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?