“It takes 20 years to build a reputation and only 5
minutes to ruin it.” (Warren Buffet).
Business should not only be responsible morally
to the stakeholders but also to the
society, environment and towards a sustainable
planet at large.
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Many other names are used to refer to CSR such as socially
responsible business, responsible business conduct, responsible
entrepreneurship, corporate citizenship, corporate accountability or
CSR is the continuing commitment by businesses to behave
ethically & contribute to economic development while improving the
quality of life of the workforce & their families ,local communities
and the society at large.
(World Business Council)
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CSR requires companies to acknowledge that they should be publicly
accountable not only for their financial performance but also for their
social and environmental record.
CSR encompasses the extent to which companies should promote
human rights,democracy,community improvement and sustainable
development objectives throughout the world.
(Confederation of British Industry,2001).
CSR is the commitment of businesses to contribute to sustainable
economic development working with employees, their families, the
local community and society at large to improve their quality of life in
ways that are both for business and good for international
World Bank,24 March 2004). 14 August 2012 4
CSR is an extended model of corporate governance
based on the fiduciary duties owed to all the firm’s
CSR is about how companies manage the business
processes to produce an overall positive impact on the
CSR is the responsibility of corporations to go above and
beyond what the law requires them to do.
CSR is the responsibility of corporations to contribute to
a better society and cleaner environment.
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Eradicate extreme poverty and hunger.
Achieve universal Primary education.
Promote gender equality and empower women.
Reduce child mortality.
Improve maternal health.
Combat HIV/ AIDS, Malaria & other fatal diseases.
Ensure environmental sustainability.
Develop a global partnership.
Source:( United Nations Millennium Project).
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ETHICAL License to operate
Attain profits within
the confines of the LEGAL RESPONSIBILITIES
Produce goods and
ECONOMIC RESPONSIBILITIES services to earn profit.
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Business Ethics, values and principles.
Accountability and transparency(Legal
Commitments to socio-economic developments.
Workers rights and welfare.
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Influence of political systems on CSR.
The liberal model of US and the european union which based on
individual equality and liberty.
The nationalist model within which the economic activities are
subordinated to the goals of the state(e.g. Imperial Japan).
The Marxist model under which investment and enterprise is
controlled by the state(e.g. China and Cuba).
Religion does influence the economic behavior.
For believers the “morally right "thing to do is generally consistent
with the notion of what God might have commanded and
conversely the “morally wrong” choice is what God might have
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Increased employee loyalty and retention.
Increased quality of products and services .
Increased customer loyalty.
Increased reputation and brand image.
Greater productivity and quality.
Reduced regulatory oversight .
Access to capital and market.
Product safety and decreased liability.
Less volatile stock value.
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Environment Kyoto protocol
ISO 14000 environmental management series
Labor Fair labor association workplace code of conduct.
Corporation governance OECD principles of corporate governance.
Principles of Corporate governance in
Money laundering Basel committee on banking supervision.
Wolfsburg anti-money laundering principles.
Bribery and Corruption OECD convention combating bribery of foreign
public officials in international business
Human rights Amnesty international Human right principles.
Corporate Reporting Global reporting initiative2012
guidelines on social
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,economic and environmental reporting.
Shareholder value(Changes in stock price and
Revenue(Changes in revenues due to change in
market share and new markets ).
Access to debt and equity capital.
Customer attraction and retention.
Creation of brand value and reputation.
License to operate. 14 August 2012 12
Agenda 21: A plan of action for governments, companies and civil
society to address human impacts on society.
Beijing declaration: (www.un.org):An international declaration on
the rights of women.
CERES principles: A ten-point code of corporate environmental
conduct for use as an environmental mission statement or ethics.
Organization for Economic Co-operation and Development (OECD)
guidelines for multinational enterprises( www.oecd.org).
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Wolfsburg anti-money laundering principles: Principles offer private
banks to counter money laundering.
Social Accountability 8000:Workplace standard against which to assure
worker rights & welfare.(www.sa-intl.org).
Principles of responsible investment: Principles on environmental,
social and corporate governance issues pertaining to investors.
Global reporting initiative: A framework for reporting on social,
environmental and economic performance(www.globalreporting.org).
Convention on biological diversity: Principles for the conservation of
biological diversity including sustainable use, sharing of benefits and
access to genetic resources(www.biodev.org).
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Power & Influence of business corporations.
Growing access to education and information.
Growing awareness of environmental issues.
Spread of corporate scandals and public
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According to Geoffrey Lantos:3 main types of CSR.
Ethical CSR: It’s about the responsibility to avoid
harms or social injuries.
Altruistic CSR: Contributing to the common good at
the possible expenses of the business for altruistic
,humanitarian or philanthropic causes.
Strategic CSR: It’s about firm’s social welfare
responsibilities that benefit both the corporation and
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Ethics concerns individual actions that can be
assessed as right or wrong with reference to
moral principles whereas CSR is about the
organization’s obligation to all stakeholders and
not just shareholders.
CSR is about tangible corporate practices while
business ethics is more about the values driving
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Social Responsibility (People).
Environmental Responsibility( Planet).
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Financial profit, economic growth and asset creation.
Economic impact through business processes such as
outsourcing, knowledge innovation and social investments.
Monetary support for political parties.
Stock exchange activities including insider trading.
Economic regulation and tax incentives.
Intellectual property rights, patents, and trademarks etc.
Antitrust and competition.
State contracts and state subsidies.
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Labor rights: Slave,forced,child labor,non-discrimination,equal
opportunities,minimum wages ,health & safety.
Right to work :Protecction against unjustified dismissals, vocational
Right to hold opinions :Freedom of expression,thought,conscience
Right to Privacy: Drug testing, Personal information, Surveillance
Cultural rights. Rights to take part in political life.
Right to family life.
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UN convention on biodiversity: Ex situ & In situ
conservation & use of genetic material & technology
Use and handling of genetically modified organisms.
Greenhouse gas emissions and global warming.
Soil & water contamination.
Treatment and reduction of waste water.
Recycling and reuse of materials .
Protection of forest resources.
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Nike factories in Asia were criticized for employing young
children in extremely poor working conditions.
Explosion at Union Carbide Ltd-Bhopal ,India in Dec ,1984
caused thousands of deaths and rendered many people disabled
due to leakage of MIC gas.
Fraudulent accounting manipulations led to collapse of Houston
based Enron corporation .
James Hardie was criticized for it’s failure to provide
compensation to people affected by asbestos-related diseases. 22
14 August 2012
Enron was voted” America’s most innovative company”.
In 2001,Enron’s board of directors was named the 3rd best board
in US by Chief Executive Magazine.
In Dec 2001,Enron filed for bankruptcy with $63 billions in
assets, and it became one of the largest bankruptcy case in US
as an epitome of corporate greed and dishonesty.
94,000 jobs were lost putting the investors and employees at
In order to restore public trust in American corporations
,congress passed the Sarbanes –Oxley- Act(SOX Act) in 2002 in
order to protect the investors by improving the accuracy &
reliability of corporate disclosures in accordance with
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Green Buildings: The LEED certification by the US Green building Council has
caused the growth of green building movement.
Emphasis on green manufacturing in order to reduce the emissions of green
house gases and environmental pollutions.
Green products initiatives in order to reduce the toxic chemicals.
Product stewardship encourages everyone in the value chain to contribute to
product sustainability from producers to regulators to retailers to consumers
thereby achieving zero waste and sustainable production.
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ALCOA: The Aluminum company, was rated as one of
the most ethical companies by Ethisphere magazine in
2007.Corporate knights and Innovest rated ALCOA as
global 100 most sustainable corporations in the world.
General Electric Corporation’s Ecomagination strategy
for developing a variety of green investment initiatives
and eco-friendly products such as solar panels, water
purification systems and energy saving light bulbs.
Coca-Cola: A leading manufacturer of beverages
,emphasizes global water stewardship, sustainable
packaging ,climate protection, energy management and
eco-innovation in packaging .
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Innovation in alternative transportation such as hybrid vehicles and
electric vehicles by companies like Toyota,Nissan,Honda and Tesla
Motors in order to curb the greenhouse gas emissions and reduce the
Many companies like IBM,Staples and BP are purchasing Renewable
Energy Credits (RECs) in order to support the clean energy projects.
Companies such as Ben & Jerry,IKEA,The Body Shop are promoting
Biodiversity conservation, sustainable forestry initiative, organic
farming and fair trade in order to balance the need for both business
growth, sustaining and preserving the depleting natural resources.
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Towards the goal of achieving a cleaner environment, usage
of sustainable packaging materials made of biodegradable
plastics in stead of PVC plastics.
Reducing or making the productive use of waste in order
to achieve the ultimate goal of zero- waste by emphasizing
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There are 1.28 billion mobile phone users across the globe
and over 342 million phones in UK alone.
UK consumers get rid of their mobile phones on average
every 18 months leaving behind environmental hazards
due to lithium ,platinum,copper and plastics.
Fonebak is the largest recycling company in UK that
collects such mobile phones from operators, retailers and
corporations for recycling and has earned highest
accolades for its environmentally friendly business
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Corporate Citizenship Award.
National Sustainable Development Award.
Corporate Environmental Protection Award.
The Golden Peacock Global Award for CSR.
Fortune Most Admired Companies.
World Business Green Business Award.
Alcan Prize for Sustainability.
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CSR is the heart and soul of modern corporations and is an
important standard for corporate governance.
CSR is an indispensible mechanism for both increased corporate
accountability,profitability and environmental sustainability.
CSR is the pole star for modern corporations in order to maintain
the integrity of moral fabrics both inside and outside the
corporation while conducting socially responsible business.
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