Here is a compilation of term papers on ‘Corporate Social Responsibility and Climate Change’ for class 9, 10, 11 and 12. Find paragraphs, long and short term papers on ‘Corporate Social Responsibility and Climate Change’ especially written for school and college students.
Corporate Social Responsibility and Climate Change
Term Paper Contents:
- Term Paper on the Introduction to Corporate Social Responsibility
- Term Paper on the Definition of Corporate Social Responsibility
- Term Paper on the Growth of CSR
- Term Paper on the Guidelines for CSR
- Term Paper on the Potential Benefits of CSR for Corporations
- Term Paper on Voluntary vs. Mandatory CSR
- Term Paper on the Shift towards Green CSR
- Term Paper on the Truly Committed Companies on Voluntary CSR
- Term Paper on the CSR and Business Areas
Term Paper # 1. Introduction to Corporate Social Responsibility:
Corporate Social Responsibility (CSR), also called ‘corporate responsibility’, or ‘corporate citizenship’, is the responsibility of the business house to ‘building sustainable businesses’ without forgetting their social obligations including protection of the environment.
Industries are mainly responsible for anthropogenic emissions causing global warming and the consequent climate change. In addition to GHG emissions, the industrialization is linked to deforestation, pollution of water resources, destruction of biome & biodiversity thus reducing the sinks for carbon dioxide.
However the industries are here to stay and also need to grow at an accelerated rate to cater to the growing needs of people across the globe. The direct or indirect emission management processes in various sectors of the industries are described. It is imperative that corporates should shoulder the responsibilities of limiting emissions, at least to an extent specified in Kyoto Protocol, if not more.
Major part of emission is from developed countries. While being not major emitters, developing nations are of major concern in the area of deforestation and destruction of biodiversity, the main sinks for GHGs. The developed countries, which are signatories to Kyoto Protocol, have the mandatory emission reduction targets for their industries.
The CSR activities with respect to climate change are mandatory for industries in Kyoto Protocol signatory nations. The non-signatories to Kyoto Protocol, such as USA, Australia, and Canada have voluntary carbon trading market providing financial incentives to the carbon saver industries.
However beyond emission reductions in their respective corporations, the corporate need to protect and care for preserving natural resources, such as, soil, water, forest, biodiversity, which act as natural buffers for GHGs, in the nature’s carbon and other cycles. CSR activities can play an important role in saving the globe from disasters associated with climate change.
Term Paper # 2. Definition of Corporate Social Responsibility:
Most definitions of CSR emphasize the interrelationship between economic, environmental and social aspects and impacts of an organization’s activities on societies in general. Social responsibility “is taken to mean a balanced approach for organizations to address economic, social and environmental issues in a way that aims to benefit people, communities and society”.
In a nutshell CSR deals with the 3 dimensions – ‘economy’, ‘ecology’ and ‘social’ in the frame of a corporate viewpoint, which might be an accumulation of different opinions (from the employees of that company), and/or on a specific engagement (of one of the founders, managers, etc.)
Corporate Social Responsibility is a concept whereby companies integrate social, environmental and financial concerns into the business operations and in their interaction with their stakeholders (employees, customers, shareholders, investors, local communities, government), on a voluntary basis in order to enhance sustainability and growth (table 19.1).
CSR is closely linked with the principles of sustainability, which argues that enterprises should make decisions based not only on financial factors such as profits or dividends, but also based on the immediate and long-term social and environmental consequences of their activities.
Society in general is affected by mismanagement in any one of the five areas, such as, market, finance, works, environment and community (table 19.1). Earlier business practice was confined to three business-related areas, viz., market, finance and works. There has been a paradigm shift in corporate management activities from earlier business practices with the introduction of CSR in a big way in all major corporations.
The environment and community constitute major part of CSR. The most challenging concurrent environment related problem is global warming -a problem created and sustained mostly due to contributions from corporations and therefore it is the responsibility of the corporates to work towards a techno-ecologically viable solution to limit global warming.
Term Paper # 3. Growth of CSR:
CSR, once a do-something sideshow, is now not only in mainstream, but booming. In recent times, the corporate giants are telling the world of their CSR activities through electronic and print media, in their advertising campaigns, in glossy reports and posters. CEOs queue up to speak at conferences about their love for the community or their new found commitment to make their company carbon neutral. A recent survey shows corporate responsibility rising sharply in global executives’ priorities.
The biggest single driver of growth in corporate social responsibility (CSR) is ascribed as due to concern over climate change. A1 Gore’s initiative to propel climate to the top of global agenda has led to great green awakening. The leading companies and their CEOs are having a serious look on the impact on environment due to their activities. In a survey conducted by. McKinsey in 2007, 95% of CEOs said that society now has higher expectation of business taking on public responsibilities than it had five years ago.
A poll of 30 countries from around the world finds that a large majority of people in all these countries believe that climate change or global warming is a serious problem. No country has more than one in five saying it is not a serious problem. The poll of 33,237 people covering all major regions of the world was conducted by GlobeScan Incorporated between October 2005 and January 2006, and analyzed in conjunction with WorldPublicOpinion(dot)org. The margin of error for each country was plus or minus 3 percent.
Perhaps most significant, in 23 countries a majority says that global warming is a “very serious” problem. On average, 65 percent say that it is a very serious problem. The only countries where this is not a majority position are six developing countries (China 39%, Indonesia 44%, Kenya 44%, South Africa 44%, Philippines 46%, Nigeria 47%,) and the US (49%).
Current trend for major companies is to produce their annual report on CSR including energy savings, GHG emissions, carbon footprint etc. CSR is rapidly becoming a major part of all business management courses and a key global issue.
Term Paper # 4. Guidelines for CSR:
The Organization for Economic Co-operation and Development (OECD) defines corporate codes as “commitments voluntarily made by companies, associations, or other entities, which put forth standards and principles for the conduct of business activities in the marketplace”.
The organization has provided OECD -2000 Guidelines on CSR for its member countries. The guidelines have the government support but are voluntary CSR activities. Member of the OECD include most of European nations, Canada, United States, Japan, Australia, New Zealand, Mexico and Korea.
The guidelines on CSR activities are prepared by OECD for the multinational enterprises to make positive contributions to economic, environmental and social progress and to minimize the difficulties to which their various operations may give rise. In working towards this goal, governments find themselves in partnership with the many businesses, trade unions and other nongovernmental organizations that are working in their own ways toward the same end. The voluntary guidelines for CSR with respect to environment are provided in the UN global compact and also in the ISO-14000-2004.
b. UN Global Compact:
The dedicated CSR organizations, Governments and international organizations (UN) are increasingly encouraging CSR.
Launched in 2000, the UN Global Compact brings business together with UN agencies, labour, civil society and governments to advance ten universal principles in the areas of human rights, labour, environment and anti-corruption. It is a strategic policy initiative for businesses that are committed to aligning their operations and strategies with ten universally accepted principles in the areas of human rights, labour, environment and anti-corruption. By doing so, business, as a primary agent driving globalization, can help ensure that markets, commerce, technology and finance advance in ways that benefit economies and societies everywhere.
The Global Compact is a leadership platform, endorsed by CEOs, and offering a unique strategic platform for participants to advance their commitments to sustainability and corporate citizenship. Structured as a public-private initiative, the Global Compact is policy framework for the development, implementation, and disclosure of sustainability principles and practices.
It offers the participants a wide spectrum of specialized work-streams, management tools and resources, and topical programs and projects – all designed to help advance sustainable business models and markets in order to contribute to the initiative’s overarching mission of helping to build a more sustainable and inclusive global economy.
The three environmental principles of the Global Compact are drawn from the 10 principles of Rio Earth Summit, in 1992.
These three principles are as follows:
1. Principle (no.7 of Rio) – business should support a precautionary approach to environmental challenges.
2. Principle (no. 8 of Rio) – undertake initiatives to promote greater environmental responsibility.
3. Principle (no.9 of Rio) – encourage the development and diffusion of environmentally friendly technologies.
The environmental principles of the Global Compact provide an entry point for business to address the key environmental challenges. In particular, the principles direct activity to areas such as research, innovation, co-operation, education, and self-regulation that can positively address the significant environmental degradation, and damage to the planet’s life support systems, brought by human activity.
UN global compact has been criticized for its ‘soft codes’ that the corporates need to follow and therefore getting quite popular. In order to sign up the companies need to commit themselves to basic principles as outlined above and report on their progress once a year.
The main criticism against the compact is that the toothless character of the compact provides cover for companies from China and elsewhere. They happily sign up and then more happily ignore it. In order to, counter the criticism. United Nations Global Compact has implemented a range of measures to promote accountability among companies that participate in the programme. They are required to give annual updates on the progress they made in aligning themselves with the initiative’s 10 principles.
c. ISO 14000-2004:
The ISO 14000 family addresses various aspects of environmental management. The very first two standards, IS014001:2004 and IS014004:2004 deal with environmental management systems (EMS). ISO 14001:2004 provides the requirements for an EMS and ISO 14004:2004 gives general EMS guidelines.
The requirements of ISO 14001:2004 is a management tool enabling an organization of any size or type to:
i. Identify and control the environmental impact of its activities, products or services;
ii. To improve its environmental performance continually;
iii. To implement a systematic approach to setting environmental objectives and targets, to achieving these; and
iv. To demonstrating that they have been achieved.
ISO 14000 for environment management has been an accepted practice for a large a large number of business establishments, who have found it beneficial for sustaining the profitable business with less of waste, pollution & risk, but higher productivity.
However, due to voluntary nature of CSR, companies following this or other guidelines, such as, from ILO, OECD, as well as standards, such as, ISO 14001 (for the environment) and SA 8000 (for human rights) or ISO 2600 (for social responsibility) do have a large number of black sheeps in the herd.
A conference sponsored jointly by UN Environmental Programme Finance Initiative (UNEP-FI) and UN-backed Principles for Responsible Investment (PRI) was held in Seoul, in June’ 2008. The list of participants includes representatives of global financial institutions worth 14 trillion US dollars in assets and leading representatives of Asian business.
Basic aims of the conference, amongst others, were:
(i) To promote better environmental, social and governance performance in business, and
(ii) Calls on conference participants to, inter alia, join forces around efforts to address the carbon challenge.
The conference also provides details of what financial institutions in the Republic of Korea and broader Asia can do on climate change, water, biodiversity and social issues. The issues of climate change and corporate governance have converged to provide a solid business case for mainstream financial institutions to apply responsible investment approaches to their core activities.
d. CSR and Kyoto Protocol:
CSR is considered as voluntary activity of the corporate. The three basic principles on environment as incorporated in UN global compact provide the guidelines for the corporates to follow to prevent environmental degradation. While Rio Earth Summit dealt with the voluntary protection of environment, the Kyoto Protocol defines legally binding targets and timetables for cutting the greenhouse-gas emissions of industrialized countries (excepting USA, not ratified KP) that ratified the Kyoto Protocol.
It is a mandatory requirement of the corporates operating in these countries to reduce emission figure to a quantified limit as stipulated by the regulatory authorities. The net changes in the emission figure in terms of carbon equivalent are a tradable commodity, called ‘carbon credit’.
The corporation can earn through carbon credits sales by reducing carbon emission for the stipulated limit. On the other hand, if the limit is exceeded, they need to buy carbon credits for extra emission. This is a costly option for the corporation. The defaulting corporations should adopt some of the techno-ecologically viable and sound economic practices.
The list of such practices includes the followings:
i. Improvement of energy efficiency in the relevant sectors of industries.
ii. Protection and enhancement of GHG sinks and reservoirs (forest, water, ocean) in compliance with international agreements and national regulations.
iii. Promotion of sustainable forest management practices.
iv. Promotion of sustainable form of agriculture in light of climate change.
v. Research on, and promotion, development of renewable energy, CO2 sequestration, and related advanced environmentally sound technologies.
vi. Progressive reduction or phasing out of market imperfections, fiscal incentives, tax and duty exemptions and subsidies in all greenhouse gas emitting sectors that run counter to the objective of Kyoto Protocol.
vii. Encouragement of appropriate reforms in relevant sectors aimed at promoting policies and measures which limit or reduce emissions of GHGs.
viii. Measures to limit and /or reduce emissions of GHGs in the transport.
ix. Limit/reduce methane emissions through recovery and use in waste management.
x. Limit/reduce in GHGs from aviation and marine bunker fuels, through International Civil Aviation Organization and the International Maritime Organization respectively.
The implementation of all these measures in controlling emissions and the results. Corporate legal responsibilities end in satisfying the mandatory requirements of the countries under Kyoto Protocol, but not the moral or ethical part of CSR. In USA, corporates are not covered by Kyoto Protocol, hence the CSR with respect to climate change is voluntary.
CSR activities, excepting the mandatory requirements by Kyoto Protocol and other governmental regulations, are in general considered as voluntary. However due to faulted practices by several corporations, there has been a popular demand to make CSR as mandatory.
Term Paper # 5. Potential Benefits of CSR for Corporations:
No matter the size of an organization or the level of its involvement with CSR, every contribution is important and provides a number of benefits to both the community and business.
Contributing to and supporting CSR does not have to be costly or time consuming and more and more businesses active in their local communities are seeing significant benefits from their involvements, including followings:
i. Reduced costs,
ii. Increased business leads,
iii. Increased reputation,
iv. Increased staff morale and skills development,
v. Improved relationships with the local community, partners and clients,
vi. Innovation in processes, products and services,
vii. Managing the risks a company faces,
vii. Boost image of company and brand names, and
ix. Promote business with green image.
Term Paper # 6. Voluntary vs. Mandatory CSR:
The common thread that weaves through the various definitions of “Corporate Social Responsibility” is the voluntary nature of the good practices referenced. What makes CSR initiatives “socially responsible” is that they are not mandated by governmental or intergovernmental institutions — they are voluntarily pursued. The most celebrated mechanism in the CSR toolkit is the corporate code of conduct.
The Organization for Economic Co-operation and Development (OECD) defines corporate codes as “commitments voluntarily made by companies, associations, or other entities, which put forth standards and principles for the conduct of business activities in the marketplace”.
More and more studies measuring the (in) effectiveness of voluntary corporate codes are being published every day. The consensus underlying the divergent findings is that, even if voluntary codes have potential, they are not currently addressing globalization’s externalities in a sustained way.
In an article in The Guardian, Tony Juniper has pointed out the corporate misdeeds, which have led to Britain’s non-governmental groups calling for new laws to protect people and the environment from the impacts of big business.
Some of the facts against corporate are as follows:
1. Of some 60,000 multinationals in the world today, only 3% even bother to do a social and environmental report, let alone take any action to reflect its findings. What about the 97% who don’t do a report at all? Even those that say they have embraced CSR as a management tool there is a great deal to be concerned about.
2. Shell is a well-known CSR proponent, famously claiming that there is no choice between profits and principles and yet the reality of its social and environmental impacts just won’t go away.
Misdeeds include following:
i. Right now (2006), Shell is involved in operations that are likely to hasten the extinction of the last population of western Pacific grey whales.
ii. It is illegally flaring gas next to communities in Nigeria and is aggressively seeking out the new fossil fuels that will accelerate climate change.
3. Tesco, along with many other UK companies, uses palm oil in a wide range of products. A vegetable fat derived from oil palms is used to make these products. Plantations of this crop are being aggressively expanded into areas of pristine rainforests across south-east Asia, including through the last frontier regions of Borneo and Sumatra.
The rapid loss of the forests that is directly caused by palm oil expansion is leading to the extinction of many species. The orangutan is one species that will disappear if something isn’t done soon to tame this rapacious industry. Palm oil expansion is also causing conflicts with forest people and human rights abuses.
Term Paper # 7. Shift towards Green CSR:
While the debates continue whether the CSR would be mandatory or voluntary, there has been a paradigm shift on CSR activities. The big change is not only due to pressure groups of NGO’s, social and environment activists, but also due to ubiquitous media particularly electronic one flushing the news & visuals across the globe within minutes of happenings. Moreover CSR is no longer considered as a loosing proposition, but a positive endeavor for prosperity and well- being of both the corporations and the societies in which they belong.
Corporations can only gain by following green theme in CSR, since CSR activities allow the company to followings:
i. Reduce GHG emissions; hence earn carbon credits, a tradable commodity adding to the income. With carbon emissions beyond specified limit, carbon credits for the excess carbon need to be purchased at the existing market price.
ii. Encourage ‘responsible’ use of resources; cut down the over-consumption, work for conservation of resources, develop renewable and sustainable resources. Efforts in these directions shall reduce cost and improve sustainability. Recycling of metallic and other materials from generated scrap leads to not only the conservation of non-renewable resources, but also improve substantially the sustainability of the resource and cost reduction.
iii. Utilize waste or ensure proper disposal by introducing environmental friendly waste management techniques. Good environment and healthy atmosphere in the neighbourhood and workplace improve productivity.
iv. Reduce energy requirement by using energy-efficient processes, process automation etc., which would reduce cost plus earn carbon credit.
v. Improve overall efficiency, leads to higher productivity and lower cost of production.
vi. Improve sales figure by marketing real green products/with green tag.
By going green in CSR, companies can improve earnings, ensure sustainable business and would vastly improve company’s ratings in national and global perspective.
Social responsibilities combined with financial gains are doubly satisfying –doing well and doing good — are therefore becoming extremely popular.
On the other hand, not going green the corporation would have tough time to sustain business activities in near future, due to followings:
i. No sale of products like car not conforming to emission norms (Europe);
ii. No sale of agricultural products produced in illegally deforested areas (Brazil);
iii. No sale of products in USA from CSR defaulting countries if new bill in Senate pass through;
iv. Drop in prices due to shifting from elite market to a market place in a less developed country with relaxed norms; and
v. Drop in share prices due to less sales and lower margin.
Term Paper # 8. Truly Committed Companies on Voluntary CSR:
However corporate doing real good work in this area include some big names, such as, the aluminum major, Aluminum Company of America (ALCOA), and many more.
Examples of some truly committed companies to voluntary CSR are growing.
Few examples are as follows:
1. Murata Manufacturing Colt, Kyoto, Japan:
It is a multinational company produces specialized electrical and electronic goods. CSR Management has yielded good result in terms of improved productivity with lesser carbon emission figures.
i. Murata Group Environment Policy:
Murata strives to quantitatively ascertain the environmental impact associated with its business activities and analyzes that information to reduce the environmental impact of production activities.
ii. Environmental Management:
Murata has obtained ISO 14001 certification for the Group’s domestic sites and overseas production plants. With this certification, they are moving ahead with environmental management through environmental audits and education and reorganization of the management system.
iii. Environmental Action Plan and Performance:
Murata has formulated its strategy for reducing its impact on the environment in stages in its 4th Environmental Action Plan, with 2010 as the target year. The Group carries out annual action plans to facilitate achievement of the 2010 goals.
iv. Environmental Accounting:
Murata endeavors to reduce the environmental impact of its business activities by determining and analyzing the cost of environmental protection as well as the effectiveness of the results of its efforts on the environment.
v. Environmentally Conscious Design:
Murata manufactures products with reduced environmental impact throughout their life cycle, including design, production, use, disposal, and recycling.
vi. Green Procurement and Purchasing:
Green procurement of part materials with low environmental impact is essential for decreasing the environmental impact of products. That is why Murata asks its suppliers for their understanding and cooperation regarding environmental management.
vii. Prevention of Global Warming:
The reduction of greenhouse gases is becoming increasingly urgent. Murata places priority on the reduction of total emissions and per unit of net production emissions of greenhouse gases.
viii. Reduction of Waste:
The Murata Group achieved its goal of zero emissions (zero landfill waste and a 100% recycling rate) nationwide in 2003. They are now working toward zero emissions and a reduction in the total amount of waste internationally.
ix. Managing Chemical Substances and Environmental Risk:
Murata handles chemical substances, & thus considers their responsibility to prevent environmental pollution. The management of hazardous chemical substances emitted during the production process and the reduction of emissions is an important issues, and they are working to resolve them.
x. Promoting Eco-Friendly Distribution and Packaging:
Murata is reducing its environmental impact during not only production stages but also the product distribution stage. The company is reducing CO2 by making transport more efficient, and waste reduction by cutting down on packaging materials.
Comparison per Unit of Net Production:
The JEITA common index, (a measuring standard from JEITA – stands for Japan Electronic Information Technology Association) which is the value of CO2 emissions against net production (monetary value), adjusted using the corporate goods price index announced by the Bank of Japan. A fall in this figure indicates that a given product quantity (monetary value) is produced using less energy.
Murata is striving to reduce CO2 emissions by domestic manufacturing plants and subsidiaries by 28% per unit of net production compared with fiscal 1990 levels. By fiscal 2006, the company has slashed this figure by 38.8%., more than around 11% than the set goal of 28%. (Fig. 19.1) The net growth over a period of 5 years is 278% in terms of monetary value of the net production. Even with higher energy consumption from the future expansion of plant facilities, with their continued CSR, they expect to meet the reduced energy target for fiscal 2010.
Murata’s actual emissions were up 5.5% during fiscal 2006 as a result of production expansion. However, they are aggressively advancing with their energy reduction strategies through the introduction of such high-efficiency equipment as double-bundle turbo refrigerators and other measures. During fiscal 2007, they aim to extend energy conservation initiatives from Japan to overseas operations.
2. Asahi Glass Co. Ltd, Japan:
AGC Ltd., manufacture products using materials that meet their green procurement criteria, and deliver environmentally friendly products to customers. The AGC Group uses different types of materials in its four business segments (glass, electronics and displays, chemicals, and others).
In conformity with the guidelines, AGC obtained work clothes made of blended materials. This means that 55% of the polyester mixed in the fabric will become recycled PET resins. “Green” work clothes have the same color, feel and antistatic performance as previous ones. Against the target green purchasing rate of 98% set for the total purchase of four items, the actual result has been 98% since fiscal year 2005, thus achieving the target.
In order to increase its competitive edge, the AGC Group holds information exchange meetings, seminars, training sessions, and plant tours in cooperation with its suppliers.
In addition to above examples, brief description of achievements by some truly committed companies are as follows:
3. Recreational Equipment Inc (REI):
America’s biggest consumer co-operative target is to achieve ‘carbon neutral’ by 2020, 1/3rd reduction by 2009, from the base level in 2006.
Their findings and acts to mitigate carbon emissions:
i. A quarter of carbon emissions came from adventure flights they organized, so they started to buy carbon offsets of these trips.
ii. One-fifth of emission results from electricity consumption so they started buying electricity generated by renewable sources, such as hydro power in Washington State.
iii. To cut down energy wastage in transport, they opened second distribution hub in Pennsylvania.
iv. To reduce GHG emissions by employee commuting, which accounts for 1/5th of total emissions, they provide incentives to those who cycle to work.
v. They are working on carbon footprints of buildings, papers and packaging and also their products. Green labeling would follow.
4. TNT- A Dutch Logistics Company:
Peter Baker, heading the company has launched “Planet Me” campaign with the objective of changing company’s carbon trajectory. TNT’s carbon footprints have been measured and targets for reducing the same would be set.
Meanwhile the facts and figure on emissions are as follows:
i. Travel budget has been cut by 20%, (a saving of 3.2 million Euros, compared to cost of installing videoconferencing as 2.8 million Euros) which would cut down emission figure considerably.
ii. In 2020, plan to move headquarters to a carbon-positive building.
iii. As a global transport company owning a big fleet of trucks and aeroplanes, in 2006, TNT produced 826 killotonnes of carbon dioxide. To cut down emissions from trucks, they are introducing hybrid and electric vehicles. For 44 aircrafts accounting for half of TNT’s emissions, they plan to run more efficiently and willing to invest in promising aircraft technologies.
iv. Reporting emissions would follow the same rule as financial reporting, including warnings of poor performance like profit warnings, and bonus scheme linked to emissions.
5. General Electric:
Producers of wide range of products on energy sectors, from electric bulbs to gas turbines for power generation and jet-engines. In 2005 it launched ‘ecomagination’-a push to invest in green technology and expand sales of products and services with measurable superior environmental performance on sustainability by at least 10%.
To cut down 1% of GHG emission by 2012 compared to 2004 as baseline.
i. GE has already reduced emissions by 4% (2008).
ii. GE to invest $1.5 billion in 2010 ($700m now) in R&D for cleaner technology.
iii. Expects revenue from ecomagination products of at least $20 billion, GE have sold out all eco-certified products to 2009. For example it is not possible to buy GE’s wind turbine before 2010.
iv. ‘Employees’ initiatives have resulted in the savings of $70 m in energy each year.
GE has joined other big companies and NGOs to form US Climate Action Partnership to lobby for national legislation in America to cap carbon emissions.
6. United Technology Corporation (UTC, USA):
Products range from aerospace to air-conditioners and has been able to reduce carbon footprint by 19% over the last 10 years, even it has doubled its output. George David, CEO says’ we had an explosion of doing more with less”. In 2008, UTC is aiming at 10% growth rate, while cutting carbon emission by another 5%.
7. Arcelor Mittal Supplier Engagement Program:
An example of the best practice example in supply chain responsibility includes the one by Arcelor Mittal, a global leading steel company. The company has participated in a supplier engagement program in Brazil with a focus on sustainability and environmental issues and presented lately first results.
Of the participating suppliers, 73% have started engaging in waste management and separate their waste, 67% introduced processes to reduce their environmental impact, 53% introduced a new product or service with a specific social or environmental element, and 67% started training their employees on sustainability issues.
These are great achievements, without any extra-large expenditure. Over 90 % of the participating suppliers indicated that the integrated responsible business practices had a positive impact on -their relation to their customers and over 80% said that those practices are likely to improve their relationship with other companies in their supply chain.
Term Paper # 9. CSR & Business Areas:
Apart from industries, other areas of business, where CSR and consequently environment is becoming a dominant factor include the followings:
Are starting to show more interest, e.g., $1 out of every $9 under professional management in USA now involves an element of ‘socially responsible investment’.
Big banks, like Goldman Sachs and UBS, have started to integrate environmental, social and governance issues in some of their equity research.
Finance Industry mixed signals of giving emphasis on good financial results notably on private -equity, but partly skeptical on CSR issues. But its private-equity itself is to respond to public pressure by agreeing on voluntary codes of transparency.
iii. Employee’s Demand:
Firms are facing strong demand from their own employees on CSR. CSR efforts help to motivate, attract and retain talents in the company.