Corporate Social Responsibility is a way of doing business that reflects a commitment to “behave ethically, and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large” (Globalization101). As the diagram below illustrates, CSR is a component of the quality of management within a company and the impact that company has on various components of the larger society.
The way in which CSR is integrated into a business model varies greatly depending upon the nature of the company. Some companies’ CSR programs may consist mainly of philanthropic activities. Others may take a more inclusive approach to CSR, incorporating CSR practices across all business activities. Some examples include sustainable development, sustainable sourcing, fair trade, ethical labor practices, and the use of environmentally friendly technologies.
UN Global Compact: In July of 2000, the UN introduced a voluntary initiative designed to encourage companies to adopt sustainable and responsible business practices. The UN Global Compact is a signed commitment between the company and the UN whereby the company agrees to abide by 10 principles revolving around human rights, labor practices, environmental stewardship and anti-corruption. Companies are required to report progress and make an annual financial contribution to the UN. More information on the UN Global Compact can be found at http://www.unglobalcompact.org/
Fair Trade: Companies may seek to employ fair trade practices as part of their CSR programs. Companies that are Fair Trade Certified Organizations produce and trade goods that ensure equity and sustainability and adhere to the following core principles: market access for marginalized producers, sustainable and equitable trading relationships, capacity building & empowerment, consumer awareness raising & advocacy, fair trade as a “social contract”. More information on Fair Trade Certification can be found on the World Fair Trade Organization’s website at http://www.wfto.com/index.php?option=com_content&task=view&id=1082&Itemid=334
Critics of CSR suggest that it is simply a public relations ploy -- just a company’s attempt to draw attention to and create a good image for itself. Other arguments against CSR assert that it is diverting attention from some of the real social justice issues and helping companies avoid further regulations. Still others argue that a company is really only responsible to its shareholders. If CSR doesn’t drive business, but instead diverts time, attention and resources away from core business, then it is unnecessary and irresponsible.
Decide for yourself. Is CSR a path to social justice? Or is it just window dressing?
Here are a few websites with information to get you thinking:
CorporateWatch.org: Argument against CSR:
http://www.corporatewatch.org/?lid=2688
CuturalShifts.com: Making the Case for Corporate Social Responsibility:
http://culturalshifts.com/archives/181
Check out CSR Minute’s website to get daily news updates on CSR and sustainability practices from corporations worldwide.
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