Archive for February 14th, 2010

Corporate Social Responsibility is about how companies manage the business processes to produce an overall positive impact on society. (Mallen Baker)

After the class debate I started doing some research around CSR and I found it very interesting topic.

The World Business Council for Sustainable Development in its publication “Making Good Business Sense” by Lord Holme and Richard Watts, used the following definition.

“Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large”

In my research I found that Mallen Baker (Founding Director of Business Respect.) describes two forms of CSR that practices in the US and in Europe.

In the US, CSR is practicing in a form of a philanphropic model. Companies make profits, unhindered except by fulfilling their duty to pay taxes. Then they donate a certain share of the profits to charitable causes. It is seen as tainting the act for the company to receive any benefit from the giving.

On the other hand the European model is much more focused on operating the core business in a socially responsible way, complemented by investment in communities for solid business case reasons.

I personally I agree with Mallen that the European model is more sustainable in terms of social responsibility becomes a vital part of the wealth creation process.

Overall, what I have learn was that CSR can be good or neural for a company as people like good companies, therefore, they will like the company and the company will look good, which is what the company wants in the first place. Some companies need CSR in order to improve their image and other are doing just fine without it.

Corporate social responsibility: Making good business sense – January 2000
PDF Web Link: http://www.wbcsd.org/DocRoot/IunSPdIKvmYH5HjbN4XC/csr2000.pdf

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