Development and Society
Corporate Social Responsibility
What is CSR?
CSR refers to non-binding approaches to promote responsible business
conduct in areas such as environmental protection, human rights,
labour relations and anti-corruption. Initiatives under the theme
CSR are broad ranging and include activities by individual companies
self-regulatory initiatives by industry sectors such as the chemical
industry’s Responsible Care program and the Global Mining
Initiative, multi stakeholder initiatives such as the Voluntary
Principles for Security and Human Rights and international standards
and norms endorsed and promoted by governments such as the OECD
Guidelines for Multinational Enterprises.
CSR is pursued by businesses to balance their economic, environmental
and social objectives while at the same time addressing stakeholder
expectations and enhancing shareholder value.
CSR is an integrated combination of policies, programs, education,
and practices which extend throughout a corporation’s operations
and into the communities in which they operate. CSR is often referred
to in the context of stakeholder consultation, corporate citizenship,
good governance, and sustainable development.
In the international context, corporate social responsibility refers
to how corporations engage with key stakeholders to address issues
such as:
-
adherence to ILO core labour standards by corporations and
their business partners;
-
respect for human rights;
-
protection of the local and global environment;
-
the impact of business operations on communities (e.g., through
displacement) and particular groups such as indigenous peoples;
-
reducing the negative impacts of corporations operating in
conflict zones;
-
avoiding bribery and corruption; and;
-
consumer protection.
CSR involves the observance of domestic and international laws
as a minimum and encourages respect for international principles
and standards. Companies implement CSR by putting in place internal
management systems that promote stakeholder relations, transparency
and accountability.
Canadian companies recognize that a strategy for corporate responsibility
can play a valuable role not only in meeting the challenges of globalization
by mitigating risks domestically and internationally, but also in
providing benefits beyond risk management. These benefits include
a more stable socio-political-legal environment for business as
well as enhanced competitive advantage through better corporate
reputation and brand image, improved employee recruitment, retention
and motivation, improved stakeholder relations and a more secure
environment in which to operate.
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