Professional Documents
Culture Documents
Dr Safdar A Butt
Concept
Business decision making linked with: Ethical values Compliance with the law Respect for people, communities and the environment.
Another definition
Lord Holme and Richard Watts define CSR as: CSR is the continuing commitment By a business firm (company) To behave ethically, and Contribute to countrys economic development While improving the quality of life of:
the workforce as well as the community and society at large.
American businesses mostly think CSR is only about giving money for worthy causes. Europeans think CSR is a tool for promoting business. Treat the society well so that society can buy your products. Do more CSR when times are bad.
Trusteeship Theory
Companies really do not belong to any one. Shareholders own share of what remains but not specific assets of the company. Directors hold the assets of the company in trust on behalf of not just shareholders but the society at large. A company is a social asset.
Historical Perspective
In fact, CSR came much after Business Ethics. Business have learned that chasing only profit does not give enough profit. CSR can actually improve their profitability and sustainability of their ventures.
Scope of CSR
Philanthropy
Protection of all stakeholders interest Serving the common interest of all stakeholders
No tax evasion, directly or indirectly Capital nature rather than just recurrent
Investment in community:
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Eco-balance
Deforestation Soil degradation Atmospheric changes
Pollution
Depletion of resources
Identify and define risks being posed (or faced) by the company. Establish the extent and probability of risks. Assess cost of:
The consequences of the risk after it takes place preventing it from happening
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ERM -2
Insurance:
Actual loss Claims against the company
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Financial considerations
Cost benefit analysis of being eco-balanced Use of new cleaner technology Life cycle assessments
Resource Management
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EP Law
The law is there. EPA has been set up. But law does not make any one responsible. Companies have to want to be environmentally responsible.
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Shades of CSR
Official posture and reality Spending more money on publicizing CSR than actual CSR work. Lip service: strings attached help IPPR says most CSR is lip service
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Institutional investors PIRC provide web based data on how companies are acting on CSR, ethics, environment, etc. Regulators / Kings Report in SA Disclosure Requirements
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Set a Code of Ethics outlining CSR Values to be upheld Establish current position on CSR values Discuss with relevant stakeholders
Employees Pressure groups Clients
CSR Policy
Formally promulgate the CSR policy Prescribe systems Establish responsibility for each party Set realistic strategies and targets Keep all concerned informed Monitor achievements Revise policy or targets as necessary
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You do as much as others are doing. Can any one set minimums? Who ensures compliance? How to monitor compliance?
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CSR in Pakistan
Mostly companies consider philanthropy to be the only means of CSR. However change is coming. Telenors Karo Mumkin PTCs tree planting Mobilinks medical helpline
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CSR Survey
People in Pakistan want companies to: Promote education Create employment Provide health care to public Reduce pollution Provide better work place
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Thank you
Dr S A Butt
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