Role of Corporate Social Responsibility - Case Study Example

19 August 2008 Dissertation Proposal Proposed dissertation topic: Corporate Social Responsibility and its Role in Environmental Issues. Background Corporate responsibility is a modern-day concept by virtue of which a corporate is ready to take up the responsibility of the consequences of its activities internally, that is, on its own members, they are the employees, shareholders and stakeholders; externally, that is, on the customers, the suppliers and the general public; and on the environment. The importance of this concept has grown by way of acceptance as well as by way of application to such an extent that corporations today are voluntarily taking measures with a view to improving the quality of life of its own staff and their families as well as that of the community locally and the society as a whole. The responsibility of the corporate towards maintaining the sustainability of the environment, from which it draws resources, is also well highlighted by this concept. The concept took root when it was considered important to introduce 'ethicism' or ethics into business and business activities, integrating measures for economic and social uplift and environmental sustainability for the benefit of the community and thereby society at large. The concept of corporate social responsibility has attracted much brickbats as well as a great deal of applause since the time it was begun to be introduced as a business policy whereby business houses were to go beyond their legal obligations and take measures with a view to developing the society and sustaining the environment. Advocates of the concept of corporate social responsibility have been of the strong opinion that functioning with the larger vision of the welfare of the community rather than the immediate profits would bring about larger economic benefits for the company in the long run. The critics, however, are of the opinion that the primary essential role of business is to make profits. They opine that social and environmental issues are not the concern of corporations but of the government and other related organizations, and trying to assume these tasks would tend to veer their course away from their ultimate goal of maximum profits, which would, again, unfavourably impact the fundamental functions of the corporation and hence its employees and the community. The concept of corporate social responsibility involves the incorporation of ethical values into the functions and processes of a business, emphasising that economic gains need not necessarily be at the cost of ethics and values, and that non-economic social values can also be nurtured by a business house for the betterment of the community, the society and the environment. Examples are the corporate environmental responsibility measures taken by PricewaterhouseCoopers and Lexmark to minimise environmental pollution caused directly and indirectly by their activities. PricewaterhouseCooper's (2008) efforts towards maintaining environmental sustainability include the reduction of total carbon emissions by buying energy from renewable sources, improving space efficiency so as to consume less amount of power, resorting to energy-saving measures, reducing air miles by upgrading phone and video conferencing facilities, etc. Lexmark (2008) designs its products as well as their packaging so as to cause minimum impact on the environment. They also have a collection program so as to facilitate recycling of the packaging. There are several factors that have evolved over the years and driven the business world to adopt the concept of corporate social responsibility, especially related to environmental issues, as a functional policy. One of the foremost among these is the growing general awareness of the consumers of the serious impact of their increasing consumption on the society and the environment and its depleting resources globally. This has led to their positive lean towards commodities and services that are products of sustainable techniques that least, if at all, impair natural resources. Some of the other factors are growing governmental concern and laws against environmental and social exploitation, ethics education, increasing goodwill and public support for ethical business, and several sporadic incidents of environmental and social crises and the increasing risk factors for such episodes. The potential benefits of businesses assuming corporate social and environmental responsibility, though seemingly intangible, can be materially substantial in the long run. Adopting social and environmental responsibility programs will help corporations earn public support and goodwill and build up customer loyalty as well as aid effective risk management. The wide acceptance of the concept of corporate social and environmental responsibility has led to drawing formal guidelines for social accounting, auditing and reporting. Green Globe certification, SA8000 and ISO 14000 environmental management standard are some of them. Methodology There are several research methods and sources available to go about the business of in-depth study of corporate social responsibility with specific reference to its role in environmental issues. The topic has been rapidly gaining momentum in the recent years and its scope for further growth is still indefinite or, rather, infinite. Several thinkers, writers, teachers, and proponents as well as critics of the subject have written numerous works including, journals, articles, books, theses, etc. on topics related to corporate social and environmental responsibility. These works can give in-depth knowledge and insight into the subject. They can also help the researcher view the subject from different standpoints, thus drawing competence to arrive at objective and rational conclusions. Other direct tools for research would include interviews, surveys, discussions, etc. Though these are straight methods for receiving first-hand information, considering the nature of topic, this would turn out to be too tedious and inadequate. Besides, when you are trying to get a global outlook on the topic, surveys and interviews would be too impracticable as research methods. The best method would be to study cases. This would be possible in two ways. The first method would be to study the policies different corporations have accepted globally towards their social and environmental responsibility. The measures that corporations take by way of assuming their social and environmental responsibility usually fall under government legislation and regulations, and hence are explicitly stated. Since goodwill, public support, customer loyalty, reputation, etc. are greatly influenced by the corporate social and environmental responsibility programmes adopted by a corporation, these are always made available for public perusal through their web sites, profiles, statements, reports and such other official announcements. A thorough and comparative study of the different programmes and policies followed by different corporations can give a fair insight into this concept as it prevails globally today. Study and followup of topical incidents and crises that relate to corporations and their environmental issues can also throw light on the evolution of this concept internationally. Such information can be accessed from news sources, journals, periodicals, etc. Corporate social responsibility programmes adopted by several companies like PricewaterhouseCoopers, Lexmark, Toshiba, 3M, the City & Guilds Group, etc. can be studied for the proposed dissertation. Toshiba's (2004) environmental management practices incorporates efforts towards prevention of global warming, control of chemical substances, and efficiency in resource utilization with conscious efforts at employing the 3 R's - reduce, reuse and recycle. 3M's (2008) Environmental, Health and Safety Management System has set corporate environment goals for 2010 which targets a 25% reduction in volatile air emissions, a 20% improvement in energy efficiency, a 20% reduction in non-product output and completion of 800 Pollution Prevention Pays projects. The City & Guilds Group (2008) has given a fairly extensive description of their environmental strategies which cover areas of efficient energy use, paper recycling, green travel as well as voluntary employee participation in environmental management etc. Total (2008) also gives a fairly detailed description of its corporate environmental strategies. Several articles and theses have been identified to aid this research. An article by Berry and Rondinelli (1998) looks at proactive corporate environmental management as a new industrial revolution. According to them, most of the successful global companies have gone beyond mere compliance to governmental regulations to a voluntary acceptance and incorporation of proactive environmental management into their functional policies. Businesses have realised that trying to maintain environmental sustainability was far more economical than governmental regulatory compliance. Moreover, the companies are vying with each other and going beyond regulatory compliance to exploring and inventing newer methods of using greener techniques, producing greener products, and maintaining a greener environment. Michael A. Berry, who has co-authored this article with Dennis A. Rondinelli, has done extensive research on issues and topics related to environmental management, pollution prevention, minimisation of waste, sustainable development, etc. Dennis A. Rondinelli has done applied research on corporate environmental management and various topics and issues related to economic development. The authors have based the study, in addition to various knowledge sources, on the policies, functions and outcomes of a long string of companies like General Electric, McDonald, IBM, Xerox, Chevron, and Boeing, to name a few. Jamison, Raynolds, Holroyd, Veldman and Tremblett (2005) have thrown light on corporate environmental responsibility from an environmental non-government organization perspective. The three themes that emerged included firstly, the acceptance of the environmental commitment and sustainability by companies with a positive impact on the society and the environment; secondly, material and energy management so as not to trespass the ecological limits of the environment; and thirdly, transparency and accountability with effective engagement and empowerment of the stakeholders. The study has also precipitated the view of the environmental non-government organisations that corporate environmental responsibility should not contain within the limits of the statutory regulations but should constantly gauge the results of the measures adopted by it and strive towards continuous improvement with constant upgrading of their policies. This study was a project undertaken by the Pembina Institute and Pollution Probe. Pembina Institute, through research and education, advocates environmental, social and economic sustainability and generates solutions to aid individuals, communities, businesses and government towards this end. Pollution Probe is a non-profit organization which works with all sectors of society with a view to promoting health and checking pollution. Topical incidents and issues that are of concern from the standpoint of environmental sustainability and corporate social and environmental responsibility are prominent signals as regards the progress and prognosis of the subject matter of this dissertation. Details regarding these are available from news sources, periodicals, magazines, ezines, etc. The guardian.co.uk allows access to a lot of articles published by The Guardian that relate to environmental issues and corporate social responsibility. An example is the article by Vidal (2008) about the oil giant Shell's misleading claim that its $10 bn oil sands project in northern Canada was a sustainable energy source project. The mallenbaker.net is another news resource for issues and topics related to environment and corporate social responsibility. This is part of the personal web site of Mallen Baker who is Development Director for Business in the Community. Business in the Community has a membership of more than 850 companies and works through the areas of community, environment, marketplace and workplace to motivate and support on responsible business. Contribution of greenhouse gas emission, using up of raw materials in a manner that is not sustainable and potential for environmental accidents are the possible environmental threats posed by irresponsible business practices (Environment 2008). In addition to the above resources, there are several interactive sites where thoughts, ideas, theories and suggestions on corporate social responsibility and environmental management strategies are expressed and shared. These can also be thoroughly utilised in gaining more insight into the topic, in forming informed opinions and coming to rational conclusions regarding issues, strategies and policies related to corporate social and environmental responsibility. The following is the list of potential sources of information for this dissertation. Key articles: Berry, MA & Rondinelli, DA 1998, 'Proactive corporate environmental management: a new industrial revolution', Academy of Management Executive, vol. 12, no. 2, viewed 19 August 2008, < http://www.heartland.org/pdf/23924r.pdf>. Jamison A, Raynolds M, Holroyd P, Veldman E & Tremblett K 2005, 'Defining corporate environmental responsibility: Canadian ENGO perspectives', The Pembina Institute and Pollution Probe, viewed 19 August 2008, http://209.85.175.104/searchq=cache:uRsBe_rCy8cJ:www.pollutionprobe.org/Reports/cerreport.pdf+corporate+responsibility+environmental&hl=en&ct=clnk&cd=3&gl=in Other relevant articles: Mallenbaker.net, viewed 19 August 2008, . Newspaper articles: guardian.co.uk, 13 August, viewed 19 August 2008, . Relevant web sites: 3M 2008, viewed 19 August 2008, . Glove Club Ltd, Corporate environmental responsibility policy, viewed 19 August 2008, http://209.85.175.104/searchq=cache:MRVaCO9kdj8J:www.gloveclub.co.uk/GloveClubEnvironment.pdf+corporate+environmental+responsibility+uk&hl=en&ct=clnk&cd=13&gl=in Lexmark International 2008, Lexmark International, UK, viewed 19 August 2008, . PricewaterhouseCoopers 2008, viewed 19 August 2008, . Starbucks Corporation 2008, viewed 19 August 2008, . The City & Guilds of London Institute 2008, viewed 19 August 2008, . The Coca-Cola Company, viewed 19 August 2008, . Toshiba International 2004, viewed 19 August 2008, . Total 2008, viewed 19 August 2008, . References 3M 2008, 3M, United Kingdom & Ireland, viewed 19 August 2008, . Berry, MA & Rondinelli, DA 1998, 'Proactive corporate environmental management: a new industrial revolution', Academy of Management Executive, vol. 12, no. 2, viewed 19 August 2008, < http://www.heartland.org/pdf/23924r.pdf>. The City & Guilds of London Institute 2008, viewed 19 August 2008, . Environment 2008, mallenbaker.net, viewed 19 August 2008, . Jamison A, Raynolds M, Holroyd P, Veldman E & Tremblett K 2005, 'Defining corporate environmental responsibility: Canadian ENGO perspectives', The Pembina Institute and Pollution Probe, viewed 19 August 2008, http://209.85.175.104/searchq=cache:uRsBe_rCy8cJ:www.pollutionprobe.org/Reports/cerreport.pdf+corporate+responsibility+environmental&hl=en&ct=clnk&cd=3&gl=in. Lexmark International 2008, Lexmark International, UK, viewed 17 August 2008, . PricewaterhouseCoopers International Limited 2008, viewed 17 August 2008, . Toshiba Corporation 2004, viewed 19 August 2008, . Total, viewed 19 August 2008 < http://www.total.com/en/corporate-social-responsibility/Environment-1/>. Vidal, J 2008, 'Shell rapped by ASA for 'greenwash' advert', guardian.co.uk, 13 August, viewed 19 August 2008, . Read More