Question

Select an international energy/natural resources company and evaluate it on the following CSR criteria’s:

Criteria’s:

1. Stakeholder influence and Stakeholder Management capability

2. Stakeholders and Social Capital

3. Business Ethics and Moral Reasoning Process

4. Codes of Conduct and Ethics

5. Ethics Training and Ethics Audit

6. Corporate and Business Citizenship

7. Corporate Social Responsibility – Corporate Philanthropy, Voluntarism and Sponsorship

8. Measuring and Reporting CSR

9. Corporate Reputation and CSR

10. CSR and Profitability

Answer 1

Corporate iSocial iResponsibility i(CSR), ialso ireferred ito ias icorporate icitizenship ior isocially iresponsible ibusiness, iis ia iform iof icorporate iself-regulation iintegrated iinto ia ibusiness imodel. iThe iinterest iin iCSR ihas igrown iwith ithe ispread iof isocially iresponsible iinvesting, ithe iattention iof inongovernmental iorganizations i(NGOs), iand iethics itraining iwithin iorganizations. iRecent iincidents iof iethics-based icorporate iscandals ihave ialso iincreased iawareness iof iCSR. iOrganizations ithat iembrace iCSR ihold ithemselves iaccountable ito iothers ifor itheir iactions iand iseek ito imake ia ipositive iimpact ion ithe ienvironment, itheir icommunities, iand ithe ilarger isociety.

1. Stakeholder iinfluence iand iStakeholder iManagement icapability

Since iits iinception, iStakeholder iManagement iCapability i(SMC) ihas iconstituted ia ipowerful ihermeneutic ithrough iwhich ibusiness iorganizations ihave iunderstood iand ileveraged istakeholder irelationships. iOn ithis imodel, iachieving ia ihigh ilevel iof icapability ilargely idepends ion imanagerial iability ito ieffectively ibargain iwith istakeholders iand iestablish isolidarity ivis-à-vis ithe isuccessful inegotiation, iimplementation, iand iexecution iof i"win–win" itransactional iexchanges. iAgainst ithis iaccount, iit iis irightly ipointed iout ithat ia itransactional iexplanation iof istakeholder irelationships, iregarded iby imany ias ithe ibottom iline ifor istakeholder imanagement, ifails ito iprovide imanagerial idirection iregarding ihow ito iresolve ia ivariety iof inormative istakeholder iclaims ithat iresist icommoditization. iIn iresponse ito ithis iissue, ithis ipaper ihas itwo ioverlapping igoals. iIt iseeks ito ielaborate ia idiscourse itheoretical iapproach ito ithe iproblem iby ifirst idrawing iout iJurgen iHabermas’ itheory iof icommunicative iaction iand idelineating ithe ivarious itypes iof irational idiscourse. iSecond, ithe ipaper iattempts ito ipresent iconcrete iimplications ifor iSMC irelative ito ireshaping ithe icontours iof irational, iprocess, iand itransactional ianalysis iin ilight iof icentral idiscourse itheoretical iconclusions

2. Stakeholders iand iSocial iCapital

Social icapital iis ia icollective isocietal iconnection iand iunderstanding ithat ienables iindividuals ior igroups ito ibuild itrust iand ito iwork itogether. iShared ivalues iand iconnections ifacilitate ico-operation iwithin ia inetwork, ileading ito itrust icreation iand ihealthy iworking irelationships. iSocial icapital ifacilitates ico-operation iand icommunication iwithin iand ibetween igroups.

The icentral ipremise iof isocial icapital iis ithat inetworks ihave ivalue iand iinfluence i– iand ithat ithere iare iinclinations ithat iarise ifrom ithese inetworks ithat ilead ito iindividuals ior igroups idoing ithings ifor ieach iother.

Social icapital iis ithe iglue ithat ibonds ipeople itogether iaround ishared iideas, iand igenerates igood ifaith.

iIn istakeholder iconsultation iprojects, ibeing iable ito ibuild inetworks iis ia ivery iimportant iskill.

Understanding ithe iinfluence iand iauthority iof ispecific inetworks, iand ibeing isensitive ito istakeholder irelationships iprovides ia ireal iadvantage iwhen iproceeding iwith ia icommunity iconsultation.

Having ia igood iread iof iwho italks iwith iwhom, iwho igets ialong i(and iwho idoesn’t), ileads ito ithe idevelopment iof imore ieffective icommunication istrategies. iA icouple iof ikey ioutcomes ito iaim ifor iinclude inurturing ipositive iword-of-mouth iand ibuilding igoodwill irelated ito iyour iconsultation iprocess.

3. Business iEthics iand iMoral iReasoning iProcess

In ia ibroad isense, imorality iis ia iset iof irules ithat ishapes iour ibehavior iin ivarious isocial isituations. iIt iis imore isensitive idoing ithe igood iinstead iof ithe ibad, iand itherefore, iit iestablishes ia ilevel iof istandard ifor ivirtuous iconduct.

The iprinciples iof imoral iethics ican ibe iinjected iinto iany ibusiness. iEthical ibusinesses irecognize ithe ipower iof iconducting ibusinesses iin isocially iresponsible iways iand ithey irealize ithat idoing iso ileads ito iincrease iin iprofits, icustomer isatisfaction iand idecrease iin iemployee iturnover.

Business iethics iis iconcerned iwith iapplying ia imoral iframework ito ithe iway iorganizations ido ibusiness. iFrom idealing iwith ihuman iresources iissues ito isales iand imarketing ipolicies, iethical iviewpoints ican ishape iand ichange ithe iway ibusinesses ioperate

If imorality iin ibusiness iethics iis iprimarily iabout ishared ivalues, ithen ibusiness idiscussion, iwhich ican itake imany imodes iof icommunication iwith ivarious iparties, itakes ia icentral iplace iin imoral ibusiness-decision imaking. iIn imany icases, imore ithan ione iparty imay ioften ibe iinvolved, iand iwe ishould iinclude iothers iin iour idecision-making iprocesses.

4. Codes iof iConduct iand iEthics

A icode iof iethics iand iprofessional iconduct ioutlines ithe iethical iprinciples ithat igovern idecisions iand ibehavior iat ia icompany ior iorganization. iThey igive igeneral ioutlines iof ihow iemployees ishould ibehave, ias iwell ias ispecific iguidance ifor ihandling iissues ilike iharassment, isafety, iand iconflicts iof iinterest.

In imost icases ibusinesses iwill icombine iboth iof ithese idocuments iinto ione ias ithere iis isignificant ioverlap ibetween ithem. iIt iis irare ito ifind ibusinesses ithat ihave itwo iseparate ipolicies. iWhilst ithey iare itechnically idifferent idocuments, iemployees iwill ihave iless idifficulty irecalling iimportant ipoints iaround iconduct iand iethics iif ithey ihave ia isingle idocument ito irefer ito Code iof iEthics iand iProfessional iConduct i

5. Ethics iTraining iand iEthics iAudit

The ipurpose iof iEthics iTraining iis i"to ienable iemployees ito iidentify iand ideal iwith iethical iproblems ideveloping itheir imoral iintuitions, iwhich iare iimplicit iin ieveryday ichoices iand iactions" iTraining iin iEthics ihelps ithe imembers iof ian iorganization ijudge ithe imoral ilegitimacy iof itheir idecisions, ienabling ithem ito iapply imoral iprinciples iand ivalues iin ibusiness idecision-making. iAt ithe isame itime, iethics itraining ifosters ithe iemployees' iagreement iand icompliance iwith ithe iorganization’s iethical ivision irepresenting ia imutually-acceptable ibalance ibetween idifferent istakeholders. iTherefore, iimplementing iethics itraining idoes inot ionly imean iinforming iemployees iabout ichoices imade iby ithe imanagement iof ithe icompany, ibut ialso iputting ieach iindividual icorporate imember iin ia iposition ito iunderstand, iinteriorize iand icontribute ito ithe icorporate imission iachievement ithrough ia iconscious iorientation iof itheir iown ichoices iand ieveryday ibehavior.

An iethical iaudit imeasures ithe icultures iand ibehaviors iof ian iorganization, iand idetermines ithe iextent ito iwhich iits ivalues iare iembedded iacross iits ipeople iand iacross iits iprocesses.

An iinvestigation iinto ihow iwell i(or ipoorly) ia icompany iconforms ito ithe iethical istandards iof iits iindustry ior isociety igenerally. iAn iethics iaudit imay iconsider ithe icompany's iown ipractices, ihow iit iredresses igrievances, ihow iit idiscloses iits ifinances, iwhether iit ipunishes iwhistleblowers, iand ieven ithe igeneral icultural isurrounding iits ibusiness idealings. iSome icompanies imay iformally iadopt ia icode iof iethics iand iconduct iperiodic iethics iaudits ito isee ihow iclosely ithey ifollow itheir iown irules.

6. Corporate iand iBusiness iCitizenship

Corporate icitizenship iinvolves ithe isocial iresponsibility iof ibusinesses iand ithe iextent ito iwhich ithey imeet ilegal, iethical, iand ieconomic iresponsibilities, ias iestablished iby ishareholders. iCorporate icitizenship iis igrowing iincreasingly iimportant ias iboth iindividual iand iinstitutional iinvestors ibegin ito iseek iout icompanies ithat ihave isocially iresponsible iorientations isuch ias itheir ienvironmental, isocial, iand igovernance i(ESG) ipractices.

All ibusinesses ihave ibasic iethical iand ilegal iresponsibilities; ihowever, ithe imost isuccessful ibusinesses iestablish ia istrong ifoundation iof icorporate icitizenship, ishowing ia icommitment ito iethical ibehavior iby icreating ia ibalance ibetween ithe ineeds iof ishareholders iand ithe ineeds iof ithe icommunity iand ienvironment iin ithe isurrounding iarea. iThese ipractices ihelp ibring iin iconsumers iand iestablish ibrand iand icompany iloyalty.

7. Corporate iSocial iResponsibility i– iCorporate iPhilanthropy, iVoluntarism iand iSponsorship

Corporate isocial iresponsibility imay iinclude iphilanthropic iefforts isuch ias icharitable idonations ior iprograms ithat iencourage iemployee ivolunteerism iby iproviding ipaid itime ioff ifor isuch iactivities. iMany iorganizations iseek ito ihave ian ieven igreater iimpact ithrough iCSR iinitiatives ithat iintegrate isocial ivalues iinto ioperational iand ibusiness istrategies. iFor iexample, ito iprotect iscarce inatural iresources, ia ifirm imay imake ia icommitment ito iuse ionly irecycled imaterials iin iits ipackaging iof iconsumer igoods.

Philanthropy iis imost ioften iseen iin ithe iform iof ifinancial icontributions, ibut iit ican ialso iinclude itime iand iresources. iThe iconcept ibehind iphilanthropy iinvolves imaking ian ieffort ito idrive isocial ichange. iIt’s inot ionly ithe icharitable idonations ithat ican igo itoward iany inumber iof idirect-giving iscenarios, isuch ias idisaster irelief ior ifeeding ithe ihomeless. iPhilanthropy iinvolves ifinding ia ilong-term isolution ito ihomelessness, irather ithan idelivering itemporary irelief. iOn ithe icorporate ilevel, iphilanthropy iis ipracticed iin imany idifferent iways. iMany icorporations isimply idonate imoney ito icauses ithat iare iintended ito ibring iabout isocial ichange. iThey imay ior imay inot iplace itheir ibrand ion ithe icause iand itake icredit ifor ithe iresources ioffered. iThis ikind iof igiving ioften ihappens iwithout iany idirect iinvolvement ioutside iof ithe ifunds ioffered.

Corporate iVolunteering

Companies inowadays iare iinvesting imore iand imore itime iand iresources iin icreating ia iworkplace iwhere ieveryone ican ihave ia ivoice iin iwhat ireally imatters. iOver ithe itime, inonetheless, ithis iconcept igrew iand iexpanded. iIt iended iup iincluding ivolunteering iprogram ias ia iway ito istrengthen ithe irelationship iwith iemployees.

Sponsorship

Advertising ithat iseeks ito iestablish ia ideeper iassociation iand iintegration ibetween ian iadvertiser iand ia ipublisher, ioften iinvolving icoordinated ibeyond-the-banner iplacements.

8. Measuring iand iReporting iCSR

We ialready iknow ithat iCorporate iSocial iResponsibility i(CRS) iis ibecoming imore iand imore iimportant ifor ibusiness iin iall iindustries iand isectors. iWe ihave ialready iseen iin iprevious iarticles ihow iCSR iis iin imany iways iprofitable ifor ibusiness iand ifor isociety, ias ishared-value iis ithe inew ireality iand iexamples iof icollaboration ibetween icompanies, ieven ibetween ithe ibiggest icompetitors, ihave ibeen iincreasing. iThe igrowing iawareness iof icompanies’ iability ito ihelp isolve iglobal ichallenges ihas icertainly iplayed ia irole. iSimilarly, ias isustainability imetrics ibecome imore iadvanced, icompanies iare iincreasingly imeasuring iand icommunicating iimpact, igiving ithem ithe iability ito ireview ihow iCSR iefforts ibenefit itheir icommunity iand itheir ibottom-line.

In ispite iof ithis, imany icompanies ihave isome idifficulties ito imeasure ithe iimpact iof itheir iCSR iprograms. iThe ifollowing itips igiven iby iSusan iMcPherson, icorporate iresponsibility iexpert, ican ihelp icompanies iof i