Corporate Social Responsibility

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

2. Corporate Social Responsibility Chapter 9/10 Global CSRThe Road Ahead

3. Corporate Social Responsibility LEARNING OBJECTIVES • Understand 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

4. Corporate Social Responsibility • 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

5. Corporate Social Responsibility • 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

6. Corporate Social Responsibility 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

7. Corporate Social Responsibility

8. Corporate Social Responsibility 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, and Developing a global partnership for development.

9. Corporate Social Responsibility 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.

10. Corporate Social Responsibility 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.

11. Corporate Social Responsibility • Goal 1: Eradicate extreme poverty and hunger • Target 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 Person • Employment Rate • Proportion 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 hunger • Prevalence of underweight children under five years of age • Proportion of population below minimum level of dietary energy consumption[

12. Corporate Social Responsibility • Goal 2: Achieve universal primary education • Target 2A: By 2015, all children can complete a full course of primary schooling, girls and boys • Enrollment in primary education • Completion of primary education • everyone will get into school

13. Corporate Social Responsibility • 3: Promote gender equality and empower women • Target 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 education • Share of women in wage employment in the non-agricultural sector • Proportion of seats held by women in national parliament • For girls in some regions, education remains elusive • Poverty is a major barrier to education, especially among older girls • In every developing region except the CIS, men outnumber women in paid employment • Women are largely relegated to more vulnerable forms of employment • Women are over-represented in informal employment, with its lack of benefits and security • Top-level jobs still go to men — to an overwhelming degree • Women are slowly rising to political power, but mainly when boosted by quotas and other special measures

14. Corporate Social Responsibility • Goal 4: Reduce child mortality rates • Target 4A: Reduce by two-thirds, between 1990 and 2015, the under-five mortality rate •  Under five mortality rate • Infant under I mortality rate • Proportion of 1-year-old children immunized against measles • Goal 5: Improve maternal health • Target 5A: Reduce by three quarters, between 1990 and 2015, the maternal mortality ratio • Maternal mortality ratio • Proportion of births attended by skilled health personnel • Target 5B: Achieve, by 2015, universal access to reproductive health • Adolescent birth rate • Antenatal care coverage • Unmet need for family planning

15. Corporate Social Responsibility • Goal 6: Combat HIV/AIDS, malaria, and other diseases • Target 6A: Have halted by 2015 and begun to reverse the spread of HIV Aids • HIV prevalence among population aged 15–24 years • Proportion 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 malaria • Proportion of children under 5 sleeping under insecticide-treated bednets • Proportion of children under 5 with fever who are treated with appropriate anti-malarial drugs • Incidence, prevalence and death rates associated with tuberculosis • Proportion of tuberculosis cases detected and cured under DOTS (Directly Observed Treatment Short Course)

16. Corporate Social Responsibility • Goal 7: Ensure environmental sustainability • Target 7A: Integrate the principles of sustainable development into country policies and programs; reverse loss of environmental resources • Target 7B: Reduce biodiversity loss, achieving, by 2010, a significant reduction in the rate of loss • Proportion of land area covered by forest • carbon dioxide emissions total, per capita and per $1 GDP • Consumption of  ozone depleting substance • Proportion of fish stocks within safe biological limits • Proportion of total water resources used • Proportion of terrestrial and marine areas protected • Proportion of  species threatened  with extinction

17. Corporate Social Responsibility • 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 rural • Proportion 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

18. Corporate Social Responsibility • Goal 8: Develop a global partnership for development • Target 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

19. Corporate Social Responsibility 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 term Some of the indicators  listed below are monitored separately for the least developed countries (LDCs), Africa, landlocked developing countries and small island developing States.

20. Corporate Social Responsibility • Market access: • Proportion of total developed country imports (by value and excluding arms) from developing countries and from LDCs, admitted free of duty • Average tariffs imposed by developed countries on agricultural products and textiles and clothing from developing countries • Agricultural support estimate for OECD countries as percentage of their GDP • Proportion of ODA provided to help build trade capacity • Debt sustainability: • Debt service as a percentage of exports of goods and services

21. Corporate Social Responsibility • 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 population • Personal computers in use per 100 population • Internet users per 100 Population

22. Corporate Social Responsibility • View of CSR • There 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.