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Citizens of the world
In the 1990s Nike faced a consumer boycott after the press reported abusive labour practices in some of its Indonesian manufacturers. McDonald's has recently been in the media spotlight after an exposé highlighted the impact overindulgence on their food might have on consumers' health. Both reactions forced public adjustments in their business practices and correspondingly exhibit the basic tenet of corporate social responsibility (CSR): companies can no longer concern themselves exclusively with profits; they must also show concern for their impact on the wider community and environment.
The majority of large corporations have CSR policies in place nowadays. It is a term that has become familiar jargon in boardrooms worldwide and it is interesting to note that the current incarnation of the idea was (for the most part) foisted on the economic community by the general public. According to a PriceWaterhouseCooper poll, two-thirds of consumers want companies to go beyond their historical goal of making profit, contributing to broader societal goals as well.
But we have entered a perceptibly new era and businesses have started to recognise the benefits of socially-motivated projects for corporate ends. Firms are driving the concept as they see the advantages that a ‘human face' can offer. The escalating use of modern technologies such as the internet, television and text messaging is proliferating public awareness of the idea and consequently the place for the projection of this image.
What is it?
Fundamentally, CSR is about how companies manage their business processes and interaction with the wider community in order to have a positive overall impact on society. Being a now global ideology, a certain amount of cultural relativism is involved. Within the Western world alone there is divergence: America traditionally defines the idea in philanthropic terms with charitable donations to offset profits; Europe focuses more on ensuring that businesses operate in a socially responsible and sustainable way, complimented by investment in local communities.
Nonetheless, the World Business Council for Sustainable Development defines CSR as a "business' commitment to contribute to sustainable economic development, working with employees, their families, the local community, and society at large to improve their quality of life". It is realising that the stakeholders matter as much as the shareholders.
Stakeholders include employees, customers, business partners, communities and society in general. There are subtle variations in the stakeholders associated with each company so policies are tailored appropriately but projects can take many forms. Education campaigns, foreign charity projects for employees, environmental schemes, energy saving measures, health drives for colleagues, financial support for community causes in art, youth and elderly projects are just some examples of initiatives already in place. It's not just about money; it's about interfacing with society.
Growth of CSR Awareness
CSR mission statement:
Zabeel Investments' mission is to be an organisation that not only thrives financially, but provides for the community, benefits the careers and lives of its employees and provides support to those who need it most.
CSR activities:
Support and fundraising for the Dubai Autism Centre.
Establishment of a stand-alone charity ‘Bidaya' to financially and intellectually (through a mentor system) support students in becoming leaders.
Comment:
Good CSR is much more than just handing out money, it's about taking responsibility for what you are doing, going beyond what is required and taking the time to make sure it is done right.
It is a responsible management solution, and in time will lead to greater productivity, stronger cohesiveness between employees, less waste of resources and demonstrates your company's leadership potential to partners, competitors, and the greater business community.
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