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Oer 9. corporate social responsibility

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Oer 9. corporate social responsibility

  1. 1. OPEN EDUCATIONAL RESOURCE CORPORATE SOCIAL RESPONSIBILITY www.ecorl.it/en
  2. 2. I. Origin II. Principles III. Concept IV. International regulations V. Stakeholders VI. Internal and external dimension VII. Management systems VIII.Criticisms IX. Improvements www.ecorl.it/en
  3. 3. I. ORIGIN At the end of the eighteenth century, with the beginning of the Industrial Revolution in England that later spreads to the rest of the European continent, begins the importance of the interrelationship between business and society. www.ecorl.it/en
  4. 4. I. ORIGIN In the twentieth century, specifically in the 50's, Corporate Social Responsibility (CSR) emerges, that was born as a business discipline after the publication of the book “The social responsibility of the entrepreneur”, in the U.S.. Inspired by the work of the economist Kenneth Arrow, who gave an important impetus to thinking about CSR by raising in one of his articles the importance of corporate social responsibility. www.ecorl.it/en
  5. 5. I. ORIGIN In Spain, in the nineteenth century, the cooperative movement emerges in different sectors, but it is in the first half of the twentieth century when companies start to grow and acquire more power. We start talking about Corporate Social Responsibility (CSR), differing from the concept of philanthropy, arising a new business idea. www.ecorl.it/en
  6. 6. I. ORIGIN This new business idea has its foundations in the conception of the company as an entity that not only has obligations with the shareholders, but also is responsible for the social and environmental impacts of its activity. At present, Corporate Social Responsibility (CSR) is essential in the development of the activity of companies that are inclined towards a sustainable development policy and that meets present needs, responding to the demands of society. www.ecorl.it/en
  7. 7. I. ORIGIN Society, as a whole, demands greater concern for the environment and the well-being of all those who integrate into it. Companies that apply the principles of CSR thus differentiate themselves from the competition and obtain advantages over other companies in the sector. www.ecorl.it/en
  8. 8. II. PRINCIPLES In market economies, companies fulfill the function of adapting goods to meet human needs in order to obtain maximum profit. New business trends not only seek to maximize profits, but also adopt measures related to Corporate Social Responsibility (CSR) in management. www.ecorl.it/en
  9. 9. II. PRINCIPLES The company, besides having obligations and responsibilities with the shareholders, is also an entity responsible for the social and environmental impacts of its activity and particularly in the labor space. CSR has developed as part of a sentiment that is born within society. Societies, especially in developed countries, consider that the company must return to the society part of their benefits that they have achieved through their activities. www.ecorl.it/en
  10. 10. II. PRINCIPLES The commitment to overturn some of the companies' activities in Social Responsibility tasks serves to gain an important advantage over competitors, since currently the work in CSR is an element that contributes competitive differences enhancing and reinforcing the corporate image. www.ecorl.it/en
  11. 11. II. PRINCIPLES Why Do Companies Implement CSR Management? Change their public image because something negative has happened. Improve their image, and thus their competitiveness. Motivations www.ecorl.it/en
  12. 12. II. PRINCIPLES There are laws, principles and commitments between countries that try to increase the number of companies, although still today they are non- mandatory recommendations. • To return to society part of what it contributes to business activity. • Minimize the negative impacts of business activity on society. • Respect international and national recommendations and guidelines on CSR. • Work for the development of human rightswww.ecorl.it/en
  13. 13. III. CONCEPT "The voluntary integration by companies of social and environmental concerns in their business operations and their relations with their partners. Being socially responsible means not only fully complying with legal obligations, but also going beyond compliance. " EU Green Paper www.ecorl.it/en
  14. 14. III. CONCEPT “The set of actions that take into account the companies so that their activities have a positive impact on society and affirm their principles and values that govern both in their own internal methods and processes in its relationship with other actors. CSR is a voluntary initiative.” International Labor Organization. www.ecorl.it/en
  15. 15. III. CONCEPT. Characteristics • It is a voluntary activity. • CSR is incorporated into the entire production and management process of the company. • Incorporation of values in its management model that provoke a sustainable development of society. • It requires a greater commitment than mere compliance with legality. • It involves direct interaction with stakeholders with whom the company relates. www.ecorl.it/en
  16. 16. III. CONCEPT. Areas • Legal social responsibility. CSR goes beyond the mere fulfillment of the current legality, but it does not have to be dispensed with. • Ethical responsibility. It implies a behavior centered on the justice of the companies with the social groups with which it is related. • Economic social responsibility. Refers to how wealth is generated in the company and distributed among stakeholders. www.ecorl.it/en
  17. 17. IV. INTERNATIONAL REGULATIONS Corporate Social Responsibility (CSR) has been developing at the same time that the power of multinationals has grown throughout the 20th century. States and international organizations, sensitive to the problems of business development, have been developing initiatives to make companies work from a responsible and committed perspective with the world in which they live. www.ecorl.it/en
  18. 18. IV. INTERNATIONAL REGULATIONS One of the most important features of these instruments is that they are not mandatory, although companies are incorporating some of them because sustainable development practices are part of the image they project in society and in consumers. The following are the most interesting international initiatives and regulations: www.ecorl.it/en
  19. 19. IV. INTERNATIONAL REGULATIONS UN • Global Compact (1999). • Global Compact Lead ILO Tripartite Declaration of Principles on Multinationals (1977) OECD Guidelines for Multinationals ISO ISO 26000 (2010) EU Green Paper on CSR (2011) European Multilateral Forum CSR European Alliance for CSR. www.ecorl.it/en
  20. 20. IV. INTERNATIONAL REGULATIONS A) The UN The main instrument of this organization in matters of Corporate Social Responsibility is the "Global Compact" that was born at the World Economic Forum in Davos in 1999. This Global Compact contains ten principles that have to take into account the Companies that join it and which are as follows: www.ecorl.it/en
  21. 21. IV. INTERNATIONAL REGULATIONS Human rights 1 Companies should support and respect the protection of fundamentally internationally recognized human rights within their sphere of influence. 2 They must ensure that they are not complicit in human rights violations. Labor relations 3 Companies should support the freedom of affiliation and the effective recognition of the right to collective bargaining. 4 The elimination of all forms of forced or coerced labor. 5 The eradication of child labor. 6 The abolition of discrimination practices in employment and occupation. www.ecorl.it/en
  22. 22. IV. INTERNATIONAL REGULATIONS Environment 7 Companies must maintain a preventive approach geared to the challenge of environmental protection. 8 Adopt initiatives that promote greater environmental responsibility. 9 Encourage the development and distribution of environmentally friendly technologies. Fight against corruption 10 Businesses must fight against corruption in all its forms, including extortion and bribery. www.ecorl.it/en
  23. 23. IV. INTERNATIONAL REGULATIONS B) ILO It has been working to improve people's living and working conditions since its foundation in 1919. In CSR, it incorporated the guidelines into a set of principles that were compiled and adopted in the Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy (1977) which was completed in 2000 and 2006. www.ecorl.it/en
  24. 24. IV. INTERNATIONAL REGULATIONS B) ILO The ILO urges States to regulate the minimum conditions that they have ratified in their agreements, so that companies respect and implement social policy measures regarding their workers. This document sets out guidelines on employment, training, working and living conditions, and working relationships. www.ecorl.it/en
  25. 25. IV. INTERNATIONAL REGULATIONS C) OECD The OECD (Organization for Economic Cooperation and Development) encourages the development of measures to achieve a more socially responsible world through its work and reports. In its General Guidelines for Multinational Companies, it drives the idea of Corporate Social Responsibility. www.ecorl.it/en
  26. 26. IV. INTERNATIONAL REGULATIONS D) ISO The International Organization for Standardization published in November 2010 ISO 26000. This ISO standard guides companies to work in a harmonized way the Corporate Social Responsibility. However, this standard does not give a certificate in this field yet, since it only offers guidelines and not rules that must be accepted. www.ecorl.it/en
  27. 27. IV. INTERNATIONAL REGULATIONS E) EU The European Union has developed researches on Corporate Social Responsibility since the end of the 20th century but its first major document was promoted in 2001 by the Commission and was called the Green Paper on Corporate Social Responsibility. www.ecorl.it/en
  28. 28. IV. INTERNATIONAL REGULATIONS E) EU This document reports on the potential nature of the lines on CSR and defines what the European Union understands about Corporate Social Responsibility: “the voluntary integration by companies of social and environmental concerns in their business operations and their relations with their interlocutors”. www.ecorl.it/en
  29. 29. IV. INTERNATIONAL REGULATIONS E) EU The Green Paper mentions among its indications that CSR should be promoted not only among large corporations, but is a useful instrument for the management of small and medium-sized enterprises and it recognizes the importance of channeling this responsibility within the organization and between external agents (customers, suppliers, etc.) with which the company is related.www.ecorl.it/en
  30. 30. IV. INTERNATIONAL REGULATIONS E) EU The European Multilateral Forum on CSR Promoted by the European Union in order to deepen the knowledge of CSR and establish common principles that serve as a guide for action in this field. The European Alliance for CSR It is a forum that aims to serve as an instrument for sharing information in the field of CSR between companies of all types and sizes and the States of the European Union. It develops research, awareness and dissemination activities in this field.www.ecorl.it/en
  31. 31. V. STAKEHOLDERS One of the great challenges that has been presented to companies in the last years is to respond to the needs demanded by the people and groups that are related to them. The answer to their needs is one of the essential notes of the RSC at the moment. www.ecorl.it/en
  32. 32. V. STAKEHOLDERS Stakeholders are referred to all the subjects (public or private, individuals or groups) with which the companies relate. These subjects have a great influence on the behaviors that the organizations develop and, to a large extent, the decisions that the companies make are influenced by these stakeholders. www.ecorl.it/en
  33. 33. V. STAKEHOLDERS Direct Shareholders Partners Workers Suppliers Indirect Competition Social Agents ONGs Administrationswww.ecorl.it/en
  34. 34. V. STAKEHOLDERS The choice may depend on a multitude of factors that can condition the decision. Influence The influence that the group can exert on the activity and benefits of the company. For example, the influence that the media can exert on the purchase or non-purchase of a product from a company.www.ecorl.it/en
  35. 35. V. STAKEHOLDERS Dependence The degree of dependence of the group with the organization at the time the decision is made. An example of dependency arises when a collective agreement has to be concluded with the workers' representatives. www.ecorl.it/en
  36. 36. V. STAKEHOLDERS Rules The rules that have been approved at any given time. An example: the measures to reconcile work and family life that can be approved by law and have to be implemented in companies for the enjoyment of workers. www.ecorl.it/en
  37. 37. V. STAKEHOLDERS. Objectives Shareholders • Dividend policies • Transparency in information • Responsible Investments Workers • Training and professional development. • Reconciliation of personal and family life. • Communication. • Fair wages. • Health and Safety at Work. Clients • Assurance of quality and reliability. • Guarantee of compliance with human rights. • Labor and environmental. www.ecorl.it/en
  38. 38. V. STAKEHOLDERS. Objectives Suppliers • Free competition and fairness in the election. • Guarantees of human rights compliance • Labor and environmental. Banks • Commitments and guarantee of the funds provided. • Even in extreme situations, given the volume of funds, active presence in the decision process, even replacing shareholders in liquidity situations Enviroment • Energy efficiency. • Reduction of environmental degradation. • Future generations.www.ecorl.it/en
  39. 39. V. STAKEHOLDERS. Objectives Competitors • Loyalty. • Alliances. Public Administrations • Compliance with economic, social and environmental regulations. Society • Social action. • Job creation. • Promotion of ethical values. Media • Image enhancement. • Trust. www.ecorl.it/en
  40. 40. VI. INTERNAL & EXTERNAL DIMENSION The EU Green Paper on Corporate Social Responsibility divides the areas of CSR into: • Internal block or internal RSC. It refers to topics related to employees, and environmental aspects related to the management of natural products in production. • External block or external RSC. It refers to the external dimension of the company. Within this group stands out its integration with the surrounding environment and respect for human rights.www.ecorl.it/en
  41. 41. VII. MANAGEMENT SYSTEMS Sustainability Report This is a document that communicates to the stakeholders what actions they carry out in environmental, economic and social matters. Their publication gives them recognition, good image and reputation. Social balance This is a document that contains the main data and figures summarizing the social work business. www.ecorl.it/en
  42. 42. VII. MANAGEMENT SYSTEMS Indicators In order to measure CSR, indicators can be used. Indicators are a set of values that measure certain specific variables, in order to be able to verify that a company reaches the goals indicated in its strategy. Indexes They are databases provided by independent research or ethical rating agencies that provide information to the market about ethical, social and environmental behavior.www.ecorl.it/en
  43. 43. VIII. CRITICISMS Along with the growth of these practices, many critical voices have also emerged: Mere ‘cosmetic’ action Their efforts may sometimes seem naive, they might seem even comical, but behind these image washes there are dramatic problems that they try to hide. See, for example, the case of the CSR efforts of the Spanish company ENDESA and in counterpart to its conflict with the Mapuche people in Chile. www.ecorl.it/en
  44. 44. VIII. CRITICISMS Poor effectiveness of CSR actions Low effectiveness of CSR actions for development cooperation. Related to the debate begun in the 1980s on the failure of development, with the post- development theories of Arturo Escobar, that questions if these actions produce perennial benefits to communities. www.ecorl.it/en
  45. 45. VIII. CRITICISMS Political proposal that transcends CSR It is denounced that some of the CSR proposals conceal a neoliberal ideology that promotes a new relationship between company and society based on self-regulation, self-obligation and the reduction of the State as a regulatory and donor institution of goods, services and freedoms. www.ecorl.it/en
  46. 46. VIII. CRITICISMS Political proposal that transcends CSR CSR refers to the voluntary extension of corporate responsibility beyond what it is stipulated by law in the context of a global economy, where States have lost some of their regulatory role. 2 key elements: globalization and deregulation. Aiming to increase profits in a globalized market, companies compete to reduce costs  Reducing labor and environmental costs through relocation and dispersive subcontracting. www.ecorl.it/en
  47. 47. IX. IMPROVEMENTS 1. Strengthening social demands There is nothing better to combat bad business practices and promote more responsible behaviors than an active, formed, conscious and organized citizenship. What requires a dense and powerful civic fabric, in turn unviable without social organizations that are able to combat the oligopolistic hegemony of large companies and to raise firmly and effectively the demands of society. www.ecorl.it/en
  48. 48. IX. IMPROVEMENTS 2. Legal obligation without palliatives of the basic aspects of CSR (Human rights, decent work relations, environmental respect, integrity, information transparency ...) All those aspects that by their own importance for the affected parties and for the society cannot be left to the fruition of the free will of the companies. They are a moral requirement of justice and must be a legal requirement. www.ecorl.it/en
  49. 49. IX. IMPROVEMENTS 3. Legal changes Legal changes that favor corporate governance systems that are more responsible and participatory among all significant stakeholders, driving progress toward a kind of democratization of corporate governance. www.ecorl.it/en
  50. 50. IX. IMPROVEMENTS 4. Political market control If we advise that the prevailing markets and model are determining business behavior, reversing that situation requires a political will capable of rethinking the way the market functions, subordinating its logic to the logic of democracy: setting extra-economic limits to the predominant of values of profit and competitiveness. We think that overcoming that irritating rhetoric of CSR is a political challenge (not attainable nationally) www.ecorl.it/en
  51. 51. Produced by: Erasmus Plus KA2 – Adult Education Agreement n. 302554962 Project n. 2015-1-IT02-KA204-015467 www.ecorl.it/en
  52. 52. PARTNERS Università Popolare di Firenze-IT www.universitapopolaredifirenze.it Federación Española de Universidades Populares-SP www.feup.org Pula Open University -HR www.pou-pula.hr Eu Trade-LT www.eu-trade.org Yunus Social Business-AL http://ysbbalkans.com/ Università Telematica Uninettuno-IT www.uninettunouniversity.net This project has been funded with support from the European Commission. Publication and products reflect the views only of the ECORL Consortium, and the Commission cannot be held responsible for any use which may be made of the information contained therein www.ecorl.it/en

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