Corporate Social Responsibility

I. OVERVIEW
Corporate social responsibility (CSR) is also known by a number of other names: corporate responsibility, corporate accountability, corporate ethics, corporate citizenship, sustainability, stewardship, triple bottom line and responsible business, to name just a few. CSR is an evolving concept that currently does not have a universally accepted definition. Generally, CSR is understood to be the way firms integrate social, environmental and economic concerns into their values, culture, decision making, strategy and operations in a transparent and accountable manner and thereby establish better practices within the firm, create wealth and improve society. Generally, CSR is understood to be the way firms integrate social, environmental and economic concerns into their values, culture, decision making, strategy and operations in a transparent and accountable manner and thereby establish better practices within the firm, create wealth and improve society.

II. DEFINITIONS
Corporate social responsibility is an integration of laws, ethical standards and international norms into a business model. A business does not exist in a vacuum. A business's operations affect the world around it. A company should surpass the minimum legal requirements in how it impacts the environment, consumers, employees, communities and stakeholders. It has been defined by the World Business Council for Sustainable Development as the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large. In their 2003 book, Business and Society: Ethics and Stake-holder Management, Carrol and Bucholtz describe corporate social responsibility (CSR) as the economic, legal, ethical, and discretionary expectations that society has of organizations at a given point in time.

III. HISTORY
The term "corporate social responsibility" came into common use in the late 1960s and early 1970s after many multinational corporations formed the term stakeholder, meaning those on whom an organization's activities have an impact. It was used to describe corporate owners beyond shareholders. The nature and scope of corporate social responsibility has changed over time. The concept of CSR is a relatively new one the phrase has only been in wide use since the 1960s. But, while the economic, legal, ethical, and discretionary expectations placed on organizations may differ, it is probably accurate to say that all societies at all points in time have had some degree of expectation that organizations would act responsibly, by some definition. In the 1960s and 1970s the civil rights movement, consumerism, and environmentalism affected society's expectations of business. Based on the general idea that those with great power have great responsibility, many called for the business world to be more proactive in (1) ceasing to cause societal problems and (2) starting to participate in solving societal problems. Many legal mandates were placed on business related to equal employment opportunity, product safety, worker safety, and the environment. Furthermore, society began to expect business to voluntarily participate in solving societal problems whether they had caused the problems or not. This was based on the view that corporations should go beyond their economic and legal responsibilities and accept responsibilities related to the betterment of society. This view of corporate social responsibility is the prevailing view in much of the world today.

IV. KINDS
1. Environmental Responsibility
People expect businesses to exhibit environmentally responsible behavior. Specific environmental issues that affect businesses include global warming, unsustainable resources and pollution. 2. Human Rights Responsibility Workers or employees should not be denied access to their rights and benefits. 3. Political Responsibility

Trading with repressive regimes is a difficult issue in corporate social responsibility. Some businesses argue that working with these regimes will help to advance them and bring rights to the countries. People and governments have demanded that businesses stop trading with repressive regimes.

V. Importance of Corporate Social Responsibility

1. Public Relations Corporate social responsibility (CSR) was an integral part of investment decisions. When you integrate CSR into your business model, you build a reputation as a responsible business. CSR is good for public relations and, subsequently, is free advertising. 2. Brand Enhancement When CSR is embedded in an organization's business processes, it becomes part of a longer-term plan that drives competitiveness. For instance, a business that has moved its manufacturing plant to a poor country in order to produce goods costefficiently, has to make sure it does not exploit weaker labor laws in the developing world. A consumer does not want to hear that the suit he is wearing was manufactured by an exploited worker in Vietnam, China or Peru. Rather, a consumer would be happy to know that some of the money he spends on his clothes builds schools and hospitals in poor communities. The brand, its reputation and image cannot be separated. 3. The Environmental Impact of Your Business Your business activities not only affect your employees, supplies and the local community, they have a profound impact on the environment. You can make a difference by taking energy efficiency measures, reducing the use of water or using recyclable materials. As more consumers become environmentally aware, they purchase goods from a company that takes into account the impact its business activities have on the environment. While you care for the environment, you save money on your gas or electricity bill because you are using materials and utilities efficiently. Thus, corporations should meet standards of social and environmental care, no matter where they operate.

VI. NEGATIVE ASPECTS OF CSR

1. Unfeasible. Taking on social and moral issues is not economically feasible. Corporations should focus on earning a profit for their shareholders and leave social issues to others. The primary responsibility of business is to make a profit for its owners, although while complying with the law. 2. Add Cost. Addressing social issues comes at a cost to business. 3. Lack of Skills. Business executives and managers are typically well trained in the ways of finance, marketing, and operations management, but not well versed in dealing with complex societal problems. Thus, they do not have the knowledge or skills needed to deal with social issues. This view suggests that corporate involvement in social issues may actually make the situation worse. Part of the capability argument also suggests that corporations can best serve societal interests by sticking to what they do best, which is providing quality goods and services and selling them at an affordable price to people who desire them.

VII. POSITIVE ASPECTS OF CSR

1. Company benefits. These positive effects are the most pertinent to the companies themselves and include lower operating costs, increased sales and customer loyalty, greater productivity, more ability to attract and keep skilled employees, access to more capital through more willing investors, decreased liability through better product safety, and reduced regulatory oversight. Many companies enhance their brand image and better their reputation through CSR actions. 2. Community benefits. It is connected to through its policies. Charitable contributions fall under this category, whether local or national, along with any social initiatives on the part of the company, such as education programs and homeless care activities.

I n t e g r a t i n g C o r p o r a t e S o c i a l R e s p o n s i b i l i t y ( C SR ) i n M i n i n g I n d u st r y
The increased awareness of environmental impacts, the socio-economic implications of mining and a downturn in productivity, have highlighted the need for mining companies to adjust their business management process. With the negative perception that marked the mining industrys development. Over the years due to issues such as the extent of damage to river systems and farmlands resulting from the discharge of mine tailings, socio-economic dislocation of families and indigenous peoples in mining areas, and open pit mining methods, a sense of urgency for concerted action has been expressed as a search for a sustainable future. One key practice that does promote and enhance sustainable development is Corporate Social Responsibility (CSR). CSR supports the principle that business can achieve economic objectives in a manner that also addresses social and environmental concerns. In order to manage the divisive issue of growth versus environment, the development community formulated the idea of sustainable development: growth with social protection and natural resource conservation. Indeed, mining companies argue that economic growth is the very precondition for solving environmental problems; it generates the resources essential for shaping workable solutions. What is clear; however is that wherever a mining company operates in the world, it needs to understand that there are growing expectations from stakeholders about how it should manage its social, environmental and economic impacts.

ILLUSTRATIVE CASE: New gold

Minero san Javier or MSX producing goods in compliance with the law and adopting highest international standards for environmental protection and social responsibility Completely renovated Saint Nicholas Church thru the courtesy of MSx Homes rebuilt and new homes have been constructed Water supply has been provided for all residences Updated power systems has been constructed allowing residence to have modern conveniences Environmental protection thru regular air monitoring and water testing Daily vibration test is monitored to ensures that blasting in the mine sites have no detrimental effects on heritage buildings They achieved Iso 14001 environmental compliance Every workers trained to work safely with daily safety meetings ongoing instructions on best practice Equal opportunities It has an extensive nursery for cactus plants for their reforestation program It makes a significant financial contribution to the cerro de san pedro municipal government responsible for the well being of the residents Gives homes for workers, and schools, a church and a clinic, replaces playground, students have now activated computers with internet connections