could bring economic benefits but the company has reason not to do so.
Now, along with the complexity of the ownership of a business, expanding concept of CSR into their meanings, one of them is "good intentions and commitment from the company to contribute to improving the quality of community life, sustainability of community development, local economy so memberikian also contribute to the sustainability of the company. Activities are carried out in cooperation between companies and employees, their families, local communities (community), and widely in the environment "(Nurdizal M. Rachman -2005).
However, efforts to implement their own CSR is not without obstacles. From among economists themselves also appear cynical reaction. Economist Milton Friedman, for example, criticized the concept of CSR, with the argument that the company's main goal is essentially to maximize profits (returns) for owners of shares, at the expense of other things. And this makes confusion in the implementation of CSR in company policy.
There are also those who believe that CSR activities have a distinct commercial advantage behind it, namely, raising the company's reputation in the eyes of the public or the government. And this will raise the image of the company that the company will get keutungan in the long term. For example so many companies are behaving more noble, the government needs to provide facilities. One was in the form of tax incentives. Tax forms can be exceptions (tax exempt) or a tax deduction (tax reduction). Tax incentives will encourage more aggressive companies to develop CSR programs.
Examples of Corporate Social Responbility
Indonesia Learning
May your browser not support display of this image.
From the fact that the younger generation is the backbone of the future of the nation, since 2004, Indosat implement CSR programs that focus on education with the theme INDONESIA LEARNING. Preferred educational background conditions of Indonesian society which, according to statistics and research results are still far behind other countries. Yet the key to improve the quality life of the nation lies in the quality of the education community, particularly the younger generation, in order to achieve a better future.
ISMS
Indosat Science and Multimedia School
ISMS is a program of Indosat in providing science learning tools for schools across Indonesia. Through this program Indosat providing learning facilities such as laptops, wireless broadband access, projector (infocus) and software learning modules. We hope with this program, schools get a multimedia facility that can support teachers and students can more easily learn and love science. Thus, it can create intelligent generation that we all aspire.
In an effort generate a culture of innovation among the young generation of national, Indosat building a container competition in the field of wireless technology, Indosat Wireless Innovation Contest specifically targeted to the younger generation. Program that has been running for three years was enough interest to young people. This can be seen from the increase in the number of participants in each year and on every theme there. No fewer than 1,000 child domestic work is proof spirit Indonesian youth to create and innovate.
Prof. Dr. Suhono Harso Supangkat, Special Staff Communication and Information Minister, as one of the judges of the competition ever held, argued, "The works that went into the judges' table is very varied, and concern about the innovation. The process of applicative solutions offered pesertapun diverse, having an imagination. Creativity certainly have the innovation so that it produces a new product or new and better services. Work participants must also have the value of originality, ease of application, the benefits for society as well as economic value in its implementation in society. "
Corporate Social Responsibility (CSR Policy)
Corporate Social Responsibility is a concept whereby companies integrate social and environmental concerns into their business operations and in their interaction with their stakeholders (employees, customers, shareholders, investors, local communities, government), on a voluntary basis.
Sustainability
CSR is closely linked with the principles of Sustainability, which argues that enterprises should make decisions based not only on financial factors such as profits or dividends, but also based on the immediate and long-term social and environmental consequences of their activities.
Sustainability
CSR is closely linked with the principles of Sustainability, which argues that enterprises should make decisions based not only on financial factors such as profits or dividends, but also based on the immediate and long-term social and environmental consequences of their activities.
A Global Issue
CSR has become prominent in the language and strategy of business and by the growth of dedicated CSR organisations globally. Governments and international governmental organisations are increasingly encouraging CSR and forming CSR partnerships.
CSR is rapidly becoming a major part of all business management courses and a key global issue. In response to these issues we have incorporated CSR into IndustryPlayer.
CORPORATE SOCIAL RESPONSIBILITY
Supporting communities and managing our environmental footprint
According to the Government, Corporate Social Responsibility, or CSR as it’s better known, is the voluntary actions that a business can take, over and above compliance with minimum legal requirements, to address both its own competitive interests and the interests of wider society.
At Adonis, we believe it’s important to be part of the community in which we operate and to understand and be sympathetic to the economic, social and environmental impact we have on it.
As well as a strong commitment to environmental best practice, our projects are registered with the Considerate Constructors Scheme and we try to build relationships with site neighbours to ensure we take into account any concerns they might have.
We also have a policy of using local labour and materials wherever possible, helping to create a positive economic impact in areas where we work.We believe it’s important to be part of the community in which we operate.
That’s why we also actively encourage staff involvement with schools, colleges and universities and we support charity and fundraising initiatives wherever possible.
We recognise the importance of encouraging young people to view the construction industry as a rewarding career choice and in 2006, we launched the Adonis Teamworking Award for students at Stourbridge College.
We also present an annual prize for the ‘Best Dissertation’ to a student studying for a BSc in Construction Management at Wolverhampton University and our managing director was recently awarded an honorary degree from the University in recognition of his services to the construction sector.
Corporate Social Responsibility (CSR) Begins at Home
Here's a novel way to start putting CSR into play. The writer, Scott Cooney, was suggesting a strategy for dealing with the economic crisis. Cooney calls it a counterintuitive strategy.
Try this: empower your employees. Give them even more reign over your company. Task them with righting the ship. Elevate them, during this time of crisis, to the level of partner. Ask them to think like an owner.
It may not resemble the usual CSR programs, but think about it--isn't this the essence of responsibility to one of the critical set of stakeholders, the employees. I don't think it is counterintuitive at all, just not normal. I find it quite the intuitive way to run a firm that sees itself as contributing to sustainability. I have said for a long time that the place to start CSR is within the firm, not somewhere outside. There is plenty of need and opportunity to right the wrongs of the world, but, with the exception of a very small number of firms, the concept of CSR will not get into their DNA until it is practiced in place first.
Try this: empower your employees. Give them even more reign over your company. Task them with righting the ship. Elevate them, during this time of crisis, to the level of partner. Ask them to think like an owner.
It may not resemble the usual CSR programs, but think about it--isn't this the essence of responsibility to one of the critical set of stakeholders, the employees. I don't think it is counterintuitive at all, just not normal. I find it quite the intuitive way to run a firm that sees itself as contributing to sustainability. I have said for a long time that the place to start CSR is within the firm, not somewhere outside. There is plenty of need and opportunity to right the wrongs of the world, but, with the exception of a very small number of firms, the concept of CSR will not get into their DNA until it is practiced in place first.
Stakeholders and Corporate Social Responsibility
Let’s begin this topic with quotation of Robert W. Lane, the Chairman and CEO of Deere & Company, “If you don’t have honesty and integrity, you won’t be able to develop effective relationships with any of your stakeholders.”
These stakeholder groups form the basis of success and failure of the business. Stakeholders are individuals or groups that have interests, rights, or ownership in an organization and its activities. Customers, suppliers, employees, and shareholders are example of primary stakeholder groups. Each has interest in how an organization performs or interacts with them. These stakeholder groups can benefit from a company’s success and can be harmed by its mistakes.
Secondary stakeholders are also important because they can take action that can damage or assist the organization. Secondary stakeholders include governments (especially through regulatory agencies), unions, nongovernmental organizations (NGOs), activities, political action groups, and the media.
In orders to serve their stakeholders in an ethical and social manner, more and more organizations are adapting the model of corporate social responsibility. The term Corporate Social Responsibility goes by many other terms such as corporate citizenship, responsible business or simply corporate responsibility.
In orders to serve their stakeholders in an ethical and social manner, more and more organizations are adapting the model of corporate social responsibility. The term Corporate Social Responsibility goes by many other terms such as corporate citizenship, responsible business or simply corporate responsibility.
When an organization builds ethical and social elements in its operating philosophy and integrate them in its business model, it is said to have possessed a self-regulating mechanism that guides, monitor and ensure its adherence to law, ethics, and norms in carrying out business activities that ensures the serving the interest of all external and internal stakeholders. In other words, the objective of being socially responsible business is achieved when its activities meet or exceed the expectations of all its stakeholders.
Here is a model for evaluating an organization’s social performance. The model indicates that total corporate social responsibility can be subdivided into four criteria-economic, legal, ethical and discretionary responsibilities.
These responsibilities are ordered from bottom to top in the following illustration. Let’s discuss each one them briefly.
Here is a model for evaluating an organization’s social performance. The model indicates that total corporate social responsibility can be subdivided into four criteria-economic, legal, ethical and discretionary responsibilities.
These responsibilities are ordered from bottom to top in the following illustration. Let’s discuss each one them briefly.
The first criterion of social responsibility is economic responsibility. The business institution is, above all, the basic economic unit of society. Its responsibility is to produce goods and services that a society wants and to maximise profit for its owners and shareholders. Economic responsibilities, carried to the extreme, is called profit-maximizing view; it was advocated by Nobel economist Milton Friedman. This view argued that a company should be operated on a profit-oriented basis, with its sole mission to increase its profits so long as is stays withing the rule of the game.
The purely profit-maximizing view is no longer considered an adequate criterion of performance in the world in general. Treating economic gain in the social as the only social responsibility can lead companies into trouble.
Legal responsibilities
All modern societies lay down ground rules, laws and regulations that businesses are expected to follow. Legal responsibility defines what society deems as important with respect to appropriate corporate behavior. Businesses are expected to fulfil their economic goals within the legal framework. Legal requirements are imposed by local councils, state and federal governments and their regulating agencies. Organizations that knowingly break the law are poor performers in this category. Intentionally manufacturing defective goods or billing a client for work not done is illegal. Legal sanctions may include embarrassing public apologies or corporate ‘confessions’.
Ethical responsibilities
Ethical responsibility include behavior that is not necessarily codified into law and may not serve the organization’s direct economic interests. To be ethical, organization’s decision makers should act with equity, fairness and impartiality, respect the rights of individuals, and provide different treatments of individual only when differences between them are relevant to the organization’s goals and tasks. Unethical behavior occurs when decisions enable an individual or organization to gain expense of society.
Discretionary responsibilities
Discretionary responsibility is purely voluntary and guided by an organization’s desire to make social contributions not mandated by economics, laws or ethics. Discretionary activities include generous philanthropic contributions that offer no payback to the organization and are not expected. Discretionary responsibility is the highest criterion of social responsibility, because it goes beyond societal expectations to contribute to the community’s welfare.
The purely profit-maximizing view is no longer considered an adequate criterion of performance in the world in general. Treating economic gain in the social as the only social responsibility can lead companies into trouble.
Legal responsibilities
All modern societies lay down ground rules, laws and regulations that businesses are expected to follow. Legal responsibility defines what society deems as important with respect to appropriate corporate behavior. Businesses are expected to fulfil their economic goals within the legal framework. Legal requirements are imposed by local councils, state and federal governments and their regulating agencies. Organizations that knowingly break the law are poor performers in this category. Intentionally manufacturing defective goods or billing a client for work not done is illegal. Legal sanctions may include embarrassing public apologies or corporate ‘confessions’.
Ethical responsibilities
Ethical responsibility include behavior that is not necessarily codified into law and may not serve the organization’s direct economic interests. To be ethical, organization’s decision makers should act with equity, fairness and impartiality, respect the rights of individuals, and provide different treatments of individual only when differences between them are relevant to the organization’s goals and tasks. Unethical behavior occurs when decisions enable an individual or organization to gain expense of society.
Discretionary responsibilities
Discretionary responsibility is purely voluntary and guided by an organization’s desire to make social contributions not mandated by economics, laws or ethics. Discretionary activities include generous philanthropic contributions that offer no payback to the organization and are not expected. Discretionary responsibility is the highest criterion of social responsibility, because it goes beyond societal expectations to contribute to the community’s welfare.
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