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Abdur Rashid Mirza

University of Lahore

School of Accountancy & Finance

Lecture no.04

Corporate Social Responsibity

Meaning of Corporate Social Responsibility

Corporate= Corporate is a business or entity.

Social = Living together in communities.

Responsibility = Something for which one is responsible; a duty, obligation, or burden.

Historical Perspective From the 1950s to the present the concept of CSR has

gained considerable acceptance .

Corporate Social Responsibility (CSR)

CSR considers the impact of the companys actions on society (Bauer)

CSR requires decision makers to take actions that protect and improve the welfare of society as a whole along with their own interests (Davis and Blomstrom)

Corporate Social Responsibility (CSR)

Key Issues in CSR

Labour rights:

child labour

forced labour

safety and health

Environmental conditions

water & air emissions

climate change

Poverty Alleviation

job creation

public revenues

skills and technology

Compliance Management:

Management by certification

ISO 26000: Social Responsibility

To be Introduced in 2009 or 2010

Principles of SR 1. Ethical behaviour 2. Respect for rule of law

3. Respect for and considering of stakeholder interests

4. Accountability 5. Transparency

6. Precautionary approach 7. Respect for human rights

Organizational Governance

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Core Subjects

ISO 26000 Roadmap

Human Rights

Principle 1: Support and respect the protection of international human rights.

Principle 2: Make sure their own corporations are not involve in human rights mishandlings.

The UN Global Principles (1)

Principles of the Global Compact

Adapted from Table 3-1: Principles of the Global Compact

Labor

Principle 3: Freedom of association and the effective recognition of the right to collective bargaining.

Principle 4: The elimination of all forms of forced and compulsory labor.

Principle 5: The effective abolition of child labor.

Principle 6: The elimination of discrimination with respect to employment.

The UN Global Principles (2)

Principles of the Global Compact

Adapted from Table 3-1: Principles of the Global Compact

Environment

Principle 7: Support a precautionary approach to environmental challenges.

Principle 8: Undertake initiatives to promote greater environmental responsibility.

Principle 9: Encourage the development and distribution of environmentally friendly technologies.

The UN Global Principles (3)

Principles of the Global Compact

Adapted from Table 3-1: Principles of the Global Compact

Anti-Corruption

Principle 10: Business should work against all forms of corruption, including pressure and bribery.

The UN Global Principles (4)

Principles of the Global Compact

Adapted from Table 3-1: Principles of the Global Compact

Thank you