Corporate Social Responsibility LECTURE 31: Corporate Social Responsibility MGT 610 1.

Corporate Social Responsibility

LECTURE 31:

Corporate Social ResponsibilityMGT 610

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Corporate Social Responsibility

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Chapter 9/10 Global CSR

The Road Ahead

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LEARNING OBJECTIVESUnderstand if there is a commonality in CSR practice

Understand how CSR will evolve in the future Analyse the importance of shared growth through

different models Understand that CSR has to be integrated in the

business process for sustainable development

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•If we analyze the three words in CSR, i.e. corporate, social, and responsibility, it would be easier for us to evaluate whether a common CSR formula can be created• Corporation is easy to define• Society includes the wide concept of a national social system to

narrow the vision of the surrounding community around a company• Number of actors and number of relationships• Have a close relationships with history and culture• Differ from country to country

• Responsibility deals with intangible emotions like accountability and integrity• measuring is not easy• Cannot segregate the action of policies if multiple

companies are working together• Example: effective use of scarce resources

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•one fit for all is not easy•Universal ethical concepts can serve as basis•For implementation, socio economic situation and political situation has to be taken in to account•The better the needs analysis, the better CSR practices•CSR practices cannot be imitated

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CSR has been around in various forms since ancient times, depending on one’s view of history.It is being discussed on the world stage in every forum that is looking at sustainable development.The possible ways of achieving symbiosis between the global and local paradigms requires us to understand the modern business world Figure 10.1 is a simplified explanation of the stages of human existence

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The Millennium Development Goals (MDGs) are eight international development goals that were officially established following the Millinium Summit of the United Nations in 2000, following the adoption of the United Nation Millennium Declaration. All 193 United Nations member states and at least 23 international organizations have agreed to achieve these goals by the year 2015. The goals are:Eradicating extreme poverty and hunger,Achieving universal primary education,Promoting gender equality and empowering women,Reducing child mortality rates,Improving maternal health,Combating HIV/AIDS, malaria, and other diseases,Ensuring environmental sustainability, andDeveloping a global partnership for development.

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Each of the goals has specific stated targets and dates for achieving those targets. To accelerate progress, the GG8 Finance Ministers agreed in June 2005 to provide enough funds to the World Bank , the International Monetary Fund (IMF), and the African Development Bank (AfDB) to cancel an additional $40 to $55 billion in debt owed by members of the Heavily Indebted Poor Countries (HIPC) to allow impoverished countries to re channel the ‑resources saved from the forgiven debt to social programs for improving health and education and for alleviating poverty.Debate has surrounded adoption of the MDGs, focusing on lack of analysis and justification behind the chosen objectives, the difficulty or lack of measurements for some of the goals, and uneven progress towards reaching the goals, among other criticisms. Although developed countries' aid for achieving the MDGs has been rising over recent years, more than half the aid is towards debt relief owed by poor countries, with much of the remaining aid money going towards natural disaster relief and military aid which do not further development.

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Progress towards reaching the goals has been uneven. Some countries have achieved many of the goals, while others are not on track to realize any. A UN conference in September 2010 reviewed progress to date and concluded with the adoption of a global action plan to achieve the eight anti-poverty goals by their 2015 target date. There were also new commitments on women's and children's health, and new initiatives in the worldwide battle against poverty, hunger, and disease.

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Goal 1: Eradicate extreme poverty and hungerTarget 1A: Halve the proportion of people living on less than $1 a day

Proportion of population below $1 per day (PPP values)Poverty gap ratio [incidence x depth of poverty]Share of poorest quintile in national consumption

Target 1B: Achieve Decent Employment for Women, Men, and Young People

GDP Growth per Employed PersonEmployment RateProportion of employed population below $1 per day (PPP values)Proportion of family-based workers in employed population

Target 1C: Halve the proportion of people who suffer from hungerPrevalence of underweight children under five years of ageProportion of population below minimum level of dietary energy consumption[

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Goal 2: Achieve universal primary educationTarget 2A: By 2015, all children can complete a full course of primary schooling, girls and boys

Enrollment in primary educationCompletion of primary educationeveryone will get into school

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3: Promote gender equality and empower womenTarget 3A: Eliminate gender disparity in primary and secondary education preferably by 2005, and at all levels by 2015

Ratios of girls to boys in primary, secondary and tertiary educationShare of women in wage employment in the non-agricultural sectorProportion of seats held by women in national parliamentFor girls in some regions, education remains elusivePoverty is a major barrier to education, especially among older girlsIn every developing region except the CIS, men outnumber women in paid employmentWomen are largely relegated to more vulnerable forms of employmentWomen are over-represented in informal employment, with its lack of benefits and securityTop-level jobs still go to men — to an overwhelming degreeWomen are slowly rising to political power, but mainly when boosted by quotas and other special measures

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Goal 4: Reduce child mortality ratesTarget 4A: Reduce by two-thirds, between 1990 and 2015, the under-five mortality rate

Under five mortality rateInfant under I mortality rateProportion of 1-year-old children immunized against measles

Goal 5: Improve maternal healthTarget 5A: Reduce by three quarters, between 1990 and 2015, the maternal mortality ratio

Maternal mortality ratioProportion of births attended by skilled health personnel

Target 5B: Achieve, by 2015, universal access to reproductive health

Adolescent birth rateAntenatal care coverageUnmet need for family planning

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Goal 6: Combat HIV/AIDS, malaria, and other diseasesTarget 6A: Have halted by 2015 and begun to reverse the spread of HIV Aids

HIV prevalence among population aged 15–24 yearsProportion of population aged 15–24 years with comprehensive correct knowledge of HIV/AIDS

Target 6B: Achieve, by 2010, universal access to treatment for HIV/AIDS for all those who need it

Proportion of population with advanced HIV infection with access to antiretroviral drugs

Target 6C: Have halted by 2015 and begun to reverse the incidence of malaria and other major diseases

Prevalence and death rates associated with malariaProportion of children under 5 sleeping under insecticide-treated bednetsProportion of children under 5 with fever who are treated with appropriate anti-malarial drugsIncidence, prevalence and death rates associated with tuberculosisProportion of tuberculosis cases detected and cured under DOTS (Directly Observed Treatment Short Course)

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Goal 7: Ensure environmental sustainabilityTarget 7A: Integrate the principles of sustainable development into country policies and programs; reverse loss of environmental resourcesTarget 7B: Reduce biodiversity loss, achieving, by 2010, a significant reduction in the rate of loss

Proportion of land area covered by forestcarbon dioxide emissions total, per capita and per $1 GDP Consumption of ozone depleting substance Proportion of fish stocks within safe biological limitsProportion of total water resources usedProportion of terrestrial and marine areas protectedProportion of species threatened with extinction

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Target 7C: Halve, by 2015, the proportion of the population without sustainable access to safe drinking water and basic sanitation (for more information see the entry on water supply)

Proportion of population with sustainable access to an improved water source, urban and ruralProportion of urban population with access to improved sanitation

Target 7D: By 2020, to have achieved a significant improvement in the lives of at least 100 million slum-dwellers

Proportion of urban population living in slums

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Goal 8: Develop a global partnership for developmentTarget 8A: Develop further an open, rule-based, predictable, non-discriminatory trading and financial system

Includes a commitment to good governance , development, and poverty reduction – both nationally and internationally

Target 8B: Address the Special Needs of the Least Developed Countries (LDCs)

Includes: tariff and quota free access for LDC exports; enhanced programme of debt relief for HIPC and cancellation of official bilateral debt; and more generous ODA (Official Development Assistance) for countries committed to poverty reduction

Target 8C: Address the special needs of landlocked developing countries and small island developing States

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Target 8D: Deal comprehensively with the debt problems of developing countries through national and international measures in order to make debt sustainable in the long termSome of the indicators listed below are monitored separately for the least developed countries (LDCs), Africa, landlocked developing countries and small island developing States.

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Market access:Proportion of total developed country imports (by value and excluding arms) from developing countries and from LDCs, admitted free of dutyAverage tariffs imposed by developed countries on agricultural products and textiles and clothing from developing countriesAgricultural support estimate for OECD countries as percentage of their GDPProportion of ODA provided to help build trade capacity

Debt sustainability:Debt service as a percentage of exports of goods and services

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Target 8E: In co-operation with pharmaceutical companies, provide access to affordable, essential drugs in developing countries

Proportion of population with access to affordable essential drugs on a sustainable basis

Target 8F: In co-operation with the private sector, make available the benefits of new technologies, especially information and communications

Telephone lines and cellular subscribers per 100 populationPersonal computers in use per 100 populationInternet users per 100 Population

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•View of CSRThere were different levels of optimism about the future of CSR, ranging from disillusionment that CSR will never be more than a cover for corporate activity to the most hopeful view that CSR is part of a paradigm shift from industrial capitalism to sustainability capitalism. This paradigm shift, it is predicted, will witness businesses finding a way to deliver on substantial social change, even - in some quarters - working to curtail the power business itself wields in society.