Development of Corporate Social Responsibility and Global Reporting Initiative
Briefly outline what Corporate Social Responsibility (CSR) is and how the initiatives on reporting CSR have developed over the past few decades. Explain what the Global Reporting Initiative is.
Social responsibility has been a term used in business since the 1700’s with to focus then being child labour and increasing working conditions. It was only during the 1970’s when social responsibility gathered pace and a definition was given “The social responsibility of business encompasses the economic, legal, ethical, and discretionary expectations that society has of organizations at a given point in time.” (Carroll, 1979) This boost can be explained by certain disasters in history, such as the 1984 gas leak in India, or the 1989 oil spill in the USA. These disasters showed the public the need for corporate management for social and environmental issues. Corporate social responsibility (CSR) more specifically involves businesses to look at all its stakeholder groups and to incorporate their needs and values into the daily decision making processes. This will involve looking at anyone who has an impact on or is impacted on by the business, therefore suppliers, shareholders, customers, local communities, media etc.
Over the past couple of decades much has changed, in 2000 the UN Global compact launched this was a voluntary framework concerning human rights, labour, environment and anti-corruption. In 2002 The Global reporting initiative launched. 2006 in the UK saw the arrival of the companies act, stating companies need to the social and environmental interest of the wider stakeholder, not just the shareholders. All these initiatives aim to move away from the way in which Milton Freidman saw business, stating that “the social responsibility of a business is the increase profits” (Freidman, 1970) Towards business that actively pursue creating desirable social ends, and have a “social conscience” (Freidman, 1970). This change may be down to the fact that more of the
Social responsibility has been a term used in business since the 1700’s with to focus then being child labour and increasing working conditions. It was only during the 1970’s when social responsibility gathered pace and a definition was given “The social responsibility of business encompasses the economic, legal, ethical, and discretionary expectations that society has of organizations at a given point in time.” (Carroll, 1979) This boost can be explained by certain disasters in history, such as the 1984 gas leak in India, or the 1989 oil spill in the USA. These disasters showed the public the need for corporate management for social and environmental issues. Corporate social responsibility (CSR) more specifically involves businesses to look at all its stakeholder groups and to incorporate their needs and values into the daily decision making processes. This will involve looking at anyone who has an impact on or is impacted on by the business, therefore suppliers, shareholders, customers, local communities, media etc.
Over the past couple of decades much has changed, in 2000 the UN Global compact launched this was a voluntary framework concerning human rights, labour, environment and anti-corruption. In 2002 The Global reporting initiative launched. 2006 in the UK saw the arrival of the companies act, stating companies need to the social and environmental interest of the wider stakeholder, not just the shareholders. All these initiatives aim to move away from the way in which Milton Freidman saw business, stating that “the social responsibility of a business is the increase profits” (Freidman, 1970) Towards business that actively pursue creating desirable social ends, and have a “social conscience” (Freidman, 1970). This change may be down to the fact that more of the
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