CORPORATE SOCIAL RESPONSIBILITY

Issue
Globalisation and new technologies are creating more trade and intensifying competition. At the same time, deregulation and liberalisation have given business enterprises more freedom to make their investment decisions and to operate both at home and abroad.

Recognising that social cohesion is in the interest of business in the long term, enterprises cannot ignore their impact on the natural and social environment, and on other stake-holders that affect or are affected by their actions. Companies must be aware that they can shape the future business environment.

“Corporate social responsibility is the commitment of business to contribute to sustainable economic development, working with employees, their families, the local community and society at large to improve their quality of life.” (1)

CSR implies that a company conduct its business in a socially acceptable way and that it is accountable for its effects on all relevant stakeholders. Thus, CSR raises the question of the total impact of an activity on the lives of individuals both within, and external to, the company:

• Within: recruitment & employee retention, wages and benefits, investment in training, working environment, health & safety, labour rights…
• Externally: human rights, fair trading, impact on human health and quality of life, acceptable ratio between advantages and disadvantages for those lost affected, sustainable development….

Click here to the see the Generic list of issues.

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(1): World Business Council for Sustainable Development, Jan 2000, “Corporate Social Responsibility: Making Good Business Sense”)