law533-chapter-1
.docx
keyboard_arrow_up
School
Toronto Metropolitan University *
*We aren’t endorsed by this school
Course
533
Subject
Law
Date
Jan 9, 2024
Type
docx
Pages
13
Uploaded by AgentRhinocerosPerson991
LAW533 – Corporate Social Responsibility and the Law
Week One – Chapter One
ISO 26000 SR Definition:
•
ISO:
International Organization for Standardization.
o
ISO is the Greek word meaning ‘same.’
o
ISO is an international organization that creates rules (not laws) called standards. ISO is an
international body that brings together businesses, governments, non- government
organizations from around the world to develop standards that assist organizations around the
world in meeting their various different objectives. This could be environmental, social, and
business objectives.
o
ISO has over 1900 different standards, and for each standard that is developed a number and
name is assigned. It makes it easy for organizations to identify what standard is being
referred.
•
SR (Social Responsibility):
The responsibility of an organization for the impacts of its
decisions and activities on society and the environment, through transparent and ethical
behaviour that:
o
Contributes to sustainable development, health and the welfare of society;
o
Takes into account the expectations of stakeholders;
o
Is in compliance with applicable law and consistent with international norms of behavior;
and
o
Is integrated throughout the organization and practiced in its relationships.
▪
After negotiations with companies, countries, non-government organization with
around the world the definition above was created.
▪
International standard organizations can use around the world, it is not a law. Therefore,
it is a voluntary standard.
▪
Voluntary standards have and address severe legal implications.
•
Example of Canadian & Non-Canadian Firm Navigating CSR Landscape:
o
The Body Shop:
Well-known brand. Interesting example of how an individual and firm.
Body Shop has decided to address CSR
▪
Anita Roddick
(deceased) is the founder of The Body Shop. When she was going into her
20’s she was interested in the environment and animal welfare. Wanted to go around the
world an observe people’s living habits. Visited communities in the Global South (Africa,
Asia, Latin America). She saw a harmonious interaction between people, animal and the
environment in comparison to the UK. For instance, she would learn from the local tribe’s
people in the rainforest how ingredients were used that were formed by plants, minerals,
and animal extractive. Particularly, how potions were created to keep themselves happy.
lOMoARcPSD|7984238
lOMoARcPSD|7984238
▪
Anita liked the connection people had with each other and the environment. When Anita
returned to the UK. She wanted to set up a cosmetics company that did not tested on
Animals like other companies in
a harmful way. Anita made a sound commitment and promise to her customer’s that she
would not test on Animals. When the first store was opened in the UK, it was advertised that
organic ingredients were being used, and were committed to no animal cruelty.
▪
The advertisement campaign resonated with a lot of women, and women thanked her, and
therefore gained customer loyalty. Anita was essentially
rewarded for her believes. However, she discovered that a lot of the ingredients sourced by
The Body Shop was soured from rainforests, the rainforests were being damaged in the
process. Anita did not want environmental harm taking place. Therefore, Anita let her
sources know that the ingredients should be harvested in a sustainable way in developing
countries. Again, she gained further customer loyalty for this behaviour.
▪
Anita discovered that women involved in her Supply Chain (the companies that were
harvesting or mixing the ingredients); the women in the developing countries were not
receiving same wages as men or fired
for being pregnant or unhealthy. Unions were not allowed to be formed, because they
would be fired or subject to threat. Anita insisted that all suppliers of Body Shop
products treat women well. Again, she gained further customer loyalty for her behaviour
in the marketplace.
▪
Marketing of Cosmetic:
Anita noticed that particular body shape, colour and size was
featured in marketing. Anita noticed that women who shopped at Body Shop were diverse,
and she wanted to celebrate this with
a reflective advertisement. Again, she gained further customer loyalty for her behaviour in
the marketplace. After the business was sold, the same ideal and principles were still met.
▪
Definition:
The decision of Body Shop concerning treatment of animal, women, and
environment; these were decision and activities that had
negative impacts on society and the environment. Therefore, Anita addressed them. Anita
was transparent in her process of engaging in ethical behaviour. Anita continued to the
ability of the environment and the world to be sustained in terms of health, welfare and the
environment.
▪
However, stakeholder expectations are not harmed. The expectations are taken into
account, but do not have to be met if unrealistic like wages.
▪
Socially responsible company must be compliant with the law, then you are not a socially
responsible company.
▪
International norm of behaviour – ISO26000 is an example. Codification of what
organizations, and governing bodies and civil society around the world came together and
agreed that organizations should do.
▪
Some people think that employees needed to treated well, and you are a socially responsible
company. Which is true, but you cannot outsource the tricky part of your business, have
them done in a socially or environmental
irresponsible way. Should be practiced in all relationships such as competitors and
government.
o
Ray Anderson (CEO of Interface Flooring):
▪
Companies with office space around the world, banks for example would interact with
Interface Flooring. Interface Flooring would supply rugs.
▪
1980:
Ray Anderson’s company was one of many companies selling rugs for commercial
purposes. Conventional Rugs were made from Petro Chemical’s. One of Ray’s customers
asked him how are you protecting the environment in the making of your rugs? Ray had
never thought of the issue but took a look at the book ‘Limits of Growth’ The book
essentially said that we are running out of natural resources to support businesses. Animals
and humans are being negatively affected by the environmental behaviour. Therefore, Ray
went to the product engineers, and asked what could be done to minimize the environmental
impact. Product designers explained that recycle and reuse could be used to decrease
environmental impact. Product engineers said it would be better to make rugs using organic
materials, and then recycling those.
▪
At first, was not practical because petrochemical is inexpensive. However, Ray had a
thought. Until that moment, if companies would want to buy rugs, they would reach out to
the supplier, and the supplier would install
the rug. If changes needed to be made, the old rugs were thrown out. Some of the rugs could
be recycled, but instead of selling rugs to various companies, he rented rugs to them? If a
company is renting a rug, an ongoing relationship has been created between supplier and
company. At the end of the rent, the rug would be returned. A constant supply would be
there to recycle, and an ongoing relationship would be present with the renting companies.
The customer would essentially get money back, if the rug was brought back, and
exchanged it for a new rented rug. Ray would not have to fight looking for new companies
as well.
▪
Companies that were being pushed to engage in CSR wanted to do business with Ray to
promote their CSR initiatives. Therefore, interface flooring became extremely
successful.
o
Loblaws/ Joe Fresh:
▪
Loblaws owns Joe Fresh. Companies in developing countries are responsible for delivering the
apparel to Joe Fresh. However, an issue rose in Bangladesh. A company in Bangladesh, located
in the Rana Plaza; the building had been
improperly constructed. Loblaws/Joe Fresh had a contract with this company. A batch of Joe
Fresh clothes were being produced, and the Rana Plaza collapsed. It killed thousands of
workers, including workers who had been making clothing for Joe Fresh.
▪
When word went around, it was discovered some of the workers were Joe Fresh contracts.
Galen Weston, CEO of Loblaws had to appear in front of the
press and apologize to the families of the workers. Galen promised he would look into it how
to avoid further occurrences and provide compensation. The company looked into how their
clothing was made and tried to adopt an approach that a Rana Plaza issue would never occur
again.
Canadian CSR Guide Definition:
•
CSR is generally understood to be the way businesses achieve an integration of
economic, environmental and social objectives while at the same time addressing
stakeholder expectations and sustaining or enhancing shareholder value.
•
Compliance with laws is a necessary minimum CSR expectation, but CSR is typically
described as voluntary, non-statutorily required social responsibility commitments.
o
Wording is different from ISO26000 standard. However, the wording is different, it is
fundamentally in complete alignment with the ISO26000 definition.
Canadian CSR Guide – CSR Subject Matters Include:
•
Workers (health/safety/union)
o
Workers are well cared for.
•
Consumer protection – obesity, privacy, safety, customer service
o
Company that has a retail focus with their products.
•
Community – worker-community conflicts, dislocation
o
People in a community are well cared for. A factory should not disrupt them.
•
Environment – air/water/land
•
Human rights – children, communities, workers
o
Are not infringing Human Rights.
•
Corruption – local officials, business partners
o
Not engaging in corrupt practices.
•
Competition/Fair Trade Practices
o
No under handed business to get an advantage over competitors, all work is legal.
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help