Tag Archives: business

What’s happening in the real world?

I sometimes wonder if CSR (corporate social responsibility) is just a passing trend? The terminology/jargon has been spreading like wildfire over the last few years. Here is an article that I would like to share. I have copied and linked from the Education Post. Please visit the website for more interesting business related topics.

The rise of CSR in business education

In little over a decade, businesses have gone from seeing corporate social responsibility (CSR) programmes and environmental stewardship as, at best, desirable add-ons to regarding them as central to strategic planning.

Linda Livingstone

“Early on, this movement was probably very much driven by individuals who had a personal passion,” says Linda Livingstone, dean of the Graziadio School of Business at Pepperdine University, and vice chair of the Association to Advance Collegiate Schools of Business (AACSB) International. “Some of them created their own companies around that passion, whereas others brought it into the companies they were part of. But I think as it has developed and become more widespread, companies began to realise it can also be good for business and it can be profitable.” Some businesses are still accused of “greenwashing” – misleading PR exercises where they spend more on advertising their environmental friendliness than on actual sound practices. Such deceptions, though, are increasingly counter-productive.

Raymond Fisman

“There is a paradox here,” says Raymond Fisman, director of the social enterprise programme at Columbia Business School. “If consumers and/or employees get the sense that it is just about making more money, CSR loses its efficacy in bolstering the company’s image – and its profits.” As organisations and consumers get wiser to the benefits of genuine initiatives in this area, business schools are also recognising this development in their MBA programmes. “There was no social enterprise programme when I arrived at Columbia a dozen or so years ago,” says Fisman. “Now it is a major presence at the school. That should give you a sense of how attitudes have changed.”

Nikolai Sobolev

Nikolai Sobolev, a recent MBA graduate at Pepperdine University, focused on entrepreneurship and took the certificate in socially, ethically and environmentally responsible (SEER) business. He was already committed to social responsibility and sustainability, but wanted to lean more from the best, in this case Dr Michael Crooke, the former CEO of Patagonia who leads the university’s SEER programme. It focuses on profitability and quality products along with CSR and environmental stewardship

“I had seen CSR as stand-alone, one-off initiatives such as charitable contributions and didn’t see social or environmental initiatives as part of an overall business strategy,” Sobolev says. “Obviously, I knew about companies where a social mission is embedded in the fabric of their business, but I didn’t know that companies which build their business strategy on a foundation of corporate social responsibility can strategise better in a competitive market place.” However, integrating all these elements into an effective business plan is no simple task. “The closer you can get to the sweet spot, where these components come together, the better off you’re going to be in the long run,” Livingstone says. “But we teach students about the trade-off. For long-term sustainability, in financial terms and in other ways, you really need to think about all of those elements. We see it as an integrated strategy; you really can’t think about them independent of one another anymore.”

Since the SEER programme first began at Pepperdine, there are clear signs that student concern about concepts like environmental sustainability has grown substantially. “In the last five years or so, issues around sustainability and a global perspective have become much more important to our students,” Livingstone says. “They have really pushed us to do more within our programme. They are very proactive.” Fisman echoes those views, having noticed a major change in the way students entering MBA programmes think about “green” goals and how business can benefit society. “But there is still an awful lot of fuzzy talk about doing good in the corporate world,” Fisman says. “I really think people [want to see] companies that can show them a clear case of combining social progress with business.”

Recent changes to the AACSB’s core values and guiding principles for business programmes have added a commitment to environmental sustainability and CSR to the criteria. Currently, the association has more than 670 accredited institutions in nearly 50 countries and territories. “It is a natural progression given the trend [in the business world] in the last five years or so,” says Eileen Peacock, senior vice president and chief officer of AACSB Asia. “The Enron disaster had an impact and, following the financial crisis, we saw the major schools looking at their MBA programmes and wondering is this our fault or is it inbred in people to start with.”

Peacock Eileen

Because of business schools’ differing goals, Peacock sees the changes in eligibility standards as a background requirement rather than a demand to make specific amendments to curriculum content or policies. Though Pepperdine may in some ways be ahead of this curve, Livingstone does think changes in the AACSB standards will have an effect. “The mission in our business school is to develop value-centred business leaders and to advance responsible business practice,” she says. “So, to some extent, these standards are embedded in who we are. But I do think the standards will make us think a bit more systematically about what we are doing. No matter what we teach our students, in three to five years from now much of that will be obsolete. So passing on knowledge isn’t as important as teaching them how to think and of the need to continually learn.”JOHN BRENNAN
JUNE 7, 2013

Makeup needs a Fair Trade MAKEOVER!

makeup_CSR-sep

Week 3 of 4 – Corporate Social Responsibility Leaders

HELLOOO! Well, this is pretty sad. It was very hard to find cosmetic companies that are actually claiming to practice fair trade principles! Several companies focus on animal rights and do not test on animals (which is also  a very good thing!). But not too many cosmetic industry leaders are flexing their Fair Trade or Ethical Business mucles.

So, I guess this could be a good time to start putting a focus on the cosmetic industry to shape up their business practices. From my findings (yes, insert disclaimer here) there was only one clear winner: THE BODY SHOP

THE BODY SHOP  was awarded the Responsible Business of 2013.

  • Launched Community Fair Trade in 1987
  • 85% of The Body Shop’s product range contains Community Fair Trade ingredients.
  • Program benefits over 320,000 people
  • Spanning 21 countries worldwide.

The Body Shop has 25 Community Fair Trade supplies in the following ingredients:

  • Accessories from India
  • Aloe from Guatemala
  • Hemp from England
  • Maurula from Namibia
  • Alcohol from Ecuador
  • Brazil Nut from Peru
  • Honey from Ethiopia
  • Paper from Napal
  • Shea from Ghana
  • Tea Tree from Kenya

I know there are some up and coming skin care lines that are focusing on Environmental and Social Responsibilities practices. One of the local brands in my neighborhood is Kalahari Ancient Desert Secrets.

Obviously there are companies that are finding a niche in the ever growing popularity of Fair Trade. They are capitalizing on a market. (that’s the cynic in me talking) But that is not always for the bad.  Fair Trade marketing is creating an awareness that is good for the whole of the supply chain and the consumer. I will be looking into the checks and balances of the Fair Trade system next week in my final number for the Corporate Social Responsibility series.

Free2Work app does not even have a Cosmetics Industry. Download the app and activate the request for evaluation. Happy Friday!

Follow the Leaders in Fashion and Fair Trade!

Fair Trade Fashion zara timberland eileen fisher

Week 2 of 4 – Corporate Social Responsibility Leaders

Times are changing! Isn’t this exciting? Leaders in the fashion industry are beginning to make changes in the way they do business. These three brands are leaders in fashion and in Fair Trade as well.

Eileen Fisher(B+) Zara (A-) and Timberland(A-) have received a rating of at least a B+ by the Free2Work organization.

Apparel industry leaders are quickly adapting to the call of the consumer for ethical business practices and are making changes in the purchasing of cotton and labor practices. Here are how the companies are ranked for Fair Trade:

  • Code of Conduct & Written Policies: Evaluated by a brands code of conduct, its sourcing and subcontracting policies, and its involvement with other organizations working to combat child labor and forced labor.
  • Transparency and Traceability: How the brand understands its own supply chain and whether it discloses critical information to the public regarding child and forced labor.
  • Monitoring & Training: The adequacy of the brand’s monitoring program to address child and forced labor.
  • Worker Empowerment & Remediation: Assess the degree to which the band provides workers with core labor protections and rights such as freedom of association and living wage. Also how a brand is prepared to respond to reported abuses.

*Research relies on publicly available information and company sources of information.

This description was found on the Free2work.org app that is available for smartphones.

Download and do some fun smart and responsible shopping. Happy Friday!