Chapter 1 - Introduction to Corporate Social Responsibility Flashcards

You may prefer our related Brainscape-certified flashcards:
1
Q

The awareness of the environmental and social dimension of companies has diverged. What are the Main steps (important milestones) of CSR?

A

1987
Is started with thee Definition of the « sustainable development concept» and publication of the «Our common future» report by the Bruntland Commission.
 1992
Rio Earth Summit. Adoption of the first «Agenda 21». Agreement on the Climate Change Convention that led to Kyoto Protocol (1997) and Paris Agreement (2015).
 2000
Adoption of the UN Global Compact (UNGC), a call to companies asking them to implement strategies based on environmental and social responsibility.
 2000
Launch of the Global Reporting Initiative (GRI), a standard aiming to help companies to communicate on their E&S strategies and impacts.
 2015
Adoption of the Paris Agreement on Climate at the 21st session of the conference of parties (COP 21).
 2015
Adoption by the United Nations of the 17 Sustainable Development Goals (SDGs) included in the 2030 agenda for sustainable development.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Explain the Brundtland Commission of 1987

A

“Sustainable development is development that meets the needs of the present, without compromising the ability of future generations to meet their own needs”

–>The company is in the middle not only on the economy but also with the environmental dimension and social (mapa dee las 3 partes)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What are the 3 dimensions of sustainable development? And what does it mean?

A

Must be equitable, it is not automatically sustainable but also the other in between dimensions.

Equitable
Liveable
Viable

As a consequence of the SOCIAL, ECONOMIC and ENVIRONMENTAL dimension.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

How else is the Rio “Earth Summit” known?

A

United Nations Conference on the environment and development

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

How was it made up/who were the attendees at this Rio “Earth Summit” event?

A
  • 178 countries and 120 heads of states and governments
  • 2400 NGO representatives
  • 17’000 participants in the NGO Forum (held in parallel)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What issues were addressed at the Rio Earth Summit?

A

Adoption of the 3 docs:

• Rio Declaration: composed of 27 principles that specify the
sustainable development concept
• Agenda 21: includes 2500 recommendations for the implementation of the Rio Declaration
• United Nations Framework Convention on Climate Change: asserts the necessity to reduce GHG emissions; led to adoption of the Kyoto Protocol

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

In what year the Rio Earth Summit was it held?

A

1992

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What does the Rio Declaration document consist of, carried out at the Rio Earth Summit?

A

 Two new concerns:
• The deterioration of the natural environment
• The interdependence between economic progress and environmental protection
(there are 2 new concerns also the most important is to mention that you cannot do all, there’s an interdependence between economic progress and environmental protection)

 27 principles: ( the 27 principles are aborded: 1, 3 and 4 on the course aborded)
… Principle 1
Human beings are at the center of concerns for sustainable development.
… Principle 3
The right to development must be fulfilled so as to equitably meet developmental and environmental needs of present and future generations.
… Principle 4
In order to achieve sustainable development, environmental protection shall constitute an integral part of the development process and cannot be considered in isolation from it.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What does the Agenda 21 document consist of, carried out at the Rio Earth Summit?

A

It has an action plan and it has the 2500 recommendations but for some countries are some more important than others. Those important are applied in reality.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What does the Agenda 21’s action plan consist of, carried out at the Rio Earth Summit?

A

• Implementation of the 27 principles of the
Rio Declaration
• Aimed at regional and local authorities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What do the Agenda 21’s recommendations consist of, carried out at the Rio Earth Summit?

A

2500 recommendations:

  • Poverty
  • Health
  • Housing
  • Pollution
  • Desertification
  • Ocean, forest, mountain management
  • Water resource management and sanitation
  • Agricultural management
  • Waste management
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What does the UN-Framework Convention on Climate Change consist of, carried out at the Rio Earth Summit?

A

It is the 1st tentative by the UN to identify climate change:

  • The Convention incorporates the principles included in the Rio Declaration and Agenda 21
  • Is not mandatory (a country can decide to participate or not (acuerdo acordado desde la primera tentative ))
  • Will result in the signature of the Kyoto Protocol in 1997

there are 3 principles identified:
• The principle of precaution (: if it’s dangerous and you’re not sure what will have in the future please be careful and don’t do that (genetically modified organics: if you do something and it doesn’t go well it’s difficult to come back to the original substance, be careful).
• The principle of common but differentiated responsibilities
• The principle of the right to development

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What was the UN Global Compact - UNGC? And in what year was it carried out?

A

It was the 1st UN program to include the business world in the debate with the aim to encourage and to guide companies towards more environmental and social responsibility rather than sanction, the UN can’t take sanction. It was launched by Kofi Annan in 2000. Today it has more than 10K signatory companies and concretely there are 85 local networks which try to encourage the companies to do more with the 10 principles of responsible management relating to 4 areas (those principles abord human rights, international labor standards, the environment and fight against corruption).
It’s important to fight against corruption in all its forms, entirely.

It was carried out in 2000.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

In what do the 10 principles of the UN Global Compact consist?

A

Human Rights:

  1. Promote and respect the protection of international human rights law within their sphere of influence
  2. Ensure that their own companies are not complicit in human rights violations

International labour norms:

  1. Respect freedom of association and recognize the right to collective bargaining
  2. Eliminate all forms of forced or compulsory labour
  3. Abolish child labour
  4. Eliminate discrimination in employment and occupation

Environment:

  1. Apply the precautionary approach to environmental problems
  2. Undertake initiatives to promote greater environmental responsibility
  3. Promote the development and dissemination of environmentally friendly technologies

Fight against corruption:
10. Act against corruption in all its forms, including extortion and bribery

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Underlying international conventions: The UN Global Compact principles are all derived from international conventions such as:

A

 Universal Declaration of Human Rights:
• Principles 1 & 2

 Declaration of the International Labour Organisation on fundamental principles and workplace rights:
• Principles 3, 4, 5 & 6

 Rio Declaration on environment and development:
• Principles 7, 8 & 9

 UN United Nations Convention against Corruption
• Principle 10

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What is the 4th step (milestone) of the CSR? And in which year was it held?

A

The launch of the Global Reporting Initiative (GRI). The  Standard for the environmental and social communication of companies.

It was held in 2000.

17
Q

What is the 5th step (milestone) of the CSR? And in which year was it held?

A

Adoption of the Paris Agreement on Climate at the UN Climate Change Conference (COP 21) => Paris Climate Change Conference

It was held in 2015.

18
Q

What is the 6th step (milestone) of the CSR? And in which year was it held?

A

Sustainable Development Goals (SDGs). The SDGs were launched in 2015 with the aim to adopt it from the next year (2016) until 2030, but it already started since 2012 with the idea that emerged during the “Rio+20” Conference to follow up on the 8 Millennium Development Goals that were coming to an end (2000-2015).

Then in 2015: 193 countries adopt the sustainable development program for the 2016-2030 period in the form of the following 17 Sustainable Development Goals (SDGs), measured using 169 objectives.

The reason comes from Ban Ki-Moon “we don’t have a plan B because there is no planet B”.

19
Q

What do the Sustainable Development Goals (SDGs) consist of?

A

They are an initiative promoted by the United Nations to give continuity to the development agenda following the Millennium Development Goals (MDGs).

There are 17 goals and 169 targets proposed as a continuation of the MDGs, including new areas such as climate change, economic inequality, innovation, sustainable consumption, peace and justice, among other priorities.

(1) No Poverty, (2) Zero Hunger, (3) Good Health and Well-being, (4) Quality Education, (5) Gender Equality, (6) Clean Water and Sanitation, (7) Affordable and Clean Energy, (8) Decent Work and Economic Growth, (9) Industry, Innovation and Infrastructure, (10) Reducing Inequality, (11) Sustainable Cities and Communities, (12) Responsible Consumption and Production, (13) Climate Action, (14) Life Below Water, (15) Life On Land, (16) Peace, Justice, and Strong Institutions, (17) Partnerships for the Goals.

20
Q

What is the Shareholder value for Corporate Social Responsibility?

A
  • Focus on a company’s value for its shareholders (often short-term).
  • Shareholder value seeks to maximize net profit, cash flow, or share price.
21
Q

What is the Stakeholder value?

A
  • Create long-term value of the company for all its stakeholders.
  • Stakeholder value is based not only on net profit and cash flow, but also on the value that the various stakeholders derive from the company’s activity.
22
Q

What are the 2 kind of stakeholders?

A

Internal and external steakholders.

23
Q

What are some examples of internal stakeholders?

A
  • Shareholders, bondholders and lenders
  • Board of directors and executive management
  • External auditor
  • Employees
24
Q

What are some examples of external stakeholders?

A
  • Clients
  • Suppliers
  • Civil society (local communities, NGOs)
  • Public authorities
  • Natural environment
25
Q

What are the relations with the external stakeholders?

A

 For Clients, to ensure them:
• Product quality, production process, data protection,…

 Suppliers:
• Environmental and social responsibility throughout the value chain, supplier control,…

 Civil society (local communities, NGO):
• Projects adopted in collaboration with local communities, maintaining dialogue with NGOs, philanthropy,…

 Public authorities:
• Laws and regulations, tax policy,…

 Environment:
• Environmental management system, product life cycle,
management of the entire value chain,…

26
Q

What are the relations with the internal stakeholders?

A

 Shareholders, bondholders and lenders:
If you look at the relation as the manager, all these people are aware of transparency of info, they want to know all detail of capital structure, etc. –> Transparency of information, capital structure, shareholder rights,…

 Board of directors and executive management:
• Composition and functioning of the Board of Directors, remuneration system,…

 External auditor:
• Internal and external control mechanisms, compliance, independence of the audit firm,…

 Employees:
• Social standards, health and safety policy, promotion of diversity, continuous vocational training, dialogue with trade unions,…

27
Q

Corporate Social Responsibility is a Value added for the companies. What does this Value added mean?

A

It is a strategy focused on the stakeholder value, as well as on environmental and social responsibility allows a company to:

  • Offer innovative products and services;
  • Improve its profit margin and long-term profit;
  • Improve its brand image;
  • Reduce the social and environmental risks associated with its production;
  • Actively contribute to the social and environmental sustainability of our society.