GSM5181 International Business Management and Policy Corporate Social Responsibility (CSR) 1 NameMatrix No. Chin Fui YienGM05287

Traditionally, 2

What do you think?? 3

Presentation Outlines: 1.Definition of CSR 2.Objectives of CSR 3.5 Dimensions of CSR 4.Cases on CS 5.Recommendations and Conclusion 4

Definition of CSR It is known as: – Corporate Citizenship – Corporate Responsibility – Responsible Business The voluntary actions that business can take, over and above compliance with minimum legal requirements, to address both its own competitive interests and the interests of wider society. ** 5 ** (UK Government)

Objectives of CSR Positive outcomes arise when business takes up a CSR policy such as: 1.Company benefits Improve financial performance Enhanced brand image recognition and reputation Product safety and decrease liability Attract and retain employees Increased sales and customer loyalty 6

Cont. 2.Community benefits Product safety and quality Corporate product safety and involvement Awareness 3.Environmental benefits Greater material recyclability Better product durability and functionality Environmental management standards Eco-labelling 7

5 Dimensions of CSR 8

Issues of CSR “ Shared value ” defines as policies and operating practices that enhance the competitiveness of a company while simultaneously advancing the economic and social conditions in the communities in which it operates. ** It has blurred the boundary between pure business activities and CSR activities. – “Project Shakti” project of Hindustan Unilever Limited (HUL) – enhance the direct rural reach of the company and empowering women. – Whether research expenses will be considered as CSR spend as “environmental sustainability” is classified as CSR activities. 9 ** Asish K Bhattacharyya (2013)

Cases on CSR 10

Nike Inc. Global company (24 th Jan 1964) – produces footwear, clothing, equipment and accessory products for the sports and athletic market. It is the largest seller of such garments in the world – approximately 19,000 retail accounts in US and around 140 countries around the world. 11

Case: Harrasement & Abuse Workforce profile: 58% of them are young adults between 20 and 24 years old, and 83% are women. In Indonesia, 30.2% of the workers had personally experienced, and 56.8% had observed, verbal abuse. An average of 7.8% of workers reported receiving unwelcome sexual comments, and 3.3% reported being physically abused. 73.4% of workers are satisfied with their relationship with direct line supervisors, 67.8% are satisfied with management although a subsequent investigation has been made. 12 ** (February, 2012)

BP It is a Petroleum Industry Company. British Multinational oil and gas company headquater in London, England. It was founded in

Case: environmental pollution In 20 th April 2010 – explosion at BP’s deep water rig in the Gulf of Mexico. The chief executive, Tony Hayward make a mistake after mistake while their crude continued to gush, literally and figuratively. Although BP has fired Hayward, paid restitution, enhanced its drilling standards and sponsored several feel-good TV commercials, it failed to regain the trust it supposedly covets. 14 ** Forbes Online (2012)

Recommendations and Conclusion 15 International Organizations Governments Business Associations

R ecommendations In ternational organizations – Undertake further research and produce a CSR guidebook. – Provide a resource for advice and training for government. (e.g. Health and safety, labor issue, environment protection) – Establish a CSR Training institute – improve CSR knowledge and skills. 16

Cont. Governments – Encourage accountability and reporting. – Award schemes and the media to highlight companies who leads on social and environmental issues. – Ensure laws are obeyed by implementing regulations and, encourage negotiated and voluntary agreements. 17

Cont. Business Associations – Be transparency/ Global Reporting Initiative. – To create a common framework for voluntary reporting of the economic, environmental and social impact of organization-level activity. – To appear more trustworthy and push up the standards of other organizations at the same time. 18

Conclusion Corporate social responsibility (CSR) can be looked at as what a company doesn't do. As long as a business does not anything unethical, it is being responsible to its internal and external customers. It is an unethical for a socially responsible company, for example, – to mistreat the environment (emitting excessive pollution), – does not engage in foggy financial practices (misrepresent its financial position), – does not misrepresent its products and, – does not disrespect its employees and customers. 19

Thank You 20