Home > Articles

Corporate Social Responsibility

Corporate Social Responsibility (CSR) is now part of mainstream business policy in many Fortune 500 companies and Trinidad and Tobago companies. Social Responsibility, from which the broader term CSR is derived, is the integration of a company’s activities with social and environmental concerns of the context in which they operate. CSR is therefore not limited to corporate philanthropy.

CSR is based on the concept that companies exist as part of an environment from which they draw their employees and raw materials and which provides them with markets for their goods and services. The relationship between the company and the environment, community or country in which it operates is therefore seen as critical in terms of the competitiveness and general well being. One of options available to companies to manage this relationship is CSR. Commitment to CSR has been shown to improve companies’ reputation among the various constituencies of stakeholders. Governments, employees and communities also generally more easily trust companies with good CSR track records; in addition, employees in such companies have been shown to be more loyal and motivated.

CSR compliance is measured by legal compliance which is compliance with the laws of the country in which the company operates; ethical compliance which is compliance with basic ethical standards; and philanthropic giving which is support for social programmes.

In a survey by Globescan that included surveying 100 respondents in 20 countries, it was shown that the perception of CSR varies from country to country. The survey showed that fair employee treatment is generally considered to be the most important descriptor of social responsibility in the United States, France, Switzerland, Italy, Philippines, and all Latin American countries surveyed, while environmental protection was the top CSR issue for Canadians, Britons, Australians and Indonesians.

Companies are said to exercise social responsibility in three general areas: towards their stakeholders (customers, employees and shareholders); the natural environment; and towards the general social welfare of society. The bpTT Think campaign, which seeks to promote safe driving habits, is an example of a CSR activity that falls into the category of general social welfare. Scotiabank’s support for West Indies cricket is another example of a CSR activity that enhances general social welfare.

Companies that commit to the Global Compact also produce reports that detail their actions and policies geared towards the principles of the compact. In the UK the Association of Chartered Certified Accountants (ACCA) now gives awards for “Sustainability Reporting”. In 2006 the winner of the best sustainability report went to Vodafone. BP plc together with the BT group were named joint winners for electronic media commendation. This award was given for Web-based reporting.

In recent years commitment to CSR has received a boost from the United Nations Global Compact. The UN Global Compact seeks to bring companies together with UN agencies, labour and civil society to support universal environmental and social principles. The Global Compact was launched in 2000. Several multinational companies with operations in Trinidad and Tobago are signatories. These include bpTT, Talisman, Nestle and Unilever. In the last year, three Trinidad and Tobago organisations, the South Trinidad Chamber of Industry and Commerce (STCIC), the Trinidad and Tobago Manufacturers Association (TTMA) and the Arthur Lok Jack Graduate School of Business have become signatories to the UN Global Compact.

Location

http://www.whoswhotnt.com/index.cfm/1,121,310,0,html