Dec 11, 2011

History of Corporate Social Responsibility

The view that a company might commitments that go beyond economic role is not new in many ways. While the recorded history was the role of organizations providing goods and services for the market and are often related to the roles of political, social and / or military. For example, through the early stages of development of the Business Development in England (where organizations such as the Hudson Bay Company and the East India Company received a broad mandate) there was an understanding of public policy that encourages companies to achieve social goals such as exploring the colonial territory, the establishment of settlements, the provision of transport services, the development of banking and financial services, etc.
During the 19th century, society has to be a form of corporate organization is developing rapidly in the United States. it took a commercial form that the responsibilities of the board of directors and management to the shareholders (ie the duty of loyalty) is defined. In this later evolutionary form, public policy often discussed certain social sectors like health and safety at work, consumer protection, labor practices, environmental protection, etc. For example, the company responsible reacts social, because they were forced by the law and public Rules match. They also have voluntarily responded to market demands that social morality and taste of consumers is reflected. By the middle of the twentieth century, was the social responsibility in the United States of experts in corporate governance, such as Peter Drucker and business CSR literature has shown, discussed and still be a key business management, marketing, accounting, and the concern of the United States, Europe, Canada and elsewhere.

Harvard Business Review on Corporate Social Responsibility traditionally in the US, CSR has more defined in terms of a model of philanthropy. The companies have profits unhindered except by fulfilling their duty to pay taxes. Then some of the profits donated to charity.Regarded as tainting the act for the company does not consider benefits of giving. The first generation of CSR in this way shows how companies can not be responsible in any way, affect, and can contribute to business success. Corporate Philanthropy is the practice of companies of all sizes and industries makes donations to a variety of social, economic and others as part of a strategy of global corporate citizenship address.

The 2nd generation is now developing where companies and CSR as an integral part of long-term corporate strategy. Companies are taking it seriously and a business perspective, progressive, usually respond to CSR with a focus on new opportunities as a way of relationships between economic, social and ecological factors in the market. Companies believe that this approach provides a clear competitive advantage and promotes corporate innovation.

In the last decade, CSR and related concepts such as corporate citizenship and sustainability of businesses expanded. This is in response to new challenges have arisen as to the increased globalization on the agenda of managers as well as for related stakeholder communities. It is now part of both the vocabulary and agenda of scientists, experts, NGOs, consumer organizations, employees, suppliers, shareholders and investors.

3rd generation of CSR is required to make a significant contribution to the fight against poverty and environmental degradation. It will go on voluntary approaches to individual companies and organizations, the market in which they operate and how they are regulated, to rebuild all markets towards sustainability to influence participation.

The Global Reporting Initiative (GRI)


(GRI), The Global Reporting Initiative is a multi-stakeholder process and independent institution whose mission is to develop and disseminate globally applicable Sustainability Reporting Guidelines. These guidelines are intended for use by organizations for reporting on the environmental, economic and social activities, products and services. The GRI includes the active participation of representatives from business, investment, human rights, accounting, environment, research and trade unions around the world.

Started in 1997 by the Coalition for Environmentally Responsible Economies (CERES), the GRI became independent in 2002 and is a center official cooperation of United Nations Environment Programme (UNEP) and works with the Global Compact of the UN Secretary General. Guidelines of the GRI Sustainability Reporting cover a broad spectrum of social responsibility issues related to organization

(1) Economic performance (such as wages and benefits, training, research and development)

(2) Environmental performance (eg usage, energy, water and materials, emissions of greenhouse gas emissions, land use / biodiversity), and

(3) Social services (such as labor and human rights, health and safety, employee retention).

In addition to the basic guidelines of the GRI,  it is also responsible for developing a set of guidelines for dietary supplement industry, for example, financial and mining communities. While the GRI is a reference book / Only there is a growing influence in the debate on ways and means should a company structure and governance transparency and reporting, and sustainability efforts in general.

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