Manager ethics
CORPORATE AND SOCIAL RESPONSIBILITY
Slovak University of TechnologyFaculty of Material Science and Technology in Trnava
Corporate and social responsibility
Corporate and social responsibility is defined as „a concept whereby companies integrate social and environmental concerns into their business operations and in their interaction with their stakeholders, on a voluntary basis.“
Preliminary definitions of CSR
The impact of a company’s actions on society
Requires a manager to consider his acts in terms of a whole social system, and holds him responsible for the effects of his acts anywhere in that system
Corporate social responsibility
Corporate social responsibility (CSR) was defined by the European Commission as a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis.
Three aspects of the social dimension of corporate social responsibility:
Internal aspects: human resource management, health and safety at work, business ethics, adaptation to change, and organisational learning - requires participation of workers or their representatives.
Three aspects of the social dimension of corporate social responsibility:
External local: local corporate citizenship - requires cooperation with business partners, local authorities and local NGOs.
External worldwide: human rights, global environmental concerns, safety and health in supply companies, corporate citizenship worldwide - requires communication with consumers, investors, globally operating NGOs, etc.
Carroll’s Four Part Definition
CSR encompasses the economic, legal, ethical and discretionary (philanthropic) expectations that society has of organizations at a given point in time.
Carroll’s Four Part Definition
Responsibility Societal Expectation
Examples
Economic Required Be profitable. Maximize sales, minimize costs, etc.
Legal Required Obey laws and regulations.
Ethical Expected Do what is right, fair and just.
Discretionary
(Philanthropic)
Desired/
Expected
Be a good corporate citizen.
Arguments Against CSR:
Restricts the free market goal of profit maximization
Business is not equipped to handle social activities
Dilutes the primary aim of business Increase business power Limits the ability to compete in a global
marketplace
Arguments For CSR:
Addresses social issues business caused and allows business to be part of the solution
Protects business self-interest Limits future government intervention Addresses issues by using business
resources and expertise Addresses issues by being proactive
Key Components of CSR:
Governance, Ethics and Management Practices Community Involvement Health and Safety Human Resource Management Human Rights Customer Satisfaction and Relations Environmental Performance Supplier relations Respect for Aboriginal peoples
Inter-governmental CSR initiatives
ILO’s Tripartite Declaration OECD Guidelines for multinational enterprises UN Global Compact European Commission: Green paper,
communication, and multi-stakeholder forum on CSR
UN Sub-Commission on Human Rights: Norms concerning the responsibility of transnational corporations
International Finance Corporation (IFC) of the World Bank Group
Triple Bottom Line…
1. Environmental2. Social3. Economic
"The triple bottom line is becoming an imperative. Environmental and social responsibility should beat at the heart of every business leader„
Anita Roddick
CSR Standards, Guidelines and Regulation: Forest Stewardship Council Race to the Top SA8000 Marine Stewardship Council European Commission White Paper on
Corporate Social Responsibility Soil Association Organic Standard UN Global Compact Investors in People Global Reporting Initiative
CSR Standards, Guidelines and Regulation:
AA1000 Assurance Standard UN World Summits UN Convention on Biodiversity ISO14001, EMAS OECD Guidelines for Multinational Enterprises Ethical Trading Initiative London Benchmarking Group DEFRA Environmental Reporting Guidelines
Most Important Thing a Company Can Do to Be Seen as Socially Responsible?
Thank you for your attention!
Questions?