Tay Chen
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Subtopic 1: Rethinking of Corporate Social Responsibility (CSR) and Social Entrepreneurship
Tay Chen
The growing consciousness of the corporation responsibility which has emerged from just “business as usual” in the manner of economist Milton Friedman to the Bowen’s definition of “social responsibilities of business” as the obligation of business to operate their activities in line with the values of society. This might be an impact of the globalization resulting from the declining role of sovereign state and the growing importance of the non-state actors such as United Nation that push for corporate social responsibility and social entrepreneurship. The mainstream of corporate social responsibility can be categorized in two sectors. The “inward looking” is to ensure the welfare and safety of its employees and the “outward looking” would be to entail co-operating with government, non- state actors in order to tackling the problems underlie the society which included the environment problem, human rights and etc. These components are well interpreted by the “World Business Council” that corporate social responsibility as 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 local community and society at large. The rapid growing of population and demand for economic production has given a great opportunity for all the business and at the same time resulted in the severe destruction of the ecosystem. Global warming, climate change, are greatly concern problems as it is too big to lose. In this case, I would like to bring in a CSR theoretical framework shown in figure 1 below taken from Julie Fischer. She made the relational analyses starts with “ business and society” exemplified through the standard circular economic of production and distribution of goods and services. Since the “business and society ” has diversified interests within its own profit perspective, the state is harmonizing mechanism in the relations, hence the triad of “ state – society –business”. On a deeper analyses with the non state actors relations could be multi channeled as “non- state and state” to focus the decentralization of governance and development to local governments. Figure 1 – “Business-Society-State and Non-state” Framework for Corporate Social Responsibility
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Tay Chen
From the above theoretical framework, I would like to draw a conclusion that it is indeed a necessity that all sectors must undertake co-operative efforts in order to provide the responsibility to the society. Without any of the main component, it would just like clapping with one hand. Now there comes the problem. We know that it has been a growing number of corporations giving concern in CSR. However, it is indeed a disappointment when you read the article that stating Nike’s corporate social responsibility efforts falling short. Nike has taken in CSR in order to improve the conditions in their supply chain and try to reduce the environment impact of their product. The company has appointed a well respected senior person in the organization to lead this effort and give her a team of 135 people around the world. Hence, Nike has taken a leading role and they have been very public about their commitment to change. This shown clearly that they are really determined to make their goals successfully! However, conditions in Nike factories haven’t improved significantly and some workplace condition is even worse. If it is so hard for a corporation such as Nike , then it might be a really hard issue for others smaller corporation . Company may just made their commitment for CSR but ends up they did nothing! Moreover, another problem that underlying on this issue is the role playing by state. Refer to what I said on the above theoretical framework, all of the major components must put effort together. It is really sad to talk about that the environment problems are still not dealt within all the states. The United nation report has shown that if the global climate change keep worsening, then some of the island like Indonesia, Bali will be flooded due to the effect of melting polar ice and imagine how much people is going to sacrifice. Corporations are over-exploiting the natural resources for their own benefits。According to the The US as the world largest emission of greenhouse gases in the world but rejected to sign the Kyoto Protocol, an international environment treaty produced at United Nations aimed to reduce the greenhouse gases. You can feel the terribly heat now or read the news about the unusual climate change everywhere. Do not just blame the corporations for just pouring the carbon dioxide into the atmosphere while at the same time the CEO is sitting on the chair and counting the big fat profit. Blame for the Bush presidency because he refused to
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sign the treaty, and he has a very simple and clear reason, the sign on the treaty will cut down the country GDP and hence giving a negative impact to the economy, what a great excuse! Since the leadership of the country is not prepared to give effort then how do we expect the corporations to do it?
The worst part of the Bush presidency is the decline of civic duty we have seen over the past eight years and it is time to change! A new generation of change-makers is ready to inherit American spirit of social entrepreneurship, and Barack Obama is the man to lead us. President Obama has a strong stands on creating a new generation of entrepreneurial leaders whose innovations and social enterprises address our world’s major unmet needs. The social entrepreneurship attitude can be taught and it should starts from the public school system. President Obama has been servicing in the community which put the social welfare as their main objectives and hence he knows that what should do in order to provide the opportunities for the teens. His central platform in the campaign is to provide $4000 tuition credit every student, every year, but in exchange for giving something back from students. This gives them the opportunity to serve and the same time pay for their college education. When all of this generation has been educated, then it will be much more easier to take care into the corporate social responsibilities and a greater chance to encourage for more social entrepreneurship. Other countries should take the same action on education as well. Education has always been the most important source in solving problems. In addressing this issue, the accountability of codes and monitoring to workers and communities is also the key. Hence, the non-profit organization play an important role on monitoring the corporations. It is always the United Nations as the leading organization on tackling issues such as human rights, environment, labours and so on. I believe that if they putting more effort and at the same time with the policy of President Obama, there will be a great improvement in the corporate social responsibility. Although the whole world are facing the severe economic downturn due to the US sub-prime crises, major banks in US faced bankruptcy, most of the countries have a negative economic growth. Banks are scared to lend out the money, consumers are reluctant to spent, major companies are cutting down their expenses , unemployment rate is at a scary high level which all seems like a bad situation for CSR. However, Willy Foote, the founder of Root Capital, which provides loans to rural business n Latin America, Africa, and Asia said that the Wall Street meltdown provides a chance to think about how we transition from a financial system that is complex, opaque and anonymous to one that is direct and transparent. A crisis is always a chance to re-evaluate, the collapse of the unhealthy financial system is maybe a time for the growth of the new system that taking care of all the people but not just the big fat cats at wall street. We are still in an early stage of the journey and there is still a long way to go, and it is especially during this hard time when most of the countries facing recession and CSR is easily appeared in the drop off list of corporations. Perhaps corporations think seriously about their future , they might see a silver lining during this economic downturn. If AIG is able to give out millions of dividends even though it is the corporation to receive the US government largest bailout, then what else is impossible ?
Rethinking of Corporate Social Responsibility (CSR) and Social Entrepreneurship
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Tay Chen
Global Initiatives Symposium in Taiwan 2009