spheres of influence for responsible business

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Society creates a dynamic context in whichfirms operate

CSR is an evolving concept …

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The ideal mix of business goals and

societal expectations evolve over time

The context is dynamic because

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The broad concept that businesses are more than just

profit seeking entities and, therefore, also have an

obligation to benefit society

Defining Corporate SocialResponsibility (CSR)

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Government

Host Community

Business Partners

Core Operations

Spheres of Influence Model of CSR

Source: Amnesty International & Prince of Wales Business Leaders Forum (1999)

Company spheresof influence

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Spheres of Influence

Core Operations

• Employees• Health & Safety• Work/life balance• Rights to free assembly and collective bargaining

• Anti-discrimination measures in recruitment, development and promotion• Privacy of personal information• Pension provision• Fair remuneration and working conditions

Source: Amnesty International & Prince of Wales Business Leaders Forum (1999)

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Spheres of Influence

Business Partners: Customers, Suppliers andVenture Partners

• Positive / Negative impacts of goods and services misuse• Safety and pricing• Advertising and consumer rights• Vulnerable or disadvantaged groups

• Bribery and corruption• Supply Chain labour issues (child, forced, discrimination, fair

wage, working hours, security)

Source: Amnesty International & Prince of Wales Business Leaders Forum (1999)

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Spheres of Influence

Communities

• Surrounding operations• Community and social impacts : water, livelihoods,

discrimination• Security of installations• Land and indigenous rights• Access: access to housing, education

Source: Amnesty International & Prince of Wales Business Leaders Forum (1999)

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Spheres of Influence

Advocacy/PolicyDialogue

• Government relations• Political Influence

• Public Advocacy• Campaigns

Source: Amnesty International & Prince of Wales Business Leaders Forum (1999)

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The Enterprises responsibilities should be commensurate

with its economic, social and political power

The Social Contract

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Systemic/macro environmental/general environment

Corporation’s microenvironment or operating/taskenvironment

Superiors, subordinates, and other employees and laborunions

Significant others of business decision makers like family,friends, peers etc .

4 levels of Stakeholders

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CSR embraces the range of economic, legal,ethical, and discretionary actions that affect the

economic performance of the firm

WHAT CSR IS AND IS NOT

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A significant part of a firm's CSR, there- fore, iscomplying with the legal or regulatory requirements

faced in day-to-day operations.

To break these regulations is to break the law, whichis not socially responsible.

WHAT CSR IS AND IS NOT

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Clearly,

Adhering to the law is an important component of any ethicalorganization.But, legal compliance is merely a minimum condition of CSR.

WHAT CSR IS AND IS NOT

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Instead,CSR is about the economic, legal, ethical, and

discretionary issues stakeholders view

as affecting the firm's plans and actions. The solutionsto these issues, the overlap where economic benefit

and social benefit meet, is at the heart of anysuccessful CSR policy.

WHAT CSR IS AND IS NOT