The concept of Corporate Social Responsibility.

The concept of Corporate Social Responsibility.
Organizations that take on board the concept of Corporate Social Responsibility are required to consider the economic, social and environmental impacts of their activities, wherever they operate in the world. Mr. McKinnon stressed that both corporate governance and corporate social responsibility are significant drivers for economic development, with improved state enterprises leading to improved private enterprises. Customers' expectations around corporate social responsibility are rising, and CEOs are struggling to meet those expectations. Economic growth and awareness of corporate social responsibility are two inseparable elements of long-term and sustained commercial success. These Operational Guidelines on Banking Corporate Social Responsibility are the result of the collaborative effort of the inter-bank working group set up within ABI (the Italian Banking Association) as a forum dedicated to the analysis and investigation of CSR issues. Finally, companies at the cutting edge of corporate social responsibility are discovering that the concept is highly elastic: the more they do the more is asked of them, and some leaders have begun to wonder if it has any boundaries at all.

Corporate

Corporate social responsibility can be encouraged through regulations, penalties and public sector institutions that control business investment or operations. Corporate leaders are bewildered and complain about not getting enough credit for doing the right thing. Corporate social responsibility is no longer merely about philanthropy. Organizations that take on board the concept of Corporate Social Responsibility are required to consider the economic, social and environmental impacts of their activities, wherever they operate in the world. Since 1997, more than 1000 businesses have reported their corporate social responsibilities. These roles encompass the full range of skills relating to: corporate communications, internal and external; legal and compliance; media relations; industry relations; government relations; and leadership and strategic capability. The Corporate Responsibility (CORE) Coalition works to make changes in UK company law to minimize company’s negative impacts on people and the environment and to maximize company’s contribution to sustainable societies. Speaking at the Conference de Montreal (International Economic Forum of the Americas) on social responsibility of businesses on 5 June 2006, Mr. McKinnon pointed out those corporate social responsibility benefits employees and their families, the local community and environment, as well as society. He said governments can play a role in implementing and enforcing legislation to support the principles and practices of corporate social responsibility, which involves contributing to local community development in places where businesses operate. Mr. McKinnon stressed that both corporate governance and corporate social responsibility are significant drivers for economic development, with improved state enterprises leading to improved private enterprises. Economic growth and awareness of corporate social responsibility are two inseparable elements of long-term and sustained commercial success. In the age of globalization and increasingly fierce competition within regional, national and global markets, corporate initiatives that display social, cultural or educational commitment are enjoying a strong revival. Alongside the Corporate Governance Code, the ethics of corporate citizenship and corporate social responsibility have become increasingly significant, and stakeholder value is becoming more and more important to shareholder value. As assistant secretary general of the United Nations from 1997-2001, Reggie helped Kofi Annan establish the UN Global Compact, a multi-stakeholder initiative to promote corporate social responsibility based on universal principles in human rights, labor standards and the environment. Second, there is a widespread public perception that corporate rights have grown significantly over the past two decades, and that rules favoring global market expansion have become more robust and enforceable – intellectual property rights, for example, or dispute resolution procedures through the WTO. These perceived imbalances – and the underlying power asymmetries they reflect – provide additional social fuel to anti-corporate campaigns. Yet a third reason is that the global corporate sector, ironically, has become trapped by its own success. In contrast, the corporate world has demonstrable global reach and capacity. Society, therefore, has come to demand help from the corporate sector in coping with adversities that stem from governance gaps and governance failures, ranging from securing investments in community development to preventing conflicts and diseases. To begin with, corporate social and environmental reporting must become standard operating procedures. The media often sensationalize instances of corporate misbehavior or simply repeat activists' accusations. Should corporate entities be held accountable for the health consequences of their business practices and products? Will the corporate social responsibility movement have an effect on international health?

Social

As assistant secretary general of the United Nations from 1997-2001, Reggie helped Kofi Annan establish the UN Global Compact, a multi-stakeholder initiative to promote corporate social responsibility based on universal principles in human rights, labor standards and the environment. Coke is not alone, and HIV/AIDS is not the only issue over which activists are successfully targeting companies that break no laws but stand accused of falling short of broader social norms and standards. Too many companies are failing to grasp the extent to which they are at the receiving end of a sharp escalation in social expectations about the role of corporations in society, at home and abroad. But rules that favor other valid social objectives, be they human rights, labor standards, environmental sustainability or global poverty reduction, lag behind. And it involves working with international agencies and governments in poor countries, enabling those countries to improve their provision of the social services that are now being pushed on companies. The health of communities, employees, and consumers is often invoked in demands for better corporate social responsibility.

Responsibility

The health of communities, employees, and consumers is often invoked in demands for better corporate social responsibility. * Company law to place responsibility on companies to act to the highest standards wherever they operate in the world.
Conclusion
Better inventories of good practices and criteria for benchmarking performance are also required. The media often sensationalize instances of corporate misbehavior or simply repeat activists’ accusations. But even the most diligent journalist will not find many comprehensive and objective sources of information against which to compare the practices of any particular company. The research community needs to get involved more extensively in producing this information.
Finally, companies at the cutting edge of corporate social responsibility are discovering that the concept is highly elastic: the more they do the more is asked of them, and some leaders have begun to wonder if it has any boundaries at all. Ultimately, their only viable exit strategy is contributing to public sector capacity building where it is now lacking. This implies supporting a more balanced, and therefore more stable, system of global rulemaking. And it involves working with international agencies and governments in poor countries, enabling those countries to improve their provision of the social services that are now being pushed on companies.
The new Social Network The world in 1 place to launch in August 08 by Edge2edge Global Investments and The Africa Forum will make Social participation and sponsoring far more accessible for the Corporate as well as the individual who understand the importance of contributing to the poor see http://e2esocial.com

By: JJS Bornman