CORPORATE SOCIAL RESPONSIBILITY

CSR : KEY DRIVERS

CSR IN EUROPE

CSR IN EUROPE: OVERVIEW

The European Commission's definition of CSR is: "A concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis."

Corporate Social Responsibility is part of the Europe 2020 strategy for smart, sustainable and inclusive growth.

CSR IN EUROPE: BASIC PHILOSOPHY

ACCORDING TO A RESOLUTION PASSED BY EU IN 2010-

for Ordinary people throughout the

world, the expansion in international trade is justified only if it contributes to economic development, to job creation and to improved living standards.

CSR IN EUROPE: KEY IMPLICATIONS

Companies would be required to publish CSR balance sheets in two or three year intervals in order to reinforce transparency and reporting and encourage visible and credible CSR practices; Companies would be required to conduct due diligence in order to identify and prevent "violations of human and environmental rights, corruption or tax evasion, including in their subsidiaries and supply chains"; Companies would be required to commit to "free, open and informed prior consultation" with local and independent stakeholders prior to commencing a project that impacts a local community.

CSR IN USA

CSR IN USA: OVERVIEW

US companies are not as heavily regulated as those in other developed nations, and corporate responsibility is not addressed as a regulatory compliance issue but rather from a social and moral choice perspective.

CSR IN USA: OVERVIEW

CSR IN USA: KEY ACTIVITIES

Noncompulsory corporate responsibility practices,

corporate activities encompassing corporate responsibility in the US go beyond environmental, legal and workplace issues to ones that best enhance a companys external reputation. Philanthropy and employee engagement aka employee volunteerism are key areas of a companys corporate responsibility platform.

CSR IN USA: KEY ACTIVITIES

some companies corporate responsibility is defined For

as philanthropic giving, while others include business activities ranging from raw material sourcing to employment practices.

CSR IN USA: CASE STUDIES GE- GENERAL ELECTRIC

GEs Health care and education initiative in Africa The five-year, $20 million GE Africa project was launched in October 2004 to bring improved healthcare provision and infrastructure to hospitals and clinics in Africa Four GE businesses - GE Healthcare, GE Energy, GE Infrastructure and GE Consumer & Industrial - are donating healthcare and power generation equipment, water filtration systems, appliances and lighting to African clinics and hospitals.

In addition to the product donations and training, GE has engaged their African American Forum (AAF), a GE affinity network, to establish on-going relationships at the community level. Each site, once launched, is adopted by a GE businessbased AAF chapter, which engages senior managers on site visits, initiates benchmarking studies and tracks community health progress.

CSR IN USA: CASE STUDIES FUJI FILMS

FUJI RECYCLES ITS OWN CAMERAS FUJI manufactures quick SNAP cameras. These one time use cameras are sold worldwide and used cameras are collected form Europe, USA & Japan The new Quick SNAP cameras are then made from a re cycling plant and almost the entire amount collected is re- used in an advance recycling machine

CSR IN USA: CASE STUDIES FUJI FILMS

OTHER INITIATIVES AT FUJI Enhancing quality of life for esophageal cancer patients in Kenya Providing digital cameras to organizations selected by company employees Giving support to the victims of domestic violence Donating to the Plant a Billion Trees Project Selling digital camera sets to raise breast cancer awareness Donating to the V Foundation Fund Contributing to the Kibera Slum Photo Project in Nairobi, Kenya Offering free-of-charge printing service to KVC Behavioral Health Care, Inc. Participating in Lowell General Hospitals Team Walk for Cancer Care Participating in Dartmouth Medical Schools The Prouty Race

CSR IN JAPAN

CSR IN JAPAN : OVERVIEW

Corporate social responsibility, CSR is currently a fashion in Japanese business society. Even though the CSR performance of Japanese firms is exceptional, compared to other Asian countries , but it still has not met the expectations of some scholars. The CSR achievement of Japanese firms has been limited to certain areas such as environmental responsibility and work environment.

CSR IN JAPAN : basic philosophy

Japanese paid attention to the exceptional CSR performance across certain dimensions: product quality, customer service & concern for employee welfare

An instrumental view Very little pressure from the local groups or society at large Harmonious government- industry relations ,. Hence very little government intervention

CSR IN JAPAN : KEY TRENDS

Japanese paid attention to the exceptional CSR performance across certain dimensions: product quality, customer service & concern for employee welfare

During the 1990s, much of the world was enticed with Japanese innovative management practices such as Just in Time, Quality Circle, and Total Quality Management Participation of employees, life time employment, good working conditions and extensive benefit programs of Japanese firms resulted in strong loyalty and high morale of employees Japanese firms had a strong reputation for their occupational safety and health, in extremely low worker injury and illness rates

CSR IN JAPAN : case 1

Toyota : Seeking Harmony between People, Society and the Global Environment, and Sustainable Development of Society through Manufacturing

CSR IN JAPAN : case 2

Sony first issued an environmental report in 1994. in 2003, it enhanced its scope to make it a full fledged CSR report

Sonys CSR 6 include: corporate governance product responsibility employee social contribution environment & innovation

CSR IN ASIA

CSR IN ASIA: OVERVIEW

PRACTICES IN SOUTH EAST ASIA

Strict labor laws, lax implementation, inadequate observance CSR and serious problems such as HIV/AIDS Compliance with international standards in the face of international competition

CSR IN ASIA: OVERVIEW

PRACTICES IN KOREA

Gender issues are promoted through hiring more women. Companies tend to align gender issue with low birth rate issue. Companies do not recognize that gender issues are part of a labor shortage or womans right. Growing interest in work-life balance is found but relevant policy and systems are not prepared. Companies value dialogue with stakeholders as part of companys risk management But cannot quantify their efforts Companies view links in the supply chain as partners and try to strike a win win situation Korean companies view corporate social responsibility (CSR) from either a corporate philosophy perspective or from a business strategy perspective

CSR IN ASIA: OVERVIEW

PRACTICES IN SINGAPORE

Awareness levels are high (69%) The following are most often quoted as benefits of CSR by executives in singapore : improved customer loyalty (57%), improved organizational culture (53%), and attracting and retaining employees (35%) improved image and reputation (11%) CSR activities broadly include philanthropic activities such as employee volunteerism, corporate donations, and other charitable activities CSR decisions are usually centralised There is no benchmark for these corporations to evaluate their CSR

CSR IN ASIA: OVERVIEW

CSR PHILOSOPHY IN CHINA

Corporate social responsibility (CSR) is receiving more attention in China, although it still plays only a marginal role for the majority of Chinese companies, particularly private ones. Large state-owned companies and companies that invest in China are expected to increase their social involvement. CSR receives little media coverage. After the Sichuan earthquake in the spring of 2008, however, it was obvious that the efforts of domestic and foreign companies were recognized and appreciated.

CSR IN ASIA: OVERVIEW

KEY TRENDS IN CHINA

The Chinese authorities viewed CSR as a means for foreign companies to pull ahead of their Chinese competitors But now, Chinese are focusing on economic incentives and the positive effects of CSR on areas of social concern Both international organizations and intermediaries play a prominent role in encouraging CSR Areas of activity are : poverty, health , education, disaster relief, political involvement, cultural engagement Method : philanthropy

CSR IN ASIA: OVERVIEW

CASE STUDY 1 : ST ENGINEERING, SINGAPORE
practices include health and safety, care for the environment, corporate governance and transparency, education, and support for the arts and sports
Areas Environment Policy Objectives Ensure full compliance with all regulatory and environmental requirements. Achieve OHSAS 18001 and ISO 14001 certification / accreditation in all of its operating companies. Use energy, water and other resources efficiently.

Total Defence

Fully support Singapore's National Service and National Defence initiatives. Support and actively participate in Singapore's Ministry of Defence (MINDEF) activities (e.g. PRIDE Day, Exhibitions, Open Houses, etc.). Support and participate in all National Programmes (e.g. the National Day Parade, Quality & Productivity Programs, Business Excellence initiatives).

CSR IN ASIA: FAILURES

THE CHINA MILK AND TOY SCANDAL

Four babies died & 60,000 sickened after they were fed the powder, made by the once-prestigious Sanlu Group in 2008 Officials in Shijiazhuang, where Sanlu is based, had covered up the extent of the problem for more than a month while China was hosting the Olympic Games.In fact, local media had known that problems were being reported by parents of babies across China who had been fed Sanlu formula. However, the reporters were unable to publish their findings because of strict media controls imposed by the government during the games. The milk, which had been laced with the industrial chemical melamine, used in plastics and glue, gave children kidney stones.

CSR IN ASIA: FAILURES

THE CHINA MILK AND TOY SCANDAL

In 2004, the China Dairy Product Quality Inspection Report found that adulteration was very widespread and found urea, soap powder and starch being added to milk. It also found high levels of antibiotic residues in milk. Who is responsible? Milk processors such as Sanlu were in the spotlight for spiking the milk? Milk farmers? Government ? Regulatory bodies? Media?

CSR comparisons : Regional Characteristics

THE British brand of corporate responsibility is seen as the gold standard. But according to Simon Zadek of AccountAbility, a think-tank that has been part of the cluster, this is also a repeat of a familiar British business story: superb innovation, poor implementation.

By contrast, when American firms get serious about CSRWal-Mart on sustainability, for examplethe execution is generally impressive The Japanese, for their part, see the roots of CSR in the traditions of Japanese business, such as shobaido (the way of doing business) and shonindo (the way of the merchant), and Japanese firms pay a lot of attention to the environment and to relations with local communities

International practices in CSR : Significant trends

One-size-fits-all approach to corporate responsibility may not work. What is right for Europe may not be appropriate for India. Communities and media have been involved in an unprecedented manner

International practices in CSR : Significant trends

Revisiting the pyramid

CSR comparisons : developed vs. developing nations

CSR tends to be less formalised or institutionalized in terms of the CSR benchmarks commonly used in developed countries, i.e. CSR codes, standards, management systems and reports.

Where formal CSR is practiced, this is usually by large, high prole

national and multinational companies

Formal CSR codes, standards, and guidelines that are most applicable to developing countries tend to be issue specic (e.g. fair trade, supply chain, HIV/AIDS) or sector-led (e.g. agriculture, textiles, mining)

CSR comparisons : developed vs. developing nations

In developing countries, CSR is most commonly associated with philanthropy

or charity.
Many of the CSR issues in developing countries present themselves as dilemmas or trade-os, for example, development versus environment, job creation versus higher labour standards, strategic philanthropy versus political governance The spirit and practise of CSR is often strongly resonant with

traditional communitarian values and religious concepts in developing countries ,

for example, African humanism (ubuntu) in South Africa and harmonious society (xiaokang) in China

CSR LESSONS :

THE CRISIS IS NOT ALWAYS NOT INTENDED AND THERE'S THE RISK THIS IS A WHOLE NEW LEVEL OF COMMUNITY PROTEST YOU CANNOT SILENCE THE SOCIAL MEDIA THE WHOLE SUPPLY CHAIN IS AFFECTED THE BRAND OF THE NATION INVOLVED IS AFFFECTED .