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Corporate Social

Responsibility

CSR

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The present-day CSR

also called as

 corporate responsibility,

corporate citizenship,

Responsible business

corporate social opportunity

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classical view of CSR

narrowly limited to philanthropy

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shifted to

the emphasis on business-society relations particularly

referring to the contribution that a corporation or firm

provided for solving social problems

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Early Twentieth Century,

Scope widened up further.

management to tae the initiative in raising both ethical standards and

!ustice in society through the ethic of economizing, i.e. economize the use of

resources under the name of efficient resource mobilization and usage.

business creates wealth in society and provides better standards of living.

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business organizations should consider the interest of society by taing respo

for the impact of their activities on

Customers

 suppliers

 employees

Shareholders

 communities

and other staeholders environment.

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the organizations have to comply with legislation 

voluntarily initiatives to improve well-being

of their employees and their families

the local community

society at large.

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"n other words#

ethical

 society friendly.

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$hat%s in it for corporations&

&&&

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Common Roles of CSR in CommunityDevelopment

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To share the negative consequences as a

result of industrialization.

higher '( road ta) for higher emission vehicles

 thus reducing the burden of small vehicle owners in a community

so, small vehicle owners share less the ta) burden,

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Closer ties between corporations and

community.

Corporation more than a place !ust to get employment and producers ofgoods and services.

corporations and community would stay in peace and harmony.

This becomes a social capital that is essential in community development

e.g. Shell *oundation involvement in the *lower +alley in South frica andars and Spencer in frica# The /0-hectare farm is home to many critically

endangered lowland fynbos species. "t has been cleared of all invasive alienplants, which is followed up regularly.

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Role in transfer of technology (TOT)

T1T 2 3Cs that give concerns on CSR and communities in the host countries

 flow of human resources4

5ence#

product development and mareting,

better price and 6uality,

concern for people7s wellbeing.

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CR helps to protect environment

financial and environmental performance can wor together to drive companygrowth and social reputation.

88going green9

9$e green the earth77 --- 3Cs in alaysia who own large golf areas withinthe vicinity of residential areas

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non-profit organizations--- CT+"S"--- environmental protection of CSR

9*riends of the Earth: who highlights the environmental impact of some 3Cs 

and campaign for stronger laws on environmental responsibility

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CR is for human right corporate sustainability.

9;lobal Compact: < 'nited 3ations7 initiative to convince internationalcompanies to commit themselves to universal principles in relation to

protection of human rights

areas of human rights, labor, and environment

ensure that marets, commerce, technology and finance advance in ways that

benefit economies and societies everywhere

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 !id to alleviate poverty 

alaysian reality program "ersamamu of T#$ % sponsored by yari&at 'aiza

endirian "erhad ('"), a local enterprise-cum-philanthropist who responds

to government7s appeal to help impoverished community to improve their

livelihoods . S*S= gets help from the local media company T+> for publicityand audience support. This T+ program is focused on the life reality of the

poor, helpless and misfortune people in their survival. Every purchase of

*aiza%s ?roduct, will entitle the buyer to mae a donation to T#$ @a fund of

the broadcasting agencyA. Through this collaboration it may trigger other corporations to help the nation

in its effort to alleviate poverty and, hence, in developing communities.

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corporate sustainability goals

The E' has developed a corporate sustainability framewor, which identifies a

progressive set of economic, social and environmental ob!ectives that compan

encouraged to achieve.

they have developed a methodology to assess the employee perspective on su

business practices @S=?A.

These practices represent a continuing commitment by a company to behave

and contribute to economic development

$hile improving the 6uality of life of its worforce and family members, as we

local community and society at large. .

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Specific sills for CSR managers are very hard to clarify due to the diverseroles and range of disciplines involved

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si) core competencies#

B. understanding community and community development,

.  building capacity

>.  6uestioning business beyond profit maing,

/. staeholder relations,

. business and community partnership,

D. 5arnessing diversity.

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‘We have lived so long at the mercy of uncontrolled economic forces,

that we have become skeptical about any plan for human emancipation.

Such a rational and deliberate reorganization of our economic life would

enable us, out of the increased wealth production, to establish an

irreducible minimum standard which might progressively be raised to one

of comfort and security.’   Lord arold !acmillan

 "ormer #$ %rime !inister 

5mm

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ccording to the European Commission, CSR involves companies integrating8social and environmental concerns into business operations and in their

interaction with staeholders on a voluntary basis.

voluntary basis

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ll companies are bound by the laws of the country in which they operate.

5owever, these laws rarely, if ever, bind companies to particular standards of

behavior in their dealings with poor people and poor communities

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t the heart of CSR is the idea that companies, on their own, can be trusted

to fill this regulatory gap and address any problems their operations may

cause.

The voluntary approach is widely endorsed by European governments.

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E.g. The '( # Stephen Timms , the minister for CSR within the Fepartment ofTrade and "ndustry @FT"A. 5is view is that the role of governments is to 8wor

with the corporate sector to facilitate this type of involvement, rather thanlooing to regulatory measures or new laws7.

8"nternational legally binding framewors for multinational companies maydivert attention and energy away from encouraging corporate social

responsibility and towards legal process.7

1rganization for Economic Cooperation and Fevelopment @1ECFA also supportself-regulation

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Can safeguarding the social and environmental rights of poor people as theycome into contact with multinational corporations cannot be left solely to the

discretion of those corporations&&&&

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5istorical bacground#

Furing the BGH0s, the 'nited 3ations grappled with the international Code ofConduct on Transnational @multinationalA Corporations, covering areas such as

labor standards,

 consumers7 rights,

women7s rights,

the environment,

corruption and

restrictive business practices .

The code was never approved, largely because of 'S government and

corporate opposition to its scope and legal status

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odern CSR was born during the BGG Earth Summit in Rio de Ianeiro, as ane)plicit endorsement of voluntary approaches rather than mandatory

regulation.

The '3 Centre on Transnational Corporations was charged with researching

the regulation of business and coming up with regulatory proposals.

produced a set of recommendations on corporate regulation for the Summit.

Re!ected after western states and businesses lobbied in favour of a manifesto

for voluntarism drafted by the $orld =usiness Council

coalition of companies 8united by a shared commitment to sustainabledevelopment7

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Joop- holes in legal regulation of 3Cs

5ome country

5ost country

"nternational law

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Joop- holes in legal regulation of 3Cs

ultinationals are primarily governed by the national legislation of thecountries in which they operate.

 'nless they have been offered e)emptions from national legislation as an

incentive to invest, they have e6uivalent status to domestic companies.

5owever, national legislation in developing countries is often wea.

any lac an acceptable legal framewor to ade6uately protect social and

environmental rights.

$here the necessary laws do e)ist, many host countries do not have thepolitical will or technical now-how to enforce them.

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regulation of multinationals in their 8home7 countries is often strong.

 "n the '(, companies are bound by laws protecting labour rights, the

environment and consumers.

 =ut these only e)tend to the activities of companies based or operating in

the '(, and not to the overseas activities.

$hen operating overseas, often via subsidiaries, '( companies are mainlyaccountable under '( law for their financial performance.

Jegislation governing their human rights and environmental performance is

limited to highly specific measures, such as the 1ECF convention on

combating bribery, which maes it a crime under '( law to bribe foreign

officials.

e)tremely difficult to use '( law to hold a '(-based multinational

accountable for alleged violations committed outside its own national

boundaries.

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'S lien Torts Claims ct @TCA has been used with some success to hold 'Scompanies to account for their activities overseas

 "t gives district courts in the 'S the power to hear foreign citizens7 claims forin!uries 8in violation of the law of nations7.

Cases under TC have proved e)tremely time-consuming, costly and comple)

=ut its use against multinationals has increased considerably over the past

decade

5igh punitive damages

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"nternational law has almost e)clusively concerned itself with theresponsibilities of governments, leaving national law to govern the activities

of companies

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The annual cost of environmentaldegradation in Pakistan is about $4.3 billion

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brick kiln owners are flouting the law by polluting the environment inHaripur district, which ranks amongst the most polluted areas of theprovince, owing to unchecked discharge of effluents in streams andemissions from industries in Hattar.

use of rubber and plastic items with coal

bronchitis and asthma, chemicals attac the body7s immune system, lungcancer

vomiting, diarrhoea, eye irritation, nausea, and disorientation, liver and renaldiseases

ot a single nvironment *rotection Order has ever been issued to local bric&

&iln owners since the agency is not serious about controlling pollution.+

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Shehla Kia vs $apda @BGG/A,

"n Shehla Kia vs $apda @BGG/A, the Supreme Court of ?aistan declared that aclean and healthy environment was the fundamental right of every citizen of

?aistan by reading the right to a clean and healthy environment into the*undamental Right to Jife protected by rticle G of the Constitution.

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?aistan Environmental ?rotection ct of BGGL, but the government never madeit functional

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industrialists often 6uestioned why they should comply with Environmental?rotection gency @E?A regulations re6uiring them to set up individual

wastewater treatment plants when the drains and rivers were alreadypolluted.

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*abric industry#

current process used about B00 litres of water to dye one ilo of fabric,meaning a million litres for a tonne of fabric.

D0 per cent more energy efficient, used D0 per cent less water, and too athird of the time of the process currently in use.

being used in seven countries

one per cent of waste water is treated.

9$e cannot put the burden of polluting industrialists on the ta) payer.7 canwe&&&