CORPORATE SOCIAL RESONSIBILITY (CSR) at Community, Workplace,

MarketPlace and Environment- Reading Note

What is Corporate Social Responsibility?

There are many definitions of Corporate Social Responsibility out there and various
terminologies are used, from CSR to Corporate Citizenship, from sustainability to triple -
bottom-line initiatives.

EU Commission definition of CSR:

Corporate Social Responsibility (CSR) is defined by the European Commission as “the

responsibility of enterprises for their impacts on society”. To fully meet this responsibility,
the Commission states that, in addition to respect for applicable legislation and collective
agreements between social partners, enterprises “should have in place a process to
integrate social, environmental, ethical, human rights and consumer concerns into their
business operations and core strategy in close collaboration with their stakeholders, with
the aim of maximising the creation of shared value for their owners/shareholders, other
stakeholders and society at large, and identifying, preventing and mitigating their possible
adverse impacts”.

Corporate social responsibility practices can impact and influence many areas of a
business and revolves around four pillars:

1. Community: The Community pillar relates to how businesses interact with

community and voluntary organisations in their local communities. Building trust
and developing strategic partnerships in the communities businesses operate in is
essential to secure long-term sustainability. It can increase staff loyalty, attract new
talent whilst making a positive impact on society.

2. Workplace: The Workplace pillar is concerned with how a business supports,

engages and motivates their employees. It looks at issues such as work-life balance,
employee health and wellbeing, diversity and inclusion, organisational culture and
volunteering. Motivated and engaged employees are more productive and people
prefer to work for employers they can trust.

3. Marketplace: The Marketplace pillar relates to how an organisation manages its

relationship with its customers and suppliers. Buying and selling products or
services is intrinsic to business - ensuring this is done in an ethical and sustainable
manner is key to a company’s reputation and long-term viability.

4. Environment: The Environment pillar relates to the management of a company’s

impact on the environment. Leading businesses know that they have a role to play
in managing the world’s resources efficiently and in combating climate change.
Sound environmental strategies are essential to the sustainability of a business and
can also reduce costs.

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1.0 MARKET PLACE AND CSR

Marketplace Issues

Marketplace issues are issues related an organization's activities in the marketplace including
supplier & vendor relationships , competition, product cycle and responsibility, marketing
behavior and customer relations.

Examples of Marketplace Issues

Supply Chain? Product Marketing & Customer/Consumer

Issues Responsibility? Issues Competition Relations

 Supplier  Quality Assurance  Ethical Marketing  Customer

Policies  Waste Management  Ethical Grievance
 Supplier/Vendo  Product cycle stages Competition  Customer satisfacti
r Misbehavior  Voluntary quality  Transparency & on rates
 Social standards Reporting  Support of
Fingerprint  Transparency of  Monopoly vulnerable
 Supplier product substance  Fair Trading customers
screening and/or possible
 Supplier Audit health impacts
 Corruption  Transparency of
product misuse
 Management of
product impacts

Marketplace Issues and Risk Management

Customers are the purpose for companies existence and they very much depend on the
loyalty of their customers. The customer is not the source of a problem, in fact
understanding consumer’s expectations and behaviours are key to differentiate a business
from its competition.

Responsible consumerism, requires companies to re-assess their supply chain and ensure
that their material is being sourced through ethical means. Consumer groups do have the
power to create pressure on companies to be ethical and responsible not only with their
company operations and products but also to oversee responsibility throughout their
supply chain.

Consumer Power

Consumers today are more connected and more aware than ever before; as internet access
and social media have spread to almost every home, consumers are capable of weighing
product options and make decisions according to proper references. Furthermore,
unsatisfied consumers are capable of forming online and offline pressure groups to better
quality and more responsibility anywhere, anytime.

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 Below are some sample statistics that indicate how consumer behaviors and thoughts have
changed in recent years

88%of consumers 83%of consumers 70%of consumers Eco-tourism has been

think companies think companies willing to pay more growing worldwide
should try to should support for CSR. between
achieve their charities and 15-20% annually.
business goals while nonprofits with
improving society financial donations.
and the
environment.
- References: Ethical Consumerism Report 2011, Forbes' "The Top 10 Trends for CSR in 2012"

Conclusion
Marketplace responsibility reflects a company's thoughtfulness and thoroughness in
creating positive social value beyond its walls, and as more companies adapt to responsible
supply chain frameworks, and product responsibility standards, other companies become in
race against time to maintain their competitiveness in front of their customers and investors.

2.0 CSR AND WORKPLACE

Workplace & Labor Issues

Workplace issues are the issues concerned with the working conditions, employee behavior,
communication, employee appointment & termination, and employee development, which
result in the overall performance, stability, and culture of an organization.

Examples of Workplace Issues

Legal Issues: Fairness & Equality: Health & Security: Long-term Security:

 Compliance to labor  Work Ethics  Health insurance  Training & Development

law  Fair and equal promotion  Occupational Health  Career Road Map
 Employing people for employment vacancies Occupational Safety  Social Security
with disabilities  Youth-Friendly Workplace 
Family health insurance Pension Payments
 Sick Leaves  Gender Equality? at the  Occupation injuries &  Back Pay
 Last Paycheck workplace fatalities
 Minimum Wage  Diversity at the workplace Health education, and
 Appointment  Employee Grievance prevention programs
 Termination  Maternity Leave
 Working hours  Female participation on
 Maximum Working boards
Hours  Child Care
 Timely salary  Worker Representation
 Severance Packages (Unions & Councils)
 Human Trafficking  Human Rights
 Forced Labor
 Child Labor

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Workplace Issues and Risk Management:
Employees are considered to be an organization's main asset, they drive performance and
represent an organization's brand. Therefore, neglecting their expectations and needs can lead
to instability and reflects negatively on the organization's reputation and/or performance.

Below are some sample statistics that indicate how employee behaviors and thoughts have
changed in recent years:
65% of 32% would 70%of millennials strongly 57% Are 51% Stated
employees seriously favor companies who are more likely to that they are
would consider committed to the community recommend most likely to
seriously leaving their when considering job their be satisfied of
consider job if their opportunities. company to a their
leaving their company gave friend. employment.
job if their no/ little money
company to charity.
harmed the
environment.
- References: CSR Wire's "CSR & Employee Engagement, Does It Mater?", Deloitte Employee
Volunteering Survey.

Conclusion
Workplace responsibility comes at the core of company's CSR framework, Employee
Engagement Workplace Policies & Practices have never been more important to maintain a
company's productivity and sustainability.

3.0 CSR AND COMMUNITY

Societal Issues

Societal issues are issues related to an organization's relationship with the needs and concerns
of the community it operates within, and how the organization contributes in increasing
or mitigating its impacts on the society at large (be it a city or a country).

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 Examples of Societal Issues

Livelihood  Health &  Conflict Issues  Social Justice &  Infrastructural Issues
Issues Environment Issues Human Dignity Issues
   
 Epidemics  War conflicts  Sexism/gender  Urban planning
 Fatality rates  Political Unrest inequality  Traffic
 Poverty
 Desertification  Tribal Conflicts &  Harassment  Commercial/Industrial
 Unemployment
 Pollution Tribalism  Tribal discrimination areas
 Employability  Urban Forestry?  Political &  Honor Crimes  Citizen involvement/
 Entrepreneurship  Access to medical Government Reform  Classism consultation?
 Job Opportunities care  Campus  Rape & rape  Sewage services
 Drug Crime/Violence punishment  Electricity services
 Education
Abuse/Addiction  Gang Violence  Orphans involvement in Telecommunication
 Individual's ability 
 Water pollution Riots society services
to generate
 Access to fresh water Demonstrations  Homelessness
economic value
  Human Trafficking
(Sustainable
Income)  Security
 Freedom of speech
 Marginalized
communities 
 Dept/Loans
 Birth control
 Charity
 Financial aid

Societal Issues and Risk Management

Organizations may think that societal issues are the least important to their organization,
especially considering the broad sense of such issues and given the fact that most (if not all)
of these issues are primarily the responsibility of governments, not private organizations.
However in reality, societal issues have tremendous affect on an organization's performance
and stability just as much as other CSR issues.

For instance, regardless of how much an organization would think that it is isolated from
external societal factors, it cannot neglect the fact that all of its stakeholders deal with these
issues first-hand, and the more these issues grow and affect the stakeholders, the more
the likelihood stakeholders will bring these issues up inside the organization's walls.

On the other hand, an employer based in any community, is already involved with what is
taking place around it, therefore it would need to measure its contribution towards increasing
and/or mitigating such issues in order to position itself as a more sincere member of society,
as well as protect itself and its stakeholders from affects of such issues.

Power of the Community

In short, any organization, be it private or public will require to gain a "license to operate"
from its local community by showcasing its support, loyalty and belonging. If it fails to do so,
the local community will continue to look at it as an outsider who does not have the best

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interest of the surrounding area at heart, but after it's own personal needs. The many
recent incidents whereby locals have vandalized corporate and governmental facilities in
demonstration for their dissatisfaction on the societal social-economic conditions stand
witness to the power of the community and their actions if they are dissatisfied.

4.0 CSR and Environment and climate change

Without exaggeration, climate change has the potential to be the greatest rebellion in recorded
history. It is the rebellion of matter or nature against the human civilization. What we see today
is just a wake-up call to our short-sightedness. In the name of development we have forgotten
to use our individual and collective consciousness. A greater or, if we do not mend our ways,
the greatest degree of upheaval is awaiting us.

Climate change is a universal problem. It has been happening since time immemorial, gradually
giving ecosystems time to adapt. Some of the prominent natural factors are gradual drift of
landmass, volcanic eruptions, direction change of ocean currents and the earth’s tilt. But the
concern is the way the change has been happening for over last hundred years.

It has been speeded up because of man’s activities. It is the result of emissions of carbon dioxide
(CO2) and other greenhouse gases (GHGs) from anthropogenic activities like large-scale use
of fossil fuel, deforestation and rapid industrial growth. All these factors can be ascribed to
growing consumerism and population explosion. The impact of climate change and global
warming has already been felt by the mankind. If it goes unabatedly, in the coming years we
will reach the irremediable ‘tipping point’, exposing the globe to unmitigated catastrophe.
Almost all aspects of our lives will be affected more severely due to this phenomenon.

Agricultural yield will be affected directly because of change in temperature and rainfall pattern
and indirectly, through degradation of soil quality and increase of variety of pests and diseases.
Rise in sea-level will lead to loss of land and severe floods. Global warming will have adverse
effect on human and animal wealth. Also, wildlife and marine life will find it difficult to adapt
to the rapidly changing ecosystem.

Global warming aggravates the challenge of poverty making poor people more vulnerable.
Considering the urgency of the situation and apprehending possible damage it can bring out,
climate change should be combated in “walk the talk” manner. Maintaining environmental
sustainability should be given utmost priority in every sphere of life. Managing a harmonious
relationship with nature must be the way of life. And, the onus rests upon the Government,
NGOs, civil society organizations and corporate houses to take initiative in this direction.

In the backdrop of a rising Corporate Social Responsibility (CSR) movement these days, more
and more business actors have realized their duties to the society. Many a times referred as
corporate citizenship or corporate social and environmental responsibility, CSR concept states
that commercial organizations have a duty of care for all their stakeholders in all aspects of
their operation. CSR started basically as a concept of voluntary contribution by the companies
for a better society and cleaner environment. But over the years a growing number of
companies are joining the CSR bandwagon because their customers, their investors and the
public expect them to act responsible and sustainable. Also, the fact that CSR now is the result
of some social, economic and environmental factors cannot be denied. But, irrespective of the
reason behind the movement, it is a welcome development.

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CSR having an ethical perspective should operate in line with the three pillars of sustainable
development i.e. economic development, social equity and environmental justice. Sustainable
development is the means to satisfy the need of the present generations without compromising
the resources of future generations. CSR can play a vital role in containing the perils of
uncontrolled development. It serves to neutralize the negative impact of business on society.
Climate change being the byproduct of mindless development trend propelled by the corporate
sector is to be mitigated by the ethical business practices. For sustainable business there is a
need for sustainable development of society and environment. A business cannot prosper in a
society which fails.

Unarguably, natural environment is one of the major stakeholders of the companies. So, they
should be concerned primarily for judicious use of natural resources, energy conservation,
reduction of water use, waste management and abatement of polluting emissions. Industrial
companies can enhance their brand image by developing and disseminating environmental-
friendly technologies. Apart from that, CSR can play a significant role in improving
environmental literacy and consciousness among the people.

For effective implementation of CSR exercises companies need to involve all their stakeholders
like consumers, employees, community, media, Government and NGOs. Stakeholder
engagement in green initiatives will remove roadblocks and minimize potential crises. A
framework needs to be developed to ensure that environmental, social and economic concerns
are considered in tandem throughout the company’s decision-making processes.

The companies should develop and follow a Sustainable Management System (SMS) after
identifying and prioritizing sustainability aspects and impacts.

International climate change negotiations have thrown new challenges of competitiveness for
business across the world. Emission reduction targets of developed countries in particular have
been translated through their business and it has led to companies adopt low-carbon strategies.
Growing environmental concern of consumers and the clean and green practices of responsible
corporations have forced products and supply chains to become more carbon-sensitive. It has
started to create new competitive pressure on business.

Eco-friendly attitude and sustainable business practices are now among the critical
determinants of corporate competitiveness.

To promote social performance of corporate bodies, civil society and media have to act as
catalysts. Civil Society Organisations (CSOs) should be more involved with monitoring of
CSR activities. They should develop sector-specific best practices after having meaningful
dialogue with industries. Also, it is time for small and medium enterprises (SMEs) to join the
giants and contribute in their own ways for preserving climate justice. Media houses should
regularly publish and do ranking on not only financial but also on CSR benchmarks.

Reference
 CSR Watch Jordan
 Business in the Community, Ireland
 Himanshu Shekar (2016) Need of CSR intervention to combat climate change, India CSR
News network, Aug 3rd 2016