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Cegos is heavily involved in philanthropic activities around the world, centred around education and learning. Using our resources and expertise, rather than just cash donation adds significant value. This paper explores some of the new trends, including the rise of small and medium sized organisations contributions in this area. At a time when parts of the world need help the most, it is good see so many organisations doing there bit....
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This article talks about India’s Competitiveness Edge - A Study of the Role of Corporate Social Responsibility. It has been co- authored by Dr. Uday Salunkhe, Director of the prestigious Welingkar Institute of Management and Research.
IBM Study On Sustainable Corporate Social ResponibilityrScott Rains
In order to attain sustainable growth through CSR, companies must:
1. Align and incorporate CSR with business
strategy and integrate it across all perational
functions, thus making it easy to invest
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About the white paper
While the importance of corporate social responsibility is generally accepted, there are as many definitions of social responsibility as there are organizations. The new standard, ISO 26000: Guidance on social responsibility, offers a definition of what it means to be a socially responsible organization and why it is important that companies adopt this position. This paper reviews key elements of the new standard to enhance understanding and explore its implications for quality professionals.
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CH -11 CORPORATE GOVERNANCE AND OTHER STAKEHOLDERSBibek Prajapati
CH -11 CORPORATE GOVERNANCE AND OTHER STAKEHOLDERS
FOR CS PROFESSONAL, CA,CMA, MBA
Stakeholder Concept
• Recognition of Stakeholder Concept In Law
• Stakeholder Engagement
• Stakeholder Analysis
• Types of Stakeholders
• Caux Round Table
• Clarkson Principle of Stakeholder Management
• Governance Paradigm and Stakeholders
• Stakeholders provide resources that are more or less critical to a firm’s long-term success. These resources may be both tangible and intangible. Shareholders, for example, supply capital; suppliers offer material resources or intangible knowledge; employees and managers grant expertise, leadership, and commitment; customers generate revenue and provide infrastructure; and the society builds its positive corporate images.
• A director of a company shall act in good faith in order to promote the objects of the company for the benefit of its members as a whole, and in the best interest of the company, its employees, the community and the environment.
• Stakeholder engagement leads to increased transparency, responsiveness, compliance, organizational learning, quality management, accountability and sustainability. Stakeholder engagement is a central feature of sustainability performance.
• Primary stakeholders are those whose continued association is absolutely necessary for a firm’s survival; these include employees, customers, investors, and shareholders, as well as the governments and communities that provide necessary infrastructure.
• Secondary stakeholders do not typically engage in transactions with a company and thus are not essential for its survival; these include the media, trade associations, and special interest groups.
• Customers are considered as the king to drive the market and they can sometimes exercise influence by consolidating their bargaining power in order to get lower prices.
• The lenders put a check and balance on the governance practices of an organization to ensure safety of their fund and as a societal responsibility.
• The organization which builds a mutually strong relationship with its vendors improves its overall performance in the marketplace.
• The society provides the desired climate for successful operation of a company business. If society turns against the company, then business lose its faith in the eyes of other stakeholders be it government or customer.
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111125 nk cect usakti csr and the third sector final
1.
2. Responsibility of an organization for the impacts of its
decisions and activities on society and the
environment, through transparent and ethical behavior
that
Contributes to sustainable development, health and
the welfare of society;
Takes into account the expectations of
stakeholders;
Is in compliance with applicable law and consistent
with international norms of behavior; and
Is integrated throughout the organization and
practiced in its relationships.
2
(Adapted from “ISO 26000: Guidance on social responsibility ,” 2010 )
3. OBLIGATION
CHARITY OF
COMPANIES
PAID FOR
SEPARATE
FROM
FROM
PROFIT, NOT
BUSINESS
COSTS
4. Transform-
Elementary Engaged Innovative Integrated
ing
• Focus on jobs, • Companies begin • Companies begin • Companies begin • Full disclosure of
profits, and to introduce to pay real to integrate their what is happen-
paying taxes with philanthropy and attention to business models ing within the
a legal some degree of stakeholders more holistically company
compliance environmental • Adopt a more with corporate including
orientation management responsive citizenship negative
• Since there is no • Leadership stance to activities information via
corporate becomes aware stakeholders with • Responsibility social reports
citizenship of the need for a programs based management • “Changing the
strategy, “social license to on their interests • Leadership game” by
leadership tend operate” and needs begins to creating new
to be out of touch • Still reactive • Willingness to understand that ventures or
with issues and rather than engage with reputation crucial markets that have
relationships proactive CSOs and NGOs to success and pro-social
tend to be • Begin that have that corporate benefits
unilateral communicating concerns about citizenship is • Engage with wide
• When issues with CSOs and the business’ integral part in range of civil
arise from the NGOs on a practices developing society.
societal domain project basis • Willingness to reputation Governmental
they tend to react rather than begin being more • Incorporate and non-
defensively and systematically transparent external governmental
communicate and strategically through public assurance such enterprises
unilaterally multiple bottom- as responsibility • Leading on
line reporting auditing by sustainability and
outside agencies business-society
relationships
(“The Paradoxes in Communicating Corporate Social Responsibility,” Sandra Waddock and Bradley K. Googins in “The Handbook of 4
Communication and Corporate Social Responsibiliy” – Øivind Ihnen, Jennifer L. Bartlett and Steve May [eds.], 2011)
5. Chapter I Article 1 Paragraph 3
Social and environmental responsibility is the
commitment of corporations to participate in
sustainable economic development to
improve the quality of life and the
environment in ways that are beneficial to the
corporation itself, the local communities as
well as society at large.
5
6. Chapter V Article 74
2) Social and environmental
1) Corporations in the business responsibility as stipulated under
of and/or whose business paragraph 1) is a corporation’s
obligation that is budgeted and
relate to natural resources treated as costs of the corporation
must conduct social and and implemented with due
environmental responsibility consideration of propriety and
reasonableness
3) Corporations that neglect 4) Further legislation on social
their obligation as stipulated and environmental
under paragraph 1) will be responsibility will be
sanctioned under the established in a Government
prevailing laws Regulation
6
7. After more than 3 years, the implementing regulations as
stipulated under Article 74 paragraph 4) are yet to be issued, in the
meantime various government bodies at central and regional
levels are taking matters into their own hands, e.g.:
East Java government preparing Regional Regulation
(PERDA) to levy 2.5% of company profits for welfare in
the name of CSR
Minister for Improvement of Underdeveloped Regions
targets 65% from “CSR funds”
Minister for State-owned Enterprises to draft regulations
for “CSR funds” to promote sports and arts
Minister for Home Affairs to draft laws on a forum for
management of CSR in the regions under his auspices
7
7
8. Stakeholder engagement involves dialogue
between the organization and one or more of its
stakeholders
Stakeholder engagement can take many forms – it
can begin as a response by an organization to one
or more stakeholders and can take place in
informal or formal settings
Stakeholder engagement should be interactive and
is intended to provide opportunities for
stakeholders’ views to be heard – its essential
feature is that it involves two-way communication
(Adapted from “ISO 26000: Guidance on social responsibility,” International Organization for Standardization, 2010 ) 8
9. Level of Engagement Methods of Engagement
Consult Surveys
Focus groups
Limited two-way engagement: organization Meetings with selected stakeholder/s
ask questions, stakeholders answer Public meetings
Workshops
Online feedback mechanisms
Advisory committees
Negotiate Collective bargaining with workers through their unions
Involve Multi-stakeholder forums
Two-way or multi-way engagement: Advisory panels
learning on all sides but stakeholders and Consensus building process
Participatory decision making process
organization act independently Focus groups
Online feedback schemes
Collaborate Joint projects
Joint ventures
Two-way or multi-way engagement : joint- Partnerships
learning, decision making and actions Multi-stakeholder initiatives
Empower Integration of stakeholders into governance, strategy and
operations management
New forms of accountability; decisions
delegated to stakeholders; stakeholders
play a role in governance
(“AA1000 Stakeholder Engagement Standard 2011 – Final Exposure Draft,” – AccountAbility, 2011) 9
10. Membership
Vision
Mission
To
Establishment
Toward Currently To be a
end sixty leading contribute
1998, initia domestic advocate of towards
lly in companies good creation of
response and sub- corporate good
to the sidiaries of citizenship corporate
Financial multi- in citizenship
Crisis nationals in Indonesia and to
Indonesia and be develop the
recognized capacity of
for it its develop-
ment
partners, in
cl. corp-
orations, S
MEs, gover
nment and
CSOs
10
11. Youth
Young
CSR for SME Eco-
Business Entrepre-
Better Enabling nomic
Ethics neurs
Life Network Empow-
Start-up
erment
Bi-annual
International
CEO Network Conference on
CSR
11
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