GSM5181 International Business Management and Policy

Corporate Social Responsibility(CSR)

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Name Matrix No.Chin Fui Yien GM05287

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Traditionally,

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What do you think??

Presentation Outlines:

1. Definition of CSR

2. Objectives of CSR

3. 5 Dimensions of CSR

4. Cases on CS

5. Recommendations and Conclusion4

Definition of CSR

• It is known as:– Corporate Citizenship– Corporate Responsibility– Responsible Business

The voluntary actions that business can take, over and above compliance with minimum legal

requirements, to address both its own competitive interests and the interests of wider society. **

5** www.csr.gov.uk (UK Government)

Objectives of CSR

• Positive outcomes arise when business takes up a CSR policy such as:1. Company benefits • Improve financial performance• Enhanced brand image recognition and reputation • Product safety and decrease liability• Attract and retain employees • Increased sales and customer loyalty

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Cont.

2. Community benefits• Product safety and quality • Corporate product safety and involvement• Awareness

3. Environmental benefits• Greater material recyclability• Better product durability and functionality• Environmental management standards • Eco-labelling

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5 Dimensions of CSR

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Issues of CSR

• “Shared value” defines as policies and operating practices that enhance the competitiveness of a company while simultaneously advancing the economic and social conditions in the communities in which it operates. **

• It has blurred the boundary between pure business activities and CSR activities.

– “Project Shakti” project of Hindustan Unilever Limited (HUL) – enhance the direct rural reach of the company and empowering women.

– Whether research expenses will be considered as CSR spend as “environmental sustainability” is classified as CSR activities.

9** Asish K Bhattacharyya (2013)

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Cases on CSR

Nike Inc.

• Global company (24th Jan 1964) – produces footwear, clothing, equipment and accessory products for the sports and athletic market.

• It is the largest seller of such garments in the world – approximately 19,000 retail accounts in US and around 140 countries around the world.

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Case: Harrasement & Abuse

• Workforce profile: 58% of them are young adults between 20 and 24 years old, and 83% are women.

• In Indonesia, 30.2% of the workers had personally experienced, and 56.8% had observed, verbal abuse.

• An average of 7.8% of workers reported receiving unwelcome sexual comments, and 3.3% reported being physically abused.

• 73.4% of workers are satisfied with their relationship with direct line supervisors, 67.8% are satisfied with management although a subsequent investigation has been made.

12** http://www.sourcewatch.org/index.php?title=Nike (February, 2012)

BP

• It is a Petroleum Industry Company.

• British Multinational oil and gas company headquater in London, England.

• It was founded in 1909.

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Case: environmental pollution

• In 20th April 2010 – explosion at BP’s deep water rig in the Gulf of Mexico.

• The chief executive, Tony Hayward make a mistake after mistake while their crude continued to gush, literally and figuratively.

• Although BP has fired Hayward, paid restitution, enhanced its drilling standards and sponsored several feel-good TV commercials, it failed to regain the trust it supposedly covets.

14** Forbes Online (2012)

Recommendations and

Conclusion

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International Organizations Governments

Business Associations

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Recommendations

• International organizations

– Undertake further research and produce a CSR guidebook.

– Provide a resource for advice and training for government. (e.g. Health and safety, labor issue, environment protection)

– Establish a CSR Training institute – improve CSR knowledge and skills.

Cont.

• Governments

– Encourage accountability and reporting.

– Award schemes and the media to highlight companies who leads on social and environmental issues.

– Ensure laws are obeyed by implementing regulations and, encourage negotiated and voluntary agreements.

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Cont.

• Business Associations

– Be transparency/ Global Reporting Initiative.

– To create a common framework for voluntary reporting of the economic, environmental and social impact of organization-level activity.

– To appear more trustworthy and push up the standards of other organizations at the same time.

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Conclusion

• Corporate social responsibility (CSR) can be looked at as what a company doesn't do. As long as a business does not anything unethical, it is being responsible to its internal and external customers.

• It is an unethical for a socially responsible company, for example, – to mistreat the environment (emitting excessive pollution), – does not engage in foggy financial practices (misrepresent its financial

position), – does not misrepresent its products and, – does not disrespect its employees and customers.

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Thank You