CORPORATE SOCIAL RESPONSIBILITY AND SOCIAL REPORTING by alicejenny

VIEWS: 8 PAGES: 15

									CORPORATE SOCIAL
RESPONSIBILITY AND SOCIAL
REPORTING

         GROUP 4
       Tria Marissa
        Nurfajrina
       Ryan Novrian
A.   IS THERE A SOCIAL RESPONSIBILITY OF
     BUSINESS?

 • The first article in this section by Milton
   Friedman is perhaps the best known argument
   for a purely profit-based social responsibility of
   business. That responsibility is to conduct the
   business in accordance with their desires, which
   generally will be to make as much money as
   possible while conforming to the basic rules of
   the society, both those embodied in law and
   those embodied in ethical custom. Of course, in
   some cases his employers may have a different
   objective.
B.   WHAT IS THE NATURE OF CORPORATE
     SOCIAL RESPONSIBILITY?

 • Is profit for the firm the only guiding
   principle of socially responsible
   activities, or should the impact of its
   decision on others be considered, even
   where the law allow the decision.
C.  IN THE END, DOES GOOD ETHICS MEAN
    GOOD BUSINESS?
  Professor Ullman summarizes the results of
  previous empirical studies on the relationship
  between social and financial performance as
  follow:
• Seven showed a positive relationship between
  social and financial performance.
• Three showed a negative relationship between
  social and financial performance.
• One showed a positive relationship between the
  promotion of women and financial performance
  and a negative relationship between charitable
  contribution and financial performance.
D. IF THERE IS A CORPORATE SOCIAL
   RESPONSIBILITY, HOW DOES A FIRM
   EVIDENCE ITS SATISFACTION OF THAT
   RESPONSIBILITY?

 • Formal effort at standardized corporate
   responsibility reporting began in early 1990s. In,
   1991 seven companies had published
   sustainability report, at that time, however
   much of the report focus was on the
   environment. The reporting trend has since
   transformed itself, addressing         not only
   environmental issues, but also economic and
   social performance.
E. MAXIMIZING ETHICS AND PROFIT
     Patrick Primeaux offers a practical rejoinder to
critics of Friedman, arguing for the possibility of a
balance between money and ethics that is based on a
theory of profit maximization.
     The problem for business and business ethics is
the equation of business with money, specifically
bottom-line accounting profits, and pressure to
increase those profits quarterly or annually. That
motivating objective is itself reflective of an ethical
code. It consists of an ethical principle and demands a
certain kind of behavior consistent with that
principles.
F. THE DIVINE RIGHT OF CAPITAL, Is
Maximizing Returns to shareholders a
legitimate Mandate?
    In response to what Marjorie Kelly sees as the
problems of capitalism, she explores the question of
whether maximizing shareholder wealth is an
appropriate mandate for business.
    To judge by the current arrangement in
corporate America, one might suppose capital
creates wealth much as the divine right of kings was
once the law of the land. Indeed, “maximizing
returns to shareholders” is universally accepted as a
kind of divine, unchallengeable mandate.
G. GLOBAL CORPORATE CITIZENSHIP,
The Leadership Challenge for CEOs and
Boards
 FRAMEWORK FOR ACTION
 1. Provide Leadership
 i. Articulate purpose, principles and
      values internally and externally
 ii. Promote the “business Case” internally
 iii. Engage the financial sector
2. Define What it Means      3. Make it Happen
    for Your Company         i. Put Corporate Citizenship
                                  on Board Agenda
i. Define the issues
                             ii. Establish Internal
ii. Agree on Company’s            Performance,
      spheres of influence        Communication,
                                  Incentive and
iii. Identify key                 Measurement Systems
      stakeholders           iii. Engage in dialogue and
                                  partnership
                             iv. Encourage Innovation
                                  and Creativity
                             v. Built the Next Generation
                                  of Business Leaders
Continue…..

 4.Be Transparent About it
 i. Agree what and how to measure
 ii. Develop a graduated program for
      external reporting
 iii. Be realistic
  REPUTATION QUOTIENT (RQ)

To measure the Reputation Quotient
Based on six dimension that are :
• Emotional appeal
• Products and services
• Financial performance
• Vision and leadership
• Workplace environment
• Social responsibility
TITHING PROGRAM

      According to Charles Stoddard, the chairman
and CEO of the Grand Rapids,
“if the company used Tithing program so would
be get three advantages he called “triple win”
that are : The charity received an unsolicited
donation, the stockholders received recognition
for designating the donation, and the company
received a tax-deduction”.
            SOCIAL REPORTING
Potential benefits of reporting :
• Anticipated critical performance
• Communication tool an organization’s responding to
  stakeholder
• Transparency
• vehicle for linking typically discrete and insular functions
  in a more strategic manner
• Management evaluate potentially damaging
  developments
• Sharpen management’s ability to assess the
  organization’s contribution to natural, human and social
  capital
• Reduce volatility and uncertainty in share price
the Global Reporting Initiative Guideline

 • Vision and Strategy
       Encompasses a statement of the reporting organization’s
   sustainability vision and strategy, as well as a statement from
   the CEO
 • Profile
      An overview of the reporting organization and describes the
   scope of the report
 • Governance Structure and Management
   Systems
       An overview of the governance structure, overarching
   policies ands management systems in place to implement the
   reporting organization’s vision for sustainable development and
   to manage its performance

								
To top