rishi csr report
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1: INTRODUCTION
Corporate social responsibility (CSR, also called corporate responsibility,
corporate citizenship, and responsible business) is a concept whereby organizations
consider the interests of society by taking responsibility for the impact of their activities
on customers, suppliers, employees, shareholders, communities and other stakeholders, as
well as the environment. This obligation is seen to extend beyond the statutory obligation
to comply with legislation and sees organizations voluntarily taking further steps to
improve the quality of life for employees and their families as well as for the local
community and society at large.
The practice of CSR is subject to much debate and criticism. Proponents argue that there
is a strong business case for CSR, in that corporations benefit in multiple ways by
operating with a perspective broader and longer than their own immediate, short-term
profits. Critics argue that CSR distracts from the fundamental economic role of
businesses; others argue that it is nothing more than superficial window-dressing; still
others argue that it is an attempt to pre-empt the role of governments as a watchdog over
powerful multinational corporations.
1.1 DEVELOPMENT
Business ethics is a form of the art of applied ethics that examines ethical principles and
moral or ethical problems that can arise in a business environment.
In the increasingly conscience-focused marketplaces of the 21st century, the demand for
more ethical business processes and actions (known as ethicism) is increasing.
Simultaneously, pressure is applied on industry to improve business ethics through new
public initiatives and laws (e.g. higher UK road tax for higher-emission vehicles).
Business ethics can be both a normative and a descriptive discipline. As a corporate
practice and a career specialization, the field is primarily normative. In academia,
descriptive approaches are also taken. The range and quantity of business ethical issues
reflects the degree to which business is perceived to be at odds with non-economic social
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values. Historically, interest in business ethics accelerated dramatically during the 1980s
and 1990s, both within major corporations and within academia. For example, today most
major corporate websites lay emphasis on commitment to promoting non-economic
social values under a variety of headings (e.g. ethics codes, social responsibility charters).
In some cases, corporations have redefined their core values in the light of business
ethical considerations (e.g. BP's "beyond petroleum" environmental tilt).
The term CSR itself came in to common use in the early 1970s although it was seldom
abbreviated. The term stakeholder, meaning those impacted by an organization's
activities, was used to describe corporate owners beyond shareholders from around 1989.
1.2 APPROACHES
Some commentators have identified a difference between the Continental European and
the Anglo-Saxon approaches to CSR. And even within Europe the discussion about CSR
is very heterogenous.
An approach for CSR that is becoming more widely accepted is community-based
development projects, such as the Shell Foundation's involvement in the Flower Valley,
South Africa. Here they have set up an Early Learning Centre to help educate the
community's children, as well as develop new skills for the adults. Marks and Spencer is
also active in this community through the building of a trade network with the
community - guaranteeing regular fair-trade purchases. Often alternative approaches to
this is the establishment of education facilities for adults, as well as HIV/AIDS education
programmes. The majority of these CSR projects are established in Africa. A more
common approach of CSR is through the giving of aid to local organizations and
impoverished communities in developing countries. Some organizations do not like this
approach as it does not help build on the skills of the local people, whereas community-
based development generally leads to more sustainable development.
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1.3 AUDITING AND REPORTING
To demonstrate good business citizenship, firms can report in accordance with a number
of CSR reporting guidelines or standards, including:
AccountAbility'sAA1000 standard, based on John Elkington's triple bottom line
(3BL) reporting
Global Reporting Initiative's Sustainability Reporting Guidelines
Verite's Monitoring Guidelines
Social Accountability International'sSA8000 standard
Green Globe Certification / Standard
The ISO 14000 environmental management standard
The United Nations Global Compact promotes companies reporting in the format
of aCommunication on Progress (COP). A COP report describes the company's
implementation of the Compact's ten universal principles.
The United Nations Intergovernmental Working Group of Experts on
International Standards of Accounting and Reporting (ISAR) provides voluntary
technical guidance on eco-efficiency indicators,corporate responsibility reporting
andcorporate governance disclosure.
The FTSE Group publishes theFTSE4Good Index, an evaluation of CSR performance of
companies.
Some nations require CSR reporting, though agreement on meaningful measurements of
social and environmental performance is difficult. Many companies now produce
externally audited annual reports that cover Sustainable Development and CSR issues
("Triple Bottom Line Reports"), but the reports vary widely in format, style, andevaluationmethodology (even within the same industry). Critics dismiss these reports as
lip service, citing examples such as Enron's yearly "Corporate Responsibility Annual
Report" and tobacco corporations' social reports.
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1.4 BUSINESS BENEFITS
The scale and nature of the benefits of CSR for an organization can vary depending on
the nature of the enterprise, and are difficult to quantify, though there is a large body of
literature exhorting business to adopt measures beyond financial ones (e.g., Deming's
Fourteen Points, balanced scorecards). Orlizty, Schmidt, and Rynes found a correlation
between social/environmental performance and financial performance. However,
businesses may not be looking at short-run financial returns when developing their CSR
strategy.
The definition of CSR used within an organisation can vary from the strict "stakeholder
impacts" definition used by many CSR advocates and will often include charitable efforts
and volunteering. CSR may be based within thehuman resources,business development
orpublic relations departments of an organisation, or may be given a separate unit
reporting to the CEO or in some cases directly to the board. Some companies may
implement CSR-type values without a clearly defined team or programme.
The business case for CSR within a company will likely rest on one or more of these
arguments:
Human resources
A CSR programme can be seen as an aid to recruitment and retention, particularly within
the competitive graduate student market. Potential recruits often ask about a firm's CSR
policy during an interview, and having a comprehensive policy can give an advantage.
CSR can also help to improve the perception of a company among its staff, particularly
when staff can become involved through payroll giving, fundraising activities or
community volunteering.
Risk management
Managing risk is a central part of many corporate strategies. Reputations that take
decades to build up can be ruined in hours through incidents such as corruption scandals
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or environmental accidents. These events can also draw unwanted attention from
regulators, courts, governments and media. Building a genuine culture of 'doing the right
thing' within a corporation can offset these risks.
Brand differentiation
In crowded marketplaces, companies strive for a unique selling proposition which can
separate them from the competition in the minds of consumers. CSR can play a role in
building customer loyalty based on distinctive ethical values. Several majorbrands, such
as The Co-operative Group and The Body Shop are built on ethical values. Business
service organisations can benefit too from building a reputation for integrity and best
practice.
License to operate
Corporations are keen to avoid interference in their business through taxation or
regulations. By taking substantive voluntary steps, they can persuade governments and
the wider public that they are taking issues such as health and safety, diversity or the
environment seriously, and so avoid intervention. This also applies to firms seeking to
justify eye-catching profits and high levels of boardroom pay. Those operating away
from their home country can make sure they stay welcome by being good corporate
citizens with respect to labour standards and impacts on the environment.
1.5 CRITICAL ANALYSIS
CSR is entwined in the strategic planning process of many multinational organizations.
The reasons or drive behind social responsibility towards human and environmental
responsibility whether driven by ulterior motives, enlightened self-interest, or interests
beyond the enterprise, is subject to much debate and criticism.
Some critics argue that corporations are fundamentally entities responsible for generating
a product and/or service to gain profits to satisfy shareholders. Milton Friedman and
others argue that there is no place for social responsibility as a business function. These
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critics point to the rule of corporate law that prohibits a corporation's directors from any
activity that would reduce profits.
Other critics argue that the practice cherry-picks the good activities a company is
involved with and ignores the others, thus 'greenwashing' their image as a socially or
environmentally responsible company. Still other critics argue that it inhibits free markets
or seeks to pre-empt the role of governments in controlling the socially or
environmentally damaging effects of corporations' pursuit of self-interest.
Disputed business motives
Some critics believe that CSR programmes are often undertaken in an effort to distract
the public from the ethical questions posed by their core operations. Examples of
companies that have been accused of this motivation include British American Tobacco
(BAT), which produces major CSR reports, and the petroleum giant BP, which is well-
known for its high-profile advertising campaigns on environmental aspects of its
operations.
Self-interest
Some CSR critics argue that the only reason corporations put in place social projects is
for the commercial benefit they see in raising their reputation with the public or with
government. They suggest a number of reasons why self-interested corporations, solely
seeking to maximise profits, are unable to advance the interests of society as a whole.
They point to examples where companies have spent a lot of time promoting CSR
policies and commitment to Sustainable Development on the one hand, whilst damaging
revelations about business practices emerge on the other.
For example, the McDonald's Corporation has been criticized by CSR campaigners for
unethical business practices and was the subject of a decision by Justice Roger Bell in the
McLibel case which upheld claims regarding mistreatment of workers, misleading
advertising, and unnecessary cruelty to animals. Similarly Shell has a much-publicised
CSR policy and was a pioneer in triple bottom line reporting, but was involved in 2004 in
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a scandal over the misreporting of its oil reserves which seriously damaged its reputation
and led to charges of hypocrisy. Since this has happened, the Shell Foundation has
become involved in many projects across the world, including a partnership with Marks
and Spencer(UK) in three flower and fruit growing communities across Africa.
These critics generally suggest that stronger government and international regulation,
rather than voluntary measures, are necessary to ensure that companies behave in a
socially responsible manner.
Other views from this perspective include:
Corporations really care little for the welfare of workers or the environment, and
given the opportunity will move production to sweatshops in less well-regulated
countries.
Companies do not pay the full costs of their impact. For example, the costs of
cleaning pollution often fall on society in general. As a result profits of
corporations are enhanced at the expense of social or ecological welfare.
Hindrance of free trade
These critics are generally supporters of Milton Friedman, who argued that a
corporation's principal purpose is to maximize returns to its shareholders, while obeying
the laws of the countries within which it works. Friedman argued that only people can
have responsibilities. Because of this, moderate critics suggest that CSR activity is most
effective in achieving social or environmental outcomes when there is a direct link to
profit. This approach to CSR requires that the resources applied to CSR activities must
have at least as good a return as these resources could generate if applied anywhere else.
This analysis drastically narrows the possible scope of CSR activities.
Critics who believe that CSR runs against capitalism would go further and say that
improvements in health, longevity or infant mortality have been created by economic
growth attributed tofree enterprise. Investment inless developed countries contributes to
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the welfare of those societies, notwithstanding that these countries have fewer protections
in place for workers. Failure to invest in these countries decreases the opportunity to
increase social welfare.
1.6 DRIVERS
Corporations may be influenced to adopt CSR practices by several drivers.
Ethical consumerism
The rise in popularity ofethical consumerism over the last two decades can be linked to
the rise of CSR. As global population increases, so does the pressure on limited natural
resources required to meet rising consumer demand (Grace and Cohen 2005, 147).
Industrialization in many developing countries is booming as a result of technology and
globalization. Consumers are becoming more aware of the environmental and social
implications of their day-to-day consumer decisions and are beginning to make
purchasing decisions related to their environmental and ethical concerns. However, this
practice is far from consistent or universal.
Globalization and market forces
As corporations pursue growth through globalization, they have encountered new
challenges that impose limits to their growth and potential profits. Government
regulations, tariffs, environmental restrictions and varying standards of what constitutes
labour exploitation are problems that can cost organizations millions of dollars. Some
view ethical issues as simply a costly hindrance. Some companies use CSR
methodologies as a strategic tactic to gain public support for their presence in global
markets, helping them sustain a competitive advantage by using their social contributions
to provide a subconscious level of advertising.(Fry, Keim, Mieners 1986, 105) Global
competition places particular pressure on multinational corporations to examine not only
their own labour practices, but those of their entire supply chain, from a CSR perspective.
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Social awareness and education
The role among corporate stakeholders to work collectively to pressure corporations is
changing. Shareholders and investors themselves, through socially responsible investing
are exerting pressure on corporations to behave responsibly. Non-governmental
organizations are also taking an increasing role, leveraging the power of the media and
the Internet to increase their scrutiny and collective activism around corporate behavior.
Through education and dialogue, the development of community in holding businesses
responsible for their actions is growing (Roux 2007).
Ethics training
The rise of ethics training inside corporations, some of it required by government
regulation, is another driver credited with changing the behaviour and culture of
corporations. The aim of such training is to help employees make ethical decisions when
the answers are unclear. Tullberg believes that humans are built with the capacity to cheat
and manipulate, a view taken from (Trivers 1971, 1985), hence the need for learning
normative values and rules in human behaviour (Tullberg 1996). The most direct benefit
is reducing the likelihood of dirty hands (Grace and Cohen 2005), fines and damaged
reputations for breaching laws or moral norms. Organizations also see secondary benefitin increasing employee loyalty and pride in the organization. Caterpillarand Best Buyare
examples of organizations that have taken such steps (Thilmany 2007).
Government laws and regulation
Another driver of CSR is the role of independent mediators, particularly the government,
in ensuring that corporations are prevented from harming the broader social good,
including people and the environment. CSR critics such as Robert Reich argue that
governments should set the agenda for social responsibility by the way of laws and
regulation that will allow a business to conduct themselves responsibly.
The issues surrounding government regulation pose several problems. Regulation in itself
is unable to cover every aspect in detail of a corporations operations. This leads to
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burdensome legal processes bogged down in interpretations of the law and debatable grey
areas (Sacconi 2004). General Electric is an example of a corporation that has failed to
clean up the Hudson River after contaminating it with organic pollutants. The company
continues to argue via the legal process on assignment of liability, while the cleanup
remains stagnant. (Sullivan & Schiafo 2005). The second issue is the financial burden
that regulation can place on a nation's economy. This view shared by Bulkeley, who cites
as an the Australian federal government's actions to avoid compliance with the Kyoto
Protocol in 1997, on the concerns of economic loss and national interest. The Australian
government took the position that signing the Kyoto Pact would have caused more
significant economic losses for Australia than for any other OECD nation (Bulkeley
2001, pg 436). Critics of CSR also point out that organizations pay taxes to government
to ensure that society and the environment are not adversely affected by business
activities.
Crises and their consequences
Often it takes a crisis to precipitate attention to CSR. One of the most active stands
against environmental management is the CERES Principles that resulted after the Exxon
Valdez incident in Alaska in 1989 (Grace and Cohen 2006). Other examples include the
lead poisoning paint used by toy giant Mattel, which required a recall of millions of toys
globally and caused the company to initiate new risk management and quality control
processes. In another example, Magellan Metals in the West Australian town of
Esperance was responsible for lead contamination killing thousands of birds in the area.
The company had to cease business immediately and work with independent regulatory
bodies to execute a cleanup.
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2: BEST PRACTICES OF CSR AT INTERNATIONAL
LEVEL
2.1 BEST PRACTICES OF CORPORATE SOCIALRESPONSIBILITY IN ASIA
Background
Corporate social responsibility (CSR) is becoming a critical theme to further enhance
private-public partnerships in Asia. ADBI will organize a series of workshops on this
topic from 2006-2008 to identify best practices of private corporations in delivering CSR
in developing Asia to improve their corporate governance.
Objectives
The workshop aims to:
introduce the current concept of CSR and its development
overview the current situation of CSR in Asia and the Pacific
address the issues and problems of CSR in the context of post-financial crisis
in Asia
strengthen staff resources and capacity of CSR
enhance financial incentives for the private sector to allocate more resources
for CSR
introduce best practices of CSR in other regions
Outputs
30-40 well trained policy makers
Executive summary of the workshop
Participants
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Senior corporate and government officials from selected ADB developing member
countries. Each participant will be required to prepare a case or best practice of CSR in
respective countries.
Language
English (No interpretation will be provided)
Responsibilities
Each participant is required to participate in every session during the course and prepare
an action plan better manage CSR
Cosponsors
ADB, Chambers of Commerce and Business Organizations, Association of Southeast
Asian Nations, Asia-Pacific Economic Cooperation, and Organization for Economic Co-
operation and Development.
2.2 CORPORATE SOCIAL RESPONSIBILITY: CSR EUROPE(CSRE)
Organization Profile
CSR Europe is a non-profit organisation that promotes corporate social
responsibility. Its mission is to help companies achieve profitability, sustainable growth
and human progress by placing corporate social responsibility in the mainstream of
business practice.
CSR Europe Objectives
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o To convince managers of the benefits of socially responsible business
practice, by providing over 500,000 business people and partners with
print and online publications, best practices and tools, annually.
o To offer business managers learning, benchmarking, and capacity
building opportunities.
o To energize a broader stakeholder dialogue between businesses,
European policy makers, governments, investors, social partners, civil
society and academics.
o Through its 65 company members, 18 national partner organisations,
its thematic work and dialogue and its online CSR info centre, CSR
o Europe has become the major European reference point on corporate
social responsibility strategies and practices for companies.
o Through its national partner organisations, we reach out to more than 1500
companies around Europe.
Corporate Social Responsibility Principles
o By sharing experience and enhancing the capacity of current and future
managers, CSR Europe member companies are committed to promote the
following principles as part of achieving business success:
o Conduct business responsibly by contributing to the economic
health and sustainable development of the communities in which we
operate.
o Offer its employees healthy and safe working conditions, ensure fair
compensation, good communication as well as equal opportunity for
employment and development.
o Offer quality, safe products and services at competitive prices, meet
customers needs promptly and accurately and work responsibly with our
business partners.
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o Minimise the negative impacts our activities can have on the
environment and its resources, while striving to provide our customers
with products and services that take sustainable consumption into account.
o Be accountable to key stakeholders through dialogue and
transparency regarding the economic, social and environmental impacts of
our business activities.
o Operate a good governance structure and upholds the highest
standards in business ethics.
o Provide a fair return to our shareholders while fulfilling the above
principles.
o CSRE is responding to European heads of state and government who, at
the Lisbon summit 2000, set the goal of making "Europe the most
competitive and dynamic knowledge-based economy in the world, capable
of sustainable economic growth, with more and better jobs and greater
social cohesion by 2010.
o CSR Europe was set up in 1996 by former European Commission
president Jacques Delors. Today, European institutions regard us as the
expert on CSR in Europe. Supported by its 18 national partner
organisations, CSR Europe is also the only truly European authority on
corporate social responsibility.
2.3 US-ASEAN CORPORATE SOCIAL RESPONSIBILITY
Overview
A vision of development that leaves out the private sector is only vision, said a UNDP
official. Today, multinational companies play a vital role in social development as
businesses not only fund but provide labor and planning for community projects that
range from educational courses that teach elementary school children about health and
dental hygiene to micro-credit programs for poverty stricken families trying to earn a
living.
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US companies, in addition to the integral economic and business roles that they play in
individual ASEAN countries, also invest large amounts of human and financial capital
towards improving developing communities. With social programs that address
education, health, human rights, and environment needs of the local people, US
companies have continued to build upon mutually beneficial relationships established
with the 10 ASEAN Nations.
Mission Statement
The member companies of the US ASEAN Business Council recognize the important
role private business can play in bettering the local communities they do business in. In
an effort to play a more proactive role in promoting US company sponsored community
activities existing or in the works, the Council is launching a new working groupfocusing on Corporate Responsibility and promoting existing and future private and
public sector community initiatives related to ASEAN.
The US ASEAN Business Council is creating the Corporate Social Responsibility
webpage to give member companies a venue to:
1. Communicate what the company has done in the realm of corporate responsibility in
the ASEAN region
2. Share best practices with other companies
3. Obtain ideas on future projects within the region
By promoting the community projects member companies are involved in, the Corporate
Responsibility Working Group of the US ASEAN Business Council hopes to emphasize
that economic integration and globalization can not only improve economic conditions,
but also have a positive social impact in a country.
2.4 AFRICA: CORPORATE SOCIAL RESPONSIBILITY
It is recognized that poverty reduction and sustainable development will not be
achieved through government action alone. Policy makers are paying increasing attention
to the potential contribution of the private sector to such policy objectives.1 The concept
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of corporate social responsibility (CSR) is sometimes used as shorthand for businesses
contribution to sustainable development. A number of core development issues are
already central to the international CSR agenda. They include labour standards, human
rights, education, health, child labour, poverty reduction, conflict and environmental
impacts.
But what does this mean at the national level, particularly in those countries in which
sustainable development challenges appear most intractable? Does CSR have resonance
among local stakeholders? Key aspects of the emerging CSR agenda in two countries in
sub- Saharan Africa Kenya and Zambia in order to explore what it would take to help
unlock the potential private sector contribution to sustainable development in each
country.
Key Points
Both Kenya and Zambia face significant development challenges. If we are to
maximise the potential contribution of the private sector to poverty reduction and
sustainable development, these are two of the countries in which this is most needed.
Although the concept of corporate social responsibility (CSR) is gaining
some prominence within policy debates in Kenya and Zambia, it is not applied widely
and is usually associated with philanthropy. But there are many private sector-related
initiatives and business activities in both countries that might be described as expressions
of CSR, and there are also emerging specialist CSR organisations.
The private sector contribution to sustainable development in both Zambia and
Kenya could be strengthened by tackling capacity constraints among public and civil
society institutions, building the drivers for responsible business, nurturing socially-
oriented companies, and encouraging local business linkages.
Creating space for national dialogue between government, business, civil society
and donors on the role of the private sector in development can help to localise the CSR
agenda, and to build trust and mutual understanding of the potential and the limits of
businesses contribution to development.
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3: GLOBAL WORKFORCE STUDY SOCIAL
RESPONSIBILITY
Companies have their own ideas about corporate social responsibility (CSR) and how
much of a commitment they make to it. It can range from "going green" to supporting
local charities.
But one thing is increasingly clear. It's not a choice any longer. Your employees expect it,
and your company needs it.
What used to be considered good PR, or window dressing for community relations, is in
fact linked to how well your employees perform. In other words, CSR extends to the
bottom line. Sound like an exaggeration?
3.1 THE ENGAGEMENT CONNECTION
In ourGlobal Workforce Study, we found that CSR is the third most important driver of
employee engagement overall. For companies in the U.S., an organization's stature in the
community is the second most important driver of employee engagement, and a
company's reputation for social responsibility is also among the top 10 drivers. Take a
look:
This is important because higher employee engagement levels are highly correlated
with better business performance as measured by revenue, earnings and other key
business metrics.
3.2 HELPING TO ATTRACT TALENT
Our Global Workforce Study also found that a company's reputation as a good employer
ranks sixth as an attraction driver. Organizations with a reputation for CSR can take
advantage of their status and strengthen their appeal as an attractive employer by making
their commitment part of their value proposition for potential candidates.
Some of the world's largest companies have made a highly visible commitment to CSR,
for example, with initiatives aimed at reducing their environmental footprint. These
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companies take the view that financial and environmental performance can work together
to drive company growth. This attitude can only serve to enhance the employment value
proposition as interest in "going green" gains traction.
3.3 THE CSR FACTOR: COMPANY REPUTATION
We also found that when employees view their organization's commitment to socially
responsible behavior more favorably, they also tend to have more positive attitudes in
other areas that correlate with better performance. They believe their organizations
recognize and reward great customer service, act quickly to address and resolve customer
concerns, and are led by people in senior management who act in the best interest of
customers.
Confidence in senior management is higher in other areas, too, when employees give
their company high marks for being socially responsible. For example, 82% of these
employees say their organization's senior management supports new ideas and new ways
of doing things. This correlation is important because a company's success in the
marketplace is often influenced by its capacity for innovation.
So you can add corporate social responsibility the CSR factor to the top drivers of
workplace engagement. It's also a factor in attracting and retaining talent. And the moresenior management is seen to be out front on the issue, the more employees like it.
3.4 SUSTAINABLE BUSINESS PRACTICES
In Europe and elsewhere outside the U.S., companies have been taking their social role
seriously for years, often under the banner of what is known as corporate sustainability.
The EU has developed a corporate sustainability framework, which identifies a
progressive set of economic, social and environmental objectives that companies areencouraged to achieve.
At Towers Perrin, we have developed a methodology to assess the employee perspective
on sustainable business practices (SBP). These practices represent a continuing
commitment by a company to behave ethically and contribute to economic development
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while improving the quality of life of its workforce and family members, as well as the
local community and society at large. Towers Perrin's SBP index specifically covers five
areas:
awareness and perceived importance among employees employee sustainable behaviors
social and community performance
environmental performance
ethical and legal performance.
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4: CSR STUDY IN DIFFERENT GLOBALIZED
COMPANIES
4.1 WIPRO
Wipro Ltd (BSE: 507685, NYSE:WIT) is a giant information technology services
corporationheadquartered in Bangalore,India. According to the 200809 revenue, Wipro
is one of the largest IT services company in India and employs more than 115,900 people
worldwide as of September 2010. It has interests varying from information technology,
consumer care, lighting, engineering and healthcare businesses. It is 9th most valuable
brand in India according to an annual survey conducted by Brand Finance and The
Economic Times in 2010. Azim Premji is the Chairman of the board.
Major Divisions
Cyber Towers the software landmark of Hyderabad. Located at Madhapur surrounded by
many software majors like Wipro, IBM and Accenture.
IT Services: Wipro provides complete range of IT Services to the organization.
The range of services extends from Enterprise Application Services (CRM, ERP,
e-Procurement and SCM) to e-Business solutions. Wipro's enterprise solutions
serve a host of industries such as Energy and Utilities, Finance, Telecom, and
Media and Entertainment.
Product Engineering Solutions: Wipro is the largest independent provider of R&D
services in the world. Using "Extended Engineering" model for leveraging R&D
investment and accessing new knowledge and experience across the globe, people
and technical infrastructure, Wipro enables firms to introduce new products
rapidly..
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http://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=507685http://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=507685http://en.wikipedia.org/wiki/New_York_Stock_Exchangehttp://www.nyse.com/about/listed/quickquote.html?ticker=withttp://www.nyse.com/about/listed/quickquote.html?ticker=withttp://en.wikipedia.org/wiki/Information_technologyhttp://en.wikipedia.org/wiki/Headquarterhttp://en.wikipedia.org/wiki/Headquarterhttp://en.wikipedia.org/wiki/Bangalorehttp://en.wikipedia.org/wiki/Bangalorehttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Information_technologyhttp://en.wikipedia.org/wiki/Customer_servicehttp://en.wikipedia.org/wiki/Customer_servicehttp://en.wikipedia.org/wiki/Lightinghttp://en.wikipedia.org/wiki/Engineeringhttp://en.wikipedia.org/wiki/Engineeringhttp://en.wikipedia.org/wiki/Healthcarehttp://en.wikipedia.org/wiki/Azim_Premjihttp://en.wikipedia.org/wiki/Chairman_of_the_boardhttp://en.wikipedia.org/wiki/Image:WiproLogo.jpghttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=507685http://en.wikipedia.org/wiki/New_York_Stock_Exchangehttp://www.nyse.com/about/listed/quickquote.html?ticker=withttp://en.wikipedia.org/wiki/Information_technologyhttp://en.wikipedia.org/wiki/Headquarterhttp://en.wikipedia.org/wiki/Bangalorehttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Information_technologyhttp://en.wikipedia.org/wiki/Customer_servicehttp://en.wikipedia.org/wiki/Lightinghttp://en.wikipedia.org/wiki/Engineeringhttp://en.wikipedia.org/wiki/Healthcarehttp://en.wikipedia.org/wiki/Azim_Premjihttp://en.wikipedia.org/wiki/Chairman_of_the_board -
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Technology Infrastructure called as TIS provides remote infrastructure
management solutions and services. Wipro Technologies achieves this through a
Global Command Centre (GCC) which consolidates services and resources in one
place and centrally manage them. It is a true enabler for the company for
providing services in infrastructure management.
Corporate Social Responsibilities
The Azim Premji Foundation run by the Wipro chairman is working on providing
elementary schooling to thousands of underprivileged children. It believes in partnering
to guarantee learning in school.
The CSR effect has been creating a positive ripple in both society and the corporate
world. The initiative has changed the landscape of India's development sector. A large
number of public and private sector organisations have their own foundations, which
work in close association with NGOs and the government.
Together they tackle a lot of local and public issues. These organisations focus on
education, primary healthcare, AIDS awareness and infrastructure.
In the words of Dr Madhav Mehra, President of the UK-based World Environment
Foundation and the World Council for Corporate Governance, "The realisation that
companies have a great prospect to making profits through a triple bottom line approach
is helping the development sector to enhance its reach and tackle the yawning gap
between India's rich and poor."
Wipro Cares is a foundation focused on primary education that has been set up with a
corpus of Rs.1000 million.The objecive of Wipro Cares is to harness the creativity,
passion and sense of social responsibility of all Wipro employees to contribute to the
society that we live and work in.
For instance, Wipro Cares will be educating 3500 children through Child Care India.
Libraries have been set up in slums, computer skills are imparted and scholarships are
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made available to needy students. In the short time since its inception, Wipro Cares has
brought joy to many - to the children whose lives it has touched as well as the Wipro
employees who have experienced the pleasure of giving.
Wipro's Gujarat Earthquake Relief Fund
In response to a corporate announcement requesting contribution from Wiproites to help
provide relief for the earth quake victims in Gujarat, an amount of Rs 10 million was
collected. After Wipros matching contribution, the total amount available is Rs 20
million, Wipro will ensure that this amount is utilized for the rehabilitation work either
directly or through an identified NGO.
At present our focus area is education. We see that education is very
fundamental to development. So, if we work in the field of education, then we feel we
have helped people to access whatever opportunities that are available.
Wipro is seen as a knowledge company, and education fits in well with our work. More
and more jobs are now based on the knowledge industry. Even traditional jobs like
trading now require automation and therefore education has become necessary.
Along with our education initiatives, we also have Wipro Cares. There is a lot of desire
among our employees to volunteer. Many of them want to spend time and money on
social causes.
Wipro Cares is a platform through which they can do this. When Wipro Cares came into
being three years ago, we just collected funds for relief operations. For instance, after the
Gujarat earthquake, we collected over Rs.1 crore. We sent clothes and essentials to
Gujarat, and also built a hospital. But later we realised that we must do something in an
ongoing manner and not wait for natural calamities to start our voluntary activities.
Our volunteers did a quick survey around urban slumsin Bangalore and Hyderabad.
identified three major issues---unemployment, hygiene and sanitation. Now we will start
addressing these issues.
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Evaluating CSR Programs
The impact of our programme is not easy to assess. How do you assess whether
the quality of teaching has improved? How soon can quality be tested?
There is an evaluation process built into each component of the Wipro Applying Thought
in Schools Programme. For instance, the teachers programme does require students and
senior educational consultants who sit in during classes to evaluate the teaching process.
But this is not an evaluation of the programme, but only an evaluation of the teaching.
At present, therefore, we are still exploring on an effective method to evaluate our
programme. We have invited our partners to come up with ways to make evaluation
possible.
We realise that evaluation is an extremely important part of doing any kind of work. It is
evaluation that helps us to learn. When we ask our teachers to continue learning, we
ourselves cannot stop learning. And not knowing the impact of ones work amounts to
not learning about the process.
Education
Wipro chairman Azim Premji gave about Rs 8,846 crore ($2 billion) to improve school
education in India. Other donations to charitable institutions by any person or corporation
in India pale in comparison to this massive endowment. It effectively silences critics who
say Indian billionaires are measly donors compared to foreign counterparts, and that they
focus on big-name western universities rather than addressing Indias problems.
Azim Premji is actively involved in social works through his organization Azim Premji
Foundation. Programmes of the Azim Premji Foundation focus on "creating effective and
scalable models that significantly improve the quality of learning in the school and ensure
satisfactory ownership by the community in the management of the school". Azim Premji
Foundation says it "dedicates itself to the cause of Universalization of Elementary
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Education in India. The organisation has over the years been instrumental in improving
the quality of general education, particularly in rural schools.
This donation would be done by transferring 213 million equity shares of Wipro Ltd,
held by a few entities controlled by him, to the Azim Premji Trust.This donation is the
first of its kind by any Indian billionaire.
4.2 JOHNSON AND JOHNSON
SOCIAL AND ENVIRONMENTAL RESPONSIBILITY
Johnson & Johnson is one of the largest corporate contributors, based on total
cash and product donations, with 2004 worldwide contributions totaling over
$528 million.
Emergency relief provided since the early 1900s for victims of natural disasters
and other emergencies.
Johnson & Johnson continues to strengthen its relationships with leading
environmental organizations committed to sustainable development. Other
environmental partnership activities have focused on the protection of endangered
species and habitats, as well as supporting environmental education initiatives in
local school districts.
SOCIAL RESPONSIBILITY
Through Our Credo, Johnson & Johnson is committed to improving the community
through a variety of programs both in the United States and abroad. In this section, you
can learn about our Contributions program, Environmental commitments and Health and
Safety efforts. You can also review ourpolicies on Equal Opportunity, child labor,
business conduct and other key issues. OurCorporate Informationsection will acquaint
CORPORATE SOCIAL RESPONSIBILITY 24
http://www.jnj.com/community/contributions/index.htmhttp://www.jnj.com/community/contributions/index.htmhttp://www.jnj.com/community/environment/index.htmhttp://www.jnj.com/community/environment/index.htmhttp://www.jnj.com/our_company/our_credo/index.htmhttp://www.jnj.com/community/policies/index.htmhttp://www.jnj.com/community/policies/index.htmhttp://www.jnj.com/community/corporate_info/index.htmhttp://www.jnj.com/community/corporate_info/index.htmhttp://www.jnj.com/community/contributions/index.htmhttp://www.jnj.com/community/environment/index.htmhttp://www.jnj.com/our_company/our_credo/index.htmhttp://www.jnj.com/community/policies/index.htmhttp://www.jnj.com/community/corporate_info/index.htm -
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you with our financial performance and overall structure, while Corporate Governance
will explain the practice of ethical business conduct. There is also information about the
Board of Directors and the Committees of the Board.
In response to the loss of life and property caused by the recent
mudslides in the Philippines, Johnson & Johnson has donated a disaster relief module,
which includes medical supplies, disinfectants, analgesic and other products. In addition,
the Company has made donations to local relief organizations and employees in the
Philippines are conducting a volunteer and donation drive for the mudslide victims.
Through ourcontributions efforts, we are actively involved in supporting ongoing health
care, educational and cultural programs. We are committed to a healthy environment
through a reduction in our facility environmental impacts and our participation in
conservation projects. Johnson & Johnson has established high standards for the health
and safety of our workers and has worked with others in our community to share our
knowledge in this area.
OurHIV/AIDS section includes information about the many projects Johnson & Johnsonsponsors to combat the spread of this deadly virus.
Ourpublications section includes yearly reports which discuss Johnson & Johnson's
various programs, projects and activities in the areas of charitable giving, environmental
sustainability and workplace safety, as well as our Annual Report.
Johnson & Johnson is proud that its stock is included in the Dow Jones
Sustainability Index (DJSI). The DJSI family follows a best-in-class
approach comprising the sustainability leaders in each industry.
Categorized by industry group, companies are assessed against general
and industry-specific criteria and then compared against their peers and ranked
accordingly
CORPORATE SOCIAL RESPONSIBILITY 25
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CONTRIBUTIONS:
We must be good citizens support good works and charities..." Johnson & Johnson
Credo
In response to the loss of life and property caused by the recent
mudslides in the Philippines, Johnson & Johnson has donated a disaster relief module,
which includes medical supplies, disinfectants, analgesic and other products. In addition,
the Company has made donations to local relief organizations and employees in the
Philippines are conducting a volunteer and donation drive for the mudslide victims.
At Johnson & Johnson, improving the health and welfare of people around the world is
an integral part of our business.
Since the San Francisco earthquake of 1906, Johnson & Johnson has provided disaster
relief supplies to aid the victims of hurricanes, floods, fires and, more recently, terrorism.
Johnson & Johnson's commitment to social responsibility is reflected in the Johnson &
JohnsonCredo and exemplified by a number of key community initiatives described in
the Contributions Annual Report. Through the Contributions Program, a worldwide
social responsibility effort, Johnson & Johnson aligns its philanthropic initiatives with its
expertise in four key platforms for giving: Access to Health Care, Children's Health,
Professional Development and Education and Community Responsibility. Johnson &
Johnson sponsors a number of programs structured around the principles of these
platforms.
Johnson & Johnson has created "Signature Programs" in order to address community
needs through focused strategies which are clearly aligned with the Company's
Contributions platforms. One of these programs, the Johnson & Johnson-Wharton
Fellows Program in Management for Nurse Executives, has graduated 805 studentsfrom
the United States, Australia, Canada, Saudi Arabia and Cuba. In addition, the Company
CORPORATE SOCIAL RESPONSIBILITY 26
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supports local initiatives that are critical to the communities in which we live and work.
Johnson & Johnson worked with hundreds of nonprofit U.S.-based and international
organizations during 2004, making $528.7 million in cash and product contributions. In
2001, a pledge of $10 million to aid the victims of the September 11 terrorist attacks gave
needed support to numerous organizations aiding the victims and their families.
CORPORATE INFORMATION:
Johnson & Johnson's commitment to the community comes from a dedication to the
principles defined60 years ago by then Chairman of the Board General Robert Wood
Johnson in Our Credo. This living document, which has been translated into dozens of
languages, establishes the company's responsibilities to customers, employees, the
communities in which we operate and to the stockholders. In order to determine how
effectively the company's policies fulfill these Credo responsibilities, employees
throughout Johnson & Johnson are periodically surveyed to be sure that the company
conducts business in accordance with the Credo.
Johnson & Johnson, which was founded in 1887, employs 115,600 people in 57
countries around the world. Our 200operating companies produce thousands of
products spanning our threebusiness segments. This site's Corporate Governance sectiondescribes our management structure and includes information on how Johnson & Johnson
fulfills our Credo responsibilities through the practice of ethical business conduct. There
is also information about the Board of Directorsand the Committees of the Board.
Financial information about Johnson & Johnson, including services for shareowners and
an electronic version of the Annual Report, can be found in the Investor Relations
section. A calendar of upcoming financial events and an archive of recent webcasts is
available, as is historical sales information about the company.
Johnson & Johnson is committed to a diverse and stimulating workplace. OurDiversity
section illustrates how the Credo continues to guide our business decisions, both inside
and outside of the company and states ourDiversity Vision of being the employer of
choice in a dynamic global environment.
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DIVERSITY:
Diversity is part of the culture of Johnson & Johnson, where we recognize the value that
differences in age, race, gender, nationality, sexual orientation, physical ability, thinking
style and background bring a richness to the working environment. Our vision is to be
the Employer of Choice in a Dynamic Global Environment.
ENVIRONMENT:
"We must maintain in good order the property we are privileged to use, protecting the
environment and natural resources." Johnson & Johnson Credo
Healthy People..Healthy Planet reflects our understanding of the criticalinterdependence between human health and the health of our planet. As one of the
worlds most broadly based and diversified health care companies, we feel a special
responsibility to protect the environment.
GOVERNANCE:
At all levels, Johnson & Johnson employees are committed to the ethical principals
outlined by Our Credo. These principles have guided us for many years and will continueto set the tone of integrity for the entire Company. The Credo values extend to our
accounting and financial reporting responsibilities that we have to our shareholders and
investors, and many shareholders are interested in how the company is managed. For
information on our structure, the Board of Directors and the committees on which they
serve, our policies, corporate documents and filings with the Securities and Exchange
Commission.
HIV/AIDS:
As a global company dedicated to human health for more than 120 years, Johnson &
Johnson has a deep and abiding commitment to summon our skills and resources to help
address what is surely one of the most critical health issues facing our world today,
HIV/AIDS.
CORPORATE SOCIAL RESPONSIBILITY 28
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Enhancing health care for people suffering from HIV/AIDS is a priority for Johnson &
Johnson; it is inherent in our responsibility to the global community as expressed in Our
Credo. We aspire to make a difference in the lives of those infected and affected by
HIV/AIDS by:
Developing effective new medicines and diagnostics against HIV and related
opportunistic infections;
Enhancing access to our products as well as needed patient care and support;
Providing contributions to assist communities and individuals who are most
vulnerable to HIV/AIDS; and
Meeting our obligations to employees through HIV/AIDS workplace programs.
The number of men, women and children suffering from HIV/AIDS is staggering. While
we are humbled by the extent of this pandemic and recognize that no single company or
coalition can address all aspects of HIV/AIDS, we believe we can make a meaningful
contribution and are committed to do so.
We are working with many local and global organizations and creating partnerships with
new organizations to help vulnerable communities. Our contributions focus on helping
meet the needs of children, women and families and supporting organizations providingcare, education, prevention and access to treatment. Improving lives will take a
collaborative effort by companies like Johnson & Johnson as well as caregivers,
scientists, governments and non-governmental organizations, advocacy groups, health
care professionals and patients.
Johnson & Johnson sponsors HIV/AIDS philanthropic programs in locations around the
world. Our initiatives will build on this portfolio of giving and will combine financial,
medical and human resources to address this pandemic. To find out more about our
efforts, click on the map below.
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HEALTH AND SAFETY:
"Compensation must be fair and adequate, and working conditions clean, orderly and
safe." Johnson & Johnson Credo
POLICIES:
In order to ensure that Johnson & Johnson fulfills the responsibilities listed in Our Credo,
company-wide polices have been adopted which guide the decisions and actions of our
employees. These policies apply to all aspects of the business and address our duties to
our employees, our customers and to the communities in which we work. Johnson &
Johnson surveys employees at all locations every two to three years to learn their
impressions of how well the Company performs its Credo responsibilities. These
assessments are then fed back to the senior management, and where there are
shortcomings, corrective action is taken.
GENERAL POLICIES:
Climate Friendly Energy Policy
Employment of Young Persons
Equal Employment Opportunity Policy
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Global Labor & Employment Guidelines
Harassment Policy
Johnson & Johnson Safety Vision Statement
Laboratory Research Animal Testing
Our Ethical Code For The Conduct of Pharmaceutical Medicine
Our Policy on Grants
Policy on Business Conduct
Health & Safety Policy
Work and Family Leave and Family Medical Leave Absence (FMLA)
Worldwide Environmental Policy
PUBLICATIONS:
Johnson & Johnson publishes a number of documents that outline our efforts in the area
of social responsibility. These reports document our performance, state our plans and
goals for the future and describe just a few of the many programs and projects supported
by Johnson & Johnson.
4.3 NOVO NORDISKIn the twenty-first century, many corporations are acknowledging the need for
a more responsible strategy that marries economic success with environmental
protection. As most companies inch at a snails pace into the green limelight, there
are a few whose seasoned experience in dealing with environmental dilemmas is
allowing them to reach beyond the initial recognition of adverse environmental
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impact. One such company is Novo Nordisk, a Danish pharmaceutical company that
is positioning itself to have a unique influence, not only on its own operations but
also on suppliers in the next link of the supply chain.
Novo Nordisk has been developing an implementation strategy for a Triple Bottom
Line (TBL) encompassing social, environmental, and economic dimensions since
the early 1990s, giving it an advantage over competitors who are just beginning to
deal with social and environmental responsibility issues. As the company tracks its
own performance based on TBL criteria and hones in on its all-inclusive
environmental and social impact, relationships with outside suppliers are being
studied. In evaluating the overall supply chain, the company has realized that the
transporters that it contracts are also a part of Novo Nordisks net climate impact. Thecompanys work to influence the supply chain and reduce this impact stands out as
some of the most ground-breaking in the corporate sustainability field.
COMMITMENTS
Financial responsibility
We will work to continuously improve our financial performance by setting high
objectives for growth and value creation and deliver competitive performance in theseareas. We will maintain an open dialogue with our stakeholders and comply with
international reporting standards.
Environmental responsibility
We will work to continuously improve our environmental performance by setting high
objectives and integrating environmental and bioethical considerations into our daily
business. We will maintain an open dialogue with our stakeholders and report annually
on our environmental performance.
We subscribe to the International Chamber of Commerce's Business Charter for
Sustainable Development.
We support the United Nations Convention on Biological Diversity.
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Social responsibility
We will work to continuously improve our social performance by setting high objectives
and integrating social, human rights and health & safety considerations into our daily
business. We will maintain an open dialogue with our stakeholders and report annually
on our social performance.
SOCIAL RESPONSIBILITIES OF NOVO NORDISK
Impact on the Environment
As the company has developed a more sophisticated methodology for reducing
impact on the environment, environmental managers now try to integrate
environmental considerations into product development, fabrication, use and final
disposal. The company has sought to reduce energy use and emissions through
strategies such as implementing energy saving programs, purchasing environmentally
certified hydroelectric power and other renewable sources, substituting alternative
cooling agents for chlorofluorocarbons (CFCs), internally reusing energy and
chemicals, externally recycling materials, and working with suppliers to developenvironmentally sound packaging materials.
In 2002, Novo Nordisk purchased 30 percent of its energy from renewable sources,
including a hydropower plant identified as renewable energy by the Swedish Society
for Nature Conservation and Eco-labelling. The remaining renewable energy was
provided by the Danish power grid and included sources like wind and biomass.
The company has also found ways to safely recycle some of the waste products fromits industrial production process. The key raw materials used in microbial
fermentation to produce therapeutic proteins are water, nutrients and sugar. The main
byproduct from this fermentation is yeast sludge, a non-toxic substance. At least one
industrial plant recycles the sludge either as pig feed for local farms or as raw
material for biogas generation.
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Managing to Achieve the Triple Bottom Line
The Stakeholder Relations department drives much of the environmental
management at Novo Nordisk and focuses primarily on eco-efficiency as the main
environmental goal. Reporting on the Triple Bottom Line 2001 explains that, Our
eco-productivity indices (EPIs) express eco-efficiency as the ability to effectively
utilize resources, relating the scale of production to the consumption of resources.
This is used for water, energy, and packaging as well as raw materials. An increase in
an index is a positive trend and shows greater efficiency.
In managing the impact on climate, Novo Nordisk has instituted both a
comprehensive measurement tool for energy use and a strategy to reduce energy use
overall. The total energy consumption for Novo Nordisk in 2001 amounted to
510,596,400 kilowatt-hours which was an increase of 6 percent from 2000. Total
CO2 emissions, however, only increased by 3 percent because more of the energy
purchased came from renewable energy sources. Also, these increases in energy use
and emissions occurred while profits were increasing by 25%. The EPI increased by 4
percent, reflecting this increase in energy efficiency.
Avoiding Transport Emissions
Novo Nordisk recognizes that a critical component to the companys objective of
producing pharmaceutical products to be available worldwide is transporting those
products to consumers. Although the company is not directly responsible for the
environmental impacts associated with transporting its goods, this stage in the supply
chain ultimately leads to a significant quantity of fossil fuel emissions which
ultimately impact global warming, acidification, and photochemical smog.
One of the general targets towards which progress has been made is the improvement
of methods for reporting transport emissions, and then using the results to reduce the
environmental impact, in cooperation with transport suppliers. Novo Nordisk has
pledged to assess the environmental and social performance of 90 percent of key raw
material suppliers and a range of key suppliers in service and engineering. Truckers
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of raw materials are the initial supplier group that have been zeroed in on. As
transport data from trucks pours in, Novo Nordisk is beginning to require strict
environmental guidelines to reinforce the message to suppliers to cut down on
emissions. One of new requirements is efficient refrigeration and heating controls
inside trucks.
Benefits of Engaging in Corporate Social Responsibility
1) Increased profit
2) Access to capital
3) Reduced operating costs/increased operational efficiency
4) Enhanced brand image and reputation
5) Increased sales and customer loyalty
6) Increased productivity and quality
7) Increased ability to attract and retain employees
8) Potentially, reduced regulatory oversight
9) Reducing risk, and increased risk management
10) Keeping up with competitors and where the market is.
The Dangers of Corporate Social Responsibility
The magnificent seven ride again. But beware, they might bump into the glass
ceiling, or, worse, fall victim to carpet-bombing syndrome. This collection of clichs,
laced with breathless examples of consultancy-speak such as triple bottom line and
blended value, are intended to draw attention to a new study of corporate
sustainability reporting by big firms, published on November 18th. Entitled Trust Us,
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it has been co-written by a consultancy, SustainAbility, which counts such companies as
Ford and Shell among its clients, and the United Nations Environment Programme. A
SustainAbility consultant, Oliver Dudok van Heel, preaches that its mission is to make
companies behave responsibly, for the sake of present and future generations.
Firms are falling over themselves to compete for an ethical Oscar. For the record, this
year's magnificent seventhose with the best scores for social policy and environment
reportsare the Co-Op Bank, NOVO NORDISK, BAA, British Telecom, Rio Tinto,
Shell and BP. The glass ceiling is a coded way for the authors to say that these reports
have not improved in quality since the first such survey was carried out in 2000.
However, since then, the authors chastise, they have gained 45% in volume and now
measure, on average, a frightening 86 pages apiecehence the reference to carpetbombing.
The aim of sustainability reportingto determine if a firm trades fairly, protects the
environment and so onmay be relatively new, but the tone of this report is thoroughly
Victorian, a sort of schoolmasterly could do better. And herein lies a serious concern.
Pervading the report is the sense, increasingly widespread nowadays, that companies are
inherently immoral unless they demonstrate that they are the oppositein effect, guiltyuntil proved innocent. Yet, even allowing for some recent corporate scandals and the odd
crooked chief executive, most law-abiding companies do good simply as a by-product of
their pursuit of profitsas Adam Smith first proclaimed over 200 years ago. In its rush to
sell clients advice on how to buff up their ethical image, SustainAbility glosses over the
fact that the likes of Wal-Mart employ thousands of staff worldwide and also deliver
goods cheaply to consumers.
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5: INDIA AND CSR
In India, the market is the new mantra. Globalization has brought in new players
and alluring products into markets. The growing middle class, which has been bereft, of
goods in the past, is too happy consuming, to want to pay heed to what may lieunderneath. American style, glass lined shopping malls teem with the newly rich. Plastic
money has made hitherto inaccessible goods merely a signature away. It is a new ethos,
expectant and eager, which draws in glitzy brands supported by nubile advertising. The
dismal human condition of the rest of the country does not exist here, and the fact that
over 25 % of the country does not have even a meal a day is a mere statistic3. It is an
engagement, which for many is an uncomfortable one, and a willingness to believe in
corporate literature an easy out of any possible guilt.
In such a context the picking seems to be easy for businesses with the system available
to be beaten for profit. Terms like ethical behavior can put an uncomfortable hurdle in
that path and for a powerful corporate bending rules, is not too difficult. Corporate
philanthropy helps as well. NGOs are funded to carry out community development
work, and these too are advertised as part of the branding process4. Cynically, such
donations also obtain local tax rebates. But even though some people may benefit from
such charity, it does not translate into changing the way business itself is done.
Can Corporate Social Responsibility truly be a reality in such a context? Or does it need
other legal and institutional pushes which empower the citizenry to function adequately?
Such provisions can include effective liability laws, information disclosure requirements,
corporate accountability and an impartial implementa
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