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CORPORATE SOCIAL RESPONSIBILITY

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8/3/2019 Csr 22 Oct Final

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CORPORATE SOCIAL RESPONSIBILITY

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CSR : KEY DRIVERS

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CSR IN EUROPE

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CSR IN EUROPE: OVERVIEW

The European Commission's definition of CSR is:

"A concept whereby companies integrate social andenvironmental concerns in their business operations andin their interaction with their stakeholders on a voluntary basis."

Corporate Social Responsibility is part of the Europe 2020strategy for smart, sustainable and inclusive growth.

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CSR IN EUROPE: BASIC PHILOSOPHY

ACCORDING TO A RESOLUTION PASSED BY EU IN 2010-

“ for Ordinary people throughout the

world, the expansion in internationaltrade is justified only if it contributes toeconomic development, to job creation

and to improved living standards.”

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CSR IN EUROPE: KEY IMPLICATIONS

● Companies would be required to publish CSR balance sheets intwo or three year intervals in order to reinforce transparency andreporting and encourage visible and credible CSR practices;

● Companies would be required to conduct due diligence in order to identify and prevent "violations of human and environmentalrights, corruption or tax evasion, including in their subsidiariesand supply chains";

● Companies would be required to commit to "free, open andinformed prior consultation" with local and independentstakeholders prior to commencing a project that impacts a localcommunity.

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CSR IN USA

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CSR IN USA: OVERVIEW

US companies are not as heavily regulated as

those in other developed nations, and corporateresponsibility is not addressed as a regulatorycompliance issue but rather from a social and

moral choice perspective.

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CSR IN USA: OVERVIEW

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CSR IN USA: KEY ACTIVITIES

Noncompulsory corporate responsibility practices,

corporate activities encompassing corporate responsibilityin the US go beyond environmental, legal and workplaceissues to ones that best enhance a company’s externalreputation.

Philanthropy and employee engagement – akaemployee volunteerism – are key areas of a company’scorporate responsibility platform.

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CSR IN USA: KEY ACTIVITIES

For some companies corporate responsibility is defined

as philanthropic giving, while others include businessactivities ranging from raw material sourcing toemployment practices.

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CSR IN USA: CASE STUDIES

GE- GENERAL ELECTRIC

GE’s Health care and education initiative in Africa

The five-year, $20 million GE Africa project was launched in October 2004 to bringimproved healthcare provision and infrastructure to hospitals and clinics in Africa

Four GE businesses - GE Healthcare, GE Energy, GE Infrastructure and GEConsumer & Industrial - are donating healthcare and power generation equipment,water filtration systems, appliances and lighting to African clinics and hospitals.

In addition to the product donations and training, GE has engaged their AfricanAmerican Forum (AAF), a GE affinity network, to establish on-going relationshipsat the community level. Each site, once launched, is “adopted” by a GE business-based AAF chapter, which engages senior managers on site visits, initiates

benchmarking studies and tracks community health progress.

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CSR IN USA: CASE STUDIES

FUJI FILMS

FUJI RECYCLES ITS OWN CAMERAS

FUJI manufactures quick SNAP cameras.

These one time use cameras are sold worldwide and used cameras are collected formEurope, USA & Japan

The new Quick SNAP cameras are then made from a re cycling plant and almost the

entire amount collected is re- used in an advance recycling machine

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CSR IN USA: CASE STUDIES

FUJI FILMS

OTHER INITIATIVES AT FUJI

Enhancing quality of life for esophageal cancer patients in Kenya Providing digital cameras to organizations selected by company employees Giving support to the victims of domestic violence Donating to the “Plant a Billion Trees” Project Selling digital camera sets to raise breast cancer awareness Donating to the V Foundation Fund 

Contributing to the Kibera Slum Photo Project in Nairobi, Kenya Offering free-of-charge printing service to KVC Behavioral Health Care, Inc. Participating in Lowell General Hospital’s Team Walk for Cancer Care Participating in Dartmouth Medical School’s The Prouty Race

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CSR IN JAPAN

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CSR IN JAPAN : OVERVIEW

Corporate social responsibility, CSR is

currently a fashion inJapanese business society.

Even though the CSR performanceof Japanese firms is

exceptional, compared to other Asiancountries ,

but it still has not met theexpectations of some scholars.

The CSR achievement of 

Japanese firms has been limited tocertain areas such as

environmental responsibility andwork environment.

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Japanese paid attention to the exceptionalCSR performance across certain dimensions:

product quality, customer service & concernfor employee welfare

CSR IN JAPAN : basic philosophy

● An instrumental view

● Very little pressure from the local groups or society at large

● Harmonious government- industry relations ,. Hencevery little government intervention

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Japanese paid attention to the exceptionalCSR performance across certain dimensions:

product quality, customer service & concernfor employee welfare

CSR IN JAPAN : KEY TRENDS

● During the 1990s, much of the world was enticed with

Japanese innovative management practices such as Just inTime, Quality Circle, and Total Quality Management

● Participation of employees, life time employment, goodworking conditions and extensive benefit programs of 

Japanese firms resulted in strong loyalty and high morale of employees

● Japanese firms had a strong reputation for their occupational safety and health, in extremely low worker injury and illness rates

CS

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Toyota : Seeking Harmony betweenPeople, Society and the Global

Environment, and SustainableDevelopment of Society throughManufacturing

CSR IN JAPAN : case 1

CSR IN JAPAN 2

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Sony first issued an environmental reportin 1994. in 2003, it enhanced its scope to

make it a full – fledged CSR report

CSR IN JAPAN : case 2

Sony’s CSR 6 include:

● corporate governance● product responsibility● employee● social contribution● environment & innovation

CSR IN ASIA

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CSR IN ASIA

CSR IN ASIA OVERVIEW

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CSR IN ASIA: OVERVIEWPRACTICES IN SOUTH EAST ASIA

● Strict labor laws, lax implementation, inadequate

observance

● CSR and serious problems such as HIV/AIDS

● Compliance with international standards in the

face of international competition

CSR IN ASIA OVERVIEW

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CSR IN ASIA: OVERVIEWPRACTICES IN KOREA

● Gender issues are promoted through hiring more women.Companies tend to align gender issue with low birth rate issue.Companies do not recognize that gender issues are part of a labor 

shortage or woman’s right.

● Growing interest in work-life balance is found but relevant policyand systems are not prepared.

● Companies value dialogue with stakeholders as part of company’s

risk management But cannot quantify their efforts

● Companies view links in the supply chain as partners and try tostrike a win win situation

● Korean companies view corporate social responsibility (CSR) from

either a corporate philosophy perspective or from a businessstrategy perspective

CSR IN ASIA OVERVIEW

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CSR IN ASIA: OVERVIEWPRACTICES IN SINGAPORE

● Awareness levels are high (69%)● The following are most often quoted as benefits of CSR by executives in

singapore :improved customer loyalty (57%),improved organizational culture (53%), and attracting and retaining employees (35%)improved image and reputation (11%)

● CSR activities broadly include philanthropic activities such as“employee volunteerism,” “corporate donations,” and other charitableactivities”

● CSR decisions are usually centralised

● There is no benchmark for these corporations to evaluate their CSR

CSR IN ASIA OVERVIEW

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CSR PHILOSOPHY IN CHINA

CSR IN ASIA: OVERVIEW

Corporate social responsibility (CSR) is receiving more attentionin China, although it still plays only a marginal role for the

majority of Chinese companies, particularly private ones. Largestate-owned companies and companies that invest in China are

expected to increase their social involvement.

CSR receives little media coverage.After the Sichuan earthquake in the spring of 2008, however,

it was obvious that the efforts of domestic and foreigncompanies were recognized and appreciated.

CSR IN ASIA OVERVIEW

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KEY TRENDS IN CHINA

CSR IN ASIA: OVERVIEW

● The Chinese authorities viewed CSR as a means for foreigncompanies to pull ahead of their Chinese competitors

● But now, Chinese are focusing on economic incentives and thepositive effects of CSR on areas of social concern

● Both international organizations and intermediaries play a prominent

role in encouraging CSR

● Areas of activity are : poverty, health , education, disaster relief,political involvement, cultural engagement

● Method : philanthropy

CSR IN ASIA OVERVIEW

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CASE STUDY 1 : ST ENGINEERING,SINGAPORE

practices include health and safety, care for the environment,corporate governance and transparency, education, andsupport for the arts and sports

CSR IN ASIA: OVERVIEW

Areas Policy Objectives

Environment Ensure full compliance with all regulatory and environmental requirements.

Achieve OHSAS 18001 and ISO 14001 certification / accreditation in all of itsoperating companies.

Use energy, water and other resources efficiently.

Total Defence Fully support Singapore's National Service and National Defence initiatives.

Support and actively participate in Singapore's Ministry of Defence (MINDEF)activities (e.g. PRIDE Day, Exhibitions, Open Houses, etc.).

Support and participate in all National Programmes (e.g. the National DayParade, Quality & Productivity Programs, Business Excellence initiatives).

CSR IN ASIA FAILURES

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THE CHINA MILK AND TOYSCANDAL

CSR IN ASIA: FAILURES

● Four babies died & 60,000 sickened after they were fed the powder, made by theonce-prestigious Sanlu Group in 2008

● Officials in Shijiazhuang, where Sanlu is based, had covered up the extent of theproblem for more than a month while China was hosting the Olympic Games.In fact,local media had known that problems were being reported by parents of babiesacross China who had been fed Sanlu formula. However, the reporters were unableto publish their findings because of strict media controls imposed by the government

during the games.

● The milk, which had been laced with the industrial chemical melamine, used inplastics and glue, gave children kidney stones.

CSR IN ASIA FAILURES

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THE CHINA MILK AND TOYSCANDAL

CSR IN ASIA: FAILURES

● In 2004, the China Dairy Product Quality Inspection Report found that adulterationwas very widespread and found urea, soap powder and starch being added to milk.

It also found high levels of antibiotic residues in milk.

● Who is responsible? Milk processors such as Sanlu were in the spotlight for spiking the milk? Milk farmers? Government ? Regulatory bodies? Media?

CSR comparisons :

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CSR comparisons :Regional Characteristics

“THE British brand of corporate responsibility is seen as the gold standard”. But

according to Simon Zadek of AccountAbility, a think-tank that has been part of thecluster, this is also a repeat of a familiar British business story: superb innovation,poor implementation.

By contrast, when American firms get serious about CSR—Wal-Mart on

sustainability, for example—the execution is generally impressive

The Japanese, for their part, see the roots of CSR in the traditions of Japanesebusiness, such as shobaido (the way of doing business) and shonindo (the way of the merchant), and Japanese firms pay a lot of attention to the environment and torelations with local communities

International practices in CSR :

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International practices in CSR :Significant trends

●One-size-fits-all approach to corporateresponsibility may not work.

●What is right for Europe may not beappropriate for India.

●Communities and media have been

involved in an unprecedented manner 

International practices in CSR :

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International practices in CSR :Significant trends

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Revisiting the pyramid

CSR comparisons :

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CSR comparisons :developed vs. developing nations

CSR tends to be less formalised or institutionalized in terms of the CSR

benchmarks commonly used in developed countries, i.e. CSR codes, standards,management systems and reports.

Where formal CSR is practiced, this is usually by large, high profilenational and multinational companies

Formal CSR codes, standards, and guidelines that are most applicable to

developing countries tend to be issue specific (e.g. fair trade, supply chain,

HIV/AIDS) or sector-led (e.g. agriculture, textiles, mining)

CSR comparisons :

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CSR comparisons :developed vs. developing nations

In developing countries, CSR is most commonly associated with philanthropy

or charity.

Many of the CSR issues in developing countries present themselves as

dilemmas or trade-offs, for example, development versus environment, job

creation versus higher labour standards, strategic philanthropy versus politicalgovernance

The spirit and practise of CSR is often strongly resonant withtraditionalcommunitarian values and religious concepts in developing countries,for example, African humanism (ubuntu) in South Africa and harmonious society(xiaokang) in China

CSR LESSONS :

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CSR LESSONS :

● THE CRISIS IS NOT ALWAYS NOT INTENDED ANDTHERE'S THE RISK

● THIS IS A WHOLE NEW LEVEL OF COMMUNITY PROTEST

● YOU CANNOT SILENCE THE SOCIAL MEDIA

● THE WHOLE SUPPLY CHAIN IS AFFECTED

THE BRAND OF THE ‘ NATION’ INVOLVED IS AFFFECTED