Drivers of Corporate Social Responsibility

Drivers of Corporate Social Responsibility
Corporations may be influenced to adopt CSR practices by several drivers.
Ethical Consumerism
The rise in popularity of ethical consumerism over the last two decades can be
linked to the rise of CSR. As global population increase , so does limited pressure on
limited natural resources to meet rising consumer demand .Industrialization in many
developing countries is booming as result of technology and globalization. Consumers
are becoming more aware of the environmental and social implications of their day to
day consumer decision in ethical concern.
Globalization and Market Forces
As corporations pursue growth through globalization , they have encountered new

challenges that impose limits to their growth and potential profits .Government
regulations, tariffs, environmental restrictions and varying standards of what
constitutes labor exploitation are problems that can cost organization millions of
dollars. Global competition places particular pressure on multinational corporations to
examine not only their own labor practices , but those of their entire supply chain ,
from a CSR perspective.
Social Awareness and Education
The role among corporate stakeholders to work collectively to pressure

corporations is changing .Shareholders and investors themselves , through socially
responsible investing are exerting pressure on corporations to behave responsibly.
Ethics Training
The rise of ethics training inside corporations,some of it required by government

regulation,is another driver credited with changing the behavior and culture of
corporation .The most direct benefit is reducing the likelihood of "dirty hands",fines
and damaged reputations for breaking laws or moral norms,.Organization also see
secondary benefit in increasing employee loyalty and pride in the organization
.Caterpillar and Best Buy are examples of organization that have taken such steps.
Government Laws and Regulation
Another driver of CSR is the role of independent mediators,particularly the

government, in ensuring that corporation are prevented from harming the broader
socail good ,including people and the environment .CSR critics such as Robert Reich
agrue that goverment should set the agenda for social responsibility by the way of
laws and regulation that will allow a business to conduct themselves responsibly.
Crises and Their Consequences
Often it takes a crisis to precipitate attention to CSR.One of the most active

stands against environmental management is the CERES Principles that resulted after
the Exxon Valdez include in Alaska in 1989 (Grace and Cohen 2006 in CRS Network
).In another example,Magellan Metal in the West Australian town of Espetrance was
responsible for lead contamination killing thousands of bird in the area . The company
had to cease business immediately and work with independent regulatory bodies to
execute a cleanup
Towards Improving Ethical Behavior and Social/Public Relations:
Use of Code of Ethics and Decision Rules
Code of Ethics
To guide behavior and decision rules to guide managers is handling ethical

dimensions in decision-making are the popular response toward improving ethical
behavior and public relations of business.
A Code of Ethics
It is a formal documents that states an organization's primary values and ethical

rules it expects it employees to follow.
They should be specific enough to convey the spirit of how things should be
done, yet loose enough to allow for freedom and judgement.
Their effectiveness depends heavily on whether management supports them and

how employees who break the code are treated (Robbins & Stuart-Kotze, 1990)
For every trade or business, there is usually a business code, and for every
profession, there is an enforced professional code.
Code generally consists of a set of ethical principles accompanied by disciplinary

rules. Each profession subscribes to a set of ethical codes, because the practice of
profession cannot be regulated entirely by law and legislation.
Professionals and business codes pronounce ideal statements. In the real world,
these ideal statements are seldom observed. Nevertheless, the formulation of these
codes is significant, for the society is furnished with standard upon which it can judge
professional and businessmen whether or not they perform their perspective work in
ways they are expected to be performed.
Some Principles for the Conduct of Business
 Towards the Employees

 Towards the Customer
 Towards the Suppliers
 Towards the Owner and Other Providers of Capital
 Towards the Local and National Government
 Towards Society in General
Towards The Employees:
Business shall recognize the unique position of employees as individual with a

vital stake in their work and at the same time with inherent obligations to their own
families and provide.
*for recognition that although rates pay in determined economic and legal
pressure ,wages and salary policy should be based of the right of employees to fair
and improving standard of living irrespective of race,sex and so.on.
* for fair recruitment practice affords equal opportunity to all qualified
* for the job security , adequate compensation for employees in cases of
separation and retirement.
* for safe and healthy atmosphere in work environment conducive in physical
and moral well being for the employees.
* for conditions in which human potential and relationship can developed our
work force and participate elements so that knowledge, experience and creativity to
contribute in decision making.
*for participative elements so that the knowledge, experience and creativity of all
who work in the enterprise may contribute to the decision making process.
Toward The Customers:
Business shall , in the production of good and services like
* the strive of quality can enable to serve efficiently and effectively .

* avoid anything to detrimental health, safety or growth in proper user of good
and services.
* seek to apply or make use of the discoveries and inventions of science with
adaptations that will improve their products or services , thereby benefiting customers
/users and increasing their number.
In marketing arrangements business shall:
* deliver the product or services in the quality quantity and avoid the creation of
artificial shortages, price manipulation and like practices
* establish an after sale and complaints service.
* ensure that all mas media, promotional, and packaging communications be
informative.
Towards The Suppliers:
* the terms of all contracts be clearly stated and unambiguous , and honored in
full unless terminated or modified by mutual consent.
* that abuse of economic power in dealing with similar concern be avoided, and
that in all cases, terms of payment be strictly and fullt observed.
* that no supplier be encouraged to commit his resources for apparently long
term purposes.
Towards The Owners and Others providers of Capital
* provide an adequate rate of return to those contributing capital to the enterprise

and ensure the security of their investment.
* use their financial resources to provide goods and services responsibly and
efficiently
* furnish the owners and other providers capital
* pursue the specific objectives the owners and other providers of capital
provided these do not run contrary to any of the principles stated.
Toward The Local and National Government
Although it is the responsibility of government to enact legislation and formulate

implementing policies and programs .
* to participate in the discussion of proposed legislation and or its

implementation affecting sector , regional , national and international interest.
* to propose sound policies in the use of human and material resources.
Towards Society in General
Businessmen shall recognize in their decision making the interest of the

general public and realizing that they are utilizing to an important degree the nations
resources shall.
* take regular stocks of their response to the basic needs of society and thus
ensure that these needs are taken into account in all policy making decisions.
*do their best to ensure that way deploy resources benefits society in general
and does not conflict with needs and reasonable aspirations of communities.
* pay proper regard to environmental and social consequence of their business

activity like renewing resources, minimizing waste and pollution , safety or efficiency
in the interest short term profitability.
* as corporate citizen , make such contributions as their resources will allow , to
research , development, and application of indigenous technology and financing of
social development projects.
* consider human and social costs of mechanization and technology.
* establish a policy of allowing employees , within reasonable limits , to
contribute to the public and community services during work time.
* establish policy regarding conflicts of interest based on the principle that
decisions should be made in the best interest of the business enterprise, and decision
making should be on their guard against allowing personal consideration to distort
judgement.
* not tolerate any form of illegal data gathering or any form of inducement that
tends to distort normal commercial judgement.

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Drivers of Corporate Social Responsibility

Corporations may be influenced to adopt CSR practices by several drivers.

Globalization and Market Forces

As corporations pursue growth through globalization , they have encountered new

Social Awareness and Education

The role among corporate stakeholders to work collectively to pressure

The rise of ethics training inside corporations,some of it required by government

Government Laws and Regulation

Another driver of CSR is the role of independent mediators,particularly the

Crises and Their Consequences

Often it takes a crisis to precipitate attention to CSR.One of the most active

Towards Improving Ethical Behavior and Social/Public Relations:

Use of Code of Ethics and Decision Rules

To guide behavior and decision rules to guide managers is handling ethical

It is a formal documents that states an organization's primary values and ethical

Their effectiveness depends heavily on whether management supports them and

Code generally consists of a set of ethical principles accompanied by disciplinary

Some Principles for the Conduct of Business

 Towards the Employees

Towards The Employees:

Business shall recognize the unique position of employees as individual with a

Toward The Customers:

Business shall , in the production of good and services like

* the strive of quality can enable to serve efficiently and effectively .

In marketing arrangements business shall:

Towards The Suppliers:

Towards The Owners and Others providers of Capital

* provide an adequate rate of return to those contributing capital to the enterprise

Toward The Local and National Government

Although it is the responsibility of government to enact legislation and formulate

* to participate in the discussion of proposed legislation and or its

Towards Society in General

Businessmen shall recognize in their decision making the interest of the

* pay proper regard to environmental and social consequence of their business

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