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Corporate Social Responsibility + The LEED Triple Bottom Line (Top 20…
Corporate Social Responsibility + The LEED Triple Bottom Line
Corporate Social Responsibility
The commitment by organisations to behave ethically + contribute to economic development, while improving the quality of life of the workforce + their families, as well as the local community + society at large
Many companies publish annual CSR/Sustainability reports
Reasons for Developing CSR initiatives [Buchholz, 1991]
Corporations have responsibilities that go beyond the production of their offerings at a profit, such as helping solve important social problems
The impact of corporations goes beyond simple marketplace transactions
Corporations serve a wider range of human values that can't be captured by solely focusing on economics
Corporations have a broader constituency of stakeholders than shareholders alone
A central theme of CSR is that corporations have a responsibility to society that goes beyond the pursuit of profit [Martin, 2002]
Key problem: do stakeholders view CSR policies as sincere? Customers tend to punish companies they see as being insincere, E.g UK citizens boycotting Starbucks over its tax affairs
It's used by companies in industries seen as unsustainable - alcohol, oil + gas etc. bc managers think it's important bc it helps them improve their reputation
EXAMPLE: MERCK
For centuries river blindness has tortured humanity in tropical regions
In 1975 scientists at MERCK discovered a compound that killed animal parasites. Introduced as a veterinary drug, they believed it could also help humans
Neither those in need or their governments could afford to buy the drug
In 1987 MERCK decided to provide the drug for free
Top 20 Activities/Characteristics of Socially Responsible Companies
Makes safe products
Doesn't pollute air/water
Obeys the law in all aspects of business
Promotes honest + ethical employee behaviour
Commits to safe workplace ethics
Doesn't use misleading/deceptive advertising
Upholds stated policy banning discrimination
Utilises 'environmentally friendly' packaging
Protects employees against sexual harassment
Recycles within the company
Shows no past record of questionable activity
Responds quickly to customer problems
Maintains waste reduction programme
Provides or pays portion of medical costs
Promotes energy conservation programme
Helps displaced workers w/ placement
Gives money towards charitable or educational causes
Utilises only biodegradable or recyclable materials
Tries to continually improve quality
Employs friendly + polite people
CSR Stances
Laissez-Faire
Legal compliance: make a profit, pay taxes + provide jobs
Defensive to outside pressures
Middle-management responsibility
Unilateral stakeholder relationships
Enlightened Self-Interest
Sound business sense
Management systems to ensure good practice
Supportive leadership
Interactive stakeholder relationships
Reactive to outside pressures
Forum for Stakeholder Interaction
Sustainability or Triple Bottom Line Rationale
Proactive
Champion Leadership
Management is a board-level issue: organisation-wide monitoring
Shaper of Society
Social + market change
Visionary leadership
Multi-organisation alliances
Management: Individual responsibility throughout the organisation
The LEED Triple Bottom Line
Expands the traditional 'bottom line' theory of being concerned w/
profit
, to also include the
social + environmental
impacts of the company
People
Improved stakeholder relations, productivity, customer satisfaction + loyalty, employee retention, innovation, motivation
Advantaged attracting new hires
Triple Bottom Line companies make an effort to "give back" to the community.
EXAMPLE:
3M partners w/ United Way to fund STEM education across the world
Pays fair wages + ensures humane working conditions
Planet
EXAMPLE:
Apple has invested heavily in environmental sustainability. Its massive US data centres are LEED certified + in 2016 the company announced that 93% of its energy comes from renewables
Organisation tries to reduce its ecological footprint as much as possible
Reduced waste in landfills, reduced land + soil degradation, reduced emission levels, increased reuse/recycling, improved conservation initiatives, reduced use of hazardous materials
Profit
Enhanced brand value, new markets/products, increased shareholder value, reduced liability + risk, decreased transport/energy costs, increased market share, enhanced asset management
Every business pursues financial profitability, but TBL businesses see it as only one part of a business plan
Sustainable organisations recognise that profit isn't opposed to planet or people:
EXAMPLE:
IKEA reported sales of $37.6 billion in 2016, + they turned a profit by recycling waste into some of its best-selling products
There is no agreed definition of sustainable development
Certain elements common in most definitions have been identified:
Concern for economic + social viability of future generations
Intergenerational equality
Positive impact on environment + resource issues
Alleviation of poverty, concern for social welfare - local participation in the planning + execution of development projects