Corporate Socail Responsibility - 45% Flashcards
Corporate social responsibility ( CSR )
Organisations obligation to maximise positive, stakeholder benefits balls, minimising the negative effects of its actions
Corporate responsibility policies
- policies of the business to support the local community and charities.
They may also deal with matters such as reducing the organisations, environmental impacts and deciding where to recruit staff from.
Each policy must be consistent with the overall aims of the organisation
Examples of corporate social responsibility
- equal opportunity policies
-Policies on environmental emissions
-Policies on fair trade
-Charitable donations
-Policies standards in the supply chain
Classifying stakeholders, corporate social responsibility
Classified in the following ways;
Internal -those immediately connected, as such employees and directors
Connected - those who invest or have dealings with organisations, such as shareholders, banks, customers and suppliers
External -those lacking a direct interest, but you can still be influential, such as the media and local communities and the government
Corporate responsibility report
- A report by the organisation aimed at publishing, its corporate responsibilities and achievements
They may include carbon footprint calculations and assessment of the organisations impact on the environment, as well as more, conventional statistics, such a staff turnover
The organisation for economic cooperation and development principles
OECD issued guidance on how companies should develop policies on CSR. These guidance in the form of the following principles.
- Contribute to the economic, social environmental progress with a review to achieve sustainable development.
- Respect for human rights of those affected by their activities, consist with the host governments, international obligations and commitments.
- Encourage local capacity. Building view, close corporations with the local community, including business interests, as well as developing the enterprises activities in domestic and foreign markets, consistent with the needs for sound commercial practice.
- Encourage human capital formation in particular by creating employment, opportunities and facilities in training opportunities for employees.
- Refrain from seeking or accepting exemptions no contemplating in the statutory registry frameworks related to environmental health and safety, labour, taxation and financial incentives. What will the issues.
- Support and uphold, good corporate governance principles, and develop and apply good corporate governance practices.
Corporate social responsibility conflicts
Argument in favour of corporate social responsibility and captured in the enlightened self-interest theory
- Customers-ethical companies are awarded with extra customers
-boycotts-ethical companies, avoid high-profile customer boycott
-Staff benefits-can I help attract and retain quality employees?
-Funding opportunities-some investors look specifically for ethical investment
-Avoidance of punitive of legislation - voluntary standards can negate the needs of law - Positive society- making a contribution to a better society can create a more sustainable environment in which to trade.
The argument against investments in corporate social responsibilities
- Businesses do not have responsibilities-only people have responsibilities facial shoulder the burden
- Shareholder rule-the aim of a company is solely to maximise shareholder wealth, they can spend their dividends on charity, if they want.
- Government regulatory society- social issues are the responsibility of the government, not corporations
Carols 4 part model
Economic- you must generate returns for stakeholders in order to stay in business:
-Shareholders require returns
-Employees required safe and well-paid jobs
-Customers demand, good quality goods at a fair price
Legal - the business must follow relevant laws and regulations. The following behaviours must be avoided:
- anti-competitive behaviour such as charging excessive prices
-Price-fixing via collusion with competitors
Ethical - you should be seen to be doing what is right, for example:
-Voluntary reduction in carbon emissions
-Close it down, profitable but polluting d operations
Philanthropic - undertaken actions are at desired rather than required
- Charitable donations
-Providing sports facilities for staff
-Sponsoring the arts
social responsiveness carols 4 part model
Carol identifies four ways in which organisations can respond to social pressures
-Reaction, denying responsibility
-Defence, initially fighting responsibility and doing the least required to comply
-Accommodation, accepting responsibility, and doing what is demanded of you.
- proaction, volunteering to go beyond industry norms
global reporting initiative (GRI)
The G4 sustainability reporting guidelines set out three categories in which companies can report on relevant aspects
Economic - economic performance, market presence, procedurement practices
Environmental - materials, effluents and waste, emissions
Social , with four sub- categories compromising of:
- Labour practices- remuneration, equal pay
- Human rights- child labour, indigenous rights,
- Society - local communities, anticorruption, compliance
- Product responsibility- customer, health and safety, product labelling
Integrated reporting
International integrated reporter cancel identified, the following seven principles that support integrated reports;
- Strategic focus, and future orientation- how strategy will create value over the short, medium and long-term
-connectivity of information-detailing how capitals are being used to achieve strategic goals
-stakeholder relationships-how key stakeholder groups are managed
-materiality-disclosure of matters which are likely to impact upon the ability to create value
-conciseness-give me news is the information they require, and no more. - Reliability and completeness- information should be free from material, error and bias.
- Consistency and comparability- consistent. Use of KPIs year-on-year.
What are the six types of capital - reporting frameworks
-Financial
-Manufactured
-Intellectual
-Human
-Social and relationship
-Natural
Triple, bottom line advocated by john elkingham
Economic prosperity - for economic benefit, enjoyed by host society. Is the last in economic impact the organisation has on its economic environment.
Environmental quality - a TBL company endeavours to benefit the natural order as much as possible, or at least to do no harm curtail environmental impacts.
Social justice - fair and beneficial business practices towards labour and the community, and the region, in which corporations conduct its business.
The triple bottom line approach is also sometimes known as perfect planet & People
CSR and branding
Positive CSR strategy can bring branding benefits to an organisation. The free approaches to Branding and CRS
Integrated approach -the brand and CSR operate synchrony
Selective approaches - CSR is developed in certain ans specific ways
Invisible approach - CSR plays an important and philosophical role in guiding a company but is understated in external communications and initiatives
