Marina Ristic
AMN 195
Prof Lipitz
11.01.2006.
SOCIAL RESPONSIBILITY
Social responsibility is management’s obligation to make decisions and
take actions that will contribute and enhance the welfare and interests
of society as well as the organizational interests. Social responsibility is
both an issue of obedience to the law and ethics. It is extremely
important in every business organization and it includes employment
protection, equal opportunities, companies acts, consumer law,
product liability and safeguarding the environment. Corporate Social
Responsibility is a function that transcends, but includes, making
profits, creating jobs, and producing goods and services. The
effectiveness with which corporations perform this function determines
their contribution or lack of contribution to social cohesion. The article
“The Corporate Stake in Social Cohesion” presents a discussion of
some of the social cohesion issues involving how corporations make
profits, create jobs, hire, promote, fire, treat shareholders, run their
boards, and give back to the communities in which they function. Most
of these functions depend on the quality of corporate governance,
which in turn has implications for social cohesion. It also presents an
identification of some corporate behaviors that promote corporate
social responsibility in governance employment practices, involvement
in communities, environmental protection, and ethical investment.
Successful business strategy that contributes social cohesion in society
is the one which fosters integrity in internal governance while
promoting positive engagement in communities in which corporation
operates. The word culture is overused and overworked, especially in
context of companies. But corporate culture is a product of people,
including a corporate culture that champions social responsibility.
Defining a manufacturing company’s social responsibility, devising
strategies and leading their execution begin with the CEO. But if
corporate social responsibility is really to be an integral part of what is
company about, it won’t happen if the chief executive operates alone,
or the company acts in isolation. It depends on partnering with others
within the company and with those outside.
For example, in the UK, the pharmaceutical company
AstraZeneca supports the Brightest Trust, a charity that helps
underprivileged young people enter the health-care professions.
AstraZeneca is also funding a project in Sweden aimed at assessing
the environmental impact of contaminated soil. Another
Pharmaceutical firm, GlaxoSmithKline involves itself in global
community partnerships to improve health and education in the places
without sufficient resources, the program funding and product
donations, but it also aims to create strategic partnerships.
Cummins Inc - Engine maker, ranked No.1 this year among the
100 Best Corporate Citizens by “Business Ethics” magazine,
funds outstanding architecture, as well as the development of
schools in India and China. General Electric Co., General Motors
Corp.,Nestle, Johnson & Johnson, Coca-ColaCo., Nike Inc.
Procter & Gamble are among the companies cited in “Profits
with Principles” are examples of manufacturers that have
formed new alliances as part of their defined social
responsibilities.” Successful companies today build new types
of partnership to increase effectiveness of their philanthropic
and community investment programs” stated Ira A. Jackson, a
fellow at Harvard University’s Center for Public Leadership.
professions. A vested interest? Sure. But understandable. Elsewhere,
AstraZeneca is funding a project in Swedenstrategic partnerships. Hartford,
Conn.-based United Technologies Corp. (UTC) in 2004 marked its 27th year of
partnership with Special Olympics Connecticut. Across the U.S., UTC's Carrier
subsidiary has donated more than $1.8 million to Habitat for Humanity and its
employees have contributed more than 15,000 volunteer hours. Engine maker
Cummins Inc., ranked No. 1 this year among the 100 Best Corporate Citizens by
Business Ethics magazine, funds outstanding architecture in its hometown of
Columbus, Ind., as well as the development of schools in India and China.
BP PLC, General Electric Co., General Motors Corp., Johnson & Johnson, Nestle
SA, Procter & Gamble Co., Unilever NV, Coca-Cola Co. and Nike Inc. are among
the companies cited in "Profits with Principles" (2004, Currency Doubleday) as
examples of manufacturers that have formed new alliances as part of their
defined social responsibilities. "Successful companies today build new types of
partnership to increase the leverage and effectiveness of their philanthropic and
community investment programs," state Ira A. Jackson, a fellow at Harvard
University's Center for Public Leadership, and Jane Nelson, a senior fellow and
director of the Corporate Social Responsibility Initiative at Harvard's Kennedy
School of Government, the book's authors.
Another kind of initiative that deserves close watching is the Business
Roundtable Institute for Corporate Ethics, a partnership launched in January
2004 and housed at the University of Virginia's Darden School in Charlottesville.
Its announced mission is to pull together research and the practical to provide
hands-on training to current and future business leaders. Its success will be
measured by the extent to which CEOs and other leaders in manufacturing avail
themselves of the training and make its lessons part of their companies' day-today operations.
Another effort to bring people, companies and groups together is the creation by
the Business Roundtable this past May of a network to expedite relief to victims
of major natural disasters, such as tsunami that hit southeast Asia last
December. "The Business Roundtable Partnership for Disaster Relief will seek to
fully integrate the capabilities of a variety of sectors -- such as health, technology,
financial services, construction, transportation and communications -- into a
coordinated private sector response," explains the Washington, D.C.-based
association of 160 CEOs of U.S. companies.
First-Ever CRO Conference Expects 225 Corporate Responsibility Leaders
in NYC November 1
(CSRwire) NEW YORK--(BUSINESS WIRE)-The first-ever CRO Conference will
draw 225 Corporate Responsibility Officers--reflecting the skyrocketing influence
of corporate America's newest power role. Produced by The CRO--publishers of CRO
Magazine--the one-day conference on November 1 in NYC features 17 speakers, including the
Vice Chair of Citigroup Lewis Kaden, and top officers from Timberland, Schering-Plough, Pfizer,
IBM, Xerox, the associate managing editor of the Wall Street Journal Alan Murray, top editor from
Bloomberg News Martin Schenker, and Phat Farm Fashions and Def Jam founder and corporate
activist Russell Simmons.
With Sarbanes-Oxley governance and compliance a constant business reality and consumer
awareness of global warming and sustainability at an all-time high, the CRO Conference hits on
themes ripped from today's headlines. In mid-October, 20,000-reader CRO Magazine featured
The Gap's SVP Dan Henkle on the fashion retailer's infusion of its brand with a corporate
responsibility message, inspired by rock band U2's lead singer Bono. Hip-hop mogul Russell
Simmons' presence in the conference lineup beside Citigroup's Vice Chair Lewis Kaden confirms
the broad and deep impact of corporate responsibility on business today.
The magazine and conference are products of The CRO, the first corporate membership media
platform focused on the $20 billion domestic "corporate responsibility" industry. Since its launch
on August 1, 2006, The CRO has gathered nearly 100 corporate members, including Pepsi,
Starbucks, IBM, Citigroup, Intel, Dell, Avon, Gap, Washington Mutual, Mattel, Ecolab, Baldor
Electric, Stanford, Harvard, Columbia, LRN, OPI, OCEG, SHRM and many others.
The presence of business media heavyweights such as Alan Murray of the Wall Street Journal
and Martin Schenker of Bloomberg News at the CRO Conference underscores how top-of-mind
corporate stakeholder accountability has become. Former Wall Street Journal and ABC News
reporter Michael Connor is Chair of the CRO Conference and editor and publisher of CRO
Magazine. The CRO acquired Connor's Business Ethics magazine in August, 2006.
"Press interest in The CRO and the CRO Conference is unusually high," says The CRO's CEO
Jay Whitehead. "To get 25 business media editors, writers and reporters to pre-register for a
business conference is extraordinary, and reflects the sudden importance of the Corporate
Responsibility Officer role. But the rapid uptake in big-name corporate membership since August
1 is an even more important indicator."
About The CRO
Launched August 1, 2006 by business media veterans Jay Whitehead, CEO and Michael Connor,
Editor and Publisher, The CRO is the leading corporate membership media platform in corporate
responsibility. The CRO's media products include CRO Magazine, TheCRO.com, CRO
Conference and webinars. The CRO covers governance, compliance, ethics, corporate social
responsibility, investor relations, citizenship, socially responsible investing, sustainability,
philanthropy and related topics. Members include 100+ corporations including IBM, Pepsi,
Citigroup, Avon, Mattel, Washington Mutual, Stanford, Harvard, UCLA, Columbia, OCEG, LRN,
OPI, and others. Headquartered in New York City and Roseland, NJ. More information at
TheCRO.com.
Copyright Business Wire 2006
HOR