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Promoting and Activating Corporate Social Responsibility: The Role of the Government

Promoting and Activating Corporate Social Responsibility: The Role of the Government. Dr. Sherifa Fouad Sherif. Definition of CSR.

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Promoting and Activating Corporate Social Responsibility: The Role of the Government

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  1. Promoting and Activating Corporate Social Responsibility:The Role of the Government Dr. Sherifa Fouad Sherif

  2. Definition of CSR • Corporate Social Responsibility (CSR) is the commitment of business to contribute to sustainable economic development, working with employees, their families, the local community and society at large to improve quality of life, in ways that are both good for business and good for development. • (The World Bank)

  3. CSR Pyramid

  4. The Different Names of CSR • Evolving over the years and being an integral part of how businesses around the world operate, Corporate Social Responsibility has been synonymous to: • ضمير الشركات Corporate Conscience • المواطنة فى الشركات Corporate Citizenship • الشركات ذات المسئولية Responsible Business • الادارة المسئولة Responsible Management • الشركات المستدامة Sustainable Business • التوجه الطوعى للشركات Corporate Philanthropy

  5. Benefits of CSR • The main benefits that may be achieved if CSR is implemented: • Competitive advantage for the company • Better reputation for the company • Ability to attract and retain workers, customers, clients • Maintenance of employees’ morale, commitment and productivity • View of investors, owners, donors, sponsors and the financial community • Better relationship with companies, governments, the media, suppliers, peers, customers and the community in which it operates.

  6. Stakeholders • Stakeholder-any person or organization who can be positively or negatively impacted by the actions an organization. • The primary stakeholders are its investors, employees, customers and suppliers, community, government and trade associations. 

  7. Stakeholder Management • Supports an organization's strategic objectives by interpreting and influencing both the external and internal environments and by creating positive relationships with stakeholder through the appropriate management of their expectations and agreed objectives. • Stakeholder management is a process and control that must be planned and guided by underlying principles.

  8. Stakeholder Management • Stakeholder management within businesses, organizations prepares a strategy utilizing information (or intelligence) gathered during the following common processes: • Stakeholder Analysis: Acknowledges the needs, concerns, wants. • Stakeholder Matrix: Positions stakeholders according to the level of influence, impact.  • Stakeholder Engagement: Engagement is the opportunity to discuss and agree on expectations.

  9. The Changing Role of Governments • The changing role of the governments has been a topic researched by many over the years. • Governments should join other stakeholders in assuming a relevant role as drivers of CSR. • Governments are working together with intergovernmental organizations in the field of CSR. • Governments are recognizing that public policies are key in encouraging a greater sense of CSR.

  10. Intergovernmental Organizations • Intergovernmental Organizations also known as IGO’s • Provide relief and developmental aid • Primary purpose is to foster community based organizations within each country via different projects and operations • Influence policy makers • Promote awareness of certain issues • The term includes: • International Nongovernmental Organizations • International non-profit organizations • Multinational Corporations

  11. Intergovernmental Organizations • IGO’s have various goals and scopes • Mutual interests and unified aims • In some cases negotiates to resolve disputes • Promoting international cooperation on matters such as: • Environmental protection • Human rights • Humanitarian aid • Social Development (education and healthcare) • Economic Development

  12. Examples of IGO’s • Worldwide /global organizations: • United Nations with its specialized agencies • International Labor Organization • World Trade Organization (WTO) • International Monetary Fund (IMF) • OPEC • Carnegie • Ford Foundation • CARE International

  13. Promoting CSR by Governments • Governments worldwide have adopted strategies and roles to promote CSR. • The integration of new partnerships that governments establish in the CSR area with the private sector and social organizations. • Governments are focusing on MSME’s(Micro, Small, Medium Enterprises).

  14. Win-Win Situation • Governments are incorporating a common statement and discourse on CSR, working in partnership with the private and social sectors. • For governments, CSR implies the need to manage a complex set of relationships in order to develop a win–win situation between business and social organizations.

  15. Re-Inventing Roles • The role of government and private sector has been changing over the years. • The increase of societal problems has led the government and private sector to re-invent themselves. • There is continuing commitment by businesses to behave ethically and contribute to sustainable economic development while improving the quality of life. • The government working together with the private sector is the key to the success of Corporate Social Responsibility in Egypt.

  16. CSR and the Government • Although there is broad consensus that corporate social responsibility (CSR) has a business-driven approach and that the main focus of CSR development is the business sector. • Attention must also be paid to the development and application of CSR within the framework of other stakeholders, such as governments.

  17. Governments and CSR • Governments have joined other stakeholders in assuming a role as drivers of CSR. • Governmental initiatives converged (united) with the actions of different international organizations such as the UN Global Compact and the European Commission. • Both promoting and endorsing CSR. • Recognizing that the role of public administration and public policy initiatives were key in encouraging a greater sense of CSR.

  18. Legal Framework • Governments provide the legal framework and the services needed for a market economy to operate effectively. • Governments establish the governing relationships of businesses, resource suppliers and consumers. • Governments seek out foul play and exercise authority in imposing the appropriate penalties.

  19. Collaboration • CSR is seen as a useful framework within which new ways of collaborating between corporations, governments and civil society can be found, creating innovative mechanisms for governance. • The demand for societal governance to cope with the social challenges such as unemployment, poverty and social restructuring.

  20. Sustainable Development and CSR • One of the most important elements of CSR is the link between CSR and sustainable development. • CSR has been described as the business contribution to sustainable development. • Governments have an opportunity and the responsibility to assume a leadership role in creating a more sustainable environment in which sustainable business can thrive, building conditions that promote sustainability.

  21. The New Role of the State • The state is searching for a new role, which means a new allocation of tasks and responsibilities between state and society. • The existence of complex social challenges requires society to take on its corresponding part of responsibility. • The relationship between public and private spheres, between state and society, and between the private sector and civil society, at the level of co-responsibility.

  22. Governments Role • Governments have an important role to play in defining clear policy frameworks of action to influence and encourage other organizations (businesses and different levels of government). • Governments should also be consistent in their policies, both in their own practice and through promoting an advanced CSR agenda internationally.

  23. What Governments Should Do: • Governments can act as brokers between sectors, working both on the supply side of CSR (companies, consultants) and on its demand side (citizens, consumers, investors, stakeholder groups). • Governments should reward good practice, e.g. by supporting social enterprises whose activities benefit the community.

  24. Action Plan for the Egyptian Government • Enhancing the visibility of CSR and disseminating good practices, enterprises and stakeholders to make commitments and jointly monitor progress. • Launching of a public debate on the role and potential of enterprises, and organizing surveys on citizen trust in businesses. • Enhancing market reward for CSR: promoting market reward for responsible business conduct. • Nationwide Corporate Responsibility Index • Improving disclosure of social and environmental information. (transparency)

  25. Action Plan for CSR • Coordination between the ministries involved. • Further integrating CSR into education, training and research. • Providing further support for education and training in the field of CSR, and explore opportunities for funding more research. • Emphasizing the importance of CSR policies. • High level of enterprise awareness supported by effective public policies to promote CSR. • Advise companies of Egypt’s CSR expectations. • Engage other governments.

  26. Action Plan for CSR • Government should promote and reinforce national multi-stakeholder dialogue on CSR. • The Egyptian government should encourage enterprises to base their approach to corporate social responsibility on internationally recognized CSR guidelines and principles. • Especially in the case for larger enterprises and for enterprises seeking to adopt a more international approach to CSR.

  27. Examples • Norway, the Ministry of the Environment is introducing CSR elements into its sustainability agenda. With respect to the institutionalization of CSR within governmental structure. (mainstreaming) • The United Kingdom was the first government to have a CSR Minister, sending out a strong message that the UK government was taking CSR seriously.

  28. Principles and Guidelines for CSR • Five instruments together make up an evolving and increasingly coherent global framework for CSR: • OECD Guidelines for Multinational Enterprises • The 10 principles of the United Nations Global Compact • ISO 26000 Guidance Standard on Social Responsibility • United Nations Guiding Principles on Business and Human Rights • International Labor Organization Declaration of Principles concerning Multinational Enterprises on Social Policy

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