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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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