CSR: Companies Shirk Responsibilities
20 03 2008Audrey Ng | audrey_a@nus.edu.sg
Mar. 11, 2008
Story Highlights:
- Many organizations adopting CSR as part of their business strategy
- Question of whether companies are practicing ethical CSR
- Some companies claim to practice CSR but their activities harm society or the environment
- Various international bodies and student groups involved in promoting CSR
CSR is the new buzzword in the corporate world. The question is, are companies’ CSR practices ethical?
For instance, McDonald’s has programs to donate to children’s charities; the Shell Foundation supports start-up businesses in Africa, while Adidas’ community involvement initiatives include educational programmes and fundraising.
However, McDonalds’ has been accused of misleading advertisements and animal abuse, Shell and Greenpeace clashed over the dumping of oil in the North Sea, while Adidas was attacked for its sweatshops in Indonesia.
While these organizations have programs to contribute to the betterment of society, their activities also add to its detriment.
Corporate Social Responsibility, more commonly known as CSR, means organizations acknowledging that their activities have an impact on society and take responsibility for their actions.
CSR is becoming an increasingly important aspect of business.
Many companies are incorporating CSR into their business strategy as it benefits companies economically and improves its sustainability over the long term.
Second-year Arts student, Lim Li Shan, thinks that adopting CSR would “help in positive branding for the company” and that companies should not forgo long term benefits, which will bring about cost savings, for short term tangible rewards.
This raises the question of whether companies are sincere about behaving responsibly or just practicing CSR for monetary gain, and how they go about making their profits.
In a speaker session held during the CSR Awareness Week, Dr. Natasha Hamilton-Hart from the Southeast Asian Studies Programme said: “many companies claim to be virtuous but are actually responsible for damage.”
She added that it would be good to check on companies’ claims of being environmentally friendly to see if they act on what they claim to.
Similarly, Nichole Detering, co-president of the NUS Corporate Ethics Focus Group (CEFG) said, “many companies are only using CSR as a marketing tool and are implementing very minor changes.”
For instance, she said that although Ford Motor Company claims to be green-focused, their cars have the lowest fuel economy standards in the world.
In addition, even though British Petroleum has changed their image to “Beyond Petroleum”, they continue to add to global warming as their whole business involves fossil fuels.
Detering said that for companies to be ethical, a top-down approach where management sets a precedent for employees to follow, would be best.
Similarly, Hart said that there is a need for self-regulation on the part of companies, as CSR is a set of voluntary codes.
There are student groups on campus such as the CSR Student Movement and CEFG that aim to raise awareness and promote ethics in business, as well as international bodies that seek to uphold ethical principles.
The UN Global Compact is a voluntary initiative for businesses to follow ten universally accepted principles in the areas of human rights, labour, the environment and anti-corruption. It is the “world’s largest global corporate citizenship initiative.”
Detering thinks that “international cooperation and improving existing loopholes in the World Trade Organization” would create significant improvement in getting standardized environmental practices and labour conditions.

(Image from: https://globalcompact.pbwiki.com/f/UNGC_Lgotype_RGB_very_small.gif)
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Tags : business, CSR, ethics, opinion
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