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Implementing Corporate Social Responsibility

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"The phrase Corporate Social Responsibility was coined in 1953 with the publication of Bowen's

Social Responsibility of Businessmen" (Corporate watch report, 2006). The evolution of CSR is as
old as trade and business for any of corporation. Industrialization and impact of businesses on
the society led to a complete new vision. By 80's and 90's CSR was taken into discussion, the first
company to implement CSR was Shell in 1998. (Corporate watch report, 2006) With well
informed and educated general people it has become a threat to the corporate and CSR is the
solution to it. In 1990 CSR was standard in the industry with companies like Price Waterhouse
Copper and KPMG. CSR evolved beyond code of conduct and reporting, eventually it started
taking initiative in NGO's, multi stake holder, ethical trading. (Corporate watch report, 2006).

Implementing Corporate Social Responsibility

There are no generic CSR methods, each method is based on the individual firms needs
and circumstances. Each method will vary in its attentiveness of CSR issues and how
much work needs to be done with respect to the approach. CSR can be utilized
integrated into a firm's core decision making, management processes, strategy and
activities, be it over a period of time or systematically. Most companies already possess
policies with respect to the handling customers, community, employees and the
environment. These can be perfect starting points for firm-wide CSR approaches.

What follows below is a framework for the development and implementation of a CSR
approach that builds on current existing policies as well as experience and knowledge of
other fields, such as economic and environmental. The broad framework follows a
familiar "plan, do, check and improve" model. This framework has been designed with
the intention to be flexible so that firms would be able to mold and adapt it as
appropriate for their organization.

Implementation Framework

When?

(Conceptual phase)

What?

(Task delineation)

How?

(Checkpoints on the journey)


Plan

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1.Conduct a CSR assessment

 Assemble a CSR leadership team


 Develop a working definition of CSR
 Review corporate documents, processes and activities
 Identify and engage key stakeholders

2. Develop a CSR strategy

 Build support with senior managment and employees


 Research what others are doing
 prepare a matrix of proposed CSR actions
 Develop ideas for proceeding and the business case for them
 Decide on direction, approach and focus areas

Do

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3. Develop CSR commitments

 Do a scan of CSR commitments


 Hold discussions with major stakeholders
 Create a working group to develop the commitments
 Prepare a preliminary draft
 Consult with affected stakeholders

The potential benefits of CSR to companies include:


 better brand recognition.
 positive business reputation.
 increased sales and customer loyalty.
 operational costs savings.
 better financial performance.
 greater ability to attract talent and retain staff.
 organisational growth.
 easier access to capital.

What is the importance of corporate social responsibility?


Corporate social responsibility (CSR) is a broad term used to describe a company's
efforts to improve society in some way. These efforts can range from donating money to
nonprofits to implementing environmentally-friendly policies in the workplace. CSR is
important for companies, nonprofits, and employees alike.

What is a corporate social responsibility program?


Corporate social responsibility is a commitment to do more than just serve the needs
and expectations of customers and shareholders. ... Through corporate social
responsibility programs, including responsible business practices, philanthropy and
volunteer efforts, businesses can benefit society while boosting their brand.

Some businesses have as their main purpose the fulfilment of social or environmental
goals, as opposed to a business that tries to achieve its financial goals while minimising any
negative impact on society or the environment. These businesses are called Social
Enterprises.

WHAT IS CORPORATE SOCIAL


RESPONSIBILITY?
Corporate social responsibility (CSR) is a broad term used to describe a company’s efforts to
improve society in some way.

These efforts can range from donating money to nonprofits to implementing


environmentally-friendly policies in the workplace.

CSR is important for companies, nonprofits, and employees alike.

Corporate social responsibility is not a mandated practice in the United States; instead, it is
something extra that companies do to improve their local and global communities.

Corporate Social Responsibility is defined as the voluntary commitment of businesses to include


in their corporate practices economic, social, and environmental criteria and actions, which are
above and beyond legislative requirements and related to a broader range of stakeholders—
everyone influenced by their activities.
The new demand on business is that it pursue those activities with a broader awareness of the
system in which it operates, in other words with thoughtful consideration and meaningful action
toward environmental and social issues.
The new demand on business is that it pursue those activities with a broader awareness of the
system in which it operates, in other words with thoughtful consideration and meaningful action
toward environmental and social issues.

A comprehensive CSR program includes stakeholder analysis, comprehensive strategy


design that includes workplace, marketplace, societal, and environmental dimensions,
activation programs, and measuring and reporting. In simpler terms it is about:

 Understanding the context and issues within which you operate, making the best
choices you can, and continually progressing your role (perspective).
 Maintaining the desire to do better as an organization (leadership).
 Establishing the structure/systems to ensure you have the intended impact
(management).
 Leveraging activities to bring value to the organization (communication).

Socially Responsible Companies Must First Meet Business


Responsibilities
In general, businesses have a hierarchy of responsibilities to meet,
ranging from the basic (making a profit) to the benevolent (benefiting
society). Here are some examples:
o Economic Responsibilities - A business exists to make a profit for shareholders. If it fails to do
so, it likely won’t be able to pay its employees, taxes and other obligations. A corporate social
responsibility program (CSR program) cannot be implemented until a business is profitable.

o Legal Responsibilities - Following the law is the foundation of corporate responsibility. A


company cannot benefit society if it does not adhere to labor and tax laws or applicable industry
regulations.

o Ethical Responsibilities - Once a company is profitable and meets its legal responsibilities, it
can move up the ladder to ethical responsibilities, which might include paying higher wages,
offering employees better benefits, avoiding trade with unscrupulous companies or providing
jobs to those who would otherwise have difficulty finding work.

o Philanthropic Responsibilities - As a company meets its economic, legal and ethical


responsibilities, it can consider taking on philanthropic responsibilities. Corporate philanthropy
ranges in size and scope, and can include everything from donating time to a local charity to
building a children’s hospital.

Three Companies Known for Corporate Social Responsibility


Companies that are profitable, follow the law and have strong corporate
social responsibility programs are more common than you think. Here
are three of the most widely-known, successful companies that are also
good corporate citizens:
1. IBM - The technology giant has been environmentally friendly for decades, with a focus on
developing more efficient supply chains, and creating technology that helps other companies
achieve their sustainability goals. IBM also promotes employee well-being and diversification,
and works on issues such as education, health, literacy, and culture.

2. Patagonia - This popular clothing company has focused heavily on CSR, with all products
made under fair labor practices and safe working conditions. Patagonia recently launched its
Common Threads Partnership, which offers used Patagonia clothing in four outlets across the
United States. Customers can trade in jackets, pants, shirts and more for credit on new clothing.
This effort has helped advance the company’s recycling efforts by keeping Patagonia clothing
out of landfills.

3. Starbucks - The international coffee company has seen firsthand how shifting weather patterns
can affect coffee farms. Starbucks supports progressive climate change policy and works with
the countries that produce its coffee to conserve, preserve and restore their forests. The
company also provides thousands of employees with college benefits, has a supplier diversity
program and raises funds for various organizations in need.

Ways to practice CSR


Recognizing how important social responsibility is to their customers, many companies
now focus on and practice a few broad categories of CSR:

1. Environmental efforts: One primary focus of corporate social responsibility is


the environment. Businesses regardless of size have a large carbon footprint. Any steps
they can take to reduce those footprints are considered both good for the company and
society as a whole.
2. Philanthropy: Businesses can also practice social responsibility by donating
money, products or services to social causes. Larger companies tend to have a lot of
resources that can benefit charities and local community programs.
3. Ethical labor practices: By treating employees fairly and ethically, companies
can also demonstrate their corporate social responsibility. This is especially true of
businesses that operate in international locations with labor laws that differ from those in
the United States.
4. Volunteering: Attending volunteer events says a lot about a company's sincerity.
By doing good deeds without expecting anything in return, companies are able to
express their concern for specific issues and support for certain organizations.

A shift from disaster recovery to climate resilience


Along these lines, with the influx of natural disasters we saw in 2017, companies
will invest more resources into prevention, mitigation and climate
resilience rather than just recovery. According to BSR’s report, The Future of
Sustainable Business, no company will be immune from the consequences of
climate change. To protect their businesses, supply chains and communities,
companies must invest in innovative technology, redefine business models, and
support policies that can address critical climate-related challenges.

Corporate Social Responsibilityis know by many other names. These include corporate
responsibility, corporate ethics, coporate accountability and corporate citizenship just to name a
few. A key point to note is that Corporate Social Responsibility or CSR has no universal
definition; however, it generally refers to clear business practices with respect to ethical values,
compliance with Legal requirements and respect for economic values. CSR goes beyond making
profits, companies and stakeholders are responsible for their impact on people and planet.
Increasingly, stake holders should expect that companies should be more responsible both
socially and environmentally in their conduct of their business. The World Business Council for
Sustainable Development has described CSR as the business contribution to sustainable
economic development.

MANILA, Philippines, 2 March 2017 – Ford Philippines was the recipient of two
prestigious awards for its corporate social responsibility (CSR) programs at the first-ever
‘Driven to Serve’ Awards of the Society of Philippine Motoring Journalists (SPMJ) – one
each for its Driving Skills for Life driver safety program and its Operation Better World
initiatives.

The Driven to Serve Awards were launched this year to recognize the best CSR
initiatives in the local automotive industry, with categories including environment,
community development, road safety and education, and training.

Ford received the top award in the Road Safety category, Platinum, for its Driving Skills
for Life (DSFL) program. Ford launched the global DSFL program locally in 2008, which
was customized for the Philippines market and helps to raise awareness on safe driving
techniques, road safety, techniques to improve fuel economy, and other road safety
issues. Since its local launch, more than 18,000 licensed drivers of private and public
utility vehicles have participated in DSFL sessions, all free-of-charge.

Ford received a Silver Award in the Community Development category for the
company’s Operation Better World initiative, a global Ford CSR platform that inspires
community service from employees and dealership staff to do their share in building a
better world.
In the Philippines, Ford’s Operation Better World programs have seen Ford employee
and dealer volunteers help provide clean water access to homes, providing medical and
dental services, and assisting families build their houses.

“We are proud of this recognition, and equally as proud of the contributions and efforts
of our Ford employee and dealer volunteers,” said Lance Mosley, managing director,
Ford Philippines. “The Ford DSFL and Operation Better World initiatives are
representative of our commitment to act as a responsible corporate citizen and make
positive and long-term contributions to the communities where we conduct business.”

“SPMJ salutes these responsible corporate citizens, and we hope to inspire many
others to embark on similar programs by creating awareness of these selfless
programs. We share with them the common goal of uplifting the lives of our fellow
Filipinos,” said Ray Butch Gamboa, SPMJ founding chairman. “Through Driven to
Serve, we hope to recognize the efforts of automotive companies in creating positive
societal impact through their CSR initiatives.”

“Driven to Serve is our small way to contribute to community development, environment


protection, education and training, and road safety – the four pillars of the CSR projects
of the automotive manufacturers and distributors,” added Pinky Concha-Colmenares,
SPMJ president and head of the Awards’ steering committee.

About Ford Motor Company

Ford Motor Company is a global automotive and mobility company based in Dearborn,
Michigan. With about 201,000 employees and 62 plants worldwide, the company’s core
business includes designing, manufacturing, marketing and servicing a full line of Ford
cars, trucks and SUVs, as well as Lincoln luxury vehicles. To expand its business
model, Ford is aggressively pursuing emerging opportunities with investments in
electrification, autonomy and mobility. Ford provides financial services through Ford
Motor Credit Company. For more information regarding Ford and its products and
services, please visit www.corporate.ford.com.

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