CSR RESUME

1. UK Corporate Governance Code (June 2010): The purpose of CG is to facilitate

effective, entrepreneurial and prudent management that can deliver the long-term
success of the company. Good GCG should follow these:
a. It must act in the best interest of its owners (shareholders)
b. Considerations to all stakeholders
c. Comply with relevant codes
d. Consider balance of power within Board of Directors (BoD)
e. Exhibiting fair remuneration
f. Risk must be monitored and managed
g. Good ethics must be observed and CSR must be considered
h. It should employ independent auditors
2. 80% Global Fortune 250 in 2008 released their CSR information in stand-alone report
or integrated with annual financial reports, the number goes to 95% in 2011 (KPMG)
3. The World Business Council for Sustainable Development (wbcsd) defined CSR as:
“Continuing commitment by business to contribute to economic development while
improving the quality of life of the workforce and their families as well as of the
community and society at large”
4. When CSR are considering their impacts on stakeholders, GCG needs to consider
between shareholders and stakeholders. CG is all about how an organization is
governed in pursuit of its objectives, while CSR is all about how company manage
their impacts (economy, social, environment, regulation) to stakeholders
5. Triple bottom line: Business success should be judged by its social/ethical, and
environmental performance too alongside the financial performance. UK have more
concern about ethics, so they pay more attention to CSR rather than US. As more
awareness and publicity goes for the company, it also heightened the importance of
risk and risk management, and CSR is one of the answers.
6. Many companies awoke to [CSR] only after being surprised by public responses to
issues they had not previously thought were part of their business responsibilities.
Nike, for example, faced an extensive consumer boycott after The New York Times
and other media outlets reported abusive labor practices at some of its Indonesian
suppliers in the early 1990s. Shell Oil’s decision to sink the Brent Spar, an obsolete
oil rig, in the North Sea led to Greenpeace protests in 1995 and to international
 headlines. Pharmaceutical companies discovered that they were expected to respond
to the AIDS pandemic in Africa even though it was far removed from their primary
product lines and markets. Fast-food and packaged food companies are now being
held responsible for obesity and poor nutrition. Activists of all kinds .  .  . have grown
much more aggressive and effective in bringing public pressure to bear on
corporations. Activists may target the most visible or successful companies merely to
draw attention to an issue, even if those corporations actually have had little impact
on the problem at hand. Nestlé, for example, the world’s largest purveyor of bottled
water, has become a major target in the global debate about access to fresh water,
despite the fact that Nestlé’s bottled water sales consume just 0.0008 percent of the
world’s fresh water supply. The inefficiency of agricultural irrigation, which uses 70
percent of the world’s supply annually, is a far more pressing issue, but it offers no
equally convenient multinational corporation to target.
7. 5 major trends supporting the CSR phenomenon:
a. Transparency: Information-driven economy, so business have become more
transparent
b. Knowledge: People are more seeking for information. They could choose not
to buy a cloth if the company doesn’t have respective environmental records
c. Sustainability: Earth’s sustainability
d. Globalization: Society regulation reformation to protect society impacted
capitalism market around the world
e. Failure of the Public Sector: Citizen finally expect less of government than
they used to, lost their confidence
8. CSR do not generate immediate financial gains to the organization. Customers may
decide to wait and see if this is real or just temporary project to win their heart
9. Ethical CSR: sense of social conscience in managing their financial responsibilities to
shareholders, their legal responsibilities to their local community and society as a
whole, and their ethical responsibility to do the right thing for all their stakeholders.
(purest type of CSR)
10. Altruistic CSR: Underwriting specific initiatives to give back to the company’s local
community or to designated national or international program (charity, programs, etc)
11. Strategic CSR: Target programs that will generate the most positive publicity or
goodwill for the organization