Corporate Social Responsibility

I agree with management expert Elfren Sicangco Cruz in his observation that people tend to associate corporate social responsibility (CSR) with philanthropy. In fact, even some executives think that by handing out donations or relief goods, they are already performing their CSR obligations.

But according to Mr. Cruz, who is also Strategic Management professor in De La Salle University, there are three levels of corporate citizenship: corporate governance, corporate philanthropy, and corporate social responsibility. And businesses must practice all three, he added. Thus, CSR is not only limited to philanthropy.

To further enlighten us on the subject, here are some important excerpts from a news story published in the Business World, entitled CSR: Still relevant in trying times? You can read the full article here: http://www.bworldonline.com/BW071608/content.php?id=005

The lowest level, corporate governance, involves following existing laws and complying with certain norms and standards. Corporate philanthropy involves giving to communities. CSR, Mr. Cruz said, involves fulfilling obligations to stakeholders such as employees, stockholders, suppliers, customers, and the community at large.

"Some companies substitute CSR for philanthropy. If you donate computers, it does not mean that you are no longer obliged to provide salaries to your workers or create products that will not harm your customers," he said.

Based on international codes, declarations and conventions, and best practices by companies:

CSR involves written policies on nondiscrimination in the workplace; equal opportunities statements and implementation plans; a statement on normal working hours, maximum overtime and fair wage structures; staff development, in-house education and vocational training; freedom of association, collective bargaining, and complaints procedures; and the protection of human rights within the workplace.

Companies must also examine the labor standards of suppliers, for instance to check if they are using child labor, and must have policies on "fair trade" as well as a code of ethics against bribery and corruption.

In view of the above statements, it came to me that a good CSR program must involve not just one team nor one department, but rather, it should involve the whole organization, from top to bottom, from the board members down to the rank-and-file employees (casuals and probationaries included).

So it goes beyond team work. I don't know if there is a term for that in English. But in Pilipino, the equivalent term could be the bayanihan spirit. The CSR objective is not about winning, but rather sacrificing for the sake of others. Companies should acknowledge that they have obligations to fulfill in the society.

"It is easy to give donations then live a good life. They need to perform their responsibilities ... they are here not just to make profit," Mr. Cruz said.