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Corporate Social Responsibility (CSR) by Anita Cava, JD Key Concepts Key Concepts * The meaning of Corporate Social Responsibility * The distinction between ‘stakeholders' and ‘shareholders' * Drivers of CSR: what motivates business to adopt voluntary CSR strategies? * Why CSR has emerged in today's world? * Approaches to CSR: Transparency, Triple Bottom Line, Sustainability * What are the ethical responsibilities of a multinational company with factories in a developing country? * What are the ethical responsibilities of a company towards its employees and communities? * Should CSR be required by law so that businesses must consider and improve their social and environmental practices? Who should decide whether CSR should be included within the law, individual nation states or international law makers? What sorts of practices could or should be required? How could those practices be evaluated? Vocabulary o Corporate social responsibility: The concept that businesses have obligations and responsibilities to their stakeholders as well as to their shareholders to behave ethically with regard to the quality of life of their stakeholders and to the environment in general. o Credo (Code of Conduct): A creed, or formal statement of beliefs, of principle. A company's Credo or Code of Conduct is a systematically arranged set of guidelines, or listing of priorities and principles, for the company and its stakeholders. o Stakeholders: Employees, suppliers and customers of a company as well as the community and environment where it is located. The individuals, groups, and environments that are affected by a company's activities. o Shareholders: People who own a piece of a business and thus, a part owner of a company and are paid a dividend, or a return on their share of the company at the end of the year. Shareholders do not, generally, decide the day-to-day operations of the company is run or how much its employees are paid. o Greenwashing: Refers to CSR efforts by a company that are more public relations than genuine. Frequently, "greenwashing" efforts attempt to portray an environmentally or socially neutral (or even harmful) event or policy as being beneficial. o Multinational corporations: Corporations which have operations, investments, or subsidiaries in more than one country. o Triple bottom line: Traditionally, the "bottom line" shows the net income or loss of a company. The triple bottom line, however, also includes CSR-related benefits and costs, such as a corporation's impact on the environment (the environmental bottom line) and its impact on the community within which it operates (the social bottom line). The slogan used to capture the triple bottom line is "People, planet, and profit." o Transparency: Literally, the degree to which an object may be seen through. The quality of being easily understood or detected. In business, it refers to instances when all pertinent information is provided, and no important information is hidden or withheld. o Sustainability: The ability to continue or remain in existence or use. o Sustainability reporting: Social and environmental reporting. o Sustainable development: Devising a working plan for a corporation that can meet the current needs of a company and consumers without jeopardizing the future generations. Sustainable development is becoming the "New Moral Code" of businesses and corporations. o Globalization: The spread of something - multi-national corporations, popular culture, etc. - across the world. Usually refers to the interconnectedness of economic markets and their control by enormous multi-national corporations.. . o CSR drivers: Drivers are anticipated benefits that motivate a corporation. CSR "drivers" are the benefits for a company making decisions, adopting strategies and acting in a socially responsible manner. o Social impact. The effect of a set of actions on a social group or society. o Environmental impact. The effect of a set of actions on the environment. o Non-Governmental Organizations (NGOs): Activist groups, world-wide, that are concerned about the way multinational corporations and their suppliers treat workers and the environment.

Corporate Social Responsibility (CSR)

by Anita Cava, JD

Key Concepts

* The meaning of Corporate Social Responsibility
* The distinction between ‘stakeholders' and ‘shareholders'
* Drivers of CSR: what motivates business to adopt voluntary CSR strategies?
* Why CSR has emerged in today's world?
* Approaches to CSR: Transparency, Triple Bottom Line, Sustainability
* What are the ethical responsibilities of a multinational company with factories in a developing country?
* What are the ethical responsibilities of a company towards its employees and communities?
* Should CSR be required by law so that businesses must consider and improve their social and environmental practices? Who should decide whether CSR should be included within the law, individual nation states or international law makers? What sorts of practices could or should be required? How could those practices be evaluated?

Vocabulary

o Corporate social responsibility: The concept that businesses have obligations and responsibilities to their stakeholders as well as to their shareholders to behave ethically with regard to the quality of life of their stakeholders and to the environment in general.
o Credo (Code of Conduct): A creed, or formal statement of beliefs, of principle. A company's Credo or Code of Conduct is a systematically arranged set of guidelines, or listing of priorities and principles, for the company and its stakeholders.
o Stakeholders: Employees, suppliers and customers of a company as well as the community and environment where it is located. The individuals, groups, and environments that are affected by a company's activities.
o Shareholders: People who own a piece of a business and thus, a part owner of a company and are paid a dividend, or a return on their share of the company at the end of the year. Shareholders do not, generally, decide the day-to-day operations of the company is run or how much its employees are paid.
o Greenwashing: Refers to CSR efforts by a company that are more public relations than genuine. Frequently, "greenwashing" efforts attempt to portray an environmentally or socially neutral (or even harmful) event or policy as being beneficial.
o Multinational corporations: Corporations which have operations, investments, or subsidiaries in more than one country.
o Triple bottom line: Traditionally, the "bottom line" shows the net income or loss of a company. The triple bottom line, however, also includes CSR-related benefits and costs, such as a corporation's impact on the environment (the environmental bottom line) and its impact on the community within which it operates (the social bottom line). The slogan used to capture the triple bottom line is "People, planet, and profit."
o Transparency: Literally, the degree to which an object may be seen through. The quality of being easily understood or detected. In business, it refers to instances when all pertinent information is provided, and no important information is hidden or withheld.
o Sustainability: The ability to continue or remain in existence or use.
o Sustainability reporting: Social and environmental reporting.
o Sustainable development: Devising a working plan for a corporation that can meet the current needs of a company and consumers without jeopardizing the future generations. Sustainable development is becoming the "New Moral Code" of businesses and corporations.
o Globalization: The spread of something - multi-national corporations, popular culture, etc. - across the world. Usually refers to the interconnectedness of economic markets and their control by enormous multi-national corporations.. .
o CSR drivers: Drivers are anticipated benefits that motivate a corporation. CSR "drivers" are the benefits for a company making decisions, adopting strategies and acting in a socially responsible manner.
o Social impact. The effect of a set of actions on a social group or society.
o Environmental impact. The effect of a set of actions on the environment.
o Non-Governmental Organizations (NGOs): Activist groups, world-wide, that are concerned about the way multinational corporations and their suppliers treat workers and the environment.