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President Bush has argued that there is “no capitalism without conscience.” He and other policymakers have developed an array of public policies to promote corporate responsibility. But these officials define corporate responsibility too narrowly. In a new book released today by the National Policy Association (NPA), Susan Ariel Aaronson and James T. Reeves argue that corporate responsibility is not just about ethical behavior and accounting practices, it is also about how companies act towards their stakeholders as well as their shareholders. ... lees meer

This week the heads of state of over 150 countries will be attending the Johannesburg Earth Summit, to discuss global progress on the implementation of sustainable development – development which “meets the needs of the present without jeopardising the abilities of future generations to meet their own needs”. The Corporation of London takes sustainable development very seriously, which is why we have spearheaded the UK’s financial services sector response to this summit on behalf of the Government. The Prime Minister will officially launch the results of this work, known as the London Principles Project, during his address to the Earth Summit on Monday 2 September. What is the London Principles Project? The London Principles Project examines the role of the UK financial services sector in promoting sustainable development, compiles a compendium of best practice, draws out of this experience lessons for future innovation and puts in place mechanisms to ensure continual progress. With respect to the last point, one of the mechanisms we have explored is the set of seven London Principles, which propose conditions under which financial market mechanisms can best promote the financing of sustainable development. ... lees meer

Amidst increasing worldwide calls for improved corporate accountability, the Global Reporting Initiative (GRI) released today a new set of public reporting guidelines to help companies and other organisations disclose performance beyond the financial bottom line. The 2002 Sustainability Reporting Guidelines provide the framework by which organisations can measure and report progress on their contributions to sustainable development. ... lees meer

Corporate Social Responsibility (CSR) is a process that has been driven by globalization, deregulation and privatisation. For Trans National Corporations (TNCs) it is an outcome of public pressure arising from their operations in developing countries in relation to human rights, environmental pollution and labour issues. CSR is now being discussed and debated in the public policy sphere – the UK has a Minister for Corporate Social Responsibility. To date, CSR has been a Northern phenomenon in terms of its language and strategy. However, according to a UNIDO study expected later this month, entitled Corporate Social Responsibility: Implications for Small and Medium Enterprises in Developing Countries, “there is an abundance of evidence that -silent’ CSR is thriving in developing countries, albeit under a different name and with a different approach. There are some concerns that CSR has not focused enough on addressing issues of poverty, but the emergence of new partnerships with aid agencies, the UN and NGOs offers the opportunity to refocus that approach. In particular the role of business associations, both mainstream and those from the CSR movement, have an important part to play in creating a multiplier effect. ... lees meer

PricewaterhouseCoopers surveyed senior executives and managers of 140 large US-based companies to determine their attitudes and approaches towards sustainability — a new standard of corporate performance that moves beyond evaluation of short-term business goals to evaluation of long-term social, economic, and environmental impacts of corporate activity. The goal was to provide insight into the US business community’s understanding and development of sustainability business practice. Respondents represented a broad range of industries including chemicals, utilities, electronics, technology, manufacturing, consumer products, and paper and packaging. ... lees meer

Research* launched today shows that business leaders are not taking steps to reduce their environmental impact. The research, by Trucost, also reveals that 50% of business leaders think they spend too much time completing environmental questionnaires. Suppliers are on the environmental radar for the first time. 79% percent believe they should measure the environmental impact of their suppliers, although only 32% would change suppliers who were found to be damaging the environment. Simon Thomas, chairman, Trucost says: “Environmental disclosure is becoming increasingly important. Our survey found that only half of business leaders are aware of the environmental reporting clause in the government’s Modernising Company Law White Paper. This clause is expected to compel at least the 1,000 largest UK companies to report on their environmental performance. Thomas concludes: “Margaret Beckett, Secretary of State, DEFRA, emphasised the importance of these proposed changes in a recent speech outlining the UK government’s position in advance of the World Summit on Sustainable Development being held later this month in Johannesburg. Organisations are now under pressure from NGOs to demonstrate that they are measuring environmental impact of the whole supply chain and taking action, not just demonstrating a commitment to environmental policies at head office.” The Trucost Environmental System, which launches in August, is the first rating tool to measure the environmental performance of an entire organisation, including that of its supply chain. It represents the total environmental performance of an organisation as a single percentage figure, that is comparable across industry sectors. 67% of business leaders believe this will be commercially beneficial. For the first time, companies will be able to benchmark their environmental performance against peers and competitors. As total performance becomes transparent to all stakeholders, this could prove to be the much-needed driver for improvements. ... lees meer

As companies get more sophisticated about corporate social responsibility, they are forging new ground in their efforts to establish effective CSR structures that support their efforts. There is growing demand for information, company examples and advice about what works and what doesn’t in setting up a CSR structure. Board members, executive management and staff at all levels are interested in knowing more about the process of deciding what CSR structure is right for their companies and in looking at specific issues such as buy-in, alignment, staffing, outside expertise and resource allocation. BSR’s new report, Designing a CSR Structure, walks through the steps necessary for a company to consider and set up an internal management system aimed at integrating CSR into the entire company’s organization and culture. ... lees meer

Global warming, the status of world communities, even support of terrorism can be affected by major corporations being attuned to issues of corporate social responsibility, but few companies are devoting more money or resources to the issue, according to a recent survey of Fortune 1000 CEOs. The survey of 264 Fortune 1000 CEOs, conducted by Jericho Communications, a public relations agency that works with many of the world’s top brands, found that 36 percent of respondents said their company is more conscious of corporate social responsibility since September 11, 2001. Despite this raised consciousness, however, only 12 percent of respondents said they are allocating more resources to CSR issues, while 9 percent said they are spending more money on CSR. ... lees meer