Corporate
Social Responsibility: Whose baby?
Introduction
Recently there was much cynicism
when carbon copy ‘payback’ was given the reason for tax adjustments in personal
income tax in a developed country. The contribution to preserving the green of
the world contributing to overcoming the effects of climate change was
minuscule, said the consumers. The philosophy behind the move is noble as
citizens now are talking about the adverse effects on destruction to fauna and
flora as nations clamour to become developed countries. Social responsibility
is being infused by responsible governments to organizations and industry...
Corporate institutions have been
reaping millions of dollars and corporate managers having been rewarded
handsomely with huge bonuses and salaries that appear unreasonable to the
common worker. Though these corporate organisations are turning in billions of dollars,
all come with a price, whether it is related to production of a vehicle or the
building of massive townships; the impact on the environment.
Corporate Social Responsibility: what it entails?
The new ‘buzz’ word is corporate social responsibility. The
thrust of this new action is to improve the image and the reputation of
organisations and business concerns. Most companies in the corporate world have
visions and missions and core values. Core values relate to humanization of the
functioning of the organisation. Human resource managers are now told to tone
down in applying harsh rules in managing human capital. They have been told to
re-visit standard operating policy and be practical in dealing with workers; to
be flexible and tactful. This is essential for sustainability and retaining
human capital.
The place or work needs to be
safe, convenient and happy for efficient functioning. The Japanese are known to
be practicing good working relations with employees and clients. Loyalty and
productivity is promoted when employer –employee relationship is more
horizontal than vertical. Valuing the customer comes with attending to his
needs and reviewing his benefits and compensation. Good corporate culture
nurtured over the years promotes the standing of the organization.
The Essential Components of CSR
A leading columnist in the New
Straits Times (21st Mar 2011) talks about four essential components
for corporate social responsibility (CSR) activities. Victor SL Tan summarises
the four essentials of corporate social responsibility as to how the workplace
is rendered conducive and convenient to employers, which would effectively
reflect on the how the employer makes the workplace safe. I find the subject important
enough for large organizations to follow. In fact it is good citizenry that
corporations and business concerns contribute a portion of their profits to
sustaining biodiversity of the environment through such activities.
Clearly the organisation should
ensure the standard and reliability of its products, whether it is a commodity
as in the plastic industry or educating students to be professional as in the education
industry. Both internal and external clients would judge the product for its
quality and timeliness of delivery.
Impact industrialization has on environment
Developing countries and
developed countries are battling with the impact industry has on the
environment. Profits cannot be the only goal of an organization should focus
on. Environmental studies have indicated what price has been paid as a result
of industrialization and large scale destruction of the forests and hills.
Organizations will have to play integral roles in making the environment safe
for both present and future generations. The Kyoto Declaration and several
other International Instruments have yet to impact positively on climate
change. Perhaps the little steps taken at organization levels would be more
effective. Pollution as a result of irresponsible manufacturing processes has
contributed to changes seen in the ecosystem. Regulators should be not being
the only agent policing corporations and industry. It is the responsibility of
all to preserve the fragile ecosystem of Earth.
Core values drawn by
organisations cannot hang on walls within glassed frames. Enabling activities
would be able to infuse a value system within the working environment. This value system would perpetuate
corporations to play a greater responsibility to the community. Many leading
organizations have been promoting corporate social responsibility activities
but it is not enough... Community projects initiated and supported by
organisations have far reaching benefits in both the short and long term. Bill
Gates has dropped to second place in the world as the world’s richest man
largely because of the establishment of the Bill Gates- Belinda Trust. Huge
sums of money from his trust are available for research in several fields
including medicine and science, all for the betterment of mankind.
Conclusion
It looks like it ‘payback time’
for organizations and industry. Corporate social responsibility contributes to
good citizenry. Keeping the workplace safe promotes both mental and physical
health of employees and employers. Climate change is real and future
generations are being threatened. War and physical conflicts prevail with
little respect for human life. Lawmakers and policy advocates cannot implement
the call for sustaining the environment if organizations focus on profits
alone. The responsibility needs to be extended beyond the premises of the
factory.
Sivalingam Nalliah
28 Feb 2013
