Organization csr policy examples. Experience of using CSR by Russian companies
Today, an increasing number of enterprises, organizations, scientists, practitioners and simply curious people are interested in issues of corporate social responsibility (CSR), or, as it is called in another way, corporate responsibility, consideration of corporate ethics, corporate citizenship, sustainable development, responsible business and others
What is CSR and what is its essence?
Let's try to figure it out.
CSR is, firstly, the fulfillment by organizations of social obligations prescribed by law, and the readiness to strictly bear the corresponding mandatory costs.
Secondly, CSR is the readiness to voluntarily bear unnecessary expenses for social needs in excess of the limits established by tax, labor, environmental and other legislation, based not on the requirements of the law, but on moral and ethical grounds.
In general, CSR assumes:
- production in sufficient quantities of products and services, the quality of which meets all mandatory standards, while complying with all legal requirements for doing business;
- observance of the right of workers to safe work under certain social guarantees including the creation of new jobs;
- assistance in improving the qualifications and skills of personnel;
- protection environment and saving irreplaceable resources;
- protection of cultural heritage;
- support for the efforts of the authorities in the development of the territory where the organization is located, assistance to local institutions of the social sphere;
- assistance to low-income families, the disabled, orphans and lonely elderly;
- compliance with generally accepted legal and ethical business standards.
Today, there are many definitions of the concept of "social responsibility of business" and "corporate social responsibility":
Social responsibility firms- maximizing the advantages of the company and minimizing the disadvantages that affect both business participants and society as a whole.
Social responsibility differs from legal responsibility and is seen as a voluntary response of an organization to the social problems of its employees, residents of a city, region, country, world.
Social responsibility means the ability of an organization or enterprise to evaluate the consequences of its activities for sustainable social development society. Social responsibility is a broad concept that also covers such issues as ecology, social justice, and equality. Organizations are required to show responsibility in three areas - finance, the impact of their activities on society and the environment, and the impact on the environment. This applies not only to business, but also to government, public and voluntary organizations.
Business Social Responsibility- the concept according to which business, in addition to complying with laws and producing a quality product / service, voluntarily assumes additional obligations to society.
Social responsibility represents at its core a philosophy or image of the relationship between business and society, and for its implementation and sustainability over a long period of time, this relationship requires leadership.
Social responsibility of business:
1) a set of policies and actions related to key stakeholders, values and fulfilling the requirements of legality, as well as taking into account the interests of people, communities and the environment;
2) business focus on sustainable development .
Corporate social responsibility is a tool with which it is possible to influence society, ensuring sustainable development.
Corporate social responsibility of business- this is a voluntary contribution of business to the development of society in the social, economic and environmental spheres, directly related to the main activity of the company and going beyond the minimum specified by law.
Corporate Social Responsibility is a serious attempt to solve social problems caused in whole or in part by the actions of a corporation.
Corporate Social Responsibility means the specific obligations of a company and the resulting actions of commercial organizations in relation to their communities of need, defined and located outside the main operating environment of the business.
Social responsibility- the obligation of the firm to pursue long-term socially useful goals, accepted by it in excess of what is required of it in accordance with the law and economic conditions.
The most complete is the definition given by Rostislav Kurinko, President of the Center for Business and Society Interaction, in which he concisely and comprehensively reveals the essence of the concept of corporate social responsibility: “Corporate social responsibility is a regularly reviewed and dynamically changing set of obligations that meets the specifics and development level of the company, voluntarily and agreed upon, developed with the participation of key stakeholders, accepted by the company's management, taking into account the opinions of staff and shareholders, carried out mainly at the expense of the company's funds and aimed at the implementation of significant internal and external social programs, the results of which contribute to the development of the company (growth in production volumes, improving the quality of products and services, etc.), improving reputation and image, establishing a corporate identity, developing corporate brands, as well as expanding constructive partnerships with the state, business partners, local communities and civil organizations” .
Summing up, it should be said that corporate social responsibility is not just a company's responsibility to the people, organizations that it encounters in the course of its activities, to society as a whole, not just a set of principles in accordance with which the company builds its business processes, and the philosophy of the organization of entrepreneurial and social activities, which are followed by companies that care about their development, ensuring a decent standard of living for people, about the development of society as a whole and preserving the environment for future generations.
- Shpotov B. Business ethics and management: modern approaches / B. Shpotov // Problems of theory and practice of management. - 2002. - No. 1.
- Social management: a dictionary. M., 1986. S. 367.
- Figlin L. Model of quality management of the organization's social responsibility / L. Figlin // Problems of theory and practice of management. - 2003. - No. 2.
- Social dimension in business. International forum of business leaders under the auspices of the Prince of Wales. M.: NP Social investments, Ed. house "Red Square", 2001. - S. 25.
- Palazzi M. Corporate social responsibility and success in business. / M. Palazzi, J. Stutcher. - 1997. - S. 17.
- World Bank Research Institute (Djordjija Petkoski, Saskia Kersemaekers, Alisa Valderania.Corporate Social Responsibility and Sustainable Competitiveness // worldbank.com)
- Gordon H. Fitch. Corporate responsibility to society. Corporate social report. Recommendations of the Association of Managers / Gordon H. Fitch. // www. amr. en
- Kitchin T. Corporate social responsibility: brand in focus / T. Kitchin. // Management today. - 2003. - No. 5. - P. 24.
- European Commission. Corporate responsibility in front of society. Corporate social report. Recommendations of the Association of Managers // www.amr.en
- Social responsibility of business: current agenda / under. ed. S.E. Litovchenko, M.I. Korsakov. M .: Association of Managers, 2003. - P.15
- Stephen P. Management. / P. Stephen, M. Coulter // 6th edition.: Per. from English. M.: Ed. House "William", 2004. - S. 192-195.
- Mastering CSR: simply about the complex / Rostislav Kurinko - K .: Publishing house "Rainbow Magazine", 2011. - 204 p.
Corporate social responsibility is a certain concept, according to which state and non-state structures take into account the interests of society. Moreover, they assume all obligations for their activities. This applies to shareholders, suppliers, employees, local communities as well as stakeholders.
The essence of corporate social responsibility
Such a guarantee usually goes beyond legally fixed norms and involves the voluntary adoption of additional measures aimed at improving the quality of life. Here the interests of both workers with their families and entire social groups are affected.
Corporate social responsibility is possible only with the stable development of companies' production, which means contributing to the formation of social peace, the well-being of residents, the preservation of the environment, as well as personal security. At the same time, its implementation takes place with the non-interference of the state in operational activities. After all, excessive regulation deprives the spirit of voluntariness, independence and any social activity.
Among the main ways of developing and regulating, there is a fruitful dialogue between the state, public organizations and main business structures. Perhaps that is why the appropriate policy can only be developed as a result of social contact. In addition to everything key role here belongs to the employers as the organizers of the "large-scale conversation".
Historical aspects of the development of the concept
Understanding the importance of a balanced development of the country is carried out through not only economic regulation, but also public control. Thinkers of the first half of the 20th century came to this, in particular, J. M. Clark, the famous American specialist in macroeconomics. After all, the imperfection of the market and public administration makes society constituent element economic order.
It was believed that the need to increase the role of the components of the public sector, such as collective consciousness and voluntary cooperation, is an integral part of all economic theory.
According to the aforementioned scholar, management activities and is the balance of society. In addition, there should be a symbiosis of government control and private business. Simply put, a balance is ensured between selfish and national interests.
If we consider the concept of "corporate social responsibility" in a broad sense, that is, taking into account the impact of office work on society, then various organizations they operate differently. Despite this, in matters of its origin, everything boils down to one thing: the formation dates back 20 years ago.
However, at the beginning of its formation, this definition meant only the nature of relationships with employees, the timeliness of payments wages and an adequate level of taxation. In other words, the circumstances that characterize the external side of the socio-economic activities of specific companies.
In the early 1970s, it became necessary to realize one's responsibility to society. Western European structures have developed common guidelines in the relationship between employees and employers. It was from that time that all areas of corporate social responsibility began to be studied in detail.
Note! Corporate social responsibility is carried out only on a voluntary basis. This is a kind of integration of the social and economic components of the business with all people, as well as other companies.
Multi-level system
The system of corporate social responsibility consists of three main levels, each of which has its own nuances. In the case of "falling out" of one of them, the meaning of all this activity is completely lost.
- The first level is formed through society's ideas about morality. In other words, the normative basis is moral obligations to the target audience. Basically, they relate to the present or future activities specific company.
- The second level implies social responsibility with specific norms. Since this element of the system acts as an object of external control, it requires maximum openness and transparency of actions.
- The third level is focused on creating social value during the interaction of stakeholders. Here, the ethical component is the core - from setting goals to evaluating results.
Main Models
Models of corporate social responsibility use specific areas that are strictly regulated. The most popular are social, educational and environmental areas.
Social projects
Today, local communities are actively supported, where attention is paid to local specifics. social problems. In order for this activity to be visible and sustainable, active cooperation in various areas should be observed on the part of the state, business communities, as well as the non-profit sector. In other words, all efforts should be combined as much as possible.
The most striking examples are programs to support gratuitous donation, create comfortable conditions for recreation, long-term social investment, as well as professional support for specialists.
Educational projects
Support for various educational programs- from teaching elementary manipulations to the most complex research - this is one of the priority areas that corporate social responsibility represents in Russia.
After all, as you know, education is focused on the development of both individuals and society as a whole, so it should be given appropriate attention. Everything is due to the fact that the speed of information exchange is of particular importance, which is why it helps to solve the global challenges facing companies.
Support for educational programs in all their diversity is simply necessary, because the professional knowledge of employees and the desire to expand the personal knowledge base is very valuable. Here, resources are invested not only in their own specialists, but also cross-industry exchange of information is supported.
Such examples of corporate social responsibility can be observed in the development of youth entrepreneurship based on student projects. This type of activity is in demand everywhere today, since most young professionals, who have not even graduated from universities, have unique ideas. It is their implementation that becomes possible thanks to corporate support.
This prepares them for future professional cooperation in various fields, both domestic and international.
Environmental projects
Of course, the development of corporate social responsibility affects the environment. Everywhere there is a minimization of the negative impact, as well as the search for ways to maintain a balance in nature.
It should be noted that already in 153 countries there is adherence to environmental principles, as well as active participation in discussion clubs of the same name. There is also a responsible attitude to the health of company employees, so safety and comfort working conditions come to the fore. It's important to breathe fresh air, drink clean water and come into contact with environmentally friendly materials.
First of all, such projects take into account the rational use of natural resources, the optimal disposal of waste, as well as the development of environmental behavior in society.
Principles and strategies of corporate social responsibility
During the implementation of personnel management procedures, companies attract a qualified workforce, which justifies the increase in productivity. For example, by installing a treatment plant, it is possible to have a positive environmental effect, which also allows saving on material costs.
Working with local communities raises the level of trust and improves the social environment. Using the services of local suppliers allows the development of regional markets. In other words, there is a clear relationship of cause-and-effect relationships.
All of the above suggests that any concept should be guided by certain principles and management strategies. After all, they are aimed at realizing the potential of any organization.
If we take into account that the principles of corporate social responsibility are the foundations that reflect its essence, then their non-compliance radically changes the meaning of this concept.
Corporate responsibility and its main principles
- Transparency is manifested in a clear and understandable conduct of social procedures. Any information other than confidential data must be publicly available. Concealment of facts or their falsification is unacceptable here.
- Consistency is displayed in the presence of fundamental directions for the implementation of specific programs. The Directorate takes full responsibility for current and future activities. In addition, it must be integrated into all business processes, despite the different levels.
- Relevance indicates the timeliness and relevance of the proposed programs. They should cover a significant number of people and be as visible to society as possible. In addition, the funds spent are required to help solve the tasks after their objective and regular assessment.
- The exclusion of conflict situations, as well as distancing from specific religious or political movements, contributes to effective solution socially significant problems. This creates a situation of full choice, as well as following your preferences.
Conceptual Features
The concepts of corporate social responsibility are manifested by the presence of certain needs, focused on providing their resource base. The socio-economic component is taken as a basis both at the moment and in the future.
They allow you to link non-financial aspects with the strategies of a particular business. There is not always a clear logic behind this, and the tasks set may not lead to the expected results. However, it is the implementation of such concepts that is most relevant for most of the world's business communities.
Key Conceptual Components
- Corporate ethics.
- Politics of a public orientation.
- Ecological education.
- Corporate activity.
- Respect for human rights in relation to all subjects of socio-economic relations.
Implementation Tools
Corporate social responsibility of business involves many forms of implementation. One of them is charity, or sponsorship. This type targeted allocation of funds is focused on the implementation of social programs, including monetary or in-kind support variations.
In addition to this, the voluntary delegation of employees makes it possible to provide recipients with the knowledge, skills, and contacts that are subsequently necessary for cooperation.
Targeted financial assistance in the form of monetary grants in the field of education or applied research is the most accessible and traditional tool for implementing social contacts. As a rule, they are associated with the main activity of the company or its strategic business objectives.
The provision by a corporation of a resource base for the creation of structures or objects of a public nature is often used for self-promotion purposes. Such corporate sponsorship is considered a fundamental factor in addressing the demand for specific areas. Usually, entire funds are created for this purpose, focused on implementation. social activities.
Joint partnership programs, which are aimed at reducing social tension and improving living standards, are made possible through social investment. This financial assistance implements long-term projects that provide a systematic approach to solving social problems.
If it comes to sending a percentage of the sales of a certain product, then such socially significant marketing is the most important form of targeted assistance for highly specialized areas.
Sponsorship provided by a legal entity or individual on the terms of advertising distribution is also considered an important tool.
Conclusion
Corporate social responsibility of the company, more precisely, its practical implementation, due to the lack of clear boundaries between the social sphere of life and the state. The economic crises of different years are a vivid confirmation of this. No matter how serious the intentions in the field of social responsibility are, these are primarily advertising tools, and not targeted concern for people.
Content:
Introduction ______________________________ ____________________________ 2
- Examples of CSR of Russian and foreign companies.__________________ 3
- What is the corporate social responsibility of business? ___________________________________ _____________________________ 3
Positions of social responsibility _______________ _________ 5
CSR technologies aimed at and influencing the environment, society, personnel ______________________ ____________________________ 8
- CSR experience in Russian and foreign business _____________________ 12
- Royal Dutch/Shell Group (Dutch Experience)___________________14
- 2.2 CSR "vs" social marketing. (Experience of unsuccessful corporate rebranding British Petroleum)____________________ _______________16
- 2.3 Involvement of Russian companies in CSR (Non-financial reporting in the financial sector) ______________________ __________________ 18
- Legislative regulation and federal interest in CSR_________20
- (Europe)______________________ ____________________________20
(America)_____________________ ____________________________21
- 3.3 (Russia)______________________ ____________________________22
4. Conclusion: Transformation of CSR Models in Conditions of Economic Instability________________ ______________________________ _____24
4.1 (Experience of Russia: What can be offered in the field of CSR?)___________255. List of sources ____________________ ________________________________27
Introduction
“For many businessmen, it is becoming increasingly clear that the success of a company in the market largely depends on the volume of its investments in social sphere countries. As practice shows, high corporate social responsibility allows you to create a positive image of the company or enterprise. This, in turn, gives the company certain benefits:
- helps in expanding the client base, strengthening partnerships,
facilitates obtaining loans, simplifies insurance,
makes more constructive interaction with government agencies
provides an opportunity to attract/retain highly qualified specialists in the company's staff,
strengthens the rating positions in the domestic and international markets.”
However, there is another side of the coin. Not all people are insensitive and immoral, not all are aimed at momentary profit, not all support the neoliberal concept of "business without borders", neglecting ethical and moral principles - there are those few who most often occupy leadership positions who adequately assess their capabilities and capabilities of their corporations, understand that it is in their power to change the world for the better. Of course, large companies are leaders in terms of implementing various social programs. After all, they have great weight in society, significant influence on the market, huge capital, and therefore a lot of opportunities.
It is these influential companies that have embarked on the path of socially responsible business that will be discussed.
- Examples of CSR of Russian and foreign companies.
- What is the corporate social responsibility of business?
Let's start with the history of the origin of this concept. How did the conceptual program of CSR come about?
Some believe that the "hunch" of corporate social responsibility (CSR) came along with the capitalist economic model, i.e. in the 17th century. But only in the 20th century did these sensations begin to take on the shape of a concept.
The theory of CSR was introduced by scientists and researchers, and then began to be tested by pioneer companies that made attempts to apply it in their own business practices. In different countries, this process proceeded with different speed and degree of adaptation to local conditions. The scenario of the “rooting” of an idea in a particular country largely depended on the position taken by the main stakeholders: the state as a regulator, society represented by the most active organizations, and members of the business community.
Schematically, some of the milestones that influenced the "new" history of the development of the idea can be depicted as follows.
N 1950s–60s: the emergence of individual scientific papers and studies in the field of economics, which dealt with the new model of the company and its new role in the world.
N 1970s–80s: speeches by public groups criticizing the decisions and actions of companies in different countries of the world, "consumer riots", the development of ideas of social partnership in labor relations, the activation of the trade union movement.
N 1990s: acceleration of globalization processes, information technology revolution, "wave" of environmental reporting, a new model of stakeholders (AA1000) has been developed.
N 2000s: promoting the idea of sustainable development, the emergence of the GRI reporting system.
The new concept came to Russia at a time when once more the rules for the coexistence of different sectors of society changed:
“The discussion about CSR reflects the situation when business turned out to be “extreme” in the dispute about the fairness of the arrangement of mechanisms for creating public goods and ... the fairness of the principles of their redistribution ... The issue of CSR in Russia is primarily associated with the inefficiency of state regulatory mechanisms and the lack of civilized mechanisms of public pressure both business and government. (Report on social investment in Russia, Association of Managers, 2004)
Thus, speaking in general terms, CSR is a company's voluntary contribution to the development of the state and societies, its vigorous activity in the economic, social and environmental spheres.
Conclusion:
Business Social Responsibility- responsibility of business entities for compliance with the norms and rules that are implicitly defined or not defined by legislation (in the field of ethics, ecology, mercy, philanthropy, compassion, etc.), affecting the quality of life of individual social groups and society as a whole.
Responsibility comes as a result of ignoring or insufficient attention of business entities to the requirements and demands of society and is manifested in a slowdown in the reproduction of labor resources in the territories that are the resource base for this type of business.
Business Social Responsibility (SSR) is a voluntary contribution of business to the development of society in the social, economic and environmental spheres, which is directly related to the company's core business and goes beyond the minimum specified by law.
Unfortunately, this definition is rather ideal, and cannot be fully translated into reality, if only because it is simply impossible to calculate all the consequences of one decision. But social responsibility is not a rule, but an ethical principle that should be involved in the decision-making process. The obligation here is internal, to oneself, and is based on moral norms and values acquired in the process of socialization.
- Positions of social responsibility
- production of the required volume of products or services that meet accepted standards and quality requirements;
compliance with business rules;
ensuring the safety of all employees;
creation of new jobs, their reinforcement with social guarantees;
support of motivation for staff development;
environment protection;
promotion of the preservation of the cultural and historical heritage of the country;
assistance to authorities in the development of the economy, social sphere of the regions where the company's branches are located;
financing of social programs.
In addition, it is worth noting that business CSR is not an isolated theory. It complements an interconnected network of socially relevant theories and concepts, such as:
- social and environmental audit;
- theory of stakeholders;
- corporate ethics;
- strategic philanthropy;
- corporate governance.
There are several approaches to defining CSR in business:
1) Any actions within the framework of legal legality are considered socially responsible - "There is no place for ethics in business." Thus, Nancy Ranken in her work "Morals and Business" puts forward the thesis that a businessman cannot be considered as a moral subject, since any businessman is concerned with the problems of survival, growth and profit and is not capable of altruistic actions. Thus, she rejects the so-called "harmony thesis", according to which everything that is really useful for business is morally correct. Supporters of this position are convinced that business plays an exclusively economic role in society, and the manager's duty is to provide shareholders with the highest returns on their investments through the production of competitive goods and services.
At the same time, they believe that they do not bear any special ethical obligations and responsibility for preventing someone's harm or for promoting certain goods and services, and not others. They don't see any need to break the law to prevent hurting anyone. From the point of view of supporters of this position, the responsibility of the entrepreneur is identified with legal responsibility, i.e. any action within the framework of legal legality is considered socially responsible.
2) Another position can be characterized by the motto: "Maximum profit is the only duty of business." Supporters of this position argue that they can break the law in order to pursue someone's benefit, such as making a profit.
In the five years from 1981 to 1985, every two of the ten largest American corporations were involved in at least one illegal operation, according to research conducted by scientists at the University of Washington. This is indirectly confirmed by the following facts. Between 1976 and 1986 arrests for fraud among managers increased by 75%, for embezzlement by 26%. business owners. He is responsible directly to his employers, and his responsibility is to conduct business in accordance with their wishes. The wishes of employers, in general, come down to the requirement to make as much money as possible, adapting to the embodied in laws and ethical traditions basic norms of society. Based on these positions, managers make decisions about their ethical responsibility to look after the interests of the owners, and it is this, and not the responsibility for preventing harm to someone or for promoting socially oriented goods and services, that defines the boundaries of their ethical responsibility. Thus, supporters of this direction reduce social responsibility to professional responsibility, which is dictated by the norms of interaction between a professional and an employer. Any actions within the framework of these norms are considered socially responsible.
3) Proponents of the third position admit that there is a place for social responsibility in business, but understand it as a tool or condition that managers use to achieve the goals of the corporation in the economy. Social responsibility must lead to success and maintain success. And if it does not stand this test now or sometime in the future, then it can be discarded for pragmatic reasons. Thus, the supporters of this direction recognize that it is possible to speak about the specific social responsibility of entrepreneurs not only within the framework of legal or professional responsibility, but also in a broader aspect. But this is possible only if this activity leads to success. If this is not the case, then social responsibility is not useful, so it must be abandoned. It's kind of economic responsibility.
4) The fourth position represents a socially responsible organization that considers itself morally responsible both to the people who work in it and to everyone who is influenced by its activities. The responsibility of the company is governed by moral and ethical standards. The problem of achieving and combining the interests of all participants in the "life activity" of the organization is put in the center. This is moral and ethical responsibility.
- CSR technologies aimed at and influencing the environment, society, personnel
At a primitive level, a company can, for example, impose restrictions on the consumption of paper for printers (global goal: save forests), use paper cups for water in offices rather than plastic ones (global goal: save the planet from non-recyclable plastic), install waste bins with separate compartments for various types of waste (global goal: recycling and further use of recycled materials). At the macro level (global, interregional), corporations can influence various spheres of the life of societies by investing in:
- charity: support for the poorest segments of the population and local organizations African and Third World countries, animal protection;
health care: money transfers in favor of patients with various diseases, in support of healthy lifestyle campaigns and the rejection of drugs. Companies invest in the construction of hospitals and specialized health centers, etc.
education: educational activities affecting various spheres of life (from educational programs in the field of HIV / AIDS, ending with education in the field of fundamental human rights and freedoms, retraining of workers, etc.)
The first level, lower, basic - a mandatory component of social responsibility - is compliance with laws (tax legislation, labor and civil codes). If the legislation is not observed, then there can be no talk of any social responsibility - thus, the entrepreneur violates the obligations established for his activities initially.
The second and third levels refer to the voluntary component of social responsibility. These two stages differ in the motives for the implementation of socially responsible behavior. The second level is the implementation of socially responsible behavior for the sake of economic gain. The economic benefit can be to improve the image of the organization for consumers of its products and for its employees, increase investment attractiveness, create more favorable conditions for the existence and development of the company on the part of the authorities or society.
The third level covers those types of socially responsible behavior that are not aimed at obtaining economic benefits. It's over high level awareness of the position and role of the organization in society. Such actions may bring economic profit, but this is not their goal. Assistance to socially unprotected segments of the population, transfer of donations often turn out to be hushed up actions, since the media cannot post information about such actions for free (according to the law on hidden advertising), and according to the law, the money spent is not always exempt from taxes.
With regard to interest groups and the impact of CSR technologies on them, we can classify this data in terms of business benefits:
- Staff
- The CSR program can be aimed at recruiting and retaining staff, in particular in the competitive market of university graduates. Potential employees often ask during an interview about a firm's CSR policy, and having a comprehensive policy can be advantageous. In addition, CSR can help improve the perception of a company among its staff, especially when staff can participate through payroll, fundraising activities, or social work in the local community.
- Management of risks
- Risk management is central to many corporate strategies. A reputation that has taken decades to build can be destroyed in a matter of hours by incidents such as corruption scandals or environmental disasters. These events may also attract unwanted attention from the courts, governments and the media. Creating your own culture of "good behavior" in a corporation can minimize these risks.
- Product brand differentiation
- In crowded markets, companies strive to create a unique trade offer that in the minds of consumers distinguishes them from their competitors. CSR can play a role in building consumer loyalty based on distinctive ethical values. Several major brands such as the Co-operative Group, the Body Shop and American Apparel are built on ethical values. Business service organizations can also benefit from building a reputation for integrity and best practice.
- Work license
- Corporations seek to avoid interference in their activities through taxation and regulation (GOSTs, SNiPs, etc.). By taking consistent voluntary action, they can convince governments and the wider public that they take health and safety, biodiversity, and the environment in general seriously, and thus avoid interfering in the company's internal affairs. This factor also applies to firms seeking to justify flashy profits and high boardroom salaries. Companies operating overseas can be reassured that they are welcomed by being conscientious corporate citizens with regard to labor standards and environmental impact.
- CSR experience in Russian and foreign business.
On January 31st, 1999, United Nations Secretary General Kofi Annan addressed the World Economic Forum in Davos (Switzerland) in an attempt to humanize the process of globalization. In his address, he called on world business leaders to unite and sign an Agreement with society based on universal human and environmental principles. “Let's combine the energy of markets with the power of universal ideals. Let us reconcile the creative forces of private enterprise with the needs of the disadvantaged and the demands of future generations” (Annan, January 31, 1998, 5). “What we need is an Agreement on a global scale that will strengthen the new world economy. I ask that business leaders unite, support and sign on to a set of core values in the areas of human rights, labor standards and environmental regulations” (Annan, January 31, 1999, 4). This appeal was within the framework of the policy that he began shortly after taking office. He supported a change in the approach of the United Nations, recognizing the need to build partnerships with governments, businesses and non-governmental organizations to reduce poverty and ensure the sustainable development of mankind.
The UN has revised its relationship with business, which was due to the emergence of certain social, political and economic trends. This was in line with the developments that took place in the 1990s, when the world began to see significant changes in patterns of trade, development and use of natural resources. Much of this change has been driven by the evolving forces of globalization, which is making the world more and more interconnected and interdependent, as communication technology has shortened distances and enabled the diffusion of knowledge-intensive capital. There has been a significant increase in international trade and foreign direct investment to liberalize markets. As a result, globalization has created unprecedented opportunities for existing and developing economies. Kofi Annan, however, warned of the fragility of globalization. While only a few economies develop sustainably, others continue to be marginalized, resulting in an unequal distribution of wealth. Meanwhile, the ability of states to fulfill their traditional role in dealing with social issues such as human rights and environmental protection has diminished in sound ways. Finally, the depletion of natural resources to non-renewable levels continues.
Annan's initiative aims to bring together firms and business organizations, non-governmental organizations, the UN and other international structures. The challenge to this so-called "tripartism" - leading to continued discussion between governments, companies and civil society (which includes the UN as a non-governmental organization) - is to find ways to make free and open system market sustainable and social. World Agreement established a list of nine general norms for responsible corporate conduct.
On July 26th, 2000, the UN organized a conference on these nine global norms, which was attended by many of the largest multinational companies. The surprise was the participation of a large number of companies from Europe, engaged in the sector of the processing industry, like the Royal Dutch/Shell Group. Many of these companies have agreed to support the Worldwide Agreement - which currently has over 1,300 corporate signatories. In their activities, they underpin their corporate social responsibility (CSR) by their active involvement in global social investment, community engagement, adaptation to social and environmental conditions and the recognition of social capital.
The policy of the UN stimulated further growth of interest in such approaches in Europe. Since 2000, the UK has appointed a Minister responsible for work that encourages CSR initiatives; six European governments have required pension funds to consider social practices when making investment decisions.
In 2001 the European Commission published a so-called advisory green paper entitled “Supporting a European Framework for Corporate Social Responsibility”. The purpose of this document is to start a broader debate on how the European Union could support and promote the development of the concept of corporate social responsibility at the European and international level. This new structure should be based on European values such as democratic participation and social unity based on an open market economy. Values, as they say, must be translated into action. According to Vogel (2005, 8) some European companies have indeed taken some action. “ In many areas, European companies are now more engaged in CSR than their American competitors. European firms, more willingly than US firms, have signed up to the UN's global agreement.” However, in order to force companies to fulfill their CSR obligations, it was urgently required to adopt the relevant documents. The publication of standards of conduct in annual reports is not the same as the actual implementation of CSR in a specific company practice.
2.1 Royal Dutch/Shell Group (Dutch experience)
The Royal Dutch/Shell Group was among the first to subscribe to the principles of the World Covenant. Approximately 25 years ago, the company adopted the Shell General Business Principles. These principles were based on three fundamental values: honesty, integrity and respect for people and were supposed to strengthen all aspects of corporate behavior. These principles were not questioned until the Brent Spar conflict in 1995. Since then, harsh criticism of their ineffectiveness has forced Shell to develop a list of social responsibilities, an integrated view of the company's role in its impact on society and an understanding of the role that the company plays in society, in addition to benefiting only financial investors.
The previous CEO of Shell, Moody-Stuart (1998-2001), explained in the 1999 annual report why the company began to adopt the concept of CSR: well-being of the planet and its inhabitants”. This call should lead to a sustainable balance between people (social welfare), the planet (environmental quality) and profit (economic prosperity). “New in 2005 is the release of our golden rules, which emphasize compliance with law and company procedures, respect for our neighbors and requiring intervention in dangerous situations. Three simple, easy-to-remember rules designed to improve understanding and personal responsibility” (Shell 2005 annual report).
The international discussion about CSR and the role that Shell has begun to play within this discussion has inspired the Dutch government to turn to its main advisory body for national
etc.................
Despite the surge in Russian publications on the subject of national corporate social responsibility in the last 2-3 years, there are still not enough analytical studies by analogy with those that are regularly conducted in the West. From the available research material and media publications on corporate social responsibility in Russia, one gets the impression that individual studies and especially statements by some representatives of the Russian business elite are overly optimistic about the state of Russian corporate social responsibility. Such trends sometimes appear in the practice of individual companies that are in a hurry to "show up" socially responsible, while they did not even have time to conduct full-fledged social reporting.
Probably, such reassessments are built on the basis of really existing trends in the revival of elements of corporate social responsibility inherited from the Soviet era (reanimated holiday homes, children's camps, and other objects of social and cultural life). The fundamental misconception, in our opinion, is the focus on only one group of stakeholders - as a rule, on employees. Other stakeholders (with the possible exception of the state) receive much less attention. Another reason for the reassessment of the current stage is probably the too short history of the issue in the country and the lack of understanding of the holistic concept and practice of corporate social responsibility as it is applied in other states. Finally, we do not rule out the motive to quickly "report" to one of the main and vigilant stakeholders - the state.
Unlike the American and European models, and apparently due to the presence of elements of the command system inherited from the Soviet era, the role of the state as the engine of corporate social responsibility in Russia cannot be overestimated. This feature can even be considered as perhaps the main distinguishing feature of Russian corporate social responsibility in comparison with Western counterparts. In the absence of both experience in corporate social responsibility and a strong tradition of philanthropy - at least in the period after 1917 - such a trend can be considered a positive national trait.
Table 2. CSR in Russia and Europe: main differences
|
CSR in Russia and Europe: main differences. |
||
|
Comparable indicators |
UK and continental Europe |
|
|
Key stakeholders in order of importance |
Staff. Consumers. Community. Shareholders. |
State. Owners. Staff. Consumers. |
|
Stimulants/ drivers of CSR development |
corporations themselves. NGOs and the community. State. |
State (supreme executive power). corporations themselves. Local authorities. |
|
Role of Non-Governmental/Non-Commercial Organizations |
Numerous and varied; Some of the main drivers spurring and/or collaborating with businesses in (Greenpeace, Business in the Community, etc.); Great influence on public opinion with significant influence and real mechanisms of pressure on business in general (for example, the Shell case and the Brent Spar tower). |
While relatively few; Rather helpers than CSR engines; In matters of CSR, CSR is still not enough. |
|
social trends reporting (CO) |
JI is initiated by the business itself; SO is in its infancy; JI standards are well adapted and widely applied; SR is oriented towards all the majority of stakeholders. |
SO is in its infancy; Often misunderstood as complete system and underestimate its usefulness in the long run; SO is mainly focused on the state and shareholders (to a lesser extent - on society). |
It is quite obvious that corporate social responsibility in Russia is still at the initial stage of its development. Therefore, with few exceptions, there is a noticeable lack of understanding of the purely practical value of corporate social responsibility. In this regard, there is a danger of replacing the concept of corporate social responsibility, which has proven itself in practice, with a conveyor for the production of documentation for quasi-positive social reporting. In general, one gets the impression that the majority of Russian companies do not have a meaningful long-term strategy in corporate social responsibility.
Table 2 shows the main differences between Russian corporate social responsibility and its European counterparts (Great Britain and continental Europe) .
Thus, in terms of sources of regulation, practice and drivers, the Russian version of corporate social responsibility is a mixture of the British model (voluntary initiation by business) and the continental scheme (the desire of enterprises to receive a clear legislative framework for corporate social responsibility from the state). Due to the initial stage of development of corporate social responsibility in the country, there is a misunderstanding of its holistic concept, proven practices and usefulness. Corporate social responsibility is focused on the inner circle of stakeholders - the state, owners and employees. A wider range of stakeholders - local communities, suppliers, etc. - is not yet a system feature. As the market develops and society matures, the understanding of the need for cooperation with other stakeholders will come.
There are three stages in the development of social responsibility of Russian companies:
1991-1998 - restructuring of the social infrastructure of companies in the course of privatization, the revival of the traditions of pre-revolutionary charity and patronage;
1999-2001 - gradual transition from one-time assistance individuals and organizations to finance targeted programs; formation of ideas about corporate social responsibility in the business environment and society as a whole;
2002-present - the beginning of the institutionalization of corporate philanthropy, the allocation of corporate and private funds, development, involvement of non-profit organizations in the implementation of corporate programs, professionalization; active discussions on issues of social responsibility.
There were two turning points in this process:
1998 - as a result of the default, Russian companies sharply reduced investments in the social sphere, and their attention to the effectiveness of investments increased significantly.
2003 - The Russian business community publicly announced its commitment to be socially responsible. The "Yukos case" brought a lot of public attention to the responsibility of companies, provoked an open discussion on the formation of business rules and stimulated the interest of business itself to interact with civil society.
Over the past few years, many Russian companies have been rethinking the role, place and ultimate goals of business. The topics of formation and promotion of an attractive image of the company, development of corporate culture have become topical. Increasingly, we are talking about social partnership, social responsibility and, accordingly, social investment. If at the dawn of the new Russian business the concept of “investment” had the only meaning - long-term investment in business, then later the meaning of this concept expanded significantly. Thus, the support of people directly connected with the company - personnel, families of employees, veterans who went on a well-deserved rest, began to be associated with social investments of business. However, as time passed, it became clear that the area of social investment is somewhat wider, including the entire spectrum of interaction between business and society. Modern Russian business is mastering new technologies for interacting with society. This process of "engagement" is often implemented in two main forms of social investment - charitable assistance and sponsorship. Increasingly, business is being integrated with culture, science, healthcare, education, art, and sports. Nevertheless, the core business of business remains business - nothing more, nothing less.
To understand why businesses need social investment, you can list several reasons.
1. Late 90s Russian market turned out to be saturated with goods with approximately equal consumer properties. Buyers gradually understood this, rightly believing that the difference between diverse products most often comes down to different packaging and advertising gimmicks. In a situation of a saturated market, the consumer begins to react not so much to the product, its quality, and price, but to the brand (brand), the reputation of the company and its first persons. What is called the image factor of competition begins. Competition is squeezed out of the market into the social environment, the social context of business activity. The markets are moving in the same direction. The business community is keenly aware of the new trends. For example, back in 1998 - 1999. Baltika began to focus on its environmental focus: on beer bottles there was information that the company's production does not harm the environment.
2. Companies in which long-term investments are made are economically interested in a positive image and a worthy reputation. The higher the reputation, the higher market value shares. Fewer and fewer companies can boast a good market price if they do not perform the tasks that the public should perform. As an example, one of the largest telecommunications companies in Russia, VimpelCom JSC, is the first Russian private company to list its shares on Western exchanges and manage to attract significant investments. Competent reputation management contributed to the fact that after the 1998 default by an average of 20%, while the shares of other Russian companies - by an average of 80-90%.
3. The state is not able to carry out measures for the social protection of the population in the required volume and effectively solve social problems. This is especially acute in the Russian regions. Therefore, business structures are increasingly required to take their place as new subjects of social policy. AT Soviet times on the shoulders of large and not very enterprises traditionally "hung" the entire local "social and cultural life" - schools, kindergartens, hospitals. Until now, large companies, having already been privatized, support social enterprises. This voluntary-compulsory tradition has its pluses and minuses. In the current conditions, the minuses have become much larger. But the business environment is already forming its own "social habits" aimed primarily at improving the "environment". For example, in JSC Oil company Yukos created the Veteran-Petroleum fund, which manages 10% of the company's shares. The fund finances the migration of workers from the northern territories, giving its own employees confidence in the future. Such an active social policy becomes the key to the successful functioning of business in the region.
4. The growing social involvement of business is also associated with the development of the non-profit sector (NPO). The perception of business as a partner in social events has already been fully formed and is understood by NGOs, entrepreneurs themselves, and authorities. Competitions are an example Social partnership", held as part of the Okrug Fair of Social and Cultural Projects of the Volga Federal District. Competitions combine the resources of the commercial, non-profit sectors and the state to solve specific acute problems - from helping the homeless to the development of Internet education. On average, three rubles of donations can be attracted for each budget ruble and contributions.Approximately one in eight projects submitted receives the necessary support.
5. Charitable and sponsorship projects perfectly complement the tools of marketing and PR activities of any company: they expand the circle of business partners, create more opportunities for advertising, contribute to the development and strengthening of corporate culture, and strengthen positive awareness. And, of course, they serve as constant and conscientious evidence of the stability of business in the region, in the country. Thus, Alfa-Bank, the largest domestic private bank, has been consistently implementing a development program for many years. Russian culture. This activity is inseparable from its corporate cultural and intellectual image. Support for cultural values is an excellent assistant in promoting the bank as a sustainable financial institution.
6. There is a growing need for business in social stability and social trust. Social stability or social conflicts and, as a result, political stability or upheaval is the choice of the business world, perhaps more so than ordinary citizens. Confidence in business falls when it is carried away exclusively by the growth of profits, evades participation in solving important social problems, shows irresponsibility, gives less than expected from it. The demonstrative lack of control and impunity of shadow business in Russian conditions is exacerbated by the lack of legal guarantees, real traditions of democracy and civil society. Modern business is, first of all, business on reputation. Striving for a stable reputation inevitably leads businesses to partner with state authorities or non-profit structures in solving urgent social problems.
7. The need for new technologies for working with personnel is another important reason for the social activity of business. The innovative nature of modern management, the requirement of permanent innovations impose radically different requirements on personnel management. The main thing is not so much the incentive system in the form of rewards and punishments, but the motivation of specific employees and the formation of optimal conditions for work, as well as for developing a sense of belonging to a common cause.
The social sphere and charity today is the most fertile area, investing in which big business can effectively improve its relations with the population, concludes a study by ROMIR (Russian Public Opinion and Market Research), dedicated to the attitude of the population towards big business. 44% of respondents said that companies are not sufficiently involved in the development and implementation of social programs in the areas of presence. Approximately the same picture is observed in the attitude of respondents to the participation of large companies in regional charity: 48% speak of the insufficient activity of large companies in this direction. One of the results of the study was the conclusion that for the development of charity and social activities of the company, the position and activity of not only the business itself is important, but the initiative from the other side is also important. That is, we need some institutions that are professionally involved in charity, where enterprising people who know how to properly manage money work.
Although there is no antagonism towards big business among the population, the majority of Russian citizens consider privatization unfair. Therefore, corporate social programs are perceived by them not as a gesture of goodwill, but as a payment of debts to pensioners (who created national wealth, which became controlled as a result of privatization by a narrow circle of people), disabled people and other socially unprotected citizens. It is in response to these expectations that many companies focus on charitable programs. At the same time, new expectations for business are being formed among highly educated socially active citizens. They have fewer claims against large entrepreneurs, as they believe that success modern business determines not so much the value of assets received during privatization, but rather competent decisions in the post-privatization period. From the point of view of M.I. Liborakina, the most significant signs of socially responsible behavior are: production quality goods at a reasonable price (79%); protecting the health and safety of employees (76%); environmental protection (72%); contribution to the Russian economy (62%); fight against poverty (58%); providing assistance in case of natural disasters and catastrophes (57%); and, very importantly, non-participation in any form of bribery and corruption (53%). For this group, the following business activities turned out to be less significant: the provision of individual targeted social assistance (43%); support charities(40%); support for arts and culture (34%). Businesses have few programs that appeal to this category of citizens, for example, programs for socially responsible consumers.
There are two different views on how organizations should behave in relation to their social environment in order to be considered socially responsible. According to one of them, an organization is socially responsible when it maximizes profits without violating laws and regulations. state regulation. From these positions, the organization should pursue only economic goals. According to another view, an organization, in addition to economic responsibility, must consider the human and social impact of its business activities on employees, consumers and local communities in which it operates, as well as make some positive contribution to solving social problems in general.
Many companies today realize the importance of internal social programs as their competitive advantage. Further development in social practice companies received the following fairly standard programs:
voluntary medical insurance;
housing lending;
non-state pension provision.
In addition to these programs, the Companies also implement programs aimed at protecting the health of employees, promoting a healthy lifestyle and organizing recreation for employees and their families, regardless of industry affiliation. In the field of healthcare companies:
control and strive to constantly improve sanitary and hygienic working conditions;
regularly carry out medical examinations and vaccination of employees;
accept additional health insurance programs;
provide employees with free meals;
ensure the delivery of employees to work;
organize sports events, sports days, form corporate sports teams, etc.
Russian companies are focusing on the reorganization of the system of protection and improvement of the health of workers at their enterprises. So far, two principled approach to the organization of this system:
Preservation of medical infrastructure on the balance sheet of enterprises, while restructuring the entire work of institutions.
Purchasing the services of medical institutions available in the region; the scope of services is determined in collective agreements and is reviewed regularly.
In some cases, a mixed system is used, because, according to the current legislation, enterprises in a number of industries are required to have permanent medical facilities to monitor the health of workers.
Preferential housing lending programs are not widespread enough in Russian firms due to very high housing prices and unsatisfactory rates housing construction. Nevertheless, in some companies this practice of social investment is in place: Severstal spends 21% of social investments, and Rosneft spends more than 12% on providing workers with housing.
Non-state pension provision in some companies is carried out through the provision of additional financial assistance retired workers. At the same time, a number of Russian companies have moved to a qualitatively new level of pension provision - accumulative corporate pension programs linked to non-state pension funds.
The reasons for the development of corporate pension programs are the equalizing pension system in force in the country, according to which a pensioner, even with a long work record and high wages in his former places, cannot receive a pension exceeding average salary across the country by a certain coefficient (before 2002 - 90%, and after 2002 - 1.2). The replacement rate for the most paid workers (power plant workers, miners, dock workers, machinists, seafarers, metallurgists, oil and gas workers, air traffic controllers and airline flight personnel) is 10-20%, while the average for Russia is 27.6% for data for 2006.
As a result, in certain industries (oil and gas industry and railway transport), almost every retired worker receives, along with the state pension, a non-state pension. While on average across the country in 2006 only 1 out of 55 pensioners received a non-state pension. In the oil and gas producing Khanty-Mansiysk Autonomous Okrug the ratio was 1:10.
Below is the data for 2006 on the availability of corporate pension programs in Russian companies. Approximately 50:50, a little less than half of the companies do not have a corporate pension program, just over 50% have (39.4%) or are going to implement it (11.3%).
Norilsk Nickel linked corporate pension programs to the increase in production efficiency and labor productivity. In the late 1990s, in order to free up jobs and restructure the company, the Six Pensions and Lifetime Occupational Pensions programs were launched, and then the Supplementary Corporate Pension (aimed at ensuring staff rotation) and the Supplementary Pension Payment (reducing inefficient work places).
These 4 programs are fully funded by the company. However, there are 2 more programs on the principles of co-financing. "Solidarity corporate pension" - is based on the principles of accumulation and joint participation of employees and the company in the formation of a non-state pension. The mass program "Corporate Option Pension Program" is being developed with the aim of making non-state pension provision available to all employees.
It is especially worth noting the support for pensioners, which is carried out at the enterprises of the Finpromco group. For former employees plant from a charitable foundation (Pavlov's Fund) is paid a monthly supplement to the pension (500 rubles in 2007). However, the relatively small allowance is offset by patronage assistance programs (very rare in our country, both at the federal and regional levels) that operate at the group's enterprises.
Targeted personnel development is considered by world-leading companies today to be one of the most important strategic objectives. An important trend is the emergence of companies' own training centers - corporate universities. The existing positive experience in this direction is quite convincing even for the governments of developed countries: in recent years go by active discussion of draft laws on the recognition of corporate training on an equal footing with training provided by state and non-state educational institutions that have the appropriate licenses/certificates. Currently, in a crisis, the volume of corporate training and the number of corporate universities is rapidly and steadily declining.
Participation in the development of the local community, in solving socially significant problems facing the country, is important element corporate strategies and refers to the essential principles of social responsible entrepreneurship as formulated in the "Social Charter". Many companies have experience in implementing external social programs, including various charitable programs.
It is worth immediately dividing the traditional and modern approach of company management to charitable programs. Among the recipients of charitable assistance under traditional programs, the following target groups are most often encountered: children and youth (both talented and in need of help), pensioners, war veterans, and the disabled. Thus, support within the framework of charitable programs is carried out for the most part to socially unprotected groups of the population, thereby the company reduces the risk of poverty and social tension in the areas of presence. Assistance can be either one-time or based on long-term strategies. Assistance is mainly former employees corporations and their families.
Changing approaches to management in companies leads to the fact that the tools of charitable programs are becoming more diverse, modern approaches to charitable activities so-called new social technologies. Currently, corporate charitable programs operating in accordance with the new social technologies can be divided into the following main areas:
grant competitions;
targeted and comprehensive programs (including the most common type - scholarship programs - which today almost 40% of companies have in their arsenal);
participation of company employees in charitable programs (volunteering, co-financing).
According to the results of the review of non-financial reports of Russian companies, it is possible to consider the dynamics of social investments only approximately. In absolute terms, the costs of enterprises for social policy have increased. However, for more exact definition changes in spending on social programs, consider such a special indicator as the quantitative index of social investment.
Table 3. The value of the quantitative index of social investment
Despite a clear absolute increase in the value of social investment per employee, over 4 years there was a significant decrease in the ratio of social investment to balance sheet profit. The drop in the coefficient is associated with a sharp increase in profits largest companies, disproportionate to the growth of investments in the social sphere and more cautious approaches to the objects of social investment. In addition, during the reporting period, due to the increasing wear and tear of equipment, part of the funds from export-oriented companies were directed to the modernization of production, that is, investments were made not in human and social capital, the environment, but in physical capital.
A more detailed analysis of social investments was carried out depending on the sectoral affiliation.
Domestic social investments are presented in the table (Appendix) by the costs of personnel development and employee health, labor protection and industrial safety (OHS). External social investments are represented by the costs of good business practices in relation to consumers and partners, the local community, environmental protection and resource conservation. In this work, as external investments, only investments in the local community are of the greatest interest, although the role of investments in the environment is also very large and significant, including for company personnel.
Let us compare the data for 2007 with those for 2003 (according to the USAID-2004 survey).
The most balanced social policy in last years fuel complex companies: over four years in the fuel complex, investments in local communities increased almost 3 times from 10.9% to 31.1% (at the same time, environmental protection costs decreased significantly, more than 2 times - from 35 .5% to 14.3%). Such an increase in spending on the development of the local community can be associated primarily with the introduction of programs to improve the quality of life of employees and their families in single-industry towns of the fuel and energy industry (commissioning of new houses) and the development of financial infrastructure. Thus, investments in the territories of presence in this case almost do not differ from personnel costs.
The metallurgical complex is also focused on personnel and the local community, since most of the enterprises are city-forming, however, in terms of investment in the local community, it is inferior to the fuel complex.
Power engineers demonstrate the largest amount of investment in personnel and the least in ecology; over 4 years, investments in ecology have fallen 3 times in favor of personnel. One of the explanations for this phenomenon is the restructuring of the industry and the fall in economies of scale.
In the forestry industry, reverse trends were observed: a drop in personnel costs, but an increase in environmental costs (more than 3 times).
In mechanical engineering, the tilt towards domestic investment began to prevail: the costs for personnel (health protection and ensuring safe working conditions for employees, as well as advanced training of workers) increased 3 times, and the costs for business reputation. The explanation lies in the transition to new technologies that require improving the quality of personnel.
In the production of consumer goods, the greatest attention is paid to personnel: over 4 years it has grown by 1.5 times (from 47.1% to 71.5%). The share of investments in the local community is consistently high - about 23%. This trend is connected with the great attachment of enterprises engaged in the production of consumer goods to regions - sales markets.
In construction, the cost of personnel development and the environment is about a third. In the chemical industry, there has been a transition from personnel development to environmental activities, due to new chemical legislation and technical regulations.
The financial sector has moved from staff development to contributions to the local community. Thus, positioning of the company is more important than personnel shortage, which is generally consistent with the personnel policy of the main financial institutions. The share of personnel expenses decreased from 75.9% to 58.3%, while the development of the local community increased from 17% to 29.5%.
Industry professional services can be characterized by high aggregate "domestic" investment. However, compared to 2003, this industry (as well as the financial sector) saw a very rapid increase in spending on investments in the local community from 0 to 25.9%.
Trade is one of the leaders in terms of "internal" investments, the lion's share of which is directed to the development of personnel, the trend has not changed much compared to 2003.
Transport companies in their social policies also give priority to "internal" social investments: about 92.2% of investments are directed to the development of personnel and the protection of their health. In 2007, compared to 2003, the situation did not change much (it was 91.4%).
Ministry of Education and Science of the Russian Federation
Federal Agency for Education
State educational institution of higher professional education
St. Petersburg State University of Technology and Design
Department of Management
discipline: "Corporate social responsibility"
on the topic: Social responsibility of business in foreign countries, on the example of the USA
Head: Efimova N.V.
Artist: Bondarenko V.D.
Saint Petersburg 2011
Introduction
Historical stages of understanding the social responsibility of business in the United States
Concepts of corporate social responsibility
Approaches to social responsibility
Consider CSR on the example of the American company Starbucks Coffee Company
CSR reporting
Social investment programs
Technologies for the implementation of social programs
Used Books
Introduction
Despite the fact that the concept of corporate social responsibility is widespread, however, there is no generally accepted definition of this concept today.
To disclose its content, the working group developing the draft international standard for business social responsibility summarized the wording published over the past decade and proposed three options for defining the concept of "social responsibility":
It is a form of ethics and related actions of an organization in relation to other organizations, as well as consistent with its own interests and the interests of society.
It is defined as the attitude and behavior of an organization designed to ensure a balance of interests between society, the environment and the economy. In this context, social responsibility finds its expression in an organization's commitment to minimize negative and maximize positive environmental and social impacts in the course of its work.
These are the actions of the organization that contribute to the sustainable development of society and the preservation of the environment.
Historical stages of understanding the social responsibility of business in the United States
At the beginning of the 19th century, individuals appeared in the business environment who strive to radically improve the existing relationship between the employer and employees.
The English industrialist Robert Owen (1771-1858) was one of the first to tackle the problem of business responsibility. He developed a plan to improve the lives of workers and tried to implement it in one of the spinning mills in Scotland. Despite the fact that his practical undertakings failed, his ideas and projects served to entrepreneurs to realize their social role in society.
In the first half of the 19th century, such a concept as “charity” became popular, which meant the voluntary activity of employers aimed at improving the moral and material situation of those in need.
However, the revolutionary movements in Germany, Italy and France (1848-1849) showed that the existing relationship between government, business and civil society needed a radical update. Therefore, two theories of development paths were created:
The 1st theory is based on the Marxist idea, which consisted in the destruction of private property as such, and instead it was proposed public administration economy and distribution relations, in the interests of all members of society.
The 2nd theory is based on the idea of opponents of the Marxists, who advocated a significant increase in the role of the state and business in solving social problems of social development while maintaining private property, as necessary condition ensuring the independence of man and the growth of his well-being.
In the middle of the 20th century, the concept of a “welfare state” was introduced into scientific circulation (Lorenz von Stein 1850).
The practice of Western countries has shown that the successful implementation of the principles of the social state is possible only in conditions when the socially oriented market economy becomes the resource base of state policy. In this context, the term “corporate social responsibility” (and its synonym “business social responsibility”) appears for the first time, the essence of which was explained in his book The Gospel of Wealth (1900) by the founder of U.S. Steel by Andrew Carnegie. According to Carnegie, rich people should subsidize the poor through charity and consider themselves not as owners, but as managers of capital that works for the benefit of society (during his lifetime, one of his favorite aphorisms was "a man who dies rich dies disgraced", so before Carnegie's death donated the last $30,000,000 to charities and retirees).
However, the concept of the “welfare state” was subject to change. Causes:
· The movement of workers whose demands the state and the business community had to accept.
First world war, which led to an economic crisis and a sharp deterioration in the lives of ordinary people in many European countries.
During this period, the French industrialist Daniel Legrand repeatedly appealed to the governments of European countries with a proposal to adopt international laws on working conditions in factories and factories, mines and mines. In favor of this decision, he put forward three arguments:
ü Humanitarian plan - pointed out the need to alleviate the difficult share of the working masses by promoting their employment, vocational training, ensuring favorable working conditions, fair remuneration for work, etc.
ü Political plan - emphasized the importance of strengthening social peace in industrialized countries in order to prevent social upheavals, support the reformist demands of workers, and actively counteract communist propaganda.
ü Economic nature - indicated that international regulation labor would allow to equalize the competitiveness of various states and thereby support countries with a high level of protection social rights worker.
Based on these arguments, in 1919 the Charter was created. International Organization Labor (ILO).
Later, this provision was clarified and expanded in the Philadelphia Declaration (1944), and it remains relevant today.
The 1930s was the period of the Great Depression in the United States.
President Theodore Roosevelt, who came to power in 1932, created the National Industrial Recovery Administration to oversee the preparation of "codes of private competition."
The administration had to ensure the strengthening of government control over the fulfillment by business structures of their obligations to the state and business partners. In parallel, at the legislative level, reliable guarantees of the rights of employees to create own organizations and their participation in the conclusion of collective agreements.
40s and 50s of the twentieth century in the development of the welfare state, the concept of "the state of social services".
In most Western countries, the social spending of the state on education, health care, social security of the population, etc. is growing. Also, the social activities of companies carried out on a voluntary basis are becoming more and more permanent.
However, it should be noted that the 60s and 70s of the 20th century turned out to be a difficult test for the business communities of Western countries, since a significant increase in taxes on business organizations was accompanied by an active government policy to attract businesses to co-finance various social projects.
Supporters of the concept of “corporate altruism”, popular during this period, advocate understanding the social responsibility of business as a result of joint actions of stakeholders. Stakeholders - all interested participants of the company (owners, managers, suppliers, consumers and members of the public).
The desire to justify social responsibility as an organic part entrepreneurial activity predetermined the emergence of another term - "social investment". This concept meant that the company's financial, technological and managerial resources aimed at solving social issues are not business expenses, but its strategic investments in the company's sustainable development, which in the future will bring it income. However, not everyone shared this point of view, for example, in 1970, the well-known American economist Milton Friedman (Nobel laureate) considered the liability of a corporation to be "fundamentally harmful" in the event that it does not generate income for shareholders. “Business of business is business”, so M. Friedman said. However, he and his supporters were sharply rebuffed by the US Economic Development Committee, which insisted that corporations must make a significant contribution to improving the lives of the American people.
Since the 90s of the twentieth century, according to analysts, the welfare state has been replaced by a liberal welfare state, focused on eliminating social dependency and creating favorable conditions for all categories of the population. social conditions, through a market economy (S. V. Kalashnikov).
At the present stage (from the 90s to the present) in most various countries In the West, the concept of “reasonable selfishness” is becoming generally accepted, according to which a socially responsible business is simply “ good business because it helps mitigate long-term profit losses. By implementing social programs, the corporation reduces its current profits, but in the long term creates a favorable social environment for its employees and areas of its operation, ultimately achieving the stability of its profits.
If at the end of the last century the main task of the corporation was competition in the product markets, then in recent years the need to ensure the sustainable development of the company has become increasingly important. And, as practice shows, only socially responsible business successfully copes with this task.
Concepts of corporate social responsibility
social responsibility worker labor
The concept of CSR in terms of social protection of workers is based on several models of social labor relations:. The model is typical for the countries of Northern Europe (Belgium, the Netherlands, Norway, Finland, Sweden), involves the active participation of the state in the regulation of social and labor relations occurring at three levels:
v National
v Industry
v Separate enterprise. The model is mainly applied in the USA, Canada, Japan, countries Latin America, as well as the English-speaking countries of Africa, is characterized by the regulation of social and labor relations at the level of the enterprise and, to a much lesser extent, at the level of the industry or region. The influence of the state is carried out through the adoption of legislative and regulatory acts, recommendations and requirements. The model is widespread in the countries of Central Europe (Austria, Germany, France) and partly in the UK, it is a combination of the two previous models.
CSR can be characterized as a complex attitude of a corporation towards its employees and the surrounding community: it is “the responsibility of the company as an employer, business partner, citizen, member of the community; part of the company's ongoing strategy to increase its presence in society and develop its business; an opportunity to make a positive impact on the community in which the company operates.”
Despite the general similarity of CSR definitions, there are different approaches to the technology of its implementation in the world.
American model of CSR:
) The American approach to law enforcement is based on the principles of case law (absolute law).
) For many years, the social programs of American business were implemented through charitable foundations.
) The main relations in the sphere of labor and social policy are based on the principles of individualism.
) Versatile methods of information support of CSR events.
) Voluntary activities carried out by companies in the social, economic and environmental spheres, which are systemic in nature. This activity is related to the missions and strategies of business development and is aimed at meeting the needs of various parties interested in the activities of the companies. Among the most common areas of social programs of companies are the following:
v Health protection and safe working conditions is a direction of the company's social programs that ensure the creation and maintenance of additional, in relation to the legally fixed, health protection standards and safety conditions at the workplace (occupational health and safety, medical care, maintenance of sanitary and hygienic working conditions, support of motherhood and childhood, etc.)
v Socially responsible restructuring is the direction of the company's social programs, which are designed to ensure that restructuring is carried out in a socially responsible manner, primarily in the interests of the company's personnel.
v Environmental protection and resource conservation is the direction of the company's social programs, which are carried out at the initiative of the company in order to reduce the harmful impact on the environment.
v Development of the local community is a direction of the company's social programs, which are carried out on a voluntary basis and are designed to contribute to the development of the local society (various social programs, actions to support socially vulnerable segments of the population, etc.)
v Fair business practices are the direction of the company's social programs that are designed to promote the adoption and dissemination of fair business practices between suppliers, business partners and customers of the company (fair business practices, information transparency in relation to owners, suppliers, business partners, customers, etc. .d.)
However, the American model of CSR and the European one are very similar. Firstly, both models are currently developing in the direction of expanding social programs, since significant budget spending on both sides of the ocean, an important role in the growth of which was played by oil prices and the need to subsidize certain sectors and areas of life, forced the government to turn to business with a request about all possible assistance in the implementation of social programs. Secondly, both countries locate production in developing countries, where the problems of implementing CSR are similar for both systems. Thirdly, the need to reduce taxation as a form of incentives economic growth is an additional factor for cultivating social responsibility among representatives of the business community.
Approaches to social responsibility
The corporate social responsibility (CSR) policy of an enterprise includes several areas of responsibility:
before partners;
to consumers;
in front of employees
ecological;
to society as a whole.
The approach to implementing corporate social responsibility policy depends on the size of the organization, the business sector, established traditions, and the views of owners and shareholders. Thus, some enterprises focus on only one component of CSR (environmental, social programs for the local community, etc.), while others strive to make the philosophy of social responsibility an integral part of all corporate activities. For example, large Western companies include the principles of CSR policy in their strategic plan, mention them in descriptions of corporate missions and values, as well as in key internal documents (employment contracts, rules of procedure, regulations on the board of directors, etc.). This approach to social responsibility is explained by its close relationship with corporate ethics: an organization that welcomes innovation and independent thinking cannot allow the work of its employees to deviate from the provisions of a corporate code of ethics or other performance standards.
Consider CSR on the example of the American company Starbucks Coffee Company
One of the leading coffee chains, Starbucks Coffee Company, incorporates social responsibility into all aspects of its operations. This concerns approaches to the choice of coffee suppliers (observance of human rights, labor protection standards by coffee producing companies), attitudes towards the environment, towards personnel. Since 1998 Starbucks supports Conservation International, an organization that advocates sustainable technologies in agriculture, the protection of biodiversity through a change in approaches to coffee production. The program resulted in a 60% increase in the income of farmers growing coffee using the new technology, and a 220% increase in the number of coffee plantations located in the rainforest zone without damaging biodiversity.
) Commitment to Origins™: takes serious action to help coffee farmers improve their livelihoods and protect the environment in which they grow coffee.
They have taken a close look at the many challenges farmers face, including economic and environmental ones. Commitment to Origins™ is their way of helping farmers solve their problems while keeping their plantations stable, respectful of the environment and maintaining high coffee quality standards.
) Caring for the environment:
By taking measures to reduce waste in production and processing, the company saves Natural resources land and raise the standard of living throughout the globe. Starbucks is actively looking for opportunities to minimize our environmental impact and create a healthy planet.
) Caring for communities:
Local Starbucks coffee shops have become a central part of many neighborhoods, they serve as a place where people can gather, talk, socialize, have a good time. But Starbucks believes it can bring more value to local communities by making its partners responsible neighbors and active participants in the neighborhoods where they live and work. It is an important part of the culture and values of this company.
) Caring for employees (partners):
More than 63,000 people work for Starbucks, and all these people, whom they call "partners", are a tool for the company's success. And since success largely depends on the loyalty of partners, the main task of the company is to show them how much they are valued and respected.
The first two guiding principles in the company's mission speak specifically about taking care of partners:
· Create a great place to work and treat each other with respect and dignity.
· Accept diversity as an integral part of the way we do business.
) Starbucks Mission Statement:
Establish Starbucks as the world's premier coffee supplier while continuing to grow and evolve with our uncompromising principles. The six fundamental and guidelines help us weigh the adequacy of our decisions:
ü Provide an excellent work environment and treat each other with respect and dignity.
ü Positively perceive diversity, which is an integral part of our business
ü To apply the highest and most perfect standards when buying, roasting and serving fresh coffee to visitors
ü Work with enthusiasm, bringing pleasure to visitors
ü Provide assistance and support to our local communities and contribute to the protection of the environment
ü Understand and acknowledge that profitability is at the core of our future prosperity.
CSR reporting
Statistical data and forecast calculations show that in the developed countries of the West, GDP more than doubled in the second half of the 20th century. If in 1950 it was 11.1%, then in 2000 it was already 24.7%, and in 2010 it was 27.1%.
The steady growth of the government's social spending, according to analysts, is, first of all, a convincing evidence of the successful activity of the social responsibility of business. Under these conditions, the welfare state and civil society institutions interested in developing the social responsibility of business seek to control this process by introducing into practice various systems of social reporting of business organizations.
AT modern concept social responsibility is a way to inform stakeholders about the content, forms of implementation and results of the company's social activities. The procedure for compiling a report on the company's social performance involves the use of comparative indicators and external indicators of auditors.
Today, there are more than three dozen different documents, one way or another defining and regulating social responsibility and social reporting of corporations.
Four main reporting standards:
Standard Account Ability - AA 1000 (based on an assessment of the organization's success in the economic environment, environmental and social),
Global Reporting Initiative - GRI standard (describes the economic, social and environmental progress of the company),
International Organization for Standardization standard - ISO 14 000 (describes the social responsibility of the corporation in compliance with environmental requirements in production),
· Social Accountability International`s responsibility standard - SA 8000 (emphasizes human rights and health, establishes requirements for the social aspects of the personnel policy of manufacturers and suppliers).
As for personal responsibility for the company's compliance with the CSR policy, in some organizations this responsibility lies with the boards of directors, in others - with the CEO. In recent years, many business leaders (for example, British Petroleum and other companies whose activities are under close public scrutiny) have begun to understand the value of regular independent evaluation social responsibility. The concept of “social audit” has emerged, and providers have appeared who carry it out. The report of independent auditors is necessarily included in the company's report on social responsibility (see its main elements in the figure).
Picture. The structure of the report on the implementation of the corporate social responsibility policy.
Social investment programs
One of the trends of the last three years is the growth of investments in corporate projects related to social responsibility. These are investments in companies that are not associated with the production and sale of tobacco and alcohol, as well as in those that are recognized as socially responsible, leading an active social policy. These types of investments include:
Ø direct investments in socially significant projects that can pay off;
Ø monetary donations;
Ø free provision of time to funds and public organizations of their employees, including top managers;
Ø free transfer of goods or services;
Ø Enabling employees to donate money to social projects from their salary (many companies add corporate funds to them);
Ø using the influence of the company to promote a particular socially significant program, solving a social problem.
Often social investment programs are implemented by enterprises in partnership:
Ø with charitable foundations, international organizations (allows the company to implement its social programs in cooperation with professionals from foundations and international organizations, save resources by receiving additional funding for projects);
Ø with other companies (allows the company to take part in setting priorities, developing uniform rules in the field of social policy, reducing costs in drawing up its own documents and policies, and also without significant costs to improve the image of the organization);
Ø with non-profit organizations(these include environmental, human rights organizations, etc., whose activities are designed to protect the rights and interests of ordinary members of society and affect corporate interests. Technologies offered by NGOs to companies allow achieving maximum results in solving social problems at minimum organizational costs) .
Technologies for the implementation of social programs
There are many forms of participation of corporations in the social spending of local authorities, from direct financing of projects to the implementation of programs jointly with other organizations, charitable foundations, and private investors (see Table 1).
Table 1. Types of corporate social programs
|
Description |
|
|
Grant competition |
It is carried out in order to identify and support the most effective projects aimed at solving social problems of the community that founded the competition. |
|
Scholarships |
Distributed on a competitive basis. They allow you to combine support for education with the opportunity to grow personnel for your own corporation, as well as to develop areas of science that are of interest to the company. |
|
Employee Donation Program |
|
|
Community Foundation |
It performs the function of uniting the efforts of business, government agencies and society as a whole to solve local problems. |
|
Corporate Fund |
It is one of the most common ways in the world to organize corporate philanthropy (or charity). |
Along with traditional forms (sponsorship, free transfer funds directly to those in need) many businesses today use new way charitable activities based on competitive mechanisms. Its use is most appropriate in situations where sponsorship is directed to individuals or specific organizations (for example, a competition for the supply of goods and services for orphanages). Competitive mechanisms are attractive for business in the following aspects:
o manufacturability of the process;
o transparency of procedures and reporting;
o the ability to choose the most effective solution;
o new ideas for charity;
o the most efficient use of financial resources;
o good PR for the company.
Used Books
Ukolov V.F. "Interaction between government, business and society"
Kosenko O.I., Shulus A.A. “Social Responsibility of Business: Lessons from History, Experience of Developed Countries and Modern Russia”
Association of Managers "Social Responsibility of Business: Current Agenda"