globalization and CSR

7/29/2019 globalization and CSR

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Guy Brainbant says that:

the process of globalization not only includes opening up

of world trade, development of advanced means of

communication, internationalization of financial markets,

growing importance of MNCs,population migrations and

more generally increased mobility of persons, goods,

capital, data and ideas but also infections, diseases and

pollution.

Introduction of Globalization

Globalization is one of the most debated issues of the day. It is everywhere on TV,

on websites, learning journals, labour meeting rooms and in organization'sboardrooms. Remarkably, for so widely a used term, there does not appear to havea precisely agreed definition. One of the frequently used definitions is thatglobalization refers to the growing integration of societies across the world, it hastaken many forms and it is difficult to discuss it in a general way. However most ofthe times the term is used to refer to the economic integration of the world marketsthrough uninhibited trade and financial flows, as also through mutual exchange oftechnology and knowledge. Ideally, it also contains free inter-country movement oflabour.

Globalization has many meanings depending on the context and on the person whois talking about. Though the precise definition of globalization is still unavailable afew definitions are worth viewing:

Globalization has changed us into a company that searches theworld, not just to sell or to source, but to find intellectualcapital - the world's best talents and greatest ideas.

Jack Welch
http://www.brainyquote.com/quotes/quotes/j/jackwelch163678.htmlhttp://www.brainyquote.com/quotes/quotes/j/jackwelch163678.html


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Globalization is a process which entails the free movement of capital, goods,service s and labor around the world.

Globalization is the massive control of the worlds economy by big business; thiscontrol transcends the boundaries of state and country. This transcendence acrosscountries makes the subunits of the economy decompose and depend on the largercompanies with a controlling interest in most of the capital within a giveneconomy.

Another perspective of GlobalizationThe companies then form global constituents; they then have a control of a largevolume of capital within many countries. This global control of capital comesthrough the deindustrialization of larger economic superpowers to third worldcountries for economic gains of these companies. Seeking lower wages and a large

unskilled labor force, companies find it in third world countries. These are concreteexamples of global companies seeking wage reductions on an international scale.This migration causes a deindustrialization for the larger countries and aindustrialization in these developing countries. In a curious fashion they tend toconfirm the collective view, long thought out of fashion, that the working classes

would be kept at subsistence level. Reebok Shoes, and other footwear giants, areforever shifting their manufacturing base to lands of lower wage scales. (This ismore easily done in that industry than would be possible in steel or automobilemanufacturing.) From New England to the American South and on to the

American colony of Puerto Rico, thence the Philippines, Taiwan, Korea andThailand -- until the annual wages of the factory are less than the remunerationpaid to the basketball star paid to advertise the final product.No, globalization does not mean workers of the world unite. Joan E. Spero,

Under Secretary of State for Economic, Business and Agricultural Affairs statedthe issue at hand was one of an alarming size, Capital now moves with surprisingspeed around the world. Each day over $1 trillion is traded in a global foreignexchange market that never closes. Technological advances in computers andtelecommunications are paving the way for a new information-based economy.The capital within this globalized economy is not situated as one might have firstassumed. The capital is concentrated within the upper management and within theboundaries of the company itself. The growth of the American economy inparticular is in no way a direct reflection on the wages and standard of living formost American workers. Large companies set up manufacture of products indeveloping countries, exploiting the economic need that is present there.
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Then these companies take this product from this country and bring it back toplaces like the United States to be marketed. The economic benefits are then

reaped by the company. The product was manufactured in this third world countrywhere they were paid small wages and in horrible working conditions. Then theproduct is taken to the United States where is sold to the American public whoplayed no role in the manufacture of the product thus their purchase in no waysupports the circulation of capital within the United States economy and is givenspecifically to the company. The company then takes the capital and reinvests themoney into the company and in foreign industry and the money is not recirculatedwithin the economy that created it. This theory of capital flight is what producesthe economic growth of the economy as a whole but the workers and middle classof that economy do not see that growth. The middle class is becoming less and less

necessary within the globalized economy. The skilled worker is not necessary dueto technological advancements and the movement of industry from the UnitedStates to developing countries. The developing countries are used for their largeand willing unskilled worker population. The need for specific talent and trainingis becoming more and more necessary within countries such as the United States.This creates an international division of labor within the global economic marketsystem.


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Globalization and its mechanism:

Globalization is often defined as a combination of four major trends, including theexpansion of: international trade financial flows (with FDI as the most important component of these flows)global communications (including transport)movements of people (immigration)

The same four factors have been present in the so-called first wave of

globalization of 1870-1945, as they were in the post World War II period throughthe 1970s and in the most recent wave, starting in the 1980s and consolidating inthe decade of the 1990s.The causes and determinants of the globalization waves, their impact on thecountries affected by them, and in the countries left in the margins of the process,have been studied from different perspectives, but the interactions among thedifferent components have often been neglected. For example, in the explodingliterature about the ongoing trends, most of the attention has been devoted to theinternational trade part of the process, and to the links between increased trade and

growth, with countries being defined as globalizers depending on their share ofworld trade. But the four major trends in the globalization process have workeddifferently among different countries: financial flows and particularly FDI show adifferent regional and country pattern from that of international trade: someglobalizing countries have increased their share of trade with little FDI (e.g.India) while others received much higher FDI (e.g. China). Also, some countrieshave received high levels of FDI in the 1990s as a share of GDP and shown little orno economic growth (e.g. Angola, Ecuador)The best way to deal with globalization is to be honest about it. Globalizationbrings opportunities but it also brings risks, even when poverty falling overall there

can be regional increases about which society needs to be concerned. Especiallyfor the developing countries, with their potential lack of recourses for up to datelegislation, it is important to remember that not everything that is legal is right.Legality is often only the ethical minimum. Therefore where national standards areinadequate, the company would need to enforce their own higher standards and nottake advantage of them. Business is part of our society and ethics has place inbusiness as in any other part of social life


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History of Globalization:

Early History of Globalization:According to most scholars and researchers, it is the modern age which led to theorigin of globalization. In this age, wide spread development took place in the fieldof infrastructure and connectivity. This led to more interaction between the nationsand sharing of ideas, culture and tradition took place. All these put a direct impacton the process of globalization. In the economic scenario, more trade links startedtaking place between countries on a global scale which influenced global as well asdomestic economies to a great extent.

However, there are some scholars who point out that the origins of the history ofglobalization can be traced back to the ancient civilizations. Scholars who advocatethis theory say that the example of the earliest forms of globalization is the tradelinks between the Sumerian civilization and the Indus Valley Civilization in thirdmillennium B.C. In fact, after this age, there are numerous instances where tradelinks were established between various countries like India, Egypt, Greece, andRoman Empire and so on. There were regular business links between the ParthianEmpire, Roman Empire and Han Dynasty. The popularity of the trade relations ledto the development of various trade routes like Silk Road and so on.

Globalization in the Middle ages:The Islamic period in the middle age era is an important period in the history ofglobalization. This was when the Jewish and the Muslim traders started going tovarious parts of the world to sell various items. This led to a blend of ideas,traditions and customs. In China, the first postal service was introduced and paperwas invented. This led to better knowledge sharing. As more and more peoplestarted traveling to various countries across the world, it led to morecommunication between people and intermingling of languages. Explorers likeColumbus and Vasco Da Gama sailed through the oceans in search of new

countries and establish trade links with them or to make other countries theircolonies. All these factors were a major cause for the development of the pre-globalization era. The middle age period was the age of discovery. It was in thisperiod that Africa and Eurasia engaged in cultural and economic exchange betweenthem. Gradually, this led to the growth of colonies in various parts of Africa, Asiaand Latin America. As a result, there was constant blend of the ideas, languages,rituals and customs between the natives and the foreign inhabitants. In fact, this


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system of colonization put a deep impact on agriculture, trade, ecology and culture

on a global scale.Globalization between the pre modern periods to modernperiods

The industrial revolution in the 19th century was one of the major periods in thehistory of globalization. Due to the industrial revolution, there was a significantincrease in the quantity and quality of the products. This led to higher exports andbetter trade and business relations. Due to better products and colonization, lots ofcountries across the world became the consumers of the European market. Thephase of pre globalization perhaps came to an end after the First World War wasfought. The war put a significant adverse effect on the economic scenario and it ledto the Great Depression and gold standard crisis in the later part of the 1920s andearly 1930s.

Globalization in the modern eraGlobalization, in the modern sense of the term, came into existence after theSecond World War. One of the main factors for this was the plan by the worldleaders to break down the borders for fostering trade relations between nations. Itwas also in this period that major countries like India, Sri Lanka, Indonesia andsome countries in South America gained independence. As a result, these countriestoo started having their own economic systems and made established traderelations with the rest of the world. The establishment of the United NationsOrganization (UNO) was also a major step in this regard. Gradually, the economicscenario of the world strengthened and it led to better trade relations andcommunication. Some other factors which have put a positive impact onglobalization are:

Promotion of free commerce and trade Abolition of various double taxes, tariffs, and capital controls Reduction of transport cost and development of infrastructure Creation of global corporations Blend of culture and tradition across the countrAnother milestone in the

history of globalization is the creation of the World Trade Organizationwhich led to the growth of a uniform platform to settle trade andcommercial disputes. According to economic surveys, the world exportsimproved significantly from 8.5% to around 16.2% due to globalization.


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Advantages of Globalization

The gains from globalization can be cited in the context of economicglobalization:Trade in Goods and Services - From the theoretical aspect, international

trade ensures allocating different resources and that has to be consistent.This specialization in the processes leads to better productivity. We allknow from the economic perspective that restrictive trade barriers inemerging economies only impede growth. Emerging economies can reapthe benefits of international trade if only all the resources are utilized in fullpotential. This is where the importance of reducing the tariff and non-tariffbarriers crop up.

Movement of Capital - The production base of a developing economy getsenhanced due to capital flows across countries. It was very much true in the19th and 20th centuries. The mobility of capital only enabled savings forthe entire globe and exhibited high investment potential. A country'seconomic growth doesn't, however, get barred by domestic savings.Foreign capital inflow does play an important role in the development of aneconomy. To be specific, capital flows either can take the form of foreigndirect investment or portfolio investment. Developing countries woulddefinitely prefer foreign direct investment because portfolio investmentdoesn't have a direct impact on the productive capacity expansion.

Financial Flows - The capital market development is one of the majorfeatures of the process of globalization. We all know that the growth incapital and mobility of the foreign exchange markets enabled better transferof resources cross borders and by large the global foreign exchangemarkets improved. It is mandatory to go in for the expansion of foreignexchange markets and thus facilitate international transfer of capital. Themajor example of such international transfer of funds led to the financialcrisis - which has by now become a worrying phenomenon.

Thus, globalization has the fair and rough share of its impacts and thus we cansurely hope for more advancement in the global economy due to this process.


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We have to choose between a global market driven onlyby calculations of short-term profit, and one which has

human face. Between a world which condemns a quarterof the human race to starvation and squalor, and onewhich offers everyone at least a chance of prosperity, in ahealthy environment. Between a selfish free-for-all inwhich we ignore the fate of the losers, and a future inwhich the strong and successful accept theirresponsibilities, showing global vision and leadership.

Kofi Annan, UN Secretary-GeneralJanuary 1999

Introduction of Corporate Social Responsibility

Corporate social responsibility is not a new concept in business. However, whatis new is the shift in focus from making profits to meeting societal challenges.

Giving a universal definition of corporate social responsibility is bit difficult asthere is no common definition as such. However, there are few common threadsthat connect all the perspectives of CSR with each other;

the dedication to serve the society being most important of them.Most ideal definition of corporate social responsibility (CSR) has been given byworld business council for Sustained Development which says,


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Corporate Social Responsibility is the continuing commitment by business to

behave ethically and contribute to economic development while improving the

quality of life of the workforce and their families as well as of the local

community and society at large.

Thus, the meaning of CSR is twofold. On one hand, it exhibits the ethical behaviorthat an organization exhibits towards its internal and external stakeholders

(customers as well as employees). On the other hand, it denotes the responsibilityof an organization towards the environment and society in which it operates.

CSR is also referred to as: corporate or business responsibility corporate or business citizenship community relations social responsibility.


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History of CSRThe phrase Corporate Social Responsibility was coined in 1953 with the

publication of Bowen's Social Responsibility of Businessmen (Corporate watchreport, 2006). The evolution of CSR is as old as trade and business for any ofcorporation. Industrialization and impact of business on the society led tocompletely new vision. By 80s and 90s academic CSR was taken intodiscussion. The first company to implement CSR was Shell in 1998. (Corporatewatch report, 2006) With well informed and educated general people it hasbecome threat to the corporate and CSR is the solution to it.1990 was CSR as a standard industry with companies like Price WarterhouseCopper and KPMG. CSR evolved beyond code of conduct and reporting it startedtaking initiative in NGOs, multi stakeholder, ethical trading. (Corporate watchreport, 2006).

Benefits of corporate social responsibility

Corporate social responsibility offers manifold benefits both internally andexternally to the companies involved in various projects.Externally, it creates a positive image amongst the people for its company andearns a special respect amongst its peers. It creates short term employment

opportunities by taking various projects like construction of parks, schools, etc.Working with keeping in view the interests of local community bring a wide rangeof business benefits. For example, for many businesses, local customers are animportant source of sales. By improving the reputation, one may find it easier torecruit employees and retain them. Businesses have a wider impact on theenvironment also. Plantation and cultivation activities taken up by Intel India are astep towards the same. Recycling used products also acts as a step towardsminimizing wastes. Internally, it cultivates a sense of loyalty and trust amongst theemployees in the organizational ethics. It improves operational efficiency of thecompany and is often accompanied by increases in quality and productivity. Moreimportantly, it serves as a soothing diversion from the routine workplace practicesand gives a feeling of satisfaction and a meaning to their lives. Employees feelmore motivated and thus, are more productive. Apart from this, CSR helps ensurethat the organization comply with regulatory requirements.


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CSR importance and its relevance today

The amount of information available to customer about the company, product,brand globally through easy accessible and available mode of information; internet,communication, customer wants to buy product from trusted brand, employee wantto work for the company who respect them, NGOs want to work with companywho work with the same vision for the benefit of the people. As said by PeterDuker The 21st century will be the century of the social sector organization. The

more economy, money, and information become global, the more community willmatter. According to strategic corporate social responsibility by William B.Werther, David Chandler there is three trends which are going to have importancein future are:

Increasing Affluence: Customer from elite level can afford to buy and paymore for premium brand but the poor customer might not be willing to payso much for brand, instead they would prefer to spend their money onbusiness which can take their business to much better level.

Changing social expectation:Its natural that customer expect more from the company whose product they buy

but with recent controversy and scandal of company has reduced the trust andconfidence in the regulatory body and organization which manage the corporate.

The brands that will be big in the future will be those thattap into the social changes that are taking place.

- Sir Michael Perry, Chairman of Centrica PLC


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Globalization and free flow of Information:With growing trend of media and easy access to information through mobile, TVeven the minor mistake of the company is brought in public in no time, thissometime fuels the activist group and likeminded people to spread message whichcan lead to situation like boycott of the product.

There can be few key steps to implement CSR successfully:

Better communication between top management and organization Appoint for CSR position. Good relationship with customer, supplier, stakeholder.

Annual CSR audit. Feedback process


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CSR and Globalization

Corporate social responsibility is at least in its name and formal recognition a

relatively recent phenomenon. Yet, owners and managers of firms have engaged inactivities that we would now consider CSR almost from the beginning of theindustrial revolution (Davis, Whitman and Zald, 2006).Until the 1990s, CSR was generally limited to corporate contribution. It is from theearly 1990s that enlarged concepts and practices of CSR have come to the fore.

What drove these radical changes in the conception and implementation of CSR?

Scherer and Palazzo (2007) claim that, in a globalized world, it is necessary a shift

toward a new politically enlarged concept of CSR. In fact, globalization isweakening the power of (national) political authorities to regulate the activities ofcorporations that globally expand their operations: for instance, globalizationforces national governments into a race to the bottom in order to win thecompetition with other countries for attracting corporate investments. Thus, theyreason that corporations should be understood as both economic and politicalactors.Davis, Whitman and Zald (2006) claim that, in addition to weak nationalboundaries that separate domestic from foreign companies, another crucialdifference of the global competitive environment of the 21st century is the weak

distinction between activities and transactions occurring inside as opposed tooutside a corporate entity: while companies are moving part of their operationsfrom the status of in-house activities to purchased goods and services, they are atthe same time forming a variety of close relationships with suppliers and partners.CSR largely arose out of commitments by companies to their employees and tocommunities where they were located, now corporations are led accountable fortheir supply chain.For example, after facing a consumer boycott following the news that its suppliers

were exploiting child labour in several developing countries , Nike had to make

substantial investments to promote improvements in the working conditions of itssuppliers factories (Locke, 2006).Along this line, Amaeshi, Osuji and Nnodim (2006) argue that, even if acorporation is recognized as a legal person and the supply chain is a different entityso that the purchasing firm should not bear legally any responsibilities for the


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practices of its suppliers, there should be limits to responsibility. They argue thatfirms in a controlling position have the deontological duty to use powerresponsibly and influence the weaker parties by setting codes of conduct and

standards. For example, Marks and Spencer decided to invest 200 million forsocial and environmental responsibility through collaboration with NGOs andsuppliers (Stafford, 2007).Globalization has changed corporate social responsibility: the blurring of theboundaries between domestic and foreign companies as well as between in-houseand outsourced activities has led to the view of the corporation as both aneconomic and political actor; as a consequence, multinational companies are beingheld responsible for their suppliers CSR practice by an increasingly politicallyawarded society. Moreover, there is a mutual influence between CSR andglobalization: on one side, multinational companies have taken the role of the state

and thus they should behave responsibly; on the other side, a corporate sociallyresponsible behavior is necessary to protect this new role.Some questions remain unanswered. For example, are all multinationalsconverging to CSR? Or is responsible behavior just a differentiation strategy? The

latter view could explain why companies, like WalMart, are still successfuldespite widespread charge of their irresponsible practices: by charging a lowerprice, these companies may simply compete differently. Moreover, there is nosingle commonly accepted definition of corporate social responsibility since CSRhas local meanings. The clash over different local definitions can have practical

consequences and it needs further investigation. For example, Nike Corporationwas involved in a major scandal by paying workers in its Southeast Asian plantswages that were quite low but still in accordance with the local customs there.Elsewhere Nike paid substantially higher wages but again, wages that were inaccordance with the local customs there. Thus, a scandal erupted that Nike wasoperating according to a double standard (Campbell, 2007). Further researchremains necessary and this review hopes it can give suggestions about itsdirections.Globalization has changed corporate social responsibility, the boundaries betweendomestic and foreign industry and between in-house and out-houses activitieswhich had led corporate to view from both political and economic view. On oneside multinational company have taken the role of state and thus they shouldbehave responsibly and on the other hand they need to have corporate socialbehavior in order to protect their image.


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Example: Wal-mart which sells it product at remarkable low price and at the sametime its brand image is also protected.Corporate social responsibility (CSR) promotes a vision of business accountability

to a wide range of stakeholders, besides shareholders and investors. Key areas ofconcern are environmental protection and the wellbeing of employees, thecommunity and civil society in general, both now and in the future.The concept of CSR is underpinned by the idea that corporations can no longer actas isolated economic entities operating in detachment from broader society.Traditional views about competitiveness, survival and profitability are being sweptaway.Some of the drivers pushing business towards CSR include:1. The shrinking role of government

In the past, governments have relied on legislation and regulation to deliver socialand environmental objectives in the business sector. Shrinking governmentresources, coupled with a distrust of regulations, has led to the exploration ofvoluntary and non-regulatory initiatives instead.2. Demands for greater disclosureThere is a growing demand for corporate disclosure from stakeholders, includingcustomers, suppliers, employees, communities, investors, and activistorganizations.3. Increased customer interestThere is evidence that the ethical conduct of companies exerts a growing influence

on the purchasing decisions of customers. In a recent survey by EnvironicsInternational, more than one in five consumers reported having either rewarded orpunished companies based on their perceived social performance.4. Growing investor pressureInvestors are changing the way they assess companies' performance, and aremaking decisions based on criteria that include ethical concerns. The SocialInvestment Forum reports that in the US in 1999, there was more than $2 trillionworth of assets invested in portfolios that used screens linked to the environmentand social responsibility. A separate survey by Environics International revealed

that more than a quarter of share-owning Americans took into account ethicalconsiderations when buying and selling stocks.
http://www.environicsinternational.com/http://www.environicsinternational.com/http://www.environicsinternational.com/http://www.environicsinternational.com/http://www.environicsinternational.com/http://www.environicsinternational.com/


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5. Competitive labour marketsEmployees are increasingly looking beyond paychecks and benefits, and seekingout employers whose philosophies and operating practices match their own

principles. In order to hire and retain skilled employees, companies are beingforced to improve working conditions.6. Supplier relationsAs stakeholders are becoming increasingly interested in business affairs, manycompanies are taking steps to ensure that their partners conduct themselves in asocially responsible manner. Some are introducing codes of conduct for theirsuppliers, to ensure that other companies' policies or practices do not tarnish theirreputation.Some of the positive outcomes that can arise when businesses adopt a policy ofsocial responsibility include:

i. Company benefits: Improved financial performance; Lower operating costs; Enhanced brand image and reputation; Increased sales and customer loyalty; Greater productivity and quality; More ability to attract and retain employees; Reduced regulatory oversight; Access to capital; Workforce diversity; Product safety and decreased liability.

ii. Benefits to the community and the general public: Charitable contributions; Employee volunteer programmes; Corporate involvement in community education, employment and

homelessness programmes;

Product safety and quality.


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iii. Environmental benefits: Greater material recyclability; Better product durability and functionality; Greater use of renewable resources; Integration of environmental management tools into business plans,

including life-cycle assessment and costing, environmental managementstandards, and eco-labeling.

Nevertheless, many companies continue to overlook CSR in the supply chain - forexample by importing and retailing timber that has been illegally harvested. Whilegovernments can impose embargos and penalties on offending companies, theorganizations themselves can make a commitment to sustainability by being morediscerning in their choice of suppliers.

The concept of corporate social responsibility is now firmly rooted on the globalbusiness agenda. But in order to move from theory to concrete action, manyobstacles need to be overcome.A key challenge facing business is the need for more reliable indicators of progressin the field of CSR, along with the dissemination of CSR strategies. Transparencyand dialogue can help to make a business appear more trustworthy, and push up thestandards of other organizations at the same time.


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CSR Today

The concept of corporate social responsibility is now firmly rooted on the globalbusiness agenda. But in order to move from theory to concrete action, manyobstacles need to be overcome.

A key challenge facing business is the need for more reliable indicators of progressin the field of CSR, along with the dissemination of CSR strategies. Transparencyand dialogue can help to make a business appear more trustworthy, and push up thestandards of other organizations at the same time.

The Global Reporting Initiative is an international, multi-stakeholder effort tocreate a common framework for voluntary reporting of the economic,environmental, and social impact of organization-level activity. Its mission is toimprove the comparability and credibility of sustainability reporting worldwide.There is increasing recognition of the importance of public-private partnerships in

CSR. Private enterprise is beginning to reach out to other members of civil societysuch as non-governmental organizations, the United Nations, and national andregional governments.An example of such a partnership is the 'Global Compact'. Launched in 1999 bythe United Nations, the Global Compact is a coalition of large businesses, tradeunions and environmental and human rights groups, brought together to share adialogue on corporate social responsibility.The 'Working with NGOs' section offers some insights into the way businesses andlobby groups are working together to mutual benefit.Management training plays an important role in implementation of CSR strategies,and there is a growing number of conferences and courses available on the subject.Organizations that provide such training include Global Responsibility, Businessfor Social Responsibility and the Corporate Social Responsibility Forum.
http://www.globalreporting.org/http://www.globalreporting.org/http://www.unglobalcompact.org/http://www.global-responsibility.com/http://www.bsr.org/http://www.bsr.org/http://www.iblf.org/http://www.iblf.org/http://www.bsr.org/http://www.bsr.org/http://www.global-responsibility.com/http://www.unglobalcompact.org/http://www.globalreporting.org/


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Case Study:

Kingfisher

Kingfisher is Europe's largest home improvement retailer, with 1,300 stores and9,000 employees in 16 countries. Its operating companies include BCC (TheNetherlands), Promarkt (Germany), Vanden Borre (Belgium), Darty (France),

Comet (UK), B&Q (UK), Kotas (Turkey) and Rno-Dpt (Canada).In 2001 the group achieved a turnover of 12.1 billion ($17.5 billion) and a pre-taxprofit of 606 million ($878 million).At the end of 2001, Kingfisher unveiled a group-wide initiative to monitor,improve and report on corporate social responsibility issues at the level ofindividual companies.The group has identified six ways in which it believes CSR can help its business:

1. Being ready for the future: identifying and managing issues which havethe potential to affect the bottom line, either positively or negatively;2. Respect for people: making Kingfisher companies attractive places to work,and thereby retaining skilled staff;

3. Stores that communities welcome: maximizing customer loyalty andimproving morale among the workforce;
http://www.kingfisher.co.uk/http://www.kingfisher.co.uk/http://www.google.com.pk/imgres?q=images+of+csr&hl=en&rlz=1T4LENN_enPK490PK490&biw=1366&bih=556&tbm=isch&tbnid=7XjDPXQO2kSBDM:&imgrefurl=http://thegreenmarket.blogspot.com/2012/01/top-csr-initiatives-for-2012.html&docid=al-PmulNCPMFeM&imgurl=http://4.bp.blogspot.com/-GpaixNYCvNs/Tx1mhm-yVSI/AAAAAAAAECg/DEKir5XY0m4/s1600/Corporate+Social+Responsibililty+(CSR).jpg&w=362&h=330&ei=USwHUKDGKo3Rsgbh28XDBg&zoom=1&iact=hc&vpx=1061&vpy=124&dur=4527&hovh=214&hovw=235&tx=117&ty=128&sig=115036761023086480532&page=1&tbnh=107&tbnw=122&start=0&ndsp=24&ved=1t:429,r:7,s:0,i:88http://www.kingfisher.co.uk/


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4. Product innovation: identifying 'green' products that consumers will wantto buy;

5. Saving costs: recognizing that many CSR initiatives are largely goodhousekeeping, such as reducing waste and retaining staff more effectively;

6. Brand: using innovation and excellence within individual operatingcompanies to enhance the reputation of the group as a whole.

Kingfisher has devised a 'ladder' model to simplify the assessment of CSR withinoperating companies. The ladder has four rungs. The bottom rung is 'Managing therisk', and the next rung up is 'Managing the issues', followed by 'Creating anopportunity' and finally 'Leadership' at the top. Company managers will have todecide where their businesses currently stand on each of 12 separate 'ladders', each

representing a key issue such as waste, climate change or community relations (seebelow). They are also asked to identify where they would like eventually to be onthe ladder, and to propose a realistic timescale.These action plans are due for completion by the end of April 2002, and a group-wide CSR report will be published in the spring of 2003.The CSR initiative will be co-ordinated by a nine-person 'social responsibilitycommittee', which now includes include six members of the main board ofdirectors as well as Kingfisher's head of social responsibility, Dr Alan Knight. A'social responsibility team', working closely with the committee, will providecoaching and advice to managers within individual operating companies, and will

also be responsible for reporting progress both internally and to the outside world.One of the challenges for Kingfisher is to develop a strategy that is flexible enoughto accommodate the differences between individual businesses yet strong enoughto reflect a common vision.Kingfisher's definition of social responsibility entails 'making sure that in helpingour customers improve their quality of life we do not destroy someone else's'. Itadds: 'That might mean improving the working conditions in the factories thatmake the products we sell, using renewable energy sources, or making sure ourequal opportunities policies are robust.'

Group chief executive Sir Geoff Mulcahy says several of Kingfisher's subsidiarieshave been active in CSR for some years already, particularly in terms ofenvironmental stewardship. 'We believe it is now time to co-ordinate theseactivities more rigorously, at group level.'


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The 12 key issues identified by Kingfisher

1.The way we treat all our people is becoming more important thanever

2.Every product will soon be telling a story - and they will all needto be good

3.Communities will reject businesses who are not good neighbors4.Our suppliers need to be cleaner and greener too5.We are selling more wood, but it is becoming harder to find6.Chemicals are causing increasing concern and controversy7.We need to plan what happens when our customers want to

dispose of the products they bought from us

8.Packaging waste will become a bigger financial waste

9.We will be judged by the way the people who make our productsare treated

10. Moving more stock is good - more traffic congestion is bad11. Climate change equals changes to homes - appliances will

change too

12. When we throw rubbish away it takes our profits with it


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Conclusion

It can be concluded that in todays informative world where information arereadily available to general public CSR has been an important part of anyorganization to be successful. Organization in present world cannot be successfulwithout taking into account the social responsibility. CSR has been a vitalcomponent for any organization to have perpetual success and to create brand.

References:


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Final Assignment of GAF

Globalization & CSR

Presented to:Worthy Sir Sarwar Azhar

Presented by:Ambreen ZainebPh.D 1st Semester

Reg.No: 12003051012

globalization and CSR

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