Corporate Social Responsibility-Corporate Governence-Lecture Slides, Slides of Corporate Governence

Download Corporate Social Responsibility-Corporate Governence-Lecture Slides and more Slides Corporate Governence in PDF only on Docsity! 1 Corporate Social Responsibility Docsity.com 2 Concept Business decision making linked with:  Ethical values  Compliance with the law  Respect for people, communities and the environment. Docsity.com 5 Trusteeship Theory  Companies really do not belong to any one.  Shareholders own share of “what remains” but not specific assets of the company.  Directors hold the assets of the company in trust on behalf of not just shareholders but the society at large.  A company is a social asset. Docsity.com 6 Historical Perspective  In fact, CSR came much after Business Ethics.  Business have learned that chasing only profit does not give enough profit.  CSR can actually improve their profitability and sustainability of their ventures. Docsity.com 7 Scope of CSR  Philanthropy  Doing Business Responsibly  Being a good citizen Docsity.com 10 Being a good citizen  Compliance with law.  Paying your dues  No tax evasion, directly or indirectly  Investment in community:  Capital nature rather than just recurrent  Concern for environment Docsity.com 11 Concern for Environment  Eco-balance  Deforestation  Soil degradation  Atmospheric changes  Pollution  Waste/Discharges management  Depletion of resources  Emphasis on creating re-usable resources Docsity.com 12 Environmental Risk Management  Identify and define risks being posed (or faced) by the company.  Establish the extent and probability of risks.  Assess cost of:  The consequences of the risk after it takes place  preventing it from happening  Assign specific responsibility Docsity.com 15 Resource Management  Energy resources (fossil fuels vs. others)  Re-cycling of materials  Using re-cycled material  Using bio-degradable material  Conservation of life supporting systems  Forests, trees, water sources, mountains  Wild life  Responsible use of land Docsity.com 16 EP Law  The law is there.  EPA has been set up.  But law does not make any one responsible.  Companies have to want to be environmentally responsible. Docsity.com 17 Some Big Environmental Disasters  Chernobyl Nuclear Disaster (1986)  Nuclear reactors went berserk  Exxon Valdez (1989) in Alaska  11.5 million barrels of crude spilled  Tokiamora Accident (1999)  Nuclear radiation leaked  Bhopal Tragedy (1984)  Leakage of poisonous gas, killing 300 and affecting 400,000 persons  Gulf of Mexico (2010)  Leakage of crude oil, polluting virtually the entire gulf Docsity.com 20 Formulating CSR Policy  Set a Code of Ethics outlining CSR Values to be upheld  Establish current position on CSR values  Discuss with relevant stakeholders  Employees  Pressure groups  Clients  Draw up a formal CSR Policy Docsity.com 21 CSR Policy  Formally promulgate the CSR policy  Prescribe systems  Establish responsibility for each party  Set realistic strategies and targets  Keep all concerned informed  Monitor achievements  Revise policy or targets as necessary Docsity.com 22 Bench Marking in CSR  You do as much as others are doing.  Can any one set “minimums”?  Who ensures compliance?  How to monitor compliance? Docsity.com