A Quick Look at CSR (with examples)

1. CORPORATE SOCIAL
RESPONSIBILITY
Introduction1
Social Responsibility proposes that a
private corporation has responsibilities to
society that extend beyond making a profit.
Corporate social responsibility (CSR) is social
responsibility as applied to businesses. It
involves businesses acting in accordance with
social principles. This could come in the form of
outright philanthropy or modified practices, and
involves the appliance of business ethics in
determining business policy.
For each business, different measures
are taken in consideration to classify a business
as "socially responsible". Each business
attempts to reach different goals. There are
four areas that should be measured regardless
of the outcome needed: Economic function,
Quality of life, Social investment and Problem
solving. that are trying to be achieved should be
measured to see if it meets with the cost
guidelines that the business is willing to
contribute.
Corporate social responsibility ("CSR"
for short, and also called corporate conscience,
citizenship, social performance, or sustainable
responsible business) is a form of corporate
1
Thornton, 2008
self-regulation integrated into a business
model. CSR policy functions as a built-in, self-
regulating mechanism whereby business
monitors and ensures its active compliance with
the spirit of the law, ethical standards, and
international norms. The goal of CSR is to
embrace responsibility for the company's
actions and encourage a positive impact
through its activities on the environment,
consumers, employees, communities,
stakeholders and all other members of the
public sphere. Furthermore, CSR-focused
businesses would proactively promote the
public interest by encouraging community
growth and development, and voluntarily
eliminating practices that harm the public
sphere, regardless of legality. CSR is the
deliberate inclusion of public interest into
corporate decision-making, and the honoring of
a triple bottom line: people, planet, profit.
The term
"corporate social
responsibility" came
in to common use in
the early 1970s,
after many
multinational corporations formed. The term
stakeholder, meaning those on whom an
organization's activities have an impact, was
used to describe corporate owners beyond

2. 2
shareholders as a result of an influential book
by R. Edward Freeman, Strategic management:
a stakeholder approach in 1984. Proponents
argue that corporations make more long term
profits by operating with a perspective, while
critics argue that CSR distracts from the
economic role of businesses. Others argue CSR
is merely window-dressing, or an attempt to
pre-empt the role of governments as a
watchdog over powerful multinational
corporations.
CSR is titled to aid an organization's
mission as well as a guide to what the company
stands for and will uphold to its consumers.
Development business ethics is one of the
forms of applied ethics that examines ethical
principles and moral or ethical problems that
can arise in a business environment. ISO 26000
is the recognized international standard for CSR
(currently a Draft International Standard).
Public sector organizations (the United Nations
for example) adhere to the triple bottom line
(TBL). It is widely accepted that CSR adheres to
similar principles but with no formal act of
legislation. The UN has developed the Principles
for Responsible Investment as guidelines for
investing entities
As we have briefly explained what is
social responsibility, this paper aims to provide
examples of social responsibility. We shall begin
with the example of Starbucks and all the
actions It takes to undergo social responsibility
by actively taking part in environment friendly
actions. Another example will be the infamous
store that sells cosmetics which do not perform
animal testing using their products: Body Shop.
The third example will be of the designer
clothing business: Polo Ralph Lauren and how
they have decided to stop using fur in their
clothing. This paper will be concluded with
some information on the ISO 26000 as it
explains the importance of businesses
performing social responsibility.
CSR Example: Starbucks2
Starbucks Corporation is an
international coffee and coffeehouse
chain based in Seattle, Washington.
Starbucks is the largest coffeehouse
company in the world, with over 17,817
stores in 49 countries, including over
11,000 in the United States, almost 800 in the
UK, and nearly 1000 in Canada. According to
the Starbucks website “We share our customers'
commitment to the environment and we believe
in the importance of caring for our planet
working with and encouraging others to do the
same. As a company that relies on an
agricultural product, it makes good business
2
http://www.starbucks.com/responsibility/environm
ent

3. 3
sense. And as people living in the world, it is
simply the right thing to do.”
In 1999, Starbucks started "Grounds for
your Garden" to make their business more
environmentally-friendly. This gives leftover
coffee grounds to anyone requesting it for
composting. Although not all stores and regions
participate, customers can request and lobby
their local store to begin the practice. In 2004,
Starbucks began reducing the size of their paper
napkins and store garbage bags, and lightening
their solid waste production by 816.5 metric
tons (1.8 million pounds). In 2008, Starbucks
was ranked #15 on the U.S. Environmental
Protection Agency's list of Top 25 Green Power
Partners for purchases of renewable energy. In
October 2008, The Sun newspaper reported
that Starbucks was wasting 23.4 million litres of
water a day by leaving a tap constantly running
for rinsing utensils in a 'dipper well' in each of
its stores, but this is often required by
governmental public health code. In June 2009,
in response to concerns over its excessive water
consumption, Starbucks re-evaluated its use of
the dipper well system. In September 2009,
company-operated Starbucks stores in Canada
& the United States successfully implemented a
new water saving solution that meets
government health standards. Different types
of milk are given a dedicated spoon that
remains in the pitcher and the dipper wells
were replaced with push button metered
faucets for rinsing. This will reportedly save up
to 150 gallons of water per day in every store.
The U.S. Food and Drug Administration
granted the first-ever approval to use recycled
content in food packaging for Starbucks coffee
cups. In 2005 Starbucks received the National
Recycling Coalition Recycling Works Award.
Starbucks bought 2.5 billion cups for stores in
North
America
in 2007.
The 10%
recycled
paper
cups
used by
Starbucks are not recyclable, because the
plastic coating that prevents the cup from
leaking also prevents it from being recycled. The
plastic cups used for cold drinks are also non-
recyclable in most regions. Starbucks cups were
originally made using plastic #1 (polyethylene
terephthalate, PETE) but were changed to
plastic #5 (polypropylene, PP). The former type
of plastic can be recycled in most regions of the
U.S. whereas the latter cannot. Starbucks is
considering using biodegradable material
instead of plastic to line the cups, and is testing
composting of the existing cups. The exception

4. 4
to this is stores in Winnipeg, Manitoba, Canada,
where paper cups are recycled to a local
company called "Wriggler's Wranch", where
they are composted. The majority of Starbucks
stores do not have recycling bins; only 1/3 of
company-owned stores recycled any materials
in 2007, however improvements have since
been made and recycling bins are popping up in
more stores (the only thing hindering Starbucks'
ability to have bins in every store is the lack of
facilities for storage and collection of recycling
in certain areas.) Allen Hershkowitz of the
Natural Resources Defense Council says that
Starbucks claimed they were using only 10%
recycled material partly because the recycled
material costs more. Starbucks gives customers
a 10-cent discount when they bring their own
reusable cup, and it now uses corrugated cup
sleeves made from 60 percent post-consumer
recycled fiber.
CSR Example: The Body Shop3
The Body Shop International plc, known
as The Body Shop, has 2,400 stores in 61
countries, and is the second largest cosmetic
franchise in the world, following O Boticario, a
Brazilian company. The Body Shop is
headquartered in Littlehampton, West Sussex,
England, was founded by the late Dame Anita
3
http://www.thebodyshop-usa.com/beauty/values
Roddick and is now part of the L’Oréal
corporate group.
In its earliest years, The Body Shop did
not visibly market itself as committed to social
causes. Its products we considered at the time
“natural;” however, the bright colours and
strong fragrances were created by chemicals,
including from petrochemicals, which were also
used as preservatives. The social activism
dimension of the company first evidenced in
1986 when The Body Shop proposed an alliance
with Greenpeace in the UK to save the whale.
Roddick began launching other promotions tied
to social causes, with much public and media
interest. The Body Shop regularly featured
posters on shop windows and sponsorship of
local charity and community events. Over time,
Roddick blossomed into a full-time critic of
business in general and the cosmetic industry in
particular, criticizing what she considered the
environmental insensitivity of the industry and
traditional views of beauty, and aimed to
change standard corporate practices Roddick
said: “For me,
campaigning and good
business is also about
putting forward
solutions, not just
opposing destructive practices or human rights
abuses”.

5. 5
The Body Shop instituted pioneering
social audits in the mid-1990s, and continues to
support its values such as Community Trade,
reflecting its avowed practice of trading with
communities in need and giving them a fair
price for natural ingredients or handcrafts they
purchase from these often marginalized
countries. The first Community Trade activity in
1987 was a footsie roller which was supplied by
a small community in Southern India (today
known as Teddy Exports) and still a key CT
supplier. Since then, The Body Shop has found
many trade partners in over 20 different
countries that often are overlooked by the local
as well as the global society. Criticisms have
been made of the programme, however, by fair
trade activists. “The company’s prominently
displayed claims to pay fairer prices to the Third
World poor covered less than a fraction of 1 per
cent of its turnover”, wrote Paul Vallely, the
former chair of Traidcraft, in the obituary of
Anita Roddick published in The Independent.
Signage posted in The Body Shop
locations reads, “Our products are not tested
on animals, never have been and never will be.”
The same page asserts that The Body Shop “also
supports the development of alternatives to
animal
testing.” In
October 2009,
The Body Shop
was awarded a
‘Lifetime Achievement Award’ by the RSPCA in
Britain, in recognition of its uncompromised
policy which ensures ingredients are not tested
by its suppliers.
According to their site, they have never,
and will never, test cosmetic products on
animals. They also don’t commission others to
do it for us. In fact, They campaigned for years
to bring about a ban on testing cosmetics on
animals. They are among the few companies to
comply with the stringent requirements of the
internationally recognized Humane Cosmetics
Standard.
They also ensure all our products are
suitable for vegetarians and seek out alternative
sources of ingredients that do not contribute to
the destruction of habitat of endangered
animals, or cause animal suffering. We just
think it’s what everyone should do. As much as
they loved the sexy scent of musk, we hated the
cruelty associated with gathering musk from
deer. So, they pioneered a cruelty free
alternative, which they use in their White Musk
fragrance, our most popular fragrance around
the world. And if that weren’t enough,
beginning in 2009, they’ll start introducing
Community Trade organic alcohol into their
fragrances.
Even something as small as a bar of
soap can make a huge difference. Palm oil is
used in everything from margarine to our
glycerin soaps. There soap bars now contain

6. 6
only palm oil from sustainable sources in
Colombia. This means they’re not contributing
to deforestation, threatening the precious
habitat of endangered species like the
orangutan. The forests of Malaysia and
Indonesia, where 90% of the world’s palm oil is
harvested, are also home to 100% of the
world’s orangutans. Where once 300,000
orangutans roamed, 50,000 now struggle for
survival. The Body Shop was one of the first
retailers to join The Roundtable on Sustainable
Palm Oil, which is pioneering international
efforts to make palm production.
CSR Example: Polo Ralph Lauren4
5
Polo Ralph Lauren is American fashion
designer Ralph Lauren's luxury lifestyle
company. Polo Ralph Lauren specializes in high-
end casual/semi-formal wear for men and
women, as well as accessories, fragrances,
home (bedding, towels) and housewares. It has
its headquarters in Midtown Manhattan, New
York City.
The company takes part in numerous
social acts. Polo Ralph Lauren says it is
4
http://about.ralphlauren.com/philanthropy/default.
asp
5
http://www.guardian.co.uk/world/2006/jun/10/clot
hes.animalwelfare
eliminating fur from all its clothing and home
product lines. The decision to stop using it had
come about because of an internal review, the
New York-based design house said. Polo Ralph
Lauren is the first major house to abandon fur
since Calvin Klein did so in the mid-1990s,
according to animal rights group People for the
Ethical Treatment of Animals (Peta), which has
been involved in talks with Polo Ralph Lauren
since March and is known for disrupting fashion
shows with protests. "This is one of the biggest
victories in the fur campaign," the group said.
Furthermore, the company has a “Pink
Pony Fund” which With a focus on breast
cancer, Pink Pony supports programs for early
diagnosis, education, treatment and research
and is dedicated to bringing patient navigation
and quality cancer
care to medically
underserved
communities. Ten
percent of proceeds
from Pink Pony products benefits the Pink Pony
Fund. In 2003, Polo Ralph Lauren partnered
with the nation’s leading cancer center,
Memorial Sloan-Kettering Cancer Center to
create the Ralph Lauren Center for Cancer Care
and Prevention.
The Center is an independent 501
charitable organization whose mission is to
provide screening for breast, cervical, colon and

7. 7
prostate cancer, and to facilitate diagnostic and
treatment services in a area of New York City
that has one of the highest cancer mortality
rates in the city and in the nation.
The Center is an extension of Ralph
Lauren’s on-going commitment to cancer
research and care. Under the guidance of Dr.
Harold Freeman, President of the Ralph Lauren
Center and a national authority on issues of
race, poverty and cancer, the Center’s mission
is to offer the best cancer treatment available
with a focus on personalized attention and
community outreach.
Conclusion
In conclusion, we would like to discuss
the importance of the ISO certifications in
creating the ISO 26000 which certifies business
for social responsibility. 6
The perception and
reality of an organization's performance on
social responsibility can influence, among other
things:
* Competitive advantage
* Reputation
* Ability to attract and retain workers
or members, customers, clients or users
* Maintenance of employees' morale,
commitment and productivity
6
http://www.iso.org/iso/
* View of investors, owners, donors,
sponsors and the financial community
* Relationship with companies,
governments, the media, suppliers,
peers, customers and the
community in which it operates.
ISO 26000 provides guidance for all types of
organization, regardless of their size or location,
on:
1. Concepts, terms and definitions
related to social responsibility
2. Background, trends and
characteristics of social responsibility
3. Principles and practices relating to
social responsibility
4. Core subjects and issues of social
responsibility
5. Integrating, implementing and
promoting socially responsible behaviour
throughout the organization and, through its
policies and practices, within its sphere of
influence
6. Identifying and engaging with
stakeholders
7. Communicating commitments,
performance and other information related to
social responsibility.
ISO 26000 is intended to assist
organizations in contributing to sustainable
development. It is intended to encourage them
to go beyond legal compliance, recognizing that
compliance with law is a fundamental duty of
any organization and an essential part of their

8. 8
social responsibility. It is intended to promote
common understanding in the field of social
responsibility, and to complement other
instruments and initiatives for social
responsibility, not to replace them.
In applying ISO 26000, it is advisable
that an organization take into consideration
societal, environmental, legal, cultural, political
and organizational diversity, as well as
differences in economic conditions, while being
consistent with international norms of
behaviour.
In conclusion we would like to say that
organizations around the world, and their
stakeholders, are becoming increasingly aware
of the need for and benefits of socially
responsible behaviour. The objective of social
responsibility is to contribute to sustainable
development. An organization's performance in
relation to the society in which it operates and
to its impact on the environment has become a
critical part of measuring its overall
performance and its ability to continue
operating effectively. This is, in part, a reflection
of the growing recognition of the need to
ensure healthy ecosystems, social equity and
good organizational governance. In the long
run, all organizations' activities depend on the
health of the world's ecosystems. Organizations
are subject to greater scrutiny by their various
stakeholders.
Bibliography
• Thornton Grant "Corporate Social
Responsibility: a necessity not a choice"
International Business Report 2008
<http://www.internationalbusinessrepo
rt.com/files/ibr%202008%20-
%20corporate%20social%20responsibili
ty%20report%20final%20%28150%20dp
i%29%20web%20enabled.pdf>
• http://www.starbucks.com/responsibili
ty/environment
• http://about.ralphlauren.com/philanthr
opy/default.asp
• http://www.guardian.co.uk/world/2006
/jun/10/clothes.animalwelfare
• http://www.thebodyshop-
usa.com/beauty/values
• http://www.iso.org/iso/