Arisa Tagawa
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Corporate Social Responsibility for environmental needs Arisa Tagawa
With increasing mobility of capital, openness to investment and free trade,
corporations today are facing economic challenges that they have never experienced before. Technological change, in particular, the use of electronic media has facilitated international businesses to achieve efficiency and better quality products and services. This has resulted in a never-ending scale of global competition within and between nations. In the globalizing world today, people are becoming conscious and beginning to evaluate the impact that business activities cause to the environment, to consumers, employees, communities and other related actors. Corporations must avoid practices that advance harm to the public and the environment regardless of legality. The image and reputation of a company is the key to growth and long term success in the competitive world of business. Corporations must consider their social responsibilities within civil society and act on them as part of their core business strategy. However, since this is voluntary and because corporations constantly encounter new challenges that impose limits to their goals, this is not an easy task. Corporations must work with public sector organizations that take into action corporate social responsibility (CSR). The first problem we face today is the fact that awareness of CSR issues is limited due to lack of knowledge and recognition by the public. CSR is still unstable as a business strategy because many corporations lack a clearly defined professional team or program for effective functioning. In addition, corporations have different value systems and perspectives on various issues and there are also disparities in opinion among employees and the public. It is questionable whether employees working for corporations have an accurate understanding of the gravity of the negative impacts that their companies are causing to the local community and the environment. Hence, there is often a mismatch between demand and supply; the corporation may have a narrow interest in comparison to the public. In order to resolve the above issues, corporations can create a team that places focus on CSR issues and begin by studying the types of public sector organizations that
Arisa Tagawa
exist. They can seek for the appropriate organization with specific targets that match their goals and work with them for mutual benefit. If a corporation receives a convincing proposal from the public sector, the corporation will evaluate the organization and will provide if necessary, financial opportunities. The public will recognize the corporation as a supporter for the public sector, which conducts society-friendly activities. In this way, the corporation will gain a better reputation and the public sector will be able to draw attention to their goals and achievements. Secondly, in order to effectively execute CSR, corporations must establish an efficient communication process through which the corporation and the public can agree to a set of shared objectives and ways of achieving them. This will require employees to work with those who are familiar with the local needs, language, society and culture. Through communication, the corporation and the public will be able to peacefully exist together and will result in mutual benefit. There is a need for respect between the two sectors; the corporation must fulfill the interest of the public, while the public must respond to the corporation by purchasing their products and services. Third, employees can learn about the different values held by employees working for different corporations and within their own company by participating in local events and interacting with the local people in the local environment. In this way, workers will come in contact with people of various backgrounds and gain a broader and tolerant understanding of societal issues. This will raise the chance that workers will become aware of their company's CSR from the perspective of the local community. Many corporations have the ability to think globally but the fact is, they must begin by acting locally. Employee engagement in the local community will make values for CSR more meaningful and productive for the workers and the corporation as a whole. "In China, with the recent shift toward greater decentralization, the government has become increasingly aware of, and more receptive to, the creation of new relationships between the corporate sector, the nongovernmental sector, and local communities." (Corporate-NGO partnership in Asia Pacific p.35) The Glorious Cause based in China is a successful partnership that works towards poverty alleviation. It has
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won the appreciation and respect of the government by acting as a bridge between wealthy businesses and those who lagged behind. The Glorious Cause is one example of an organization that has assisted corporations to build on their social responsibilities to the community and society. A second major problem we face today is the fact that waste released into the atmosphere from factories in the process of production and from products designed by corporations while in use by customers have accumulated and are causing negative environmental impacts to society. Lack of consideration for the environment by corporations has resulted in continued emissions of waste gasses such as carbon dioxide into the atmosphere. These emissions have caused the earth's mean temperature to rise and we are currently experiencing global warming. This has lead to problems such as rise in sea levels, loss of habitats, threats to agriculture, desertification, acid rain, and damage to nature, public health and food chains. Environmental change involves our entire society since the effects are spreading in a global scale. What corporations must do is to place more emphasis on conservation, improving durability, reusing and recycling of products. Factories and power plants that produce waste gases are responsible for actively reducing their emissions. Corporations need to consider the effects their products have on the environment, design products that are environmentally friendly and consistently label their energy consumption for customer awareness. Research needs to be conducted on the creation of products that would use minimum amounts of natural resources when they are manufactured. Moreover, products that produce the least amount of waste when it becomes unneeded are equally necessary. An ideal product that is environmentally friendly would be made of resources that would not cause harm to the environment and would return to nature after a period of time. Critics argue that CSR distracts businesses from their fundamental role to be productive and profitable. CSR issues place corporations under pressure from two conflicting sides: the pressure to gain profit, and the viability of non-economic social values. Companies fear that they will lose in business if they spend money and time on research that must take into consideration such social values. However, consumers have
Rethinking of Corporate Social Responsibility (CSR) and Social Entrepreneurship
Arisa Tagawa
started choosing products and services provided by corporations that are environmentally friendly. Due to the changing demands of society in a world of globalization, there is a need for corporations to become more responsive. Corporations have no choice but to consider environmental issues for surviving business competition. When Toyota first began making hybrid cars, they were making deficits for every car they sold. They were aware that they were under the risk of making tremendous economic losses from even before they began production. Nevertheless, Toyota executed the manufacture of these hybrid cars that efficiently generate energy using a combination of both gasoline and an electrical system made up of a motor, generator and battery. Hybrid cars are environmentally friendly since they cause less air pollution and consume less gasoline than normal automobiles. It makes efficient use of natural resources while simultaneously decreasing the impacts on the society's environment. Furthermore, hybrid cars provide other advantages for customers to sustaining the environment. For example, they can be driven smoothly and quietly because electric motors do not make as much noise as fuel when they generate energy. Toyota had predicted that the world would become more environmentally conscious and that generating energy while conserving natural resources would be worthy of business. As a result, Toyota has not only overcome their losses but producing hybrid cars have also benefited the industry’s reputation as a whole. Consequently, companies ought to take action or support organizations that are conducting research for the creation of new forms of environmentally friendly energy. Preserving forests and focusing on reforestation, is the first step that corporations can take to reduce the effects of global warming. Forests are diminishing in many parts of the world and the reduction of trees is one of the many factors that are causing the accumulation of carbon dioxide in the atmosphere. It is estimated that approximately 20% of the world’s original forest has been lost. If humans continue to cut down trees at the same pace without planting new ones, there will come a time when we will run out of them.
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Businesses that own factories should make use of alternative ecologically friendly ways of generating electricity. For example, wind and solar power conserves energy by avoiding the use of natural resources: coal, oil and gas. Corporations can attach solar panels to their factories to generate electricity. Moreover, a system that transfers the excess electricity from factories to neighboring homes and facilities will save the cost to deliver electricity through long distances and will benefit the people living close by. There are still many undeveloped methods of generating alternative energy that reduces pollution and prevents damage to the environment. Geothermal energy from underground reservoirs and even the use of magma 10km below the earth’s surface is a possible energy source. Heat from the magma that is over 1000 degrees centigrade can be used to transform water into vapor. This water vapor can turn steam turbines to produce electricity, which can then be generated and distributed extensively for heating and cooling buildings. Tidal energy that converts the rise and fall of seashores is a possible source of energy. The action of waves force airflow into a turbine and these turbines drive generators to produce nonpolluting and renewable energy. Yet, these methods are not widely used nor known and they have potential for future electricity generation. Tides are much more predictable in comparison to wind and solar power. Hence, corporations should provide funding for research on new technological progress in the nonpolluting energy resource. The impact of these environmental changes on society depends on how promptly we can adapt to the earth’s transformations by finding new sources and ways of generating energy. As the awareness for social responsibility is spreading worldwide, corporations must reconsider CSR issues for the environment and provide full support for organizations that work towards such goals. In order to sustain and prevent further damage to the environment, initiative and cooperation from organizations is in desperate need. Finding new ways of developing energy is a challenge that is costly and time consuming. Until very recently, the United States strongly believed that using technology that saves energy and reduces emissions of greenhouse gasses would be costly and that it would cause damage to their economy. However, withdrawing from the attempt to conserve energy will result in stepping down from becoming a leading
Rethinking of Corporate Social Responsibility (CSR) and Social Entrepreneurship
Arisa Tagawa
role in the energy saving technology. Today, there are organizations that promote CSR and provide standards for corporations to adopt sustainable and socially responsible policies for their activities. The United Nations Global Compact states ten principles that businesses can follow and voluntarily report in the format of a Communication on Progress. Corporations must remain broad-minded to present CSR because it concerns the people and society of today. In addition to the development of new energy sources, a possible entrepreneurial activity that has demand for new business is the preservation of water, another precious natural resource. I believe that not only corporations but also in the national, organizational and individual level, developed or developing countries need to engage holistically in corporate social responsibility.
Bibliography Schoenbaum, Thomas International Relations- the path not taken (p. 196-249) Cambridge University Press (2006) Toyota How Hybrid Vehicles Work- Gas and electric combine for incredible mileage http://www.toyota.com/about/environment/technology/2005/hybridwork.html (Sep. 2005) Yamamoto, Tadashi & Ashizawa Kim Corporate-NGO Partnership in Asia Pacific Brookings Institution Press (1999)
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"Just good business." Economist 386.8563 (19 Jan. 2008): 3-6. MasterFILE Premier. EBSCO. Central Library, Marietta, GA. 3 Apr. 2009 <http://proxygsucob1.galileo.usg.edu/login?url=http://search.ebscohost.com.proxygsucob1.galileo.usg.edu/login.aspx?direct=true&db=f5h&AN=28548161&site=ehostlive>. "The next question." Economist 386.8563 (19 Jan. 2008): 8-10. MasterFILE Premier. EBSCO. Central Library, Marietta, GA. 3 Apr. 2009 <http://proxygsucob1.galileo.usg.edu/login?url=http://search.ebscohost.com.proxygsucob1.galileo.usg.edu/login.aspx?direct=true&db=f5h&AN=28548164&site=ehostlive>. "Do it right." Economist 386.8563 (19 Jan. 2008): 22-24. MasterFILE Premier. EBSCO. Central Library, Marietta, GA. 3 Apr. 2009 <http://proxygsucob1.galileo.usg.edu/login?url=http://search.ebscohost.com.proxygsucob1.galileo.usg.edu/login.aspx?direct=true&db=f5h&AN=28548168&site=ehostlive>. "Saving the world." Economist 390.8622 (14 Mar. 2009): 19-19. MasterFILE Premier. EBSCO. Central Library, Marietta, GA. 3 Apr. 2009 <http://proxygsucob1.galileo.usg.edu/login?url=http://search.ebscohost.com.proxygsucob1.galileo.usg.edu/login.aspx?direct=true&db=f5h&AN=36905718&site=ehostlive>. "Corporate Social Responsibility: An Overview." San Diego Business Journal 29.46 (17 Nov. 2008): 7-7. MasterFILE Premier. EBSCO. Central Library, Marietta, GA. 3 Apr. 2009 <http://proxygsucob1.galileo.usg.edu/login?url=http://search.ebscohost.com.proxygsucob1.galileo.usg.edu/login.aspx?direct=true&db=f5h&AN=35693378&site=ehostlive> "Dell - Dell Powers Oklahoma City Campus with 100 Percent Green Energy; Plans to Reduce Global Absolute Greenhouse Gas Emissions Additional 40 Percent By 2015." 03 Apr. 2009 <http://content.dell.com/us/en/corp/d/press-releases/2009-02-24-09Oklahoma-Green-Energy.aspx?c=us&l=en&s=corp&redirect=1>. "Mac mini - Environment - The worldâ&#x20AC;&#x2122;s most energy-efficient desktop computer." Apple. 03 Apr. 2009 <http://www.apple.com/macmini/environment.html>. "New recruits who defer start dates urged to work pro bon." The Law Gazette. 03 Apr. 2009 <http://www.lawgazette.co.uk/news/new-recruits-who-defer-start-datesurged-work-pro-bono>.
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Rethinking of Corporate Social Responsibility (CSR) and Social Entrepreneurship
Arisa Tagawa
Global Initiatives Symposium in Taiwan 2009