Corporate Social Responsibility: Whose baby?

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 (21^st 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