Corporate Social
Responsibility
Duurzaam ondernemen
Dr. Miguel Goede
6 Mei 2010
Wise Society
• There seems to be a consensus among
scholars and practitioners that we are
living in the era that can be described as
the Knowledge Economy. But beyond the
Knowledge Economy lies the Wise Society
(Matthews, 1998). The world is longing for
knowledge and wisdom (Zeleny, 2006, p.
751). (Goede, 2010)
Agenda
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What is it?
Other names
What is it not?
Why SCR?
CSR in Curaçao
What is it?
• A green company acts, or claims to act,
in a way which minimizes damage to the
environment.
Other names/concepts
• Corporate social responsibility (CSR), also known as
corporate responsibility, corporate citizenship,
responsible business, sustainable responsible business
(SRB), or corporate social performance,[1] is a form of
corporate self-regulation integrated into a business model.
• Ideally, CSR policy would function as a built-in, self-regulating
mechanism whereby business would monitor and ensure its
adherence to law, ethical standards, and international norms.
• Consequently, business would embrace responsibility for the
impact of its activities on the environment, consumers,
employees, communities, stakeholders and all other members
of the public sphere.
• Furthermore, CSR-focused businesses would
proactively promote the public interest by
encouraging community growth and
development, and voluntarily eliminating
practices that harm the public sphere,
regardless of legality.
• Essentially, CSR is the deliberate inclusion of
public interest into corporate decision-making,
and the honoring of a triple bottom line: People,
Planet, Profit.
Wise organization
• The wise organization is a green organization that
manages a triple bottom-line: People, Planet and Profit.
Broadly speaking, the social responsibility of businesses
may cover the following principles:
• Maintaining a high standard of business ethics;
• Working as part of the community;
• Protecting the environment;
• Providing good corporate governance;
• Engaging in fair trade and business practices, as well as
fair workplace relations.[1] (Goede, 2010)
[1] http://www.goodcorporatecitizen.com/meaning.html, accessed on 23
December 2009
Triple P’s
• According to de Vrijer, referring to Adam Smith,
corporate governance is not an economical or
legal concept. It is a philosophical concept,
which states that there should be a balance
between the individual (the “Me”) and society
(the “We”). (van Rijn, 2008, pp. 24 – 27).
What is it not?
• The practice of CSR is subject to much debate and criticism.
Proponents argue that there is a strong business case for CSR, in
that corporations benefit in multiple ways by operating with a
perspective broader and longer than their own immediate, shortterm profits.
• Critics argue that:
– CSR distracts from the fundamental economic role of businesses;
– others argue that it is nothing more than superficial window-dressing;
– others yet argue that it is an attempt to pre-empt the role of
governments as a watchdog over powerful multinational corporations.
• Corporate Social Responsibility has been redefined throughout the
years. However, it essentially is titled to aid to an organization's
mission as well as a guide to what the company stands for and will
uphold to its consumers.
Triple P’s
Government
NGOs
Public
People
Planet
Profit
Planet
People
Profit
Profit
People
Planet
Examples
• With writer A.E. Hotchner, Newman
founded Newman's Own, a line of food
products, in 1982. The brand started with
salad dressing, and has expanded to
include pasta sauce, lemonade, popcorn,
salsa, and wine, among other things.
Newman established a policy that all
proceeds, after taxes, would be donated to
charity. As of early 2006, the franchise has
donated in excess of $250 million.[5]
BoP
• In economics, the bottom of the pyramid is the
largest, but poorest socio-economic group. In
global terms, this is the 2.5 billion people who
live on less than $2.50 per day[1]. The phrase
“bottom of the pyramid” is used in particular by
people developing new models of doing
business that deliberately target that
demographic, often using new technology. This
field is also often referred to as the "Base of the
Pyramid" or just the "BoP".
Why SCR?
• Balance between “Me” and “We”
– Bill Gates
– Warrant Buffet
The world is becoming too complex
• According to Deane-Drummond (1999) technology will
continually increase possibilities. The world is becoming
too complex: “…democracy seems to have been, up to
now, the best way to drive a country forward, but
democracy is based on a ‘conscious consensus’ of
people, and the growing complexity of the problem to be
faced (such as energy, pollution, waste water, and social
problems) sometimes need unpopular answers.
Therefore in a democratic country, good solutions can be
obtained only with increasingly educated and
responsible people. Finally, well-educated people are
also needed in order to properly manage diversity and
intercultural dialogue and to strengthen identity” (Blasi,
2006, p. 403).
Curaçao
• Early stages
– Some business have the image of CC
• Donations
• Foundations
• It is not integrated in to the business
• Only profitable business can be Corporate
Social Responsibility
Conclusions
• SCR is here to stay
– The Wise organization
• There is a long way to go, specially in
Curaçao
Q&A