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You will find here some questions and answers
to inspire and inform. Gecko authors most of the questions
and answers. If not, the appropriate credit will be given,
and the bibliographic references are mentioned whenever necessary.
This is part of our constant research to improve knowledge
and we understand that everyone will gain if we can share
this information.
1) What does Sustainability
mean?
2) What does Corporate Social
Responsibility mean?
3) Can we classify every company
that invests in social projects as socially responsible ?
4) Why should private companies
get involved in social responsible causes?
5) What does "triple bottom
line" mean?
6) What will companies gain by
being socially responsible?
7) Why should consumers care if
a company is socially responsible or not?
8) What is the difference between
corporate social responsibility and philanthropy?
9) What is Responsible Marketing?
10) What is Social Environmental
Marketing (SEM)?
11) What does "stakeholders"
mean?
12) What is eco-efficiency?
13) What is the SA8000?
14) What is the GRI (Global Reporting
Initiative)?
1) What does Sustainability mean?
The most commonly used and best fundamented is the
United Nations' definition for sustainability:
"Providing for the needs of the present generation while
not compromising the ability of future generations to meet
theirs." (ONU, Brundtland Comission, at "Our Common
Future", Oxford University Press, 1987 p.43). However,
it is necessary to explain that the term sustainability came
from the sustainable development concept. This concept started
to be used 15 years ago mostly by big corporations when referring
exclusively to environmental issues.
Back in the 80's a movement involving the community, the first
sector representatives, ONGs and the UN started to design
what would be in 1992 the WBCSD
(World Business Council for Sustainable Development), congregating
48 visionaries to discuss the reduction of environmental negative
impacts. Also in 92, world leaders joined together for the
Eco-Rio showing that it was necessary to start a dialogue
among society, public and private sectors, to search for positive
actions for the benefit of all. Corporations started to be
more sensitive to socially related causes and towards the
economic development of their communities.
All this movement redefines the sustainable development concept
focusing not only the eco-efficiency but the social and economic
balance of societies - the sustainability process.
2) What does Corporate Social Responsibility
mean?
Gecko endorses WBCSD's definition for CSR, which stands that
it means: "The commitment of business to contribute to
sustainable economic development, working with employees,
their families, the local community and society at large to
improve their quality of life."
3) Can we classify every company that invests
in social projects as socially responsible?
Not necessarily. The investment in social projects is only
one of the aspects of a socially responsible organization.
If there is no ethics or no respect for its employees or the
environment, it can not be considered socially responsible.
Unfortunately there are many companies that invest in social
projects only as a "cosmetic solution" for marketing
reasons.
4) Why should private companies get involved
in socially responsible causes?
Companies are made of people. If there is no moral or ethical
principles that can convince its management team the motivations
to give back to society part of its profit should come from
the market and consumer trend to recognise the importance
of this matters in the decision making process.
The company gains a positive reputation among its clients,
suppliers, employees and community. Consequently gain market
value for its shareholders and investors, creating a "reputation
credit" for bad times when vulnerability can influence
image and sales.
5) What does "triple bottom line"
mean?
TBL is the diagram that represents sustainability.
It is a set of values, objectives and processes in which one
should focus to add economic, social and environment value
to a project in order to maximise positive results to all
stakeholders involved.
Understanding that society depends on the economy and the
economy depends on the environment and so on, should be the
"bottom line" for any process.
6) What will companies gain by being socially
responsible?
The sense of respect and belonging to the community should
be enough for one to contribute to social development.
However some measurable results can be listed:
- Operational cost reduction;
- Reputation and image gain;
- Increased market share and consumer loyalty;
- Better chances to attract and retain talented employees;
- Healthier relationship with suppliers;
- Public recognition.
If well communicated through responsible marketing the company
can also benefit from a general perception of the corporate
citizenship status, which can safeguard the institutional brand
and reputation for good or bad times.
Last but not least, research has shown us that in the long run,
companies with a high ethical standard and with a social responsible
commitment are also the most profitable ones.
7) Why should consumers care if a company
is socially responsible or not?
Mainly because consumers are also feeling responsible for
the society and the environment. There has been a growing
demand for responsible products, services and therefore for
responsible organizations. The society is changing its values
and expectations as well as requests for greater corporate
transparency, transforming business opportunities into risks.
Risks of not being perceived as socially responsible, risks
of producing a net negative effect and risks of losing market
share.
Consumers are finally becoming aware that the commercial relationship
in many cases is not just a simple trade-off between two extremes.
There has to be a general commitment towards a better quality
of life on the planet. Consumers want to take their part in
this commitment by obligating companies to worry about their
profit without leaving the society and the environment with
a loss.
8) What is the difference between corporate social responsibility
and philanthropy?
Corporate social responsibility is about business decisionmaking
linked to ethical values, compliance with legal and regulatory
requirements, and an appreciation and respect for people,
communities, and the environment. Unlike charitable giving
or philanthropy, which is donating or giving resources to
particular causes for particular purposes, corporate social
responsibility is an integrated approach to business operations.
It is a way to structure business - a context - led by management
that is comprehensive and fundamental to business strategy
and to developing relations with key corporate stakeholders.
(by Adam Segall)
9) What is Responsible Marketing?
Responsible marketing is an ethical approach towards communication.
It is the creation of marketing strategies not as cosmetic
solutions but as fundamental for a successful authentic case,
especially when it comes to social and environmental projects.
It is to think like a responsible consumer and assume the
citizenship status, respecting resources and objectives but
overall respecting the community.
It is to guide decisions through moral and ethical principles.
It is to understand the roots of diversity and design strategies
with common sense and consider all different audiences for
what they are.
It is also to understand that communication means increasing
awareness and therefore the communication process should generate
positive results that can contribute for a better client image
and reputation.
10) What is Social Environmental Marketing
(SEM)?
This concept has being defined as the sustainability process
is developing.
We are building the concept assuming that this form of marketing
will comply with the sustainability principles, that is, aiming
positive results for economic, social and environmental matters.
SEM strategies are usually developed for social or environmental
projects and, even thought it might be a simple concept, its
fundaments are based on the Responsible Marketing.
11) What does "stakeholders" mean?
Stakeholders are the different audiences that can affect or
are affected by a company's operation, such as employees,
local community, consumers, NGOs, investors, Government and
suppliers.
12) What is eco-efficiency?
According to WBCSD
(World Business Council for Sustainable Development - http://www.wbcsd.com)
is a management strategy that creates more value with less
impact through delinking goods and services from the use of
nature.
13) What is the SA8000?
According to SAI
(Social Accountability International - www.sa-intl.org),
the SA8000 is "a standard for workplace conditions and
a system for independently verifying factories compliance.
It is based on the principles of international human rights
norms as delineated in International Labour Organization Conventions,
the United Nations Convention on the Rights of the Child and
the Universal Declaration of Human Rights". Around the
world, more than 156 companies (Aug/2002) were already certified.
14) What is the GRI (Global Reporting Initiative)?
"The Global Reporting Initiative was established in late 1997
with the mission of developing globally applicable guidelines
for reporting on the economic, environmental,
and social performance, initially for corporations and eventually
for any business, governmental, or non-governmental organisation
(NGO). Convened by the Coalition for Environmentally Responsible
Economies (CERES) in partnership with the United Nations Environment
Programme (UNEP), the GRI incorporates the active participation
of corporations, NGOs, accountancy organisations, business
associations, and other stakeholders from around the world".
- GRI
(www.globalreporting.org)
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