the Irish Business and Employers Confederation

table of contents

FOREWORD ........................................................................................1 1. INTRODUCTION ........................................................................................2 2. EVOLUTION OF CSR.................................................................................4 International activities ..................................................................4 1940s-1960s .....................................................................................4 1960s-1970s......................................................................................4 1980s ..................................................................................................5 1990s ..................................................................................................5 21st Century......................................................................................6 European Activities ........................................................................6 European Commission...................................................................7 European Multi-Stakeholder Forum (EMF) ..............................8 3. WHAT IS CORPORATE SOCIAL RESPONSIBILITY?..............................9 Defining CSR ....................................................................................9 Principles of CSR............................................................................10 Individual components of CSR ..................................................10 4. BUSINESS CASE FOR CORPORATE SOCIAL RESPONSIBILITY .......12 Corporate Governance .................................................................12 Competitive Advantage ...............................................................13 Corporate Reputation ...................................................................13 Investment ......................................................................................13 Improving Relationships with Stakeholders ..........................13 Cost/Benefit Analysis...................................................................14 Positive Public Image....................................................................14 5. INTERNATIONAL INSTRUMENTS AND INITIATIVES ON CSR........15 Governmental and intergovernmental initiatives................15 Business-led initiatives ................................................................18 NGO-led initiatives ......................................................................20 6. CSR CASE STUDIES .......................................................................23 IBM Ireland .....................................................................................23 Vodafone Ireland...........................................................................25 INTEL Ireland ..................................................................................27 Allianz Ireland................................................................................29 7. CONCLUSION.................................................................................31 8. GLOSSARY OF TERMS...................................................................32 9. BIBLIOGRAPHY.............................................................................33

Report Author: Catherine Maguire Social Policy Executive European & Social Policy Division Telephone: (01) 605 1692 Email: Web:

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Corporate Social responsibility or CSR as it is known is an important issue for modern business. The rapid growth of globalisation and the development of more multi-cultural societies means that the business environment has changed for everyone. This change brings with it new challenges for companies of every size and sector. One of the challenges for Irish business is to understand what CSR is and what it means for them. There are a range of reports, standards, recommendations and norms published throughout the world and the various buzz words and acronyms cause intense confusion. In this publication IBEC seeks to explain in a clear and unambiguous way what CSR is, where it has come from and to give some practical Irish examples of good practice in the area. We also explain the various initiatives and where they fit in. We know that many Irish businesses are engaged in CSR activities, some without using the CSR label. The CSR concept is a formalisation of social, environmental and ethical practice. Through such a formalisation many companies are actively communicating to shareholders, Government, customers, employees and the broader community about their business values and about how they are contributing to society as a whole. There is no universal definition of CSR but there is general acceptance that it involves voluntary initiatives and activities by business. The flexibility of CSR is one of its most attractive features meaning that it can be adapted to suit individual company size or sector. Responsible Business is one of IBEC's top policy priorities in our Strategy 2002 - 2005. CSR has an important role to play in promoting responsible business and we hope that this publication will be of practical assistance to companies, to stimulate the CSR debate in their business and to help them in devising a suitable strategy to achieve their aims. The CSR debate will continue, here in Ireland, at European level and Internationally too through the various institutions currently taking an active interest in this topic. It is important for Irish business to be informed and to participate fully in these debates. I would like to say a special thank you for the important contribution made to this report by IBEC's CSR Working Group and also to Vodafone, Allianz, IBM and Intel who kindly assisted us by providing interesting case studies which give us some practical insights into their approach to CSR.

Maria Cronin IBEC Director of EU and Social Policy


In seeking to adopt a practical. the European Commission (2002) is of the view that there is a distinguishing feature between modern CSR and historical CSR. INTRODUCTION Modern business and employers are facing a new range of challenges that require a creative response. Many businesses have recognised the need to communicate and promote the range of good work that is underway.CORPORATE SOCIAL RESPONSI BI LITY 1. regulatory reform. Globalisation. suppliers © IBEC 2004 2 . ■ developing policies and processes that enable the company to assess and manage its social and environmental impact in a way that is integrated into day-to-day management responsibilities. have created new demands by investors. p448) summarises the challenges thus: ■ ‘…creating a clearly articulated statement of business principles or code of conduct. Increasingly. labour and supply chain issues among other things. or diverting attention away from mainstream corporate performance targets. often on an informal basis. trade liberalisation. ■ protecting or enhancing the company’s reputation with these stakeholder groups. environmental and ethical practices and policies. While CSR has mainly emerged as a modern business response to contemporary issues. The Quaker Lead Company also built accommodation for its employees. consumers. Such a document can often provide the starting point in demonstrating accountability. The Quaker Lead Company in the UK in the 18th century and the Guinness Brewery in Ireland in the 19th century both introduced initiatives with a strong focus on social responsibility. strategic and systematic approach to CSR. and used water pumps to recycle water as part of its industrial processes (The Economist. shareholders. built schools and libraries for their families. ■ identifying the organisation’s key legitimate stakeholders and properly understanding their concerns. they are still some of the drivers behind CSR today. This is evident in the development of CSR instruments by religious groups and other non-governmental organisations (NGOs) (See Section 5 on International Instruments). the media spotlight is focusing on social. leading companies are invariably faced with a number of management challenges. Sadler (2001. Nonetheless. ■ ensuring the company’s contractors. it actually has its foundations in the paternalistic firms of the 18th and 19th centuries. 2002). The Commission identifies this feature as the attempt to manage CSR strategically and the development of instruments for verification and certification. While these initiatives were strongly influenced by the religious and ethical ethos of those periods. The Guinness Brewery provided housing and healthcare to workers and purchased and developed land for sports and social activities. the public and Governments on business. ■ understanding the nature and scale of the company’s economic. and companies are being asked about their contributions towards a better society. employees. social and environmental impact without investing a disproportionate level of resources in the exercise.

such as redundancy and human rights. Section Four examines the business case for CSR and a compendium of 25 CSR instruments and initiatives are explained in Section Five. The principles that provide a basic understanding of CSR and its individual aspects are presented in Section Three. p4) identified other challenges. Section Eight provides the reader with a glossary of terms. with a particular and practical focus on the most recent developments. this report aims to provide the reader with a clear picture of what is involved. ■ developing measurement systems to monitor and report on the company’s performance against relevant CSR objectives. Given the wide variety of issues involved in CSR. A variety of Irish and international case studies are provided in Section Six.’ These are just some of the topics that arise in any debate on CSR. Finally. and conclusions drawn from the report are presented in Section Seven. If a company decides to formalise an existing practice or to commence a new initiative there is also the eventual challenge of developing its own standard of performance or choosing between the plethora of tools and initiatives that are available (see Section 5 for further information on initiatives). © IBEC 2004 3 . and ■ ensuring the company is not inadvertently exposing itself to risk through the poor management of environmental or social issues…’ Business in the Community UK (2004. ranging from:‘how companies should behave when making people redundant to whether they should enter markets in countries that have poor human-rights records. The subject is introduced through a description of the evolution of CSR and a history of the activities in this area over the past 64 years.and supply chains operate to the same standards as those the organisation imposes upon itself.

parent companies either individually. EVOLUTION OF CSR international activities As previously mentioned. The establishment of these institutions formed an infrastructure for global rule-making through which modern CSR emerged (ISO. environmental protection. the International Monetary Fund (IMF). While governments put pressure on abusing regimes. created a series of guidelines for businesses and governments to observe. economic and other CSR-related issues (ISO. 1960s-1970s During the 1960s and 1970s. These earlier forms of CSR were. finance and trade. democracy and trade liberalisation. p7). the World Trade Organisation (WTO) and the International Organisation for Standardisation (ISO) were all established to realise this goal. were founded to campaign against environmental degradation and the abuse of human rights. in addition to national activities. the origins of CSR can be traced back to the practices of paternalistic firms operating in the 18th and 19th centuries. environmental. public concern increased about the long-term effects of pollution on the environment and the activities of international corporations in foreign countries. governments around the world agreed that there was a need for international institutions to be established to ‘create a new type of international order. in the main. The alleged abuse of human rights by some multinational companies operating in developing countries started to attract increasing attention from the media and the general public during this period. Friends of the Earth. p7) also suggests that the concept of CSR has become more prominent as a result of the fact that the above objectives have not yet been achieved. standards and the promotion of social. World Wildlife Fund and Amnesty International. the environment. social dialogue. poverty. 2004). among other environmental and social NGOs. The goals set by these institutions with regard to human rights. 2004. economics. and created a framework for the emergence of NGOs. or in 1940s-1960s Following World War 2. economics. The ISO (2004. 2004. nationally inspired and did not generally incorporate transnational activities. The international dimensions of activities inspiring modern CSR did not truly emerge until the globalisation of business in the 20th century.’(ISO. and to lobby governments and business to take action on these issues. globalisation created new cross-boundary business structures and operations. Governments responded to the NGO campaigns and.CORPORATE SOCIAL RESPONSI BI LITY 2. p5) The International Labour Organisation (ILO). A number of environmental treaties were also developed. the community. increased the power held by business and consequently created an international impetus for the creation of new order in areas such as labour. today. many of which still apply © IBEC 2004 4 . the United Nations (UN). in 1972 a UN environment programme was established following a conference on the human environment. As the main driving force behind the creation of modern CSR. These organisations played an instrumental role in the development of legislation. Greenpeace.

1980s The 1980s saw the continued development of new CSR concepts. adopted declarations and action plans that called upon business to address specific social problems. In addition to the statutory standards.conjunction with other companies. began to proactively address this issue. such as the Global Reporting Initiative (GRI). conventions and a Business Council for Sustainable Development emerged as a result of the UN Earth Summit in 1992. One of the first joint business activities was the endorsement of the Global Sullivan Principles by a number of companies who wanted to adopt a stance against the South African apartheid regime (See Section Five for further information on these principles). the World Bank encouraged all countries to develop policies in this area as well as on privatisation. © IBEC 2004 5 . Increased attention was given to the CSR-related concepts of sustainable development. stringent legislation in the form of statutory corporate governance standards was implemented as a direct response to a number of very high profile corporate scandals in the US. Firstly. For example. and trade liberalisation (ISO. Governments organised a series of world meetings and conferences to examine this new concept. Alongside this. environment. economic and social issues) and corporate ethics. corporate ethics and fair trade. 2004). Also during this period. The purpose of the standard was to develop and disseminate globally applicable sustainability guidelines for reporting on the economic. emerged alongside the development of these policies. This led to the establishment of a range of working groups. the International Union for Conservation of Nature and Natural Resources (IUCN) and the WWF published the World Conservation Strategy that established the first principles and guidelines for conservation and sustainable development. The OECD Guidelines for Multinational Enterprises in 1976 and the universally applicable ILO Tripartite Declaration concerning Multinational Enterprises and Social Policy in 1977 emerged as a result of this development. deregulation. products or services (See Section Five for further information on this initiative). a surge in activities relating to CSR and consumer boycotts of certain milk substitute and petrol products. NGOs and the public made increasing demands on business for greater accountability and transparency of practices. were developed by a group of companies and institutions. In 1981 the UN Environmental Programme (UNEP). (This was followed in 1991 by ‘Caring for the Earth’ which set a blueprint for implementation of the World Conservation Strategy) (ISO. and governments pledged to work for ‘full employment. 1990s During the 1990s CSR continued to evolve. with quality jobs and respect for the relevant ILO Conventions’ (ISO. In addition. committees. research teams and in some cases. supplemental voluntary standards. a UN Montreal protocol to phase out the use of ozone depleting chemicals was signed by 24 countries. In addition to heightened awareness amongst the public regarding the environmental and human rights practices and activities of multinationals. The Fourth World Conference on Women. As international competition for FDI increased in the 1980s. p12) at the UN World Summit for Social Development in 1995. In 1982. the United Nations Charter for Nature was passed and in 1987. individual aspects of CSR started to be treated on a collective basis and the concepts of corporate ethics and reporting emerged as a result. Socially responsible business practices Corporate ethics emerged as a mainstream business issue in the 1990s for two main reasons. 2004). CSR also emerged as a concept within its own right. the ability of some of these large companies to influence the landscape within which they operated became a cause for concern. which developed significant interest in the new concept of sustainable development. environmental and social dimensions of activities. foreign direct investment (FDI) and the environment became more prominent with the emergence of concepts such as sustainable development (ie. international laws. ’Our Common Future’. 2004. the UN Brundtland Commission published its report during this period. Secondly. also in 1995. agreements and declarations.

Also. The UN Sub-Commission on the Promotion and Protection of Human Rights established a working group that produced text for Norms on the Responsibilities of Transnational Corporations and Other Business Enterprises with Regard to Human Rights in 2004. © IBEC 2004 . A European Business Network called CSR Europe was created on foot of this and was charged with the promotion of business-to-business dialogue and exchange of best practices on CSR-related issues. Jacques Delors. EU Heads of State and government made a special appeal to companies’ sense of social responsibility regarding best practices for lifelong learning. 2001. in the Commission’s reflections on the White Paper on Governance in the European Union. p6) In addition. the ILO published a revision of its Tripartite Declaration of Principles concerning Multinational organisations and Social Policy. Social Accountability International and the Fair Trade Labelling Organisation were set up. codes and standards on every aspect of CSR were also produced during this period by business groups. the Fair Labour Association. UNICE. european activities While CSR continues to evolve and gather momentum internationally. The Council referred to the involvement of public authorities in the Sustainable Development Strategy for Europe as ‘(having) a key role in encouraging a framework to ensure that businesses integrate environmental and social considerations into their activities… Business should be encouraged to take a proactive approach to sustainable development in their operations both within the EU and elsewhere. the Lisbon Summit proved to be the starting point for the EU debate on CSR. the paper stressed that European companies see themselves as an integral part of society. CSR was then put at the top of the political agenda in 2000 at the European Council in Lisbon. the role of government in the CSR debate was alluded to by the European Council in Goteborg.A range of other tools. 2001) 6 21st century Today. support and enact a set of core values in the areas of human rights. This is currently under consideration and the Office of the High Commissioner for Human Rights is consulting with all relevant parties. the UN Global Compact was launched as a voluntary corporate citizenship initiative for business to embrace. more tools. governments and newly established NGOs (see Section Five). As interest in fair trade grew. The role of CSR in addressing the employment and social consequences of economic and market integration and in adapting working conditions to the new economy was emphasised at the European Council in Nice. Entitled ’Releasing Europe’s Employment Potential: Companies’ views on European Social Policy beyond 2000’. who should take them into account in determining their own actions. the Ethical Trading Initiative. In 2001. A report will be presented to the Commission in the 2005 session. work organisation. in the summer of 2004. Also in 2000. social exclusion and sustainable development. which was released later on that year. it is not its only raison d’être. and a group of European companies in 1995 was the first European-level activity relating directly to CSR. In July 2000.’ (EU Commission. The Manifesto of Enterprises against Social Exclusion launched by the President of the European Commission.’(EU Commission. and while they consider profits to be the main goal of the company. and the OECD completed a revision of its Guidelines for Multinational Enterprises. as CSR is becoming recognised as a mainstream business issue. the importance of the role of the private sector in contributing to sustainable development was emphasised at the UN World Summit on Sustainable Development. Pressure was put on business during this period to prove that it was acting responsibility by endorsing and committing itself to various codes and standards. labour standards and environmental practices. codes and standards continue to be developed. the ISO decided to develop a guidance document on social responsibility (See Section Five for more information on these tools). New partnerships and dialogue between companies and their stakeholders were also developed during this period and that helped in the exchange of new ideas. they stated that ‘Corporate Social Responsibility has important implications for all economic and social actors as well as for the public authorities. equal opportunities. in relation to the development of modern CSR. European companies reacted by acknowledging their social responsibility in a position paper by the European employers’ body. Finally.

). 4. support and compatibility with existing international agreements and instruments (ILO core labour standards. but also to improving competitiveness in all types of business.european commission In response to the calls for action. social and environmental issues as well as consumer interests. Taking all relevant views into account the Commission proposed to build its strategy around six principles: 1. a balanced and comprehensive approach to CSR. promoting responsible principles and assisting businesses and public authorities in incorporating CSR in their activities at European level. and to create an EU. the need for credibility and transparency of CSR practices. 2. They also asked for effective mechanisms to ensure a company’s accountability for its social and environmental impact. The European Parliament proposed to mainstream CSR in all areas of EU competence. 2002. rating agencies’ methodology and investment management of SRI (socially responsible investment) funds and pension funds. CSR practices could not be developed. p5): ‘Enterprises stressed the voluntary nature of CSR. In the view of businesses. 3. following on the Green Paper produced in the previous year. stressed that a European approach to CSR could complement existing measures at local and national level. the EU produced a Green Paper in 2001 called ’Promoting a European Framework for Corporate Social Responsibility’. in particular regional and social funding. The European Council. The Economic and Social Committee highlighted that the principles of voluntary action and environmental. The paper was drawn up to encourage discussion and views from all the main stakeholders about ‘how to build a partnership for the development of a new framework for the promotion of corporate social responsibility’. including economic. They advocated a regulatory framework establishing minimum standards and ensuring a level playing field. Enterprises emphasised there would not be ‘one-size-fits-all’ solutions. © IBEC 2004 7 . OECD guidelines for multinational enterprises etc. They also insisted that in order to be credible. Consumers’ organisations underlined the importance of trustworthy and complete information about the ethical. implemented and evaluated unilaterally by businesses. and could lead to conflicting priorities for enterprises operating in different geographical areas. Trade unions and civil society organisations emphasised that voluntary initiatives are not sufficient to protect workers’ and citizens’ rights. social and environmental conditions in which goods and services are produced and traded to guide them in their purchase choices’. a focus on activities where community involvement adds value. 5. multi-stakeholder CSR platform. It called for triple bottom line reporting by companies on their social and environmental performance. and in all sectors of activity. Investors stressed the need to improve disclosure and transparency of companies’ practices. from SMEs to multinationals. p24) The Commission received more than 250 responses but significant differences were expressed. attempts to regulate CSR at EU level would be counterproductive. They were as follows (EU Commission. economic and social sustainability. recognition of the voluntary nature of CSR. imparting to them an added value. The Council mentioned that CSR can contribute not only to encouraging a high level of social cohesion. 2001. because this would stifle creativity and innovation among enterprises which drive the successful development of CSR. (EU Commission. attention to the needs and characteristics of SMEs. 6. in order to contribute to the development of CSR. together with guidance from international organisations’ existing agreements should form a point of reference for further European initiatives in support of companies’ efforts to act in a socially responsible way. The Committee of the Regions saw the possibility of providing a framework for raising awareness. but rather with the involvement of relevant stakeholders. the Commission presented an EU strategy to promote CSR. its integration in the sustainable development context and that its content should be developed at global level. environmental protection and respect for fundamental rights.’ In 2002. in its Resolution of 3 December 2001.

The launch of a Multi-Stakeholder Forum on CSR at the EU level was one of the main commitments made by the Commission to achieve its strategic goals.’(EU Commission. with a special emphasis on SME specific aspects. The roundtables completed their work in April 2004 and each produced a report summarising its activities. Competitiveness. This objective was achieved through four roundtables. 3. and CSR should be integrated into all EU policies. A co-ordination committee with representatives from ETUC (European Trade Union). act as a catalyst for disseminating information (awareness raising. The European Commission chaired the Forum. © IBEC 2004 8 . In addition EU policies should encourage CSR which should be used to promote fundamental human and social rights in third world countries. including human rights. UNICE. There was also agreement that the approach the Commission took should concentrate on building on existing initiatives. diversity. research etc). convergence and transparency of CSR practices and tools. 4. Other EU institutions. 2002. p18) european multistakeholder forum (emf) The EMF was launch in October 2002 and it was charged by the Commission to ‘…foster corporate social responsibility. Exploring the appropriateness of establishing common guiding principles for CSR practices and instruments. IBEC tracked this development and participated in a UNICE CSR Working Group which was established to gather the viewpoints of all business organisations around Europe about CSR and the discussions in the Forum. to convene an initial shared review in two years’ time of progress made in relation to the Forum’s recommendations. 2. business networks and NGOs. p22) instruments such as OECD Guidelines for Multinational Enterprises. social cohesion and environmental protection) by facilitating the exchange of experience and good practices and bringing together existing CSR instruments and initiatives. A final forum report containing the results and recommendations of the EMF as well as the outcomes from each individual roundtable was submitted to the Commission at the end of June 2004. the CSR EMF shall promote innovation. In addition. attended with observer status. and negotiated the final Forum Report. environmental protection. democratisation and conflict prevention aspects. in addition to some other organisations active in the field of CSR.There was a general consensus that the EU should develop a coherent. as crosscutting issues. They also established and participated in working groups for four thematic roundtables (see below). by all the roundtables. there was a general consensus that dialogue between companies and stakeholders should be encouraged. exchange of good practices. developments and innovations in CSR. social cohesion. OECD and also the WTO. which focused on four key themes1: 1.’ (EMF. The EMF concluded the report by inviting ‘the Commission together with stakeholders. transparency and convergence of CSR practices and instruments through: Improving knowledge about the relationship between CSR and sustainable development (including its impact on competitiveness. taking into account existing EU initiatives and legislation and internationally agreed 1. 2004. Council of Europe Social Charter. development aspects of CSR. fostering CSR among SMEs. improving knowledge of CSR. This commitment was made as the Commission was of the view that ‘…the involvement of all affected stakeholders is key to ensuring acceptance and credibility of CSR and better compliance with its principles. the consumer dimension and the international dimension. ILO core labour conventions and the International Bill of Human Rights. Green GB and NGOs co-ordinated the work of the European Multi-Stakeholder Forum. CSR Europe. and of the trends. were also taken into account. encompassing all the relevant issues. notably through international organisations such as the ILO. balanced and flexible approach to CSR. promote transparency (through disclosure policies) and credibility of CSR practices.’ The Forum comprised the social partners.

1999. community involvement. and impact upon. as it is strongly linked to developments in society. content and degree of complexity of CSR is also largely company specific and. p7) The United Nations Conference on Trade and Development (UNCTAD) defines CSR as ‘…how business enterprises relate to. supply chain management. p1). stakeholder dialogue and involvement. As a topic it is still evolving and it covers a broad range of issues such as the environment. corporate governance. nor does agreement on the range of activities that should be considered as part of CSR. the objectives of each are. CSR incorporates all aspects of the terminology referred to above. Corporate social responsibility. employee well-being. 2003) Business in the Community Ireland defines CSR as ‘…a complex term but can be summed up in the concept of sustainable competitive profit – achieving marketplace success with a minimum effect on the environment and a maximum positive affect on each company stakeholder. a single. 2002.CORPORATE SOCIAL RESPONSI BI LITY 3. corporate responsibility and corporate citizenship are the four main terms that are used. the same. a society’s needs and goals. © IBEC 2004 9 . The following are the broad definitions used by the main institutions: The European Commission Green Paper on CSR attempts to define it as a ‘…concept whereby companies integrate social and environmental concerns in their business operations and in their interactions with their stakeholders on a voluntary basis. human rights. WHAT IS CORPORATE SOCIAL RESPONSIBILITY? defining csr Corporate Social Responsibility (CSR) is a fluid concept and can be described as an amalgamation of a wide range of interests and activities.’ (EU Commission. All societal groups are expected to perform certain roles and functions that can change over time with a society’s evolution…’(UNCTAD. Consequently. advertising. ultimately. …In addition CSR is about an organisation using its resources to combat social exclusion and contribute to social cohesion and recognising the benefits on corporate reputation in doing so. The nature. health and safety etc. the meaning and activities associated with it will change over time. diversity.’ Terminology.’ (IOE. Despite the appearance of a varied focus between these terms. internationally agreed definition does not exist. and a varied use of language also contribute to the confusion surrounding CSR. The International Organisation of Employers (IOE) defines CSR as ‘…initiatives by companies voluntarily integrating social and environmental concerns in their business operations and in their interaction with their shareholders. social responsibility.

innovation and refinement are important for successful CSR. Pressure by Governments. the terms used to describe CSR can vary. As employees are an integral part of a company. ■ The dialogue with relevant stakeholders adds value to the development of companies’ CSR practices and tools. benefit from communicating about these activities in a transparent and meaningful way. They need to refine and develop their approach over time. attempts have been made at identifying the principles of CSR. of which reporting is one. and other drivers. They are as follows: (European MultiStakeholder Forum report. depending on a number of factors such as the size of the company or the countries in which it operates. ■ The environmental. not replacing or avoiding them. social and environmental progress. and some of them can also provide external verification/certification of CSR activities if desired. and that it should not be used to shift public responsibilities to companies. and while companies are there to make profits. The participants in the European Multi-Stakeholder Forum developed a basic definition of the principles that they believe constitute CSR. conflicts. companies need to take into account the different context and challenges. and it alone cannot be expected to ensure environmental and social improvement. social and economic impacts of a company’s activities up and down its supply chain. ■ The commitment of management in driving CSR forward is essential. Nonetheless. p3) ∑ ‘CSR is the voluntary integration of environmental and social considerations into business operations. A company’s response to the transparency challenge will depend on its activities. © IBEC 2004 ■ Convergence of CSR practices and tools is occurring on a market-led basis through voluntary bottom-up and multi-stakeholder approaches. There are different ways in which this can be achieved.’ individual components of csr There are a wide variety of CSR activities in which a company can engage. 2004. over and above legal requirements and contractual obligations. ■ CSR is complementary to other approaches of ensuring high environmental and social performance: there are limits to CSR. Even though the list is broad. the following model designed by Business in the Community UK (2000). an approach that integrates environmental and social considerations and is based on dialogue with stakeholders is likely to contribute to the long-term sustainability of business in society. and that this can achieve quality and a good balance between comparability. Tools and initiatives can provide companies with some guidance as to how to approach this topic and formalise their CSR activities. need consideration. Scope for flexibility. ■ CSR is one means amongst many for achieving economic. which may be difficult to reconcile. ■ Companies taking a CSR approach. capacity and the needs of its stakeholders. and for integrating these concerns into business practice. NGOs and trade unions can also influence the direction the company eventually decides to take on CSR. CSR is about going beyond these.principles of csr As previously mentioned. including poverty. as well as other organisations. ■ CSR is an ongoing learning process for companies and stakeholders. ■ When operating in developing countries and/or in situations of weak governance. responding to changing circumstances and expectations. consistency and flexibility. it is important to pay particular attention to the role of employees and their representatives and dialogue with them. Companies need to consider their approach carefully and choose tools that suit their needs and respond well to stakeholders’ expectations. Those measures which are adopted can vary. environment and health issues. 10 . The development of tools and practices is work in progress. provides an example of the some of the issues that a formal CSR policy can address. ■ CSR is about the core business activities of a company. as well as in its own operations.

land and water Use of natural resources Transport impacts Source: Winning with Integrity. pricing etc Supply chain influence Customer and supplier complaints Goods for vulnerable consumers Advertising and consumer rights Cause-related marketing (donating portion of profits from certain product/ service revenues to social causes) community Impact of local operations on the community Measurement of employee time. cash and resources donated Business investment in the community environment Environmental management Impact on environment of core products and services Emissions to air. management costs.the issues workplace Equal opportunities Workforce diversity Work-life balance Training and life-long learning Health and safety Human Rights marketplace Positive/negative impacts on society of core products and services Issues around buying and selling. Business in the Community UK 2000 sourced in A Step by Step Guide to Integrating Corporate Social Responsibility across your Business © IBEC 2004 11 .

It is also well documented that there is a direct correlation between the social. which if not honoured may result in the company being unable to function legitimately. They have been divided into seven categories in the model below. There are a variety of internal and external business drivers behind CSR that contribute to the well-being of a business and some of them are listed below. Therefore corporate governance has an indirect impact and can encourage the growth of CSR activities in a business. and a consequent pursuit of responsible practices. lies at the heart of CSR.CORPORATE SOCIAL RESPONSI BI LITY 4. employers are increasingly recognising the value of CSR and are reviewing and formalising their CSR activities to maintain their long-term prospects and competitiveness in the marketplace. p10) While corporate governance may be focused on companies’ statutory requirements. it has emerged as one of the most important tactics for business survival. Consequently. it also provides a backdrop for CSR.’ (IBEC. BUSINESS CASE FOR CORPORATE SOCIAL RESPONSIBILITY A strong business case exists for CSR and. as it encourages responsible business behaviour as well. Corporate Governance Increased Consumer Confidence Competitive Advantage CSR Investment Improving relationships with stakeholders Positive PR image Cost Benefit Analysis © IBEC 2004 12 . environmental and ethical practices of a business and sustainability. 2001. over the past few years. A company’s awareness of the impact of its operations on all of its stakeholders. It is acknowledged in research and best practice that the long-term profits of a company largely depend on the planning and activities for the future sustainability of that company. Factors influencing the business case for Corporate Social Responsibility corporate governance ‘Corporate governance requires compliance with all relevant laws as a matter of course…(as) legal obligations are requirements.

companies need to integrate corporate ethics into their production and marketing methods and supply chains to remain competitive and differentiate themselves from their competitors. Consumers are now purchasing products that are developed in a way that accords with the values they hold. The profit margin is no longer the sole indicator of a lucrative company. The ethics of a company and the considerations given by that company to the community and environment in which it operates can influence the decision of that person whether or not to apply for a job with that company.” (Grayson et al. and their marketing campaigns. The integration of the concept and the language into the day-to-day exchanges between these parties can help to increase stakeholders’ awareness of the values of the business and the importance of the links with all interested parties.the intangible valuation of companies represented by brands will rise to 45% by 2010. “Research by Interbrand found that 96% of Coca Cola’s stock market value is in intangibles such as reputation. knowledge and the brand…. Generally speaking. Enhanced corporate reputation also affects other areas of the business (see below). Investors and analysts are expecting more detailed information to be provided by the company on nonfinancial aspects so they can consider the ‘triple bottom line’ and longer-term risk issues of reputation and risk management. Interbrand predict …. as it can help to meet the emerging demands of consumers. In addition. It has been reported that CSR can decrease long-term risk for companies. employees etc. they are monitoring their activities more closely. as sustainable business has emerged as another indicator of a good investment. corporate reputation The impact of business on society has never been scrutinised more critically than today. prospective employees and investors.. Risk management and reputation influence investor relations and can increase the chances of attracting new investors to a company. highly skilled prospective employees are able to access a substantial amount of information about a company quickly and easily through the Internet. The high profile corporate scandals of the 1980s and 1990s damaged public confidence in business and corporate reputation is now recognised as a valuable commodity to business. The corporate reputation of a company can also influence brand integrity. investment In recent years there has been a growing recognition that for business to be successful it must have stability and continuity with its key stakeholders. increased investment in the company and more positive publicity. 2001) CSR can help to enhance the reputation of a business among all its stakeholders by formalising the activities that the business is conducting in the area and providing a communications medium that can be used to promote those activities. © IBEC 2004 13 . (and)…. The importance of values to the purchasing power of consumers is evident in the substantial growth of companies such as the Body Shop and Fair Trade that integrate CSR into their business through their supply chain processes and procedures. more and more companies are now required by their shareholders to produce social/sustainable reports alongside their annual reports. while also enhancing their reputations. can be a result of focusing the business on CSR. With the growth of information technology. improving relationships with stakeholders A better working relationship with the community. shareholders. Increasingly. NGOs and the wider public are now more dubious about the activities of companies operating in foreign jurisdictions and as a consequence.competitive advantage CSR can provide a competitive advantage to a company. This can result in the attraction and retention of skilled employees. increased community support for the business.

Nonetheless. reusing and recycling products. if an employee likes where they work and the values of the company reflect their own. they will be more likely to remain. tangible measurement indicators can include costs associated with recycling and the cost to the business of recruitment and retention. The understanding by the media and other parties about the values of the business and how it operates can also be increased through the promotion of CSR activities. the internal and external promotion of CSR activities can increase the positive reputation of a business as well as enhancing communication. While CSR is not just a public relations exercise. © IBEC 2004 14 . positive public image Increased media attention on abuses of corporate power has helped to raise public awareness of corporate behaviour. Many businesses have reported that they have experienced reduced costs as a result of reducing. In addition to the above. be difficult to cost.cost/benefit analysis CSR is quite intangible and can. thus. thereby reducing staff turnover and recruitment costs.

2001.’ (ILO. environment. employers’ and workers’ organisations of home and host countries and to the multinational enterprise © IBEC 2004 15 .p 15) Governments of the 36 adhering countries have established a system of national contact points to promote the observance of the guidelines by multinational enterprises and to act as a forum for the discussion of all matters relating to those guidelines. training. Even though the guidelines are directly aimed at multinational enterprises. They provide voluntary principles and standards for responsible business conduct consistent with applicable laws. The aim of the Declaration ‘…is to encourage the positive contribution which multinational enterprises can make to economic and social progress and to minimise and resolve the difficulties to which their various operations may give rise. Further information on the OECD Guidelines for Multinational Enterprises can be found on www. The Declaration promotes a comprehensive and balanced approach for governments’ fair management of FDI and for corporate responsibility. they state that domestic enterprises and SMEs should be subject to the same expectations in respect of their conduct wherever the guidelines are relevant (OECD. The Declaration reiterates that the principles are a guide.’(OECD. science and ILO TRIPARTITE DECLARATION OF PRINCIPLES CONCERNING MULTINATIONAL ENTERPRISES AND SOCIAL POLICY The Tripartite Declaration of Principles Concerning Multinational Enterprises and Social Policy was adopted by the ILO in response to concerns about the activities and conduct of MNEs in host countries. p2). and employers’ and workers’ organisations in such areas as employment. to help improve the foreign investment climate and to enhance the contribution to sustainable development made by multinational enterprises. taking into account the United Nations resolutions advocating the establishment of a New International Economic Order. their countries. and are commended to governments. 2000.CORPORATE SOCIAL RESPONSI BI LITY 5.oecd. and in areas such as product safety. conditions of work and life and industrial relations. to strengthen the basis of mutual confidence between enterprises and the societies in which they operate. supply chain responsibilities. governments. 2000). INTERNATIONAL INSTRUMENTS AND INITIATIVES ON CSR governmental and intergovernmental initiatives OECD GUIDELINES FOR MULTINATIONAL ENTERPRISES The Guidelines for Multinational Enterprises (MNEs) are recommendations addressed by 36 Governments (including Ireland) to multinational enterprises operating in. employment and industrial relations. The guidelines are part of a broader instrument – the OECD Declaration on International Investment and Multinational Enterprises. The guidelines aim to ‘…ensure that the operations of these enterprises are in harmony with government policies. and from. The principles are voluntary and were developed to offer guidance to MNEs. taxation and competition.

The 10 principles are finite and cannot be extended unilaterally. 16 © IBEC 2004 . stimulating action in support of UN goals. Periodic surveys are conducted to monitor the effect given to the Declaration by MNEs. the Commission decided unanimously not to adopt the draft norms as a legal text and not to permit monitoring of them. Instead. the Secretary-General announced the addition of a tenth principle on corruption. may submit a request to the ILO for an interpretation of the meaning of its provisions (ILO. p5). In April The Global Compact is not a regulatory instrument linked with external monitoring or auditing of company activities. transparency and for companies to demonstrate to their employees and communities how they are being responsible corporate citizens instead (IOE. At the 60th session on 20 April 2004. A number of international labour conventions and recommendations reinforce the provisions of the Declaration and it is made clear that its provisions shall not limit or otherwise affect obligations arising out of any ILO convention (ILO. governments. The High Commissioner is currently consulting with stakeholders (including companies and employers’ associations) to hear their views on these issues. 2001).’”(ILO. Further information on the Global Compact can be found on www. Further information on the ILO Tripartite Declaration of Principles Concerning Multinational Enterprises and Social Policy can be found on Universal Declaration of Human Rights. 2003) The lead UN agencies involved are the ILO. the Compact is intended to realise its objectives through promoting the integration of 10 key principles into the strategies and operations of private business around the world and consequently. A summary and analysis of the replies received are submitted to the ILO Governing Body for discussion. using a procedure instituted in1981.unglobalcompact. Nine principles were drawn from the UNITED NATIONS (DRAFT) BUSINESS NORMS ON THE RESPONSIBILITY OF TRANSNATIONAL COMPANIES The United Nations (Draft) Business Norms on the Responsibility of Transnational Companies were adopted by the UN Sub-Commission on the Promotion and Protection of Human Rights on 13 August 2003. In the event of a disagreement over the application of the Declaration. For more information see www. It relies on public accountability.human rights. The ILO is of the view that ‘…this instrument provides social policy guidelines in a sensitive and highly complex area of activities. The UN aims to advance corporate citizenship through this initiative by the identification and dissemination of good practice in four areas . they were then submitted to the full United Nations Commission on Human Rights for preliminary consideration. and employers’ and workers’ organisations. By signing up to the Global Compact. During the first Global Compact Leaders Summit. 2003). it requested the Office of the High Commissioner to “…compile a report setting out the scope and legal status of existing initiatives and standards relating to the responsibility of transnational corporations and related business enterprises” for consideration by the Commission at its April 2005 session. the environment and corruption. the Rio Declaration on Environment and Development and the UN Convention against Corruption. that ‘…invites business to play a role in building the missing social infrastructure of the new global economy by improving their own corporate practices. the parties. 2003). the UNEP and the UN High Commissioner for Human Rights (UNHCHR). 2001).org THE UN GLOBAL COMPACT The Global Compact is a voluntary UN initiative by the UN Secretary-General.itself.’(Annan. Companies are also encouraged to exchange information about the initiatives they used to translate the Compact and its principles into business strategies and operations. a company states that it is prepared to work towards the achievement of the objectives of the Global Compact and to maintain the momentum of improvement. held on 24 June 2004 at UN Headquarters in New York. The United Nations Development Programme (UNDP) is also involved in assisting the agencies in developing country-specific responses and activities (IOE.ilo. 2001. Kofi Annan. the ILO Fundamental Principles and Rights at Work. Launched in January 1999. labour. Adherence to the Declaration by all concerned would contribute to a climate more conducive to economic growth and social development.

uk © IBEC 2004 17 . Mine and General Workers’ Unions.unepfi. Council on Economic Priorities. Fund for Peace. workers’ and corporate responsibility groups. They address three areas: 1. Obligations extend to the security of persons. developed a set of Voluntary Principles on Security and Human Rights. Human Rights Watch.UK voluntary principles on security and human rights can be found on www. Participants involved in this initiative include Human Rights First. mining) sector. the UK Foreign and Commonwealth Office. political. possibly by the United Nations.fco. legal compliance. environmental and economic obligations for transnational companies. The principles are the first set of guidelines of their sort for this sector. and the Insurance Industry Initiative (III). Texaco. Amnesty International. for insurers. economic. Businesses should establish internal structures and contract clauses to ensure compliance. The UNEP FI statement on the environment and sustainable development commits all signatories to the integration of environmental considerations into all aspects of their operations. Freeport McMoran. 2 relations with public security. representatives from the US Department of State. Further information on the US .un. However. Conoco. risk assessment. 3. liable for human rights violations. oil.’ Further information on the United Nations (Draft) Business Norms on the Responsibility of Transnational Companies can be found on www. including individuals within a corporation. Guidelines on the needs of financial institutions in developing countries and transition economies are also due to be completed by the end of 2004. States maintain the primary responsibility to protect and promote international human UNEP FI and the Global Reporting Initiative (GRI) have co-convened a working group to complete a GRI Financial Services Sector Supplement (Environmental Performance) for the International Finance Sector. The norms (www. BP. environmental protection and operations in conflict zones. consumer protection.The draft norms suggest various social. core labour rights. Further information on the UNEP FI initiatives on the environment and sustainable development can be found on www. based mostly on existing human rights and labour standards. and human rights. and shall create the necessary legal and administrative framework to ensure implementation. for the banking sector. A compliance-monitoring unit should be established. it has been suggested that the norms propose to make private business.UK VOLUNTARY PRINCIPLES ON SECURITY AND HUMAN RIGHTS In 2000. reinsurers. This product will be produced after a period of public consultation in 2004. They also form the basis for a global standard for the sector. US . curbing corruption. and will be obliged to provide reparations to any party affected by non-compliance. pension funds and asset management concerns.un. mining and energy companies. Chevron. UNITED NATIONS ENVIRONMENT PROGRAMME FINANCIAL INITIATIVE (UNEP FI) STATEMENT ON THE ENVIRONMENT AND SUSTAINABLE DEVELOPMENT The UNEP FI was founded by the UN Economics and Trade Unit in 1992 (revised May 1997) to engage financial institutions in dialogue on sustainable development. relations with private security. International social and cultural rights).org) specify that: ‘Businesses must ensure that their impact does not contribute a violation or work against the realisation of human rights (including civil. These principles are designed to provide practical guidance to strengthen human rights in company security arrangements in the extractive (ie. Business for Social Responsibility. the International Business Leaders Forum and the International Federation of Chemical. An indicator will be developed to allow companies to measure the impacts of financial sector products and services on the environment. Rio Tinto. UNEP FI comprises the Financial Institutions Initiative (FII).

’ Currently. Further information on the Corporate Responsibility Index can be found on www. The organisation also works with public bodies and the non-governmental sector lobbying and advocating the benefits of social partnership and corporate responsibility. The organisation has funded studies to highlight examples of socially responsible policies and practices in companies of all sizes and sectors in Ireland. Business in the Community has produced a number of publications on CSR. The general principles can be found on www. They include: A Guide to Integrating Corporate Social Responsibility Across Your Business. some of the services provided to member companies include measurement and reporting of their CSR activities. To develop the SR business-led initiatives BUSINESS IN THE COMMUNITY (BITC) Business in the Community Ireland specialises in corporate responsibility and community involvement. and avoidance of illicit operations. Further information on the ISO Standard for Social Responsibility can be found on www. ISO has assigned the leadership of the working group that will develop an international standard to the national standards institutes of Brazil (ABNT) and Sweden (SIS). written in plain language which is understandable and useable by 18 . its economic and societal impact.INTERNATIONAL ORGANIZATION FOR STANDARDIZATION (ISO) INTERNATIONAL STANDARD FOR SOCIAL RESPONSIBILITY The ISO senior management committee decided at the end of June 2004 to develop an international standard on social responsibility (SR). implement and monitor their own internal principles. The overall mission of the organisation is to harness the power of Irish business to maximise its positive impact on all its stakeholders. behaviour. Further information on Business in the Community Ireland can be found on www. The Index is a benchmarking tool that evaluates and compares responsible business behaviour. The index was launched in response to an identified need on the part of companies for reliable and standardised information that would enable a company's performance to be compared with its competitors. © IBEC 2004 CAUX PRINCIPLES FOR BUSINESS The Caux principles were established in 1994 by a network of business leaders from Japan. the management of corporate responsibility within the organisation and performance in a range of social and environmental impact areas.bitc. corporate responsibility strategy. They provide a guide to companies to develop. re-examine. The objective is to produce ‘…a guidance document. the standard is not intended to be used in certification or as a specification document against which conformity is marketplace. the integration of this strategy into the business. It is expected that the standard will be completed for publication in 2007. respect for rules. which will answer directly to ISO's Technical Management Board (TMB) that oversees the activities of the organisation's 186 standardsdeveloping technical subcommittees.bitc. respect for the environment. Member bodies have been invited to vote on the proposal by 7 January 2005.cauxroundtable. ISO formed a task force to propose the terms of reference and operating processes for the working group for consideration at the TMB meeting in September Business in the Community Ireland addresses corporate responsibility in the workplace. Europe and North America. Following this. support for multilateral trade. The key principles covered include the responsibilities of business. This service promotes the integration of socially responsible business practices in its member A Corporate Responsibility Index was launched by a consortium of 700 companies in the UK arm of Business in the Community. community and environment through its Corporate Responsibility Policy and Practice Division. the TMB prepared a formal proposal that ISO undertake the preparation of an international standard giving guidance on social responsibility. ISO is setting up a new working group. In relation to CSR. Winning with Integrity: A guide to social responsibility Business Impact Task Force. by supporting them in recognising the extent of their impact on all their stakeholders.

responsibility for people. and include human rights. It recommends a Framework for Action to be used by business leaders to develop a strategy for managing a company’s impact on society and its relationships with stakeholders. certify that companies are in compliance with the code of conduct. The code contains nine clauses that reflect the most relevant ILO standards with respect to labour practices. equal opportunity. fair competition. Reverend Leon Sullivan worked with multinational enterprises and NGOs to encourage companies to work towards GLOBAL SULLIVAN PRINCIPLES OF SOCIAL RESPONSIBILITY FAIR LABOR ASSOCIATION (FLA) The Fair Labor Association is a non-profit organisation established in the US in November 1998 (amended October 2001) by the Apparel Industry Partnership comprising companies.weforum. freedom of association. The FLA will accredit the independent monitors. In most cases. When companies join ETI. and serve as a source of information for the public. More information on the Global Sullivan Principals can be found at www. NGOs and trade union organisations. These principles were widened for universal application in 1999.THE ETHICAL TRADING INITIATIVE (ETI) This was established in September 1998 in the UK and is a formation of companies.fairlabor. child labour. they commit to implementing the code in their supply chains and reporting annually on their progress in doing so. The framework contains a template for a leadership process within companies and is intended to be complementary to the various voluntary corporate citizenship principles and guidelines that have been developed in specific areas. it will include elements of good corporate governance and ethics. community development. social and political justice in all their operations. The ETI has developed a basic code of labour practice and accompanying principles of implementation for company performance. forced labour. NGOs and educational WORLD ECONOMIC FORUM (WEF)/CEOS GLOBAL CORPORATE CITIZENSHIP: THE LEADERSHIP CHALLENGE FOR CEOS AND BOARDS A joint statement and framework for action was issued by the WEF and a number of CEOs in 2002. compensation for basic needs. embodied in codes of conduct. The ETI seeks to promote respect for the rights of workers producing for the UK markets and help improve their working conditions by developing and encouraging the use of widely endorsed standards. and promotion of principles with suppliers and contractors. health and safety. abuse. Further information on the World Economic Forum / CEOs global corporate citizenship challenge can be found on In 1977. secured GM’s support in the development of the Sullivan Principles. Further information on the ETI can be found on www. responsibility for environmental impact and a broader contribution to development. NGO and corporate members of ETI. the first black member of the board of the General Motors Corporation. worker © IBEC 2004 19 . a code of conduct for American businesses operating in South Africa. The FLA Charter has created an industry-wide workplace code of conduct and monitoring system that hold companies publicly accountable for their labour practices. and monitoring and auditing methods. Reverend Leon Howard Sullivan. Both of these tools were negotiated and agreed by the founding trade union. Further information on the Fair Labor Association can be found on www.ethicaltrade.

called the CARE programme.amnesty. The process entails site inspections to establish if factories are complying with the code of business conduct of the ICTI. auditing and reporting.accountability. ensuring that there is uniformity of standards and auditing practices. security. humane and ethical conditions. efficient and coherent system for factories that will have the endorsement of the world’s retailers and consumers. decent working conditions. as such. employee health and safety standards and child labour. freedom from discrimination.WORLD-WIDE RESPONSIBLE APPAREL PRODUCTION PRINCIPLES (WRAP) The American Apparel and Footwear Association established these principles in 1998 to be core standards for production facilities participating in the WRAP Certification Programme. and then turned over to ICTI. health and safety. It is focused on securing the quality of social and ethical accounting. Further information on Amnesty International’s human rights guidelines for companies can be found on www. as well as total transparency. The overall objective of the initiative is to create a single. They were developed to assist companies in situations where they must tackle and manage human rights violations or the potential for such violations. and security management in general. an agreement has been reached on INTERNATIONAL COUNCIL OF TOY INDUSTRIES (ICTI) The International Council of Toy Industries launched an ethical auditing initiative in 2002. More detailed information is available on AMNESTY INTERNATIONAL HUMAN RIGHTS GUIDELINES FOR COMPANIES Established in September 1998 by the Amnesty International UK Business Group. It does not prescribe what should be reported on. these guidelines comprise an introductory set of human rights principles and are based on international standards. human rights. tested in China. An oversight committee is to be established to monitor toy factory compliance with the industry’s code of business practice Further information on the International Council of Toy Industries can be found on www. suppliers or partners and they provide suggestions to companies on how to promote human rights internally. an accredited independent monitor is employed to conduct a company audit as part of the overall compliance-monitoring phase. rather the manner in which it should be can be used to underpin the quality of specialised accountability standards and as a stand-alone system for managing and communicating social and ethical accountability and performance. and six independent auditing firms have been chosen to conduct the work. The key principles covered include. The AA1000 Framework is supported by a series of specialist modules (AA1000 Series). The guidelines also encourage companies to promote these standards externally to their contractors. The auditing process was developed by the Toy Industry Association of the United States (TIA) and the Toy Industries of Europe (TIE). freedom from slavery. The certification programme was established to independently monitor and certify compliance with the socially responsible global standards for manufacturing. Following the completion of a self-assessment questionnaire. It is a foundation standard and.wrapapparel. and ensure that sewn products are produced under © IBEC 2004 20 . to independently monitor manufacturing practices among all toy manufacturers in a number of areas including fair pay. community engagement. Further information on Accountability 1000 can be found on ngo-led initiatives ACCOUNTABILITY 1000 The AccountAbility 1000 framework was adopted in November 1999 (revised 2002) by the Institute of Social and Ethical AccountAbility to improve accountability and performance by learning through stakeholder involvement. Since the advent of ethical auditing.

labour GLOBAL REPORTING INITIATIVE (GRI) The Global Reporting Initiative was adopted in 1997 (revised in June 2000 and again in September 2002) and is an official collaborating centre of UNEP. The GRI began as a project of the US environmental organisation (CERES) and is a voluntary initiative dedicated to developing and disseminating globally applicable sustainability reporting The Principles of Global Responsibility: Bench Marks for Measuring Business Performance (referred to as Bench marks) was first published in 1995. More information is available at ICFTU/ITS BASIC CODE OF LABOUR PRACTICE This Code was established in 1997 by the International Confederation of Free Trade Unions/International Trade Secretariats. The principles are suggested as a means of developing and monitoring corporate codes of conduct. women’s groups and NGOs. environmental and social issues and provides guidance to other entities that are publishing or intend to publish sustainability reports. Further information on the TCCR Principles can be found on www. The code aims to promote international standards and the inclusion of a list of minimum standards addressing trade union rights and labour practices in codes of conduct. environmental and social policy and its actual performance. the updated text was released in Canada and insurance companies should report on what they are doing to improve access to financial services for disadvantaged populations and SMEs. Further information on the Ceres Principles and Sustainability Reporting Awards Programme can be found on www. reduce debts for developing countries. The initiative also works in conjunction with the Global Compact. The GRI guidelines also propose that independent assurance can help to enhance the credibility of a sustainability report. Further information on the ICFTU/ITS basic code of labour practice can be found on www. The principles establish an environmental ethical standard. private industry. The awards programme rewards best practice in reporting on sustainability. Ceres has also developed a North American/ Canadian Sustainability Reporting Awards Programme with the Association of Chartered Certified Accountants (ACCA). academics and business associations. government representatives. In 1998. environmental. and offer products likely to appeal to ethical investors.web. It is a partnership comprising NGOs. The framework was assessed by church groups. The GRI has developed a series of reporting principles to achieve this aim. and publicly assert their belief that corporations have a responsibility for the environment. and revised and Social performance indicators for financial institutions have been set out in a supplement to the GRI guidelines on sustainability reporting. the United States and Canada. The finance supplement suggests that banks and TCCR PRINCIPLES FOR GLOBAL CORPORATE RESPONSIBILITY: BENCH MARKS FOR MEASURING BUSINESS PERFORMANCE These principles were established in 1993 by a nondenominational alliance of religious groups – the Taskforce on the Churches and Corporate Responsibility in Britain. corporations. particularly when managing relations with stakeholder bodies and they are also offered to NGOs (www.globalreporting.web. This basic code is designed to assist any trade union organisation in negotiations with companies on labour practice and in working with NGOs on campaigns involving codes of conduct.ceres. accounting organisations. investor and advocacy groups. with criteria by which investors and others can evaluate and review the environmental performance of companies. Companies that endorse these principles make a promise to go voluntarily beyond the requirements of the law.globalreporting.CERES PRINCIPLES These principles were established in 1989 by over 80 21 © IBEC 2004 . The aim of the guidelines is to provide an internal vehicle for evaluating the consistency between the organisation’s economic.itcilo. Further information on the Global Reporting Initiative can be found on www.

and its associated verification system. The standards are not an implementation model but they describe the important aspects of CSR. SA8000 has been developed as a means for retailers. business partners. customers. Published in 1997 (revised in 2001) by Social Accountability International. accountability and governance.’ (www. Further information on the Social Venture Network Standards of corporate social responsibility can be found on www. companies are encouraged to choose parts of a compendium that they can use to improve social performance and make continuous improvements that can be applied to their overall strategies. The SVN standards are based on nine topics. There are three general topics: ethics. practices. suppliers and other organisations to ‘maintain just and decent working conditions throughout the supply chain. Within each standard. SOCIAL VENTURE NETWORK (SVN) STANDARDS OF CORPORATE SOCIAL RESPONSIBILITY The SVN Standards were established in 1999 by US and European business and social entrepreneurs and NGOs. © IBEC 2004 22 . Under this six topics related to each stakeholder group. the information is organised into principles. brand companies. community and environment.SOCIAL ACCOUNTABILITY 8000 (SA 8000) Social Accountability International is a US-based nonprofit organisation that aims to improve workplace conditions through the expansion and further development of an international workplace standard. SA8000.svn. measures and Further information on Social Accountability 8000 can be found on www. suggest practices and measures that other companies have used to measure their social responsibility practices and they highlight resources for additional

and for its clients. an international financial services solutions centre and a corporate treasury centre. Being seen as a great employer. started operations in Ireland in 1956. Every IBM facility is actively involved in a wide programme of CSR activities. which IBM initiated in 2003 and which involves 10 worldwide corporate members and two research partners. members of the wider local and national community (especially those in more disadvantaged circumstances). Among them are corporate policies on quality. among others. IBM has many examples of how it constantly strives to ensure the best possible social and human outcomes for its employees in the workplace. a software development laboratory. a large telesales and telemarketing centre. Listed below are some recent examples of CSR best practice and new initiatives in Ireland.6m in the past 5 years. corporate founding member of Business in the Community Ireland B2B (business to business) CSR organisation. The Committee comprises 10 Vice Presidents from across the company. for the environment. IBM is an active. © IBEC 2004 23 . workforce diversity and environmental affairs and corporate instructions on community relations. In Ireland. in operation since 2000 and the Wired for Learning schools partnership with the Department of Education and Science which has been in existence since 1998. A strategic. a trusted corporate citizen and a valued member of the community have always been priorities for IBM. innovations and commitments from1913 to the present day and beyond. In addition to a growing sales and services business serving Irish customers. long-term community relations programme that has contributed over $2m/€1.600 people across all of its operations in Ireland. In 2004. CSR PROVISIONS AND INITIATIVES IN IBM In addition to IBM’s global corporate instruction on CSR. each of the pillars of CSR is also guided by a specific global policy. outline and measure IBM’s CSR leadership. the information technology company. IBM employs in the region of 3. In turn. the Committee is focussing on the publication of the IBM 2004 CSR Report as well as participation in the Global Leadership Network for Corporate Citizenship.CORPORATE SOCIAL RESPONSI BI LITY 6. including the IBM On-Demand Community Volunteer programme for employees and retirees established in November 2003. AIMS AND OBJECTIVES OF ENGAGING IN CSR IBM’s global CSR Report 2003 ‘What is the value of a company?’ and forthcoming 2004 CSR report. This CSR commitment has been delivered with the same level of passion that is applied to client service or product innovation. making it one of the largest multinational employers in the country. IBM has an extensive technology campus and manufacturing facility based in Mulhuddart on the outskirts of Dublin. every IBM employee is also required to sign up regularly to the current Business Conduct guidelines and IBM has a Corporate Citizen Committee. The IBM KidSmart Early Learning Programme. CSR CASE STUDIES ibm ireland IBM. suppliers and business partners in the marketplace.

The company plans to exceed its 2004 target for 7% of employees and retirees to participate in its new On-Demand Community Volunteer Programme and aims to establish its new Web Adaptation Technology programme for people with disabilities and the elderly by early 2005. has built up a long-standing reputation for CSR best practice and continuous innovation. modifications to processes or the introduction of new initiatives is determined by feedback from IBM’s bi-monthly anonymous ‘Global Pulse’ employee survey that targets 5% of employees. which is well in excess of the national requirement for recycling of 25% of packaging waste. the company uses the Internet and public relations to announce major initiatives or news. IBM recycles 72. ■ CSR Award 2003 from North-side Partnership (Dublin). Outside of IBM. participation by Irish employees at the first IBM Europe Gay. IBM Ireland participates in the company’s worldwide ISO 9901. A key element of its strategy is partnership with all stakeholders. On the ground. Moving forward into 2005. IBM also shares its CSR experience at seminars and conferences such as with the National Standards Authority of Ireland (NSAI) in November 2003 and the European Conference Board’s CSR meeting in Dublin in June 2004. In addition. As a member of Repak. recent positive recognition which has been a source of pride to employees has come in the form of: ■ the Chambers of Commerce Ireland President’s Awards for CSR in 2004: citation and shortlisted for major CSR award to be announced in November. various flexible working options. has been initiated as well as customer satisfaction initiatives and other activities IBM now issues an annual. The expansion of existing programmes. With regard to the market place. targets and evaluation. information from customer feedback mechanisms. It plans to include even more three-to-six-year-olds from disadvantaged backgrounds this year in the IBM KidSmart Early Learning programme. a research project on the supply chain. all employees can access on demand. Aggressive recycling targets in addition to external certifications are also pursued. up-to-date global and local policy information and news from across all the CSR disciplines on its extensive internal intranet. ongoing supply chain research. Bisexual and Transgender Empowerment Conference in May 2004 and the launch of a Diversity Council in Ireland in April 2004. and independent research evaluations of community and schools programmes is used. and worldwide.6% of all non-hazardous waste at the IBM Technology Campus. including the Global Reporting Initiative (GRI) (See Section 5 of this report for an explanation of the GRI). In addition. They include an IBMsupported childcare facility. ■ Best Companies to Work For 2003: Excellence in Gender Equality Award. IBM aims to sustain and develop all projects within its community programme and introduce new ones. global CSR Report that is available online and in hard copy (online only from 2004) to all internal and external stakeholders. Lesbian. IBM has a number of workplace diversity and wellbeing programmes in place. The company also participates in business-to-business networks such as those established by Business in the Community Ireland (BITC) and has submitted CSR best practice case studies to publications in 2003 and 2004. ■ Guinness Living Dublin Awards 2003: overall winner and winner of the Business in the Community category. EVALUATION AND FUTURE IMPROVEMENTS IBM’s annual global CSR Report uses a number of CSR measurements. involving UCD and American universities.Environmental affairs projects include participation in IBM’s worldwide ISO 14001 registration. ■ Repak 2003 recycling awards: finalists for Best Company for Best Practice. 2001 quality management system registration. recognising in particular IBM’s local contribution to support the re-training of the unemployed. the company. In Ireland. ATTITUDES AND COMMUNICATION As part of the IBM’s active commitment to being a leading corporate citizen. each CSR discipline and programme features a combination of measurements. The company will continue to expand recycling rates in its environmental © IBEC 2004 24 . Within IBM. both in Ireland. 2004 site projects for enhanced access and mobility project for people with disabilities.

To ensure the highest quality customer experience. waste management. will reduce the company’s risk exposure. there will be a particular focus on maximising the impact of the new Diversity Council and other such initiatives.programme as well as finalise new site access and mobility features for the disabled at its Ballycoolin facility. IBM would encourage other companies to network in a similar way. IBM will be paying particular attention to progressing its shared university research collaboration on the supply chain/marketplace. Widespread long-term benefits Many of the initiatives in which Vodafone is engaged deliver cost efficiencies to its business. it also finds it invaluable to learn from other companies who are at various stages of their CSR development in Ireland. through participation at relevant seminars. the company invests an average of EUR3. This is largely enabled through participation in business networks. Through informed dialogue with stakeholders it can understand attitudes.Telecom Eireann. Vodafone is of the view that there are clear benefits deriving from a commitment to CSR. vodafone ireland Vodafone is Ireland's leading mobile phone operator with a customer base of over 1. saves money through streamlining the supply chain and views better waste management in an environmental as well as a monetary context. giving something back to society and gaining a good reputation. Not only have these networks enhanced relationships and profile with other companies and helped IBM to keep up to date with national and international developments. Vodafone has invested heavily in its brand and a strong CSR ethic to underpin its business. global CSR strategy and activities. © IBEC 2004 25 . In its workplace programmes. recycling and the supply chain. IBM will take every opportunity to measure. It continues to invest in its 2G network. particularly in the area of 3G has allowed it continually deliver a better service to its customers. while building a contented workforce.’ Vodafone’s commitment to CSR is based on maximising the benefits that mobile telecommunications can bring to communities. Vodafone believes that the rest of the telecommunications industry should be encouraged to adopt policies and conduct itself in a manner that benefits the communities in which it operates. As leader in its business sector. Vodafone is also of the view that CSR can mitigate against risk and prevent potential brand damage. publications and participation in the pilot ‘Percent Standard’ for community giving. its network. WHY ARE THESE ACTIVITIES IMPORTANT TO VODAFONE? Serving its customers As an industry leader. Formerly part of the state telcoms company . Vodafone’s investment. and open fora of information exchange with clients and competitors alike. It also welcomes CSR initiatives by IBEC and ICT Ireland.5 million to 4 million per week in network upgrades and enhancements. the company was acquired by Vodafone in May 2001 and is now part of the world’s largest mobile community. Finally. It believes that CSR can deliver real cost efficiencies. especially during the development of a CSR strategy.8 million and a total of 1. report and share its CSR experience. particularly in relation to employees.500 employees. which it believes. KEY LEARNING POINTS While IBM may be in a position to share the rich experiences of long-standing.‘Being a Responsible Business’ is one of six strategic goals and is underpinned by its core values – one of which is ‘passion for the world around us. but they also provide access to a uniquely voluntary. Vodafone believes that with this position comes responsibility. adapt practices and ultimately serve its stakeholders better. AIMS AND OBJECTIVES OF ENGAGING IN CSR At Vodafone. while accelerating the launch of its 3G network. with mobile penetration in Ireland now standing at 89%. while minimising any negative impacts. Vodafone is also of the view that it needs to lead by example. to ensure its customers receive the best coverage and quality of products and services now and in the future. Vodafone holds 54% of the market share in Ireland. It retains more staff. educate.

Chief Executive. our garden remains intact and will hopefully remain a source of joy to pupils of Virgin Mary Girls National School as well as the wider community for the years to come. Project Manager. Despite all the changes in Ballymun of late. Vodafone is engaged in variety of activities – both internally and externally and is working hard to integrate them into business as accepted practices. The company’s environmental and economic projects are conducted through eight initiatives – all championed by teams within the business – they are: EMF Transparency. the assistance we have received from the Vodafone Ireland Foundation is invaluable in helping us achieve our goals. We are delighted with the support received from Vodafone and Conservation Volunteers Ireland which helped buy gardening equipment and tools for use by our junior gardeners. ■ complete assessment of the impact of 3G on energy consumption. and ■ complete implementation of retail staff training. ■ achieve an 85% reuse or recycling of network waste.’ EVALUATION AND FUTURE IMPROVEMENTS Every year perception research is undertaken by MORI to measure Vodafone’s general effectiveness in the CSR area. By the end of 2005 for example. The company’s future plans centre on increased social investment and achieving better business efficiencies with positive consequent environmental and community impact. Co Kerry) ’Our wildlife and vegetable garden has been a great success and has provided pupils with great pleasure especially during the spring and summer months. CSR information is included in the Vodafone Group report that is distributed to shareholders and the company also supports CSR initiatives within its public relations and advertising campaigns to both encourage involvement and publicise participants’ achievements. Waste Management. © IBEC 2004 26 .’ (Lynn Scarff – Teacher. Since 1985 Vodafone have funded and implemented a wide range of initiatives to improve cardiac services and facilities in the region. Handset Recycling. ATTITUDES AND COMMUNICATION The following quotes illustrate the type of feedback received by Vodafone to date in relation to its CSR activities: ‘Croi is dedicated to pursuing and attaining the highest level of cardiovascular health care for the people of the West of Ireland. The Vodafone Ireland Foundation has four funding periods. Virgin Mary National School. Energy Efficiency. forms the cornerstone of its social investment policy. The garden allows us to train local participants ranging in age from children to senior citizens basic gardening skills and appreciation of gardening. The Vodafone Ireland Foundation. (Bernadette O’Carroll. Shankill – Rahoonane Family Resource Centre. Vodafone publishes an annual CSR report that is distributed to stakeholders. Croi – 2004) ‘The support received from Vodafone is greatly appreciated by all those who use our centre and our organic teaching garden for which we received funding. Responsible Marketing. Dublin).CSR PROVISIONS AND INITIATIVES In 2003. Croi depends entirely on voluntary effort and support and as such. It is currently supporting over 30 separate projects. Ballymun.000 annually. Vodafone formalised its policy and committed to concentrating on achieving the highest standards of CSR in the areas of society. Without a doubt the garden brings great pleasure to many persons across the community. launched in 2003. Vodafone will: ■ achieve a 10 % increase in the number of handsets returned for reuse and recycling. Products and Services.’ (Neil Johnson. Its target is to achieve that goal by 2006. the environment and the economy. Its report details all CSR activity and Vodafone is also measured at group level against agreed objectives in its plan. distributing over €500. It plays an important role in helping the company realise its efforts in communities across the country. Responsible Network Deployment and Relationships with Suppliers.

Intel continues to set high standards for itself for the future. Vodafone believes that since it formalised its CSR plan in early 2003 it has been better able to monitor the composition and impact of its campaigns. environmental. Intel does not view corporate responsibility as a modern fad. Much like other core operating programmes at Intel. Approximately 4. corporate citizenship is firmly embedded within its corporate values. companies are now also expected to be good corporate citizens. pressures that © IBEC 2004 27 . The ever-increasing importance of global competitiveness. the communities in which it operates and society in general. when completed in 2006. much of what it does has been a part of the Intel way since its foundation in 1968. The latest addition to the site. The only problems encountered by Vodafone when formalising CSR practices was an underestimation of the amount of resources and commitment that would be required from all relevant parties. purchasing. intel ireland Ireland is Intel's centre of manufacturing excellence in Europe. Making a profit for shareholders is still the top priority. include economic performance. safety.5 billion in turning 360 acres of the Collinstown Industrial Park into the most technologically advanced industrial campus in Ireland. Fab 24-2. Intel prides itself on the fact that while its short-term economic priorities may shift. Intel’s commitment to doing the right thing runs deep in its corporate culture. Many variables are involved in the successful operation of a global enterprise. and every other aspect of corporate life. It needs to have support and resources at a number of levels. CSR PROVISIONS AND INITIATIVES IN INTEL Intel has a formal corporate global policy on CSR and is supported by key managers in various locations around the world working on a range of initiatives within the company. Intel Ireland's Leixlip plant produces microprocessors and communication silicon chips that are at the heart of much of today's computing and communications revolution. environmental performance. will bring the total investment to over €6 billion. CSR transcends the structures of organisations. not only in manufacturing excellence but also in improved performance across the corporate responsibility arena. The company views corporate citizenship as the relationship forged between Intel. planning. At Intel. and social programmes can pull a company in different directions. Pentium 4 support chips and the latest Flash memory technology using leading-edge semiconductor manufacturing processes. AIMS AND OBJECTIVES Intel sees CSR as sustainable business development in an ethical manner and the main objective is to focus on the triple bottom line rather than merely having a financial emphasis. employee and community safety. Intel Ireland is a major source for the manufacture of high speed Intel® Pentium® 4 microprocessors. investor relations. Over the past several years. Intel has invested some €4. However. a formalised feedback loop and involvement of stakeholders are some of the most important elements of CSR. their ideas about corporate responsibility are embedded as a way of doing business throughout the organisation – in human resources. it maintains a long-term commitment to excellence in all areas in which it is involved. As corporate responsibility can encompass any relationship a company might have. expectations of corporations have changed. both directly and indirectly. legal. quality. Intel can judge its success only by integrating all of this and ensuring that the whole is greater than the sum of its parts.KEY LEARNING POINTS In Vodafone’s experience. In fact. health.700 people are employed on site. from environmental performance and energy conservation to stakeholder relationships and employee-engagement programmes. It has really only been with time that Vodafone has realised how extensive its ongoing commitment will be.

Intel volunteers gave over 21. Such is the focus on CSR that at the AGM every year when the financial results of the company are published. their web-site. The Intel Involved programme where employees volunteer their time to help community organisations/local schools. as such. in an environmentally friendly way. These are just a few of the CSR activities Intel works on in Ireland. which it sends out to 16. acknowledges this in its corporate values. The community obviously benefits from the direct involvement of Intel’s volunteers. white goods. © IBEC 2004 28 . Locally. to improve student learning. Employees like to give something back to the community and also get involved in something completely different to their day job. It realises the importance of supporting the communities within which it is established and. Intel’s involvement in the community means that its employees see it as a good place to work – one of Intel’s values. and a community newsletter Local ) EVALUATION AND FUTURE IMPROVEMENTS The company has featured on the Dow Jones Sustainability Index for the past six years and has been selected as the technology-sector leader for the past four years. Intel Ireland has a number of other CSR initiatives in the education arena including the Intel® Teach to the Future programme where 15% of teachers in Ireland were trained to integrate information and communications technology into classroom curricula.000 hours to the local community.. the Intel Involved programme can measure the results from the numbers of hours given to community projects per year and the feedback the company gets from the organisations it works with.000 households locally. Intel Ireland strives to improve the quality of life through community outreach. one in Blanchardstown and another in the Liberties in Dublin’s inner city. This allows the company to measure what is working and help define its plans going Ireland is involved in a broad range of CSR activities. and with which it is familiar. and Intel has held a number of recycling days where people can dispose of household hazardous waste. Community environmental programmes include raising awareness of the benefits of recycling. Intel is seen by employees in a positive light and as a community leader. In 2003. Ethical investors hold Intel as the number one investment in their portfolios. environmental and education arena. Intel Ireland has led a number of initiatives with local schools. Intel is recognised as a leader in the community. Work in the community is focussed on two initiatives: 1. voluntary work and specific programme support. It has the opportunity to engage with key stakeholders in these areas to understand their needs. electronic waste. Intel also publishes a Good Citizenship Report that covers the broad gambit of its CSR activities. Intel believes that this programme is beneficial to everyone involved. In addition. including those in Ireland. The company has also worked closely with local schools to encourage environmental awareness at a young age. Intel communicates with stakeholders in the community through a number of media: advertising the various initiatives. two Intel Computer Clubhouses have been established in Ireland. the company has found that the community and education sector response to these programmes has been overwhelmingly positive. In addition. three times per year. ATTITUDES AND COMMUNICATION Intel has attained a leadership position in terms of CSR performance among the investment community and other key stakeholders. etc. 2. (To read Intel’s Good Citizenship Report go to www. ranging from sponsoring Eco-design competitions to installing can-bank recycling units in the schools and working with them to get their ‘Green Flag’. creativity and achievement. Intel conducts a Community Perception Survey each year to establish what the attitude of the community is towards it and those programmes which are valued by the community. issues and plans and therefore actively participate with them to make progress in these areas.

allianz ireland Allianz Ireland is a member of the Allianz Group that is one of the top performers in the insurance global market. KEY LEARNING POINTS One of Intel’s challenges moving forward is to be responsive to its various stakeholders as the definition and focus of corporate responsibility becomes more defined. ■ it can help recruitment and retention. diversity. Intel is monitoring the many standard-setting initiatives underway around the world. The measurement of its corporate responsibility efforts must be easily available so that various stakeholders can assess their performance for themselves. employs a total of 180. education outreach. support for paralympic athletes. and is actively engaged in helping to shape some of these initiatives. In the past year. Intel’s deeply held view is that CSR is a corporate commitment and should not be legislated for nor covered by regulation. Allianz is of the view that compliance with legal obligations is a key issue for managing risk and is the foundation of good CSR but Human Resource Management is also needed to promote positive behaviour and relationships in the workplace. including Dresdner Bank. Scoil Treasa Naofa Awards. particularly Patrice Dockery. Cumann Na mBunscol. Intel is proud of what it has accomplished. The psychological contract is based on trust. Continuous improvement is a part of its value system. Intel finds that this entire discipline is attracting more attention from investors. and growing programmes and approaches so that it can achieve even better results. fairness and willingness to deliver on the deal and the basic assumption behind this contract is that. Allianz is of the view that the benefits to the organisation include the following: ■ assist in redefining or integration of corporate purpose or mission. Intel is also identifying and strengthening its collection of data and reporting systems across the triple bottom line. although acknowledging that. AIMS AND OBJECTIVES OF ENGAGING IN CSR Looking at the wider benefits that CSR can bring to employers and the aims and objectives of engaging in CSR practices. operates in both the Republic of Ireland and Northern Ireland and also operates as Allianz Direct and Allianz N. in order to motivate and retain employees. The Allianz Hurling & Football Leagues. Intel has enhanced reporting on its public websites in the areas of community involvement. legislators.Intel is of the view that corporate responsibility is not finite. Intel is also of the view that the response to the CSR agenda must be a value-driven one and not financially based. Allianz is currently developing a formal CSR policy incorporating all of its CSR activities. Allianz Ireland OUTLINE OF CSR PROVISIONS AND INITIATIVES IN ALLIANZ Allianz has a broad focus in the area of CSR which ranges from various sporting activities such as B2A. as many stakeholders believe. The Allianz Group. ■ it can offer distinctive positioning in the market place. and its own employees worldwide. © IBEC 2004 29 . The challenge for the company in the future will be to continue to measure and improve on its results. Allianz Ireland is owned by the Allianz Group (2/3rds) and Irish Life & Permanent (1/3rd). so it is constantly modifying. workplace environment and environmental performance. changing. employers have to treat them properly. The company currently employs 905 staff in Ireland. creating a wider frame of reference for strategic decisions.I. ■ it can build credibility and trust with customers and employees. ■ it can strengthen links with local community. more remains to be done.000 people world-wide and is represented in more than 70 countries. and ■ it can extend networks to embrace dialogue with a range of interest groups. to involvement with Junior Achievement and Business2Arts.

ATTITUDES AND COMMUNICATION The focus of CSR within Allianz Ireland is the provision of a framework for linking stakeholder requirements into the business strategy and operations while still enhancing corporate reputation. Allianz is of the view that CSR must be integrated into the logic of the business. Allianz is also of the view that greater transparency and governance will increase confidence in business and encourage and support responsible business. The company states that it is important that the CSR activities ties in with overall goals and evidence of success can include observable indicators of benefits to business performance and stakeholder relationships. this will include selection and recruitment. as well as for employees whose role will be changed as a result. ■ managing trust and risk raises fundamental issues about how people are managed. Finally the company’s policies and practice must be reviewed and aligned to the new focus of the organisation. and ■ CSR offers the Human Resource community opportunities to demonstrate its strategic focus. performance management. Allianz is also of the view that it is necessary to plan ahead and have a programme and implementation plan in place with a global framework that can be fleshed out locally. Allianz also belives that CSR offers the Human Resource community opportunities to demonstrate its strategic focus. 30 . not on rhetoric. ■ the credibility of CSR is dependent on delivery. ■ Human Resources is responsible for many of the key systems and processes (eg recruitment. © IBEC 2004 EVALUATION AND FUTURE IMPROVEMENTS The argument for HR taking the CSR agenda seriously is summarised by Allianz as follows: ■ companies are increasingly required to take account of the impact of their activities on society. reward systems and employee incentive schemes. For Human Resources. Ireland needs to have more simplified legislation and a reduction of burdens on small firms. ■ HR professionals have relevant knowledge and skills in relation to organisational learning and culture change. as there must be a business case for it in order to be sustainable as a management practice. Allianz suggests that it is useful to collate comments and get involvement from the board and all business areas. and health and safety. communications) on which effective delivery depends. for example. The primary aim of the framework is the development of an understanding of what CSR means for Allianz and how it can add value. The company also suggests this activity is important in addition to an open and informal culture or regular communication with line management. The company states that training may also be needed for anyone involved in implementing and managing the programme. Allianz is of the view that it is useful to publish the programme internally as well as externally to increase general awareness. To ensure the alignment of company values with stakeholder values. functions and levels in the development of CSR in the company. training. With regard to implementation. As well as the above activities. Allianz is of the view that it is important to introduce ‘speak-out’ processes to allow staff to follow the appropriate channels and internally raise issues of perceived irresponsible behaviour with the company. The company further suggests that mechanisms for reviewing the programme and assessing feedback from stakeholder groups can also be implemented. KEY LEARNING POINTS Allianz is of the view that to encourage CSR activities.

Contemporary developments. It is not a new activity to Ireland as many companies. nor by the continued amalgamation and complexity of a wide range of issues under the CSR banner. Company activities are also scruitinised more closely and an increasing number of organisations are now opting to formalise and communicate their CSR activities through internationally developed tools and standards or through the development of their own. In conclusion. companies must reflect these societal. the environment and beyond. values and stakeholder expectations have shifted and to survive.CORPORATE SOCIAL RESPONSI BI LITY 7. This conclusion is supported by research that has reported that the type and extent of formalised CSR practices are predicated on a number of influences which include but are not limited to the: ■ type of the business. corporate social responsibility emerged as a concept from the business world. it must continue to be driven by business. into the community. ■ size of the business. While the trend towards the formalisation of CSR is not helped by the ambiguity of the concept. staff and local community. ■ location(s) of the business. have already been practising CSR. Generally speaking. the main differences between past and present CSR include: ■ some activities that fall under the remit of corporate governance which are now statutory requirements. and in order to continue to enjoy success and provoke engagement. and ■ the emphasis has changed. economic and legislative changes in their operations. the business case for engaging in this area is strong and is generally accepted and understood. ■ sector in which it operates. CONCLUSION Corporate social responsibility is an evolving concept that incorporates a wide range of internal and external policies and practices extending from the workplace. both large and small. CSR activities are company specific and to regulate the area would only stife the creativity that is the very heart of CSR. demographic. ■ local legislation etc. In other words. for years. © IBEC 2004 31 . albeit on an informal basis. ■ values and demands of the shareholders. ■ new tools and standards have been developed to encourage reporting of strategies and activities. ■ an ‘umbrella’ term has been developed under which CSR activities can now be classified and prioritised. CSR needs to continue to be flexible enough to fit all types of business and the demands of their stakeholders so that companies can continue to focus on their two areas of responsibility – commercial and social.

Labelling criteria are generally based on core ILO conventions. CAUSE-BASED OR COMMUNITY INVESTING: Supporting a particular cause or activity by financing it through investment. nationally and globally. SOCIAL REPORT: A document communicating the findings of a social impact assessment. awareness-raising and campaigning. © IBEC 2004 32 . pressure. 2001. RESPONSIBLE ENTREPRENEURSHIP: A concept put forward by the UN which recognises the business role for the accomplishment of sustainable development and that companies can manage their operations in such a way as to enhance economic growth and increase competitiveness whilst ensuring environmental protection and promoting social responsibility. ETHICAL SCREENING: Inclusion or exclusion of stocks and shares in investment portfolios on ethical. subcontractors. p 27. ETHICAL TRADE: Aims to ensure that conditions within mainstream production chains meet minimum basic standards and to eradicate the most exploitative forms of labour such as child and forced labour and ‘sweatshops’. The criteria for fair trade marked products differ between products but cover issues such as guaranteed prices. ethical criteria to investment decision. It seeks to do this by providing better trading conditions. cause-based investors require that the original investment can be returned by either repayment (for loans) or trading (for shares). Social capital is a prerequisite for co-operation and organised human behaviour. Social capital can be transformed. ECO-AUDIT: The application of non-financial. A code is a statement of minimum standards together with a pledge by the company to observe them and to require its contractors. It is trading partnership that promotes a sustainable development for excluded and disadvantaged producers.’ CORPORATE CITIZENSHIP: The management of the totality of relationships between a company and its host communities. including business. FAIR TRADE: Defines itself as an alternative approach to conventional international trade. ECO-EFFICIENCY: The concept that improving the way in which business uses resources can reduce environmental damage and reduce costs. It may be a sophisticated document. social and/or environmental behaviour as a shareholder by means of dialogue. consumed or replenished. SOCIAL IMPACT ASSESSMENT: Systematic analysis of the impact of a business project or operation on the social and cultural situation of affected communities. prepayment and direct payment to growers or their co-operatives. SHAREHOLDER INFLUENCE: Seeking to improve a company’s ethical. locally. CODE OF CONDUCT: A formal statement of the values and business practices of a company and sometimes its suppliers. GLOSSARY OF TERMS The following glossary of terms have been taken from the Glossary of terms in the European Commission’s Green Paper on CSR – Promoting a European Framework for Corporate Social Responsibility. Unlike making a donation. social or environmental grounds.8. support for responsible management and voting at annual general meetings. suppliers and licensees to observe them. ENVIRONMENTAL IMPACT ASSESSMENT: Analysis of the impact of a business project or operation on the environment. SOCIAL AUDIT: The systematic evaluation of an organisation’s social impact in relation to standards and expectations. just as financial capital. SOCIAL LABEL: Words and symbols on products which seek to influence the purchasing decisions of consumers by providing an assurance about the social and ethical impact of a business process on other stakeholders. ETHICAL AUDIT: The application of non-financial. which requires compliance with articulated standards and have a complicated enforcement mechanism. environmental criteria to investment decision. SOCIAL CAPITAL: The stock of shared meaning and trust in a given community.

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Dublin 2.IBEC. 84-86 Lower Baggot Street. Confederation House. .

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