CORPORATE SOCIAL RESPONSIBILITY (CSR) AND ETHICS Definitions and Relationships Corporate so ial responsi!

ilit" (CSR) is the pro ess !" #hi h !$sinesses ne%otiate their role in so iet" In the !$siness #orld& ethi s is the st$d" of 'orall" appropriate !eha(iors and de isions& e)a'inin% #hat *sho$ld !e done+ Altho$%h the t#o are lin,ed in 'ost fir's& CSR a ti(ities are no %$arantee of ethi al !eha(ior Re ent E(iden e of CSR Interest An Internet sear h t$rns $p -.&/// pl$s response to 0 orporate iti1enship+ 2o$rnals in reasin%l" 0rate+ !$sinesses (and N3Os) on so iall" responsi(e riteria4 Best pla e to #or, 5ost ad'ired Best (and #orst) orporate rep$tation Reasons for CSR A ti(ities CSR a ti(ities are i'portant to and e(en e)pe ted !" the p$!li And the" are easil" 'onitored #orld#ide CSR a ti(ities help or%ani1ations hire and retain the people the" #ant CSR a ti(ities ontri!$te to !$siness perfor'an e Corporate So ial Responsi!ilit" Contin$$' Do 'ore than re6$ired7 e8%8 en%a%e in philanthropi %i(in% Inte%rate so ial o!9e ti(es and !$siness %oals 5a)i'i1e fir':s profits to the e) l$sion of all else ;i%ht so ial responsi!ilit" initiati(es Balan e profits and so ial o!9e ti(es Do #hat it ta,es to 'a,e a profit7 s,irt the la#7 fl" !elo# so ial radar Co'pl"7 do #hat is le%all" re6$ired Arti $late so ial (al$e o!9e ti(es Lead the ind$str" and other !$sinesses #ith !est pra ti es CSR are 3ro$nded !" Opposin% O!9e ti(es (5a)i'i1e Profits to Balan e Profits #ith So ial Responsi!ilit") and so A ti(ities Ran%e <idel" Do #hat it ta,es to 'a,e a profit7 s,irt the la#7 fl" !elo# so ial radar ;i%ht CSR initiati(es Co'pl" #ith le%al re6$ire'ents Do 'ore than le%all" re6$ired& e8%8& philanthrop" Arti $late so ial (CSR) o!9e ti(es Inte%rate so ial o!9e ti(es and !$siness %oals Lead the ind$str" on so ial o!9e ti(es

B$sinesses CSR A ti(ities Philanthrop" %i(e 'one" or ti'e or in ,ind to harit" Inte%rati(e philanthrop"= sele t !enefi iaries ali%ned #ith o'pan" interests Philanthrop" #ill not enhan e orporate rep$tation if a o'pan" fails to li(e $p to its philanthropi i'a%e or if ons$'ers per ei(e philanthrop" to !e 'anip$lati(e Inte%rate CSR 3lo!all" In orporate (al$es to 'a,e it part of an arti $lated !elief s"ste' A t #orld#ide on those (al$es Ca$se>related 'ar,etin% Ca$se>!ased ross se tor partnerships En%a%e #ith sta,eholders Pri'ar" sta,eholders Se ondar" sta,eholders B$siness Ethi s De(elop'ent The $lt$ral onte)t infl$en es or%ani1ational ethi s Top 'ana%ers also infl$en e ethi s The o'!ined infl$en e of $lt$re and top 'ana%e'ent infl$en e or%ani1ational ethi s and ethi al !eha(iors The E(ol(in% Conte)t for Ethi s ;ro' do'esti #here ethi s are shared To international #here ethi s are not shared #hen o'panies4 5a,e ass$'ptions that ethi s are the sa'e Ethi al a!sol$tis'= the" adapt to $s Ethi al relati(is'=#e adapt to the' To %lo!al #hi h re6$ires an inte%rati(e approa h to ethi s E'er%en e of a 3lo!al B$siness Ethi 3ro#in% sense that responsi!ilit" for ri%htin% so ial #ron%s !elon%s to all or%ani1ations 3ro#in% !$siness need for inte%rati(e 'e hanis's s$ h as ethi s Ethi s red$ e operatin% $n ertainties ?ol$ntar" %$idelines a(oid %o(ern'ent i'positions Ethi al ond$ t is needed in an in reasin%l" interdependent #orld= e(er"one in the sa'e %a'e Co'panies #ish to a(oid pro!le's and@or !e %ood p$!li iti1ens <a"s Co'panies Inte%rate Ethi s Top 'ana%e'ent o''it'ent in #ord and deed Co'pan" odes of ethi s S$ppl" hain odes De(elop& 'onitor& enfor e ethi al !eha(ior See, e)ternal assistan e E)ternal Assistan e #ith Ethi s Ind$str" or professional odes Certifi ation pro%ra's& e8%8& ISO A/// Adopt@follo# %lo!al odes Ca$) Ro$nd Ta!le Prin iples

Reasons for B$sinesses to En%a%e in De(elop'ent of a 3lo!al Code of B$siness Ethi s Create the sa'e opport$nit" for all !$sinesses if there are o''on r$les Le(el the pla"in% field The" are needed in an inter onne ted #orld The" red$ e operatin% $n ertainties If !$sinesses don:t olla!orate& the" 'a" not li,e #hat others de(elop ;o$r Challen%es to a 3lo!al Ethi 3lo!al r$les e'er%e fro' ne%otiations and #ill refle t (al$es of the stron% 3lo!al r$les 'a" !e (ie#ed as an end rather than a !e%innin% R$les an depress inno(ation and reati(it" R$les are stati !$t %lo!ali1ation is d"na'i

Sta,e Holders Sta,e Holders A sta,eholder is an" indi(id$al or or%ani1ation that is affe ted !" the a ti(ities of a !$siness8 The" 'a" ha(e a dire t or indire t interest in the !$siness& and 'a" !e in onta t #ith the !$siness on a dail" !asis& or 'a" 9$st o asionall"8 T"pes of Sta,eholder O#ners (I) Shareholders (I) 5ana%ers (I) Staff or e'plo"ees (I) C$sto'ers (E) S$ppliers (E) Co''$nit" (E) 3o(ern'ent (E) # I B Internal # E B E)ternal Sta,eholders (ers$s Shareholders Shareholders hold shares in the o'pan" C that is the" o#n part of it8 Sta,eholders ha(e an interest in the o'pan" !$t do not o#n it8 Responsi!ilit" of the B$siness To#ards The Sta,e Holder So ial Responsi!ilit" Ethi s So ial Responsi!ilit" Ethi s Ethi s refers to the 'oral ri%hts and #ron%s of an" de ision a !$siness 'a,es8 # So'e e)a'ples of ethi al poli ies are4 # Red$ e poll$tion !" $sin% non>fossil f$els8 # Disposal of #aste safel" and in an en(iron'entall" friendl" 'anner8 # Sponsorin% lo al harit" e(ents8 # Tradin% fairl" #ith de(elopin% o$ntries8 Chara teristi s of Sta,eholders -8 O#ners and Shareholders # The n$'!er of o#ners and the roles the" arr" o$t differ a ordin% to the si1e of the fir' # In s'all !$sinesses there 'a" !e onl" one o#ner (sole trader) or perhaps a s'all n$'!er of partners (partnership) # In lar%e fir's there are often tho$sands of shareholders& #ho ea h o#n a s'all part of the !$siness Chara teristi s of Sta,eholders D8 5ana%ers4 Or%ani1e 5a,e de isions Plan Control Are a o#ner(s) ##### o$nta!le to the

Chara teristi s of Sta,eholders E8 E'plo"ees or Staff4 # A !$siness needs staff or e'plo"ees to arr" o$t its a ti(ities # E'plo"ees a%ree to #or, a ertain n$'!er of ho$rs in ret$rn for a #a%e or salar" # Pa" le(els (ar" #ith s,ills& 6$alifi ations& a%e& lo ation& t"pes of #or, and ind$str" and other fa tors Chara teristi s of Sta,eholders F8 C$sto'ers4 # C$sto'ers !$" the %oods or ser(i es prod$ ed !" fir's # The" 'a" !e indi(id$als or other !$sinesses # ;ir's '$st $nderstand and 'eet the needs of their $sto'ers& other#ise the" #ill fail to 'a,e a profit or& indeed& s$r(i(e Chara teristi s of Sta,eholders .8 S$ppliers4 # ;ir's %et the reso$r es the" need to prod$ e %oods and ser(i es fro' s$ppliers # B$sinesses sho$ld ha(e effe ti(e relationships #ith their s$ppliers in order to %et 6$alit" reso$r es at reasona!le pri es # This is a t#o>#a" pro ess& as s$ppliers depend on the fir's the" s$ppl" Chara teristi s of Sta,eholders G8 Co''$nit"4 # ;ir's and the o''$nities the" e)ist in are also in a t#o>#a" relationship # The lo al o''$nit" 'a" often pro(ide 'an" of the fir':s staff and $sto'ers # The !$siness often s$pplies %oods and ser(i es (ital to the lo al area # B$t at ti'es the o''$nit" an feel a%%rie(ed !" so'e aspe ts of #hat a fir' does Chara teristi s of Sta,eholders H8 3o(ern'ent4 E ono'i poli ies affe t fir's: osts (thro$%h ta)ation and interest rates) # Le%islation re%$lates #hat !$siness an do in areas s$ h as the en(iron'ent and o $pational safet" and health # S$ essf$l fir's are %ood for %o(ern'ents as the" reate #ealth and e'plo"'ent

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