Corporate Social Responsibility at Globa

Slide 1: 

Corporate Social Responsibility at Global Level Anil Tyagi (09EM05) Bipin Pal Singh (09EM09) Mrugesh Pawar (09EM17) Satish Lohat (09EM28) V Ramesh Iyer (09EM32) Vinay Baranwal (09EM33)

Slide 2: 

Presentation Contents What is ‘CSR’? Significance of CSR at Global Level CSR Structure Globally CSR & Ethics Corporate Transparency & Accountability Contribution of SOX in CSR Global Guidelines for CSR UN & WB Guidelines for CSR OECD Guidelines for CSR Strategic management & CSR CSR & Trade Unions, NGOs

Slide 3: 

What is ‘CSR’? Corporate social responsibility (CSR) is the process by which businesses negotiate their role in society A concept whereby companies decide voluntarily to contribute to a better society and a cleaner environment. A concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis European Commission Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large World Business Council for Sustainable Development Operating a business in a manner that meets or exceeds the ethical, legal, commercial and public expectations that society has of business Business for Social Responsibility

Slide 4: 

Corporate Social Responsibility is the way companies integrate social, environmental, and economic concerns into their values and operations in a transparent and accountable manner. CSR ……. at Global Level After LGP Concept

Slide 5: 

CSR ……. Making the Business Stronger & Reputable Stronger financial performance and profitability operational efficiency gains Improved relations with investment community better access to capital Enhanced employee relations better recruitment, motivation, retention, learning and innovation, and productivity Stronger relationships with communities enhanced licence to operate Higher share price Fewer environmental, labour and legal risks Improved reputation and branding Significance of ‘CSR’ at Global Level

Slide 6: 

CSR ……. world wide Policies & programs In General, CSR globally works on …… OECD Guidelines for Multinational Enterprises Anti-Corruption of Foreign Public Officials principles & the OECD Anti-Bribery Convention* International Finance Corporation Performance Standards/Equator Principles Global Reporting Initiative, World Bank’s insistence UN Global Compact ILO Tripartite Declaration Extractive Industries Extractive Industries Transparency Initiative Voluntary Principles on Security and Human Rights World-wide CSR policies, Building the Global Advantage

Slide 7: 

Incorporate values to make it part of an articulated belief system Act worldwide on those values Cause-related marketing Cause-based cross sector partnerships Engage with stakeholders Primary stakeholders Secondary stakeholders CSR ……. world wide Policies & programs

Slide 8: 

According to the Stakeholder Approach: In defining or redefining the company mission, strategic managers must recognize the legitimate rights of the firm’s claimants. These include outside stakeholders affected by the firm’s actions. Customers Government Stockholders Employees Society CSR Structure Globally

Slide 9: 

The New Corporate Governance Structure

Slide 10: 

Managing CSR

Slide 11: 

CSR Centre of Excellence Host Government Resource Capacity Building Promotion of Voluntary CSR Performance Guidelines Extractive Sector CSR Counsellor The Strategic 4 pillars to build Global CSR policies The Strategy calls for the development of a CSR Centre of Excellence

Slide 12: 

The Strategy calls for the development of a CSR Centre of Excellence Up-to-date, relevant information on CSR for clients in government and industry. Business-friendly tools and an inventory of extractive sector regulations and policies. “Community of practice” public platform for stakeholders to share information.

Slide 13: 

CSR Today Priority of American businesses Resurgence of Environmentalism Increasing Buying Power among Consumers Globalization of Business Continuum of Corporate Social Responsibility Commitments

Slide 14: 

Utilitarian Approach Moral Rights Approach Social Justice Approach Liberty Principle Difference Principle Distributive-Justice Principle Fairness Principle Natural-Duty Principle CSR & Ethics

Slide 15: 

The cultural context influences organizational ethics Top managers also influence ethics The combined influence of culture and top management influence organizational ethics and ethical behaviors CSR & Ethics

Slide 16: 

From domestic where ethics are shared To international where ethics are not shared when companies: Make assumptions that ethics are the same Ethical absolutism—they adapt to us Ethical relativism—we adapt to them To global which requires an integrative approach to ethics CSR & Ethics

Slide 17: 

Ways Companies Integrate Ethics Top management commitment in word and deed Company codes of ethics Supply chain codes Develop, monitor, enforce ethical behavior Seek external assistance CSR & Ethics

Slide 18: 

Four Challenges to a Global Ethic Global rules emerge from negotiations and will reflect values of the strong Global rules may be viewed as an end rather than a beginning Rules can depress innovation and creativity Rules are static but globalization is dynamic CSR & Ethics

Slide 19: 

Maximize firm’s profits to the exclusion of all else Balance profits and social objectives Do what it takes to make a profit; skirt the law; fly below social radar Fight social responsibility initiatives Comply; do what is legally required Integrate social objectives and business goals Lead the industry and other businesses with best practices Do more than required; e.g. engage in philanthropic giving Articulate social value objectives Corporate Social Responsibility Continuum Corporate Transparency & Accountability

Slide 20: 

Inside vs. Outside Stakeholders Duty to serve society plus duty to serve stockholders Flexibility is key Firms differ along: Competitive Position Industry Country Environmental Pressures Ecological Pressures

Slide 21: 

Redefining Company Mission Types of Social Responsibility Economic – the duty of managers, as agents of the company owners, to maximize stockholder wealth Legal – the firm’s obligations to comply with the laws that regulate business activities Ethical – the company’s notion of right and proper business behavior. Discretionary – voluntarily assumed by a business organization

Slide 22: 

The four domains of evaluation

Slide 23: 

Reporting practices worldwide The top 10 countries where the 100 largest companies publish non- financial reports are: Japan – 86% France – 79% UK – 65% Norway – 63% US – 61% Brazil – 60% Netherlands – 55% Sweden – 54% Finland – 44% Spain – 44% Bulgaria - ? …should reporting be mandatory?

Slide 24: 

CSR & Sarbanes-Oxley Act of 2002 CEO and CFO must certify every report containing company’s financial statements Restricted corporate control of executives, acting, firms, auditing committees, and attorneys Specifies duties of registered public acting firms that conduct audits Composition of the audit committee and specific responsibilities Rules for attorney conduct Disclosure periods are stipulated Stricter penalties for violations

Slide 25: 

Global Guidelines for CSR Social Economic Environmental Corporate Social Responsibility (CSR): UN Global Compact, OECD Guidelines / ILO Declaration for MNEs, Equator Principles, IFC Policy on Environmental and Social Responsibility Emphasize on Sustainable Development Economic inclusive growth Social justice / inclusion UN Objectives for CSR

Slide 26: 

Secures best value for money, price, quality, availability, functionality Supports a precautionary approach to environmental challenges Secures compliance with fundamental human / labour rights Promotes: Social inclusion – facilitates the participation of minority businesses Gender equality Local entrepreneurship Poverty eradication Good governance

Slide 27: 

The OECD Guidelines for Multinational Enterprises: Are they a powerful tool for advancing corporate accountability? UN & OECD Guidelines for CSR Multilaterally agreed CSR principles International organizations, often in cooperation with States or companies, also have an important role to play in facilitating consensus building and promoting universally accepted principles that can serve as guidelines for TNCs investing in other developing countries. Prominent initiatives in this regard include the Tripartite Declaration of Principles Concerning Multinational Enterprises and Social Policy (MNE Declaration) of the ILO and the OECD Guidelines for Multinational Enterprises, the United Nations’ Global Compact. The ILO’s MNE Declaration is a non-binding universal instrument that articulates a set of principles to guide the global operations of enterprises and their social policies. The OECD Guidelines for Multinational Enterprises, originally adopted in 1976 and revised in 2000, are a comprehensive and detailed CSR instrument of interest to developed and developing countries alike. The Guidelines provide government-backed recommendations covering such broad areas as human rights, supply chain management, labour relations, the environment, combating bribery, technology transfer, consumer welfare and taxation.

Slide 28: 

UN & OECD Guidelines for CSR As an instrument to strengthen corporate social responsibility in a broad sense and to make companies accountable, the Guidelines promise much. By moving beyond ill defined unilateral codes of conduct, they provide a multilateral code governing business conduct. They extend the responsibility of contractors across the supply chain If properly implemented, they offer a monitoring mechanism that brings business operations under government scrutiny. The Guidelines provide an accessible way for trade unions and NGOs to raise their concerns regarding the conduct of globally operating corporations. Regrettably however, operational problems do limit their effectiveness.

Slide 29: 

UN & OECD Guidelines for CSR OECD National Contact Point UN Global Compact Learning Forum Ecuador’s Vigilance Verde Philippine’s PCNC Canadian Financial Services OmbudsNetwork UK OFT Code Regime Cambodia “Sweatshop Free” Initiative

Slide 30: 

Strategic management & CSR UN Global Compact OECD MNE Guidelines ILO Tri-Partite Declaration U.S. Fair Labor Association Canadian Eco-Logo Program Canadian E-Commerce Consumer Protection Program Indonesia “PROPER” program Government/Inter-Governmental Use of Voluntary Instruments, Processes

Slide 31: 

Management Strategy Responsibilities The Pyramid of Corporate Social Responsibility Philanthropic Be a good Corporate citizen Contribute resources to the Community; improve quality of life Ethical Be ethical Obligation to do what is right, just and fair avoid harm Legal Obey the Law Law is society’s codification of right and wrong Play by the rules of the game. Economic Be profitable The foundation upon which all others rest

Slide 32: 

Five Principles of Successful CSIs Identify a Long-Term Durable Mission Contribute “What We Do”* *This is the most important principle Contribute Specialized Services to a Large-Scale Undertaking Weigh Government’s Influence Assemble and Value the Total Package of Benefits What gets measured gets managed What gets reported gets understood

Slide 33: 

The Limits of CSR Strategies Some companies have embedded social responsibility and sustainability commitments deeply in their core strategies Larger companies must move beyond the easy options of charitable donations but also steer clear of overreaching commitments

Slide 34: 

What is it good for??/ In there a business case for CSR? Enhances leadership commitment by CEO and senior management involvement through reviewing and endorsing the report Reputation management/ building brand value- thanks to increased transparency and creation of trust (extending public awareness of company’s CSR efforts beyond company philanthropy) Enhanced customer and employee loyalty Supports efforts to identify business risks and opportunities Environmental & other risk management $$$ tap into socially responsible investment funds & indexes

Slide 35: 

NGOs: From Rule-Takers to Rule-Makers Transparency International Forest Stewardship Council Global Reporting Initiative RugMark Fair Trade WebTrader ISEAL: Competing with Conventional Approaches Community Aid Abroad Ombudsman Accountability a two-way street

Slide 36: 

CSR and TU CSR is a positive process for TU if: - Strengthen FoA and the creation of unions Strengthen C.B Support organising Not only comply with the law but it goes beyond national legislation (socially and ethically responsible to stakeholders/local communities) Alliances TU and civil society

Slide 37: 

In Principle CSR should adopt & comply: CSR Global Principles

Slide 40: 

Thank You !!!! References: http://web.ebscohost.com/ehost/results http://ec.europa.eu/social www.accsr.com.au