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Corporate Social Responsibility (CSR) and its important role

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Malgorzata Wojtasik

on 18 January 2014

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Transcript of Corporate Social Responsibility (CSR) and its important role

Corporate social responsibility (CSR) programs benefit businesses two-fold: they help businesses operate in ways that benefit society and help improve public perception.
1. Sarah Murray, "Take a good look at the local issues", "Financial Times" in "Market Leader Advanced Teacher's Resource Book" I. Dubicka, M. O'Keeffe, Pearson Longman, 2006.
2. "CSR Special Report", Jacek Dymowski, Monika Szymańska.
3. Kercher Kim, Corporate Social Responsibility ‐ Impact of globalisation and international business, Bond University 2007.
4. World Bank, Globalization, growth and poverty, Oxfor dUniversity Press, Oxford 2002.

Corporate Social Responsibility (CSR) and its important role in globalization process.
CSR VS Globalization ???
International Oranizations and Movements
Conscious Consumers
“Twenty years ago, environmental and social issues were for activists. Ten years from now, they are likely to be amongst the most critical factors shaping government policy and corporate strategy.”
Swiss Federal Institute of Technology, Zurich, Switzerland,
is a very broad and complex process , which has an impact on all spheres of our lives.
Elimination of trade barriers
Better and faster communication
People in poor countries gets a job thanks to investments of transnational corporations
Corporations located in poor countries use cheap labor forces,
Destruction of the environment (greenhouse effect, deforestation, lack of water).
The negative impact on the economies of economically weaker countries. For them globalization means dominance of transnational corporations and economic dependence.
Even 100 years ago, companies conducted their businesses in a limited areas. Nowadays production chain become much longer. Many companies are trying to expand it to countries where labor is cheaper. This process creates large distribution networks all over the world.
Nike factories in Asia were criticized for extremely poor working conditions and for employing young children

Nestle received criticism in relation to its practices and employing young children

BP was criticized because this company was responsible for one of the biggest oil catastrophe.

These occurrences were the reasons for debate all over the world. All of these companies lost a lot of customers and of course their credibility. It is clear that now community require something more, and company nowadays should strive for perfection and take care for their surroundings.
United Nation Global Compact

10 0000 corporate participants and other stakeholders involved from more than 140 countries.

Launched in July 2000, UN Global Compact is a leadership platform for the development and implementation 10 rules for corporations all over the world connected with human rights, protecting environment etc.
Social responsibility has also played a significant role for European Union which approved three documents that not only sparked international debate on CSR, but also define the theoretical framework.
Lisbon Strategy

Green Paper on CSR
White Paper: Communication
on CSR
Some organizations have developed declarations, guidelines, principles and other instruments, responsible company should use. If company use these guidelines is treated as a responsible company.
Consumers and investors are demonstrating increased interest in supporting responsible business practices and they require more information f.e. how companies bear with risks and invest their money in social and environmental issues.
Types of corporate social responsibility
Environmental Sustainability: Areas include recycling, waste management, water management, using renewable energy sources, utilizing reusable resources, creating 'greener' supply chains, using digital technology instead of hard copies.

Community Involvement: This can include raising money for local charities, supporting community volunteerism, sponsoring local events, employing people from a community, supporting a community's economic growth, engaging in fair trade practices.

Ethical Marketing Practices: Companies that ethically market to consumers are placing a higher value on their customers and respecting them as people who are ends in themselves. They do not try to manipulate or falsely advertise to potential consumers.
Types of Corporate Social Responsibility Actions
The good practice - the examples in Poland and around the world
The Yves Rocher International

The Commitment against animal suffering:
*no animal testing (since 1898)
*support to innovative research programs on alternative methods of testing,
* do not use raw materials of animal origin in production process.
To reduce environmental impact:
*no plastic bags (since 2006),
* never GMO species,
* the choice of the organic agriculture (the most from France, in La Gacilly farm),
*the paper to distribution only from controlled forest cultivation.

Celebrating of 50 years of existence YR decided to plant 50 million trees over to 5 years with the help of their customers.

ISO, the International Organization for Standardization, has launched an International Standard providing guidelines for social responsibility (SR) named ISO 26000 or simply ISO SR and was released on 1 November 2010.

is not certifiable
A Brand of natural beauty....
In Poland...
*only natural components,
* a member of pro social organizations: Lions Club International, PKPP Lewiatan, Business Center Club (credibility),
* a partner Anna Dymna Fundation, "Despite Everything" which helps adults with intellectual disability and many others polish foundations,
*support to build few hospitals in Poland, also for children,
*support purchase specialist medical equipment to Santa Barbara Hospital in Sosnowiec,
* a sponsor of sporting events: Cracovia Maraton, 3 Mounds Run, Wisla Cracow volleyball and basketball games,
*a sponsor of cultural events: exhibiotons in National Gallery in Cracow, in Sukiennice, in Historical Museum, support theater shows in Groteska Theater, Bagatela Theater and many others,
* got Certificate of Good Manufacturing Practices (2012),
* got ISO 22716. Certificate,
* company presented in CSR special reports in Poland like an example.

Natural cosmetics and thinking about surrounding...
Thinking, credibility and transparency - the keys to success
It's difficult to cover your tracks
The biggest retail network in Poland:
* the owner - Portuguese Jeronimo Martins Group,
* 2 200 stores in 800 locations in Poland,
* 40 000 employees in Poland,
* broke many rules of the employment their staff - hard work, lifting even for women, not pay for overtime hours, no obligatory breaks,
* journalistic investigation and disclosure of breaking the law,
* former employee won in the court - "Biedronka" had to pay for 2500 overtime hours.

"We are aware of the influence our company has on the lives of many people. This is a great responsibility. That is why we want to go beyond the typical role of a retail chain. We want to contribute to improving the life of our employees, clients and business partners. We care about the needs of the environment in which we function. Our activities can be presented with the motto <Biedronka. Good life>."
"No company will be successful unless it is socially responsible."

Elisio Alexandre Soares dos Santos
President of Jerónimo Martins
But they still do not want to show their reports and statistics based of the universal CSR report rules...
They still do not want to respond to the questions posed by CSR organizations in Poland...
* when help create culture of dependence,
* " an oasis of affluence in a desert of need" Richard Sandbrook, The Adviser of the United Nation Development Programme,
* when neighbouring villages feel left out,
* companies should employ sociologists and anthropologists,
* "cash is probably not the answer" - Adrian Hodges, Managing Director of International Business Leaders Forum,
* CSR- work with NGOs.

Thank You for Your Attention
"Biedronka"= "ladybird" in English or "ladybug" in American English
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