In international business, ethical considerations take on additional and particularly significant dimensions, partly because they do not simply involve judgments based on attitudes, opinions and perceptions prevalent within a society dominated by a single culture, but also because they are concerned with the differences in culture which exist between trading nations (Lowe, in Smith and Johnson, 1996)
Corporate social responsibility (CSR) is about how businesses align their values and behavior with the expectations and needs of stakeholders - not just customers and investors, but also employees, suppliers, communities, regulators, special interest groups and society as a whole. CSR describes a company's commitment to be accountable to its stakeholders.
Corporate Social Responsibility (CSR) is "a concept whereby companies integrate social, environmental and ethical concerns in their business operations and in their interaction with their stakeholders on a voluntary basis" (European Commission, 2001). In its Communication to re-launch the Lisbon Strategy in 2005, the Commission stated that CSR "can play a key role in contributing to sustainable development while enhancing Europe's innovative potential and competitiveness" (European Commission, 2005).
Get your grade
or your money back
using our Essay Writing Service!
CSR is the set of obligations an organization undertakes to protect and enhance the society in which it functions. The effectiveness of CSR to encourage corporate responsibility by infusing environmental, social and ethical values into day-to-day management applications, so as to sustain and enhance international business operations.
Strategic Corporate Social Responsibility is driven by the choice of a unique competitive position, which unlocks shared value, by investing in CSR issues in ways that strengthen corporate competitiveness. The more closely related a specific CSR issue is to a company's core business, the greater the opportunity to leverage the firm's resources to enhance the value chain and its social impacts. Key CSR issues include governance, environmental management, stakeholder engagement, labor standards, employee and community relations, social equity, responsible sourcing and human rights.
No organization exists in isolation. Businesses, without exception, have an obligation to contribute as well as draw from the community, on which they rely so heavily. Businesses operating in a community benefit from the infrastructure of that community (tangible, practical elements such as the roads, other transport infrastructure, the police, fire-fighters, etc) as well as more intangible benefits, such as a safe or clean environment but, in most cases, businesses also draw their most important resource, its employees, largely from the local community. Any business will be more successful if it employs a well-educated workforce that can attend good hospitals if they become sick, and who have grown up in a positive environment. This is not to mention consumers, also often members of the local community, without whom no business could survive. 'The social responsibility of business encompasses the economic, legal, ethical, and discretionary expectations that society has of organizations at a given point in time.'(Archie B. Carroll, 1979)
CSR is an important business strategy because, wherever possible, consumers want to buy products from companies they trust; suppliers want to form business partnerships with companies they can rely on; employees want to work for companies they respect; and NGOs, increasingly, want to work together with companies seeking feasible solutions and innovations in areas of common concern. Satisfying each of these stakeholder groups allows companies to maximize their commitment to another important stakeholder group-their investors, who benefit most when the needs of these other stakeholder groups are being met.
Corporate Social Responsibility (CSR) is a new name for an existing concept - that a business can serve its interests best by behaving in an ethical and socially responsible manner. Being a socially responsible corporate citizen is reassuring for customers, improves employee morale, generates stakeholder interest and may ultimately lead to increased profits.
Businesses have a responsibility to conduct their work ethically. They are responsible to their boards, employees, customers and to society as a whole. In recognition of this fact, some companies, including Amway, have developed an official Corporate Social Responsibility (CSR) strategy.
Most companies make philanthropic contributions to charities at the end of the financial year, but a CSR strategy goes much deeper than this. It defines how the company will conduct its business throughout the year. It states the values of the company, its executives, and its employees, and it sets forth a strategy to make sure that the business is living up to those values. A CSR strategy might focus on engaging and improving local communities or on supporting global causes.
Always on Time
Marked to Standard
At the same time, companies are not charities - if they were not making profits, they would not stay in business. A CSR strategy must reinforce the company's profit-making strategy. Amway's global CSR strategy is called the One by One Campaign for Children and refers to the way in which individuals can make a real difference collectively to the lives of children around the world, one by one.
Companies have CSR strategies for many reasons. Some companies are owned/ operated by individuals who have strong principles and want their businesses to reflect that. A CSR strategy can also have a positive effect directly on the local communities where a business operates or its employees live.
Along with time, the idea of only making money and increase the shareholder's fund has been significantly changed. In the last decade, a movement defining broader corporate responsibilities- for the environment, for local communities, for working conditions, and for ethical practices-has gathered momentum and taken hold. This new driving force is known as corporate social responsibility (CSR). CSR is oftentimes also described as the corporate "triple bottom line"-the totality of the corporation's financial, social, and environmental performance in conducting its business.
Corporate Social Responsibility, it generally refers to transparent business practices that are based on ethical values, compliance with legal requirements, and respect for people, communities, and the environment. Thus, beyond making profits, companies are responsible for the totality of their impact on people and the planet.1 "People" constitute the company's stakeholders: its employees, customers, business partners, investors, suppliers and vendors, the government, and the community. Increasingly, stakeholders expect that companies should be more environmentally and socially responsible in conducting their business. In the business community, CSR is alternatively referred to as "corporate citizenship," which essentially means that a company should be a "good neighbor" within its host community.
Today, more and more companies are realizing that in order to stay productive, competitive, and relevant in a rapidly changing business world, they have to become socially responsible. In the last decade, globalization has blurred national borders, and technology has accelerated time and masked distance. Given this sea change in the corporate environment, companies want to increase their ability to manage their profits and risks, and to protect the reputation of their brands. Because of globalization, there is also fierce competition for skilled employees, investors, and consumer loyalty. How a company relates with its workers, its host communities, and the marketplace can greatly contribute to the sustainability of its business success.
'By following socially responsible practices, the growth generated by the private sector will be more inclusive, equitable and poverty reducing.' (Department for International Development in the UK)
International organizations such as the UN and World Bank and national development agencies such as DfID, USAID, SIDA have embraced CSR in the hope that the private sector can play a key role in achieving developmental goals including poverty alleviation, education and health improvements.
Creating value for society while creating value for our shareholdersâ€¦. this is Nestlé's approach to the community and, on a wider view, to the attainment of the U.N. Millennium Development Goals. We regard these Goals as highly important objectives for improving the state of the world."
CSR provides a platform for corporations to be involved in economic development in ways that can be much more powerful than has been hitherto thought of. Economic development means improving the well-being of disadvantaged people wherever they may be. Most, of course, can be found in developing countries but many can also be found in the developed and oil-rich countries - the deep south of the US, the north-west of England, the south of France around Marseilles, the poor of Turkmenistan or Uzbekistan; refugees in Saudi Arabia - the list tragically goes on. There is no need, though, for this scandalous situation to be either countenanced or allowed to continue. (M Hopkins, 2006)
There are scores of CSR organizations and business associations promoting corporate social responsibility, with a collective membership of thousands of companies -big, small, and medium-sized - in diverse industries. In the United States, San Francisco-based Business for Social Responsibility alone has 1,400 corporate members that globally employ more than six million workers, and account for a total annual revenue of US$1.5 trillion. In Europe, the London-based International Business Leaders Forum counts 60 major global companies as members, and has established affiliate resource centers in emerging market economies where there is a demand for corporate involvement in social causes. In developing countries such as India, Indonesia, Brazil, Egypt, and the Philippines, business associations dedicated to CSR exist. It can be said that there are as many variations of CSR activities as there are CSR advocate companies and organizations.
This Essay is
a Student's Work
This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.Examples of our work
The business community can make tremendous contributions in promoting good health and wellbeing, especially if innovative CSR initiatives are undertaken in partnership with government and civil society. In all but the most remote areas or closed societies, business has massive reach and influence. For decades, business has been engaged in charity, philanthropy, and civic activities including social investments in health. However, oftentimes these investments were less than strategic, and were not directed to real social change. Today, business understands that viewed through lenses of "doing well by doing good," CSR can be a revolutionary way of contributing to systemic social changes in which investments can produce lasting social benefits in the health arena.
Fig: The arguments for corporate social responsibility usually include four main aspects
Achieving commercial success in ways that honor ethical values
Moral obligations are absolute; No way to balance competing social and economic tradeoffs
Varied and contradictory values among managers, regions, and countries
Managing external perceptions
Meeting the needs of the present without compromising future needs
Useful for environmental issues where improvements can yield immediate economic benefits
Undefined long term consequences provide a weak justification for short term costs.
License to Operate:
Maintaining a stable business environment (licence to operate) Building goodwill to secure the acquiescence of governments and stakeholders. Cedes control to external players that do not fully understand corporate strategy. Encourages short term and disjointed responses to "the squeakiest wheel" of the moment
Reputation is one of an organization's most valuable assets & CSR/ethical behaviors are key components of reputation. Competitive differentiators such as price, quality, service and brand are not enough as poor reputation & bad publicity can damage a company's brand rendering price, quality and service irrelevant. CSR can assist the companies to obtain competitive advantages eenhancing reputation and brand with customers, investors, and employees.
Macro environmental factors influence organizations business behavior worldwide & impact upon CSR policies. Ethical considerations such as culture are a high priority for socially responsible organizations. Ethics & moral principles vary from one person or place to another & are usually decided as being right or wrong on the basis of commonly accepted principles of behavior. The importance of ethics is enhanced by the fact that people are always involved in the production and distribution of a product. Two types of philosophy associated with marketing decisions are; Utilitarianism; maximizing the greatest good for the greatest number of people & Ethical Formalism; the intentions associated with a particular behavior and the rights of the individual. Important ethical issues can relate to the workplace, wages & benefits, labour, community development, health & safety, discrimination training/education & Human Rights. Unethical activities also relate to the marketing mix with issues such as misleading Promotion, failure to disclose risks associated with the Product, failure to disclose the full Price associated with the purchase or Distribution problems between producers and intermediaries being construed as unacceptable. As a result all aspects of the marketing mix (product, promotion, price & place) need to be adapted to ensure ethics are addressed.
With the benefits of CSR being increasingly recognized worldwide & the pressure to be good corporate citizens pushing organizations to go further than simple compliance with regulations or best practice, the future of CSR is bright. Businesses are understanding that long term success is achieved through market-oriented, responsible behavior and that their future depends upon determining what governments, competitors and society want & incorporating CSR policies into organizational business models, adapting values & business operations. Issues such as human rights & sustainable development will require to be focused upon in the coming years, organizations will have to understand the importance of what & how they measure & how they react to the data they collect. As CSR is here to stay & its importance will continue to heighten, organizations have no choice but to embrace CSR if they are to survive & develop in todays business environment.
2.3 Historical Background of CSR
If we look at the history of the social and environmental issues about business is as old as the concept of trade and business. Commercial logging operations for example, together with laws to protect forests, can both be traced back almost 5,000 years. The roots of the corporate social responsibility can be traced back to 1700 BC, in ancient Mesopotamia King Hammurabi introduced a code for the builders, innkeepers and the farmers who was responsible for unsocial activities. They were punished to death for their negligence or caused any major inconvenience to the citizens of the kingdom. Industrializations played a major role for the businesses on the society and the environment. In late nineteenth and early twentieth centuries businesses used their wealth to support philanthropic ventures.
In 1929, the Dean of Harvard Business School, Wallace B. Donham, commented within an address delivered at North-Western University:
'Business started long centuries before the dawn of history, but business as we now know it is new - new in its broadening scope, new in its social significance. Business has not learned how to handle these changes, nor does it recognise the magnitude of its responsibilities for the future of civilisation.'
'The interactive timelines below provide details of the evolution of the history of our environment, the history of business corporations, the evolution of the concept of sustainable development and the history of business law and socially responsible investment as forces seeking to shape the social and environmental impacts on businesses'. [History of corporate Social Responsibility and Sustainability; available at:
http://www.brass.cf.ac.uk/uploads/History_L3.pdf. Cited at 15th April 2010]
2.4 Factors influencing the use of CSR in the business World
2.4.1 Changing social expectations
From the society lots of things needs to be considered very important for any organization. Because the market they are going to trade their products and services in are in the society one way or another. There were always certain levels of expectancy from the organizations that's why the organizations has to be concerned about what are the expectations and how to comply with the expectations just to improve the organizational image according to the expectation level. They are always concerned about the organization they deal with or the products or services they use of that company, even though the products are good but people are more concerned about what are the differences they are trying to make for the people in need or the society. This sense of awareness has been developed over the years after the corporate scandals started to spread all over the world. To comply with these situation organizations started to develop new strategies which helped them to gain more competitive advantage and also helped the organizations to exceed the social expectations of the society.
2.4.2 Increasing affluence
This is a key factor for the corporate social responsibility which has been developed according to the need of the society and also the affluence. This factor has been developing basically in the developed nations and also the started to increase in the developing nations. Basically the developing nations can afford to choose and buy the products and services of different organizations but the nations of developing societies don't have the privilege to choose and buy from different products and services of the organizations. That's why organizations help the developing nations by providing employment which was only possible when they move their production facilities in those countries. Which helped to develop the economy of the country and side by side they managed to make the sustainable changes to the organizations infrastructure as well as the public image of the organizations.
'1998, the newspaper rarely referred to the term 'corporate social responsibility' or its abbreviation, 'CSR'. A few years later, in year 2002, interest in CSR peaked and the Financial Times published over 100 articles per year about the topic.' (Hond, Frank Den, 2007)
Now-a-days media has become a matter of threat to the organizations because they have become pretty much active to put on light to the mistakes of the organizations which affects the organizations brand loyalty immediately.
Statistics shows that after the presentations or the exposure of the mistakes the awareness of the society increases by 20% which drops the brand loyalty by 20% and the organizations looses the competitiveness by numbers. The Globalization has become one of the most important of the factors to become more active towards the social activities than ever. The growing influence of the media sees any 'mistakes' by companies brought immediately to the attention of the public. In addition, the Internet fuels communication among like-minded groups and consumers-empowering them to spread their message, while giving them the means to co-ordinate collective action (i.e. a product boycott).
Consumers today are better informed and feel more empowered to put their beliefs into action. From the corporate point of view, the market parameters within which companies must operate are increasingly being shaped by bottom-up, grassroots campaigns. NGOs and consumer activists are feeding, and often driving, this changing relationship between consumer and company.
2.5 Benefits of Corporate Social Responsibility
Organizations always adopt the changes according to the organizational benefit. In different times organizations have developed the scale of benefits so that whatever steps the organizations takes it will always gets heavy on the organizations benefits side rather than becoming a burden to both organization and the society itself. There are few benefits which had been marked from time to time. Such as:
2.5.1 CSR assists in building strong relationships with Stakeholders/Society
This is a key fact which always helped the organizations to develop the relationships with the stakeholders. Stakeholders reactions to a company depend on the extent to which they know and trust the company. The interaction strategy suggests that the company needs to engage in a two way communication process with key stakeholders to develop organizational sensitivity and to build trust among the stakeholders. The interaction strategies have three different phases which helps the organizations to build the relationship with the stakeholders and the society. The phases are:
These are the key elements that actually determines the status of the relationship between the stakeholders and the organizations. In the 1st step they start to invite for the opinions of the leaders of the society and different academic and the social organizations to develop their strategies which helps them to achieve goal according to the CSR initiatives.
The second phase is local articulation which is a two way communication process. Using this process the stakeholders and the organizations gets the chance to express their identity to each other. In this process they choose their respective representatives to talk to the external audience to talk about the corporate history of the organization and the mission and the vision of the organization which actually helps both the stakeholders and the organizations to gain the public trust and the loyalty they deserve according to the activities they have designed for the organization for the future.
The 3rd and the final phase of the interaction strategy has been the most practiced and the most effective strategy for any organizations to be acted on. The organizations in this phase actively seeks for external stakeholders endorsement which actually gives them to achieve favorable opinion of the public. They use the external auditors to figure out the annual report where they can show the sustainability and they also put suggestions for the organizations in which kind of CSR activities they can get involved and what are the benefits out of it. Through pro-active endorsement they can achieve their sustainable competitive advantage which can be mentioned to the public rather than awaiting comments. [Jon Jonkler, Marco De Witte; Management Models for Corporate Social Responsibility; Springer-Berlin Heidelberg; 2006;pp 241-245]
2.5.2 CSR assists Companies to be more attractive to Suppliers Globally.
In recent year's fair trade policies have become most used policies for the organizations. They are using these tools as the corporate social responsibility to attract the suppliers globally. If we define the fair-trade policies it will clarify the usage of this policy. Organizations has developed new schemes for the suppliers to develop the relationship with the consumer groups as well as the suppliers which will end of the day bring more profit in for the organizations. The fair-trade policies are basically put in place to profit the root level suppliers such as the farmers from the whole business. So that they can get the actual benefit from the business and the business can play a vital part in the development. Through these policies suppliers of the developing countries benefited the most and this also helped the global economy to develop eventually. At some extent the organizations started to lose the interests of the suppliers from making deals with the business organizations of the developed countries because of the crude nature of the terms and conditions of they used to put in place before they were making any deal with them. After the rising awareness of the consumer groups they started to take this important factor into account started taking this matter very seriously and immediately they started acting on it as a Corporate Social Responsibility.
2.5.3 Companies that practice CSR find it easier to interact with Regulators.
All the businesses in a country have to follow the regulations made by the regulators. Sometimes it becomes very easy to comply with the regulations if they start to speak their language. Corporate Social Responsibility is a kind of responsibility which enables the organizations to learn and develop their corporate minds into the way the regulators think. They get to understand what the regulators think is the best for the region or the country up-to some extent. If the organizations start to follow the ways to do their business which is not hazardous to the society and the employees as well that will help the organizations to interact with the regulators.
For an instance in 2010 the UK business regulators of the government issued a new law which was about the Artificial Optical Radiation and it implies to the organizations using hazardous rays or flames for the production or the services will have to take the health and safety precautions in order to save the workers skin or the eyes. If the organizations started to use those protective tools while the use of the hazardous rays would have gave them a chance to comply with this kind of regulations in advance. [New health and safety rules for artificial optical radiation; Available at:
http://online.businesslink.gov.uk/bdotg/action/ruDetail?r.s=rul&topicType=1&r.lc=en&type=REGUPDATE&itemId=1084983249 (Cited at 17th April 2010)]
2.5.4 CSR encourages sustainable Development
Corporate Social Responsibility always encourage the organizations for sustainable development. To imply with this factor into the organizational we will have to look deeper into the organizational goal. The terms that helps the organizations to develop the corporate cultures to get into the ma
2.5.5 CSR can build strong brands/reputation whilst having a positive impact on Society.
Corporate Social Responsibility has always been working as a gateway for the organizations all around the Globe. This particular corporate responsibility has given back the opportunity to reunite with the society. This a kind of activity that helps the society to realize what the organizations has to offer to the society and what are the differences they make to help the world to make it a better place to live in. If we look at the brands in the market which already has been the leaders in the industries works more with the society and they always use the CSR as the voice of the organizations to the people and that makes it so unique other than any other brands in the market because the likeness level of the brand increases through the social activities.
2.5.6 CSR attracts Investment
Sometime some of the activities of the organizations which are CSR related attracts the investors to invest into the organizations. Investment or the investors always look for the long term effect on the investments they plan to make in an organizations and if the organization indeed is a one actively performing in the industry using all the features of the CSR will help the organization to establish a better scenario in the market which will bring more profit in and keep the shareholders and the stakeholders happy.
For an instance Starbuck has a well established reputation in the market for selling coffee which comes straight from the root level of the farmers and they had managed to expose the fact that by doing so they are helping the coffee farmers who most of time gets neglected out of the bargain of the corporate society. This particular fact is helping this giant coffee selling organization to grow faster and making more profits in their treasury rather than any other coffee selling organization.
2.6 Implementing Corporate Social Responsibility
This is also one of the most important factors for any organizations to decide where their CSR should act. For an example an organizations will have to act within the boundaries where they can make the differences while they are doing business in. That's why it is very important to realize for the organizations where to put the important and essential effort of Corporate Social Responsibility. On the contrast of Starbucks we can see that they have chosen their CSR activities very carefully and the implementation of their CSR activities are very much helping them to increase the profit margin and to make more loyal customers through their green campaign. After the research on the Corporate Social Responsibility it has been found that it has established to be the most important factor in the business world. We have also seen that business organizations started to adopt this serious issue very sincerely.
The approaches of CSR are broadly Some commentators have identified a difference between the Continental European and the Anglo-Saxon approaches to CSR. And even within Europe the discussion about CSR is very heterogeneous.
An approach for CSR that is becoming more widely accepted is community-based development projects, such as the Shell Foundation's involvement in the Flower Valley, South Africa. Here they have set up an Early Learning Centre to help educate the community's children, as well as develop new skills for the adults. Marks and Spencer is also active in this community through the building of a trade network with the community - guaranteeing regular fair trade purchases. Often alternative approaches to this is the establishment of education facilities for adults, as well as HIV/AIDS education programs. The majority of these CSR projects are established in Africa. JIDF For You, is an attempt to promote these activities in India. A more common approach of CSR is through the giving of aid to local organizations and impoverished communities in developing countries. Some organizations do not like this approach as it does not help build on the skills of the local people, whereas community-based development generally leads to more sustainable development. [Clarification needed Difference between local org& community-dev? Cite]
Procurement of Fair Trade tea and coffee has been adopted by various businesses: KPMG CSR manager commented, "Fair-trade fits very strongly into our commitment to our communities."
Another approach that is garnering increasing corporate responsibility interest is called Creating Shared Value, or CSV. The shared value model is based on the idea that corporate success and social welfare are interdependent. A business needs a healthy, educated workforce, sustainable resources and adept government to compete effectively. For society to thrive, profitable and competitive businesses must be developed and supported to create income, wealth, tax revenues, and opportunities for philanthropy. CSV received global attention in the Harvard Business Review article Strategy & Society: The Link between Competitive Advantage and Corporate Social Responsibility  by Michael E. Porter, a leading authority on competitive strategy and head of the Institute for Strategy and Competitiveness at Harvard Business School; and Mark R. Kramer, Senior Fellow at the Kennedy School at Harvard University and co-founder of FSG Social Impact Advisors. The article provides insights and relevant examples of companies that have developed deep linkages between their business strategies and corporate social responsibility. Many approaches to CSR pit businesses against society, emphasizing the costs and limitations of compliance with externally imposed social and environmental standards. CSV acknowledges trade-offs between short-term profitability and social or environmental goals, but focuses more on the opportunities for competitive advantage from building a social value proposition into corporate strategy.
Czinkota and Ronkainen (1992) propose that "corporations will have to find solutions to environmental challenges through marketing strategies, products, and services in order to remain competitive" (p. 39).
These solutions assure the company of a legitimate role in providing society's needs as well as the opportunity to achieve industry preeminence (Murray and Montanari 1986).
The key factors that determines the corporate social responsibility are:
Social Accounting, Auditing and reporting
Potential Business Benefits
License to operate
'The lack of consistency of CSR definitions across studies makes it difficult to evaluate and compare the findings from different studies because they usually refer to different dimensions of CSR.' The first reports on social responsible behavior date back to the 18th century, but contemporary CSR is often associated with the second half of the 20th century, where scholars and practitioners began to put CSR on the public agenda (Garriga and Melé 2004). In the beginning, the focus was primarily on social issues, but as the negative environmental impacts from production became harder and harder to ignore, pollution prevention also became an important issue in the CSR discourse. In the 1990s, CSR became increasingly associated with globalization and the growing societal expectations towards companies. In the same period, the CSR literature discussed a number of new issues such as child labour, slave labour, community interests, working conditions, etc. (Hond, 2007)
The typical industrial sectors with relatively high environmental impact continue to lead in reporting. At the global level, more than 80 per cent of the 250 companies examined are reporting in the electronics and computers, utilities and automotive and gas sectors. While, at the national level, over 50 per cent of the 100 companies studied are reporting in the utilities, mining, chemicals and synthetics, oil and gas, forestry and paper and pulp sectors. But the most remarkable is the financial sector, which shows more than a twofold increase in reporting since 2002.
Approaches to CSR are varied and due to the differences in priorities & values across the world, there is no "one size fits all" strategy. Where previously, the role of a socially responsible company was simply to create good will in the community, organizations are now required to take into account the full scope of their impact on communities & the environments in which they work, balancing the needs of stakeholders with the need to make a profit. Although there is no one size fits all strategy, well managed CSR program have universal benefits;
Enhance business competitiveness& opportunities
Maximize value of wealth creation to society
Can improve financial performance & access to capital
Enhance brand image, raise profile & boost sales
Attract & retain quality workforce,
Improve decision-making on critical issues
Helps manage risks & reduce long-term costs
Increases customer loyalty
Increases productivity & quality
The growth of CSR has been influenced by many factors. A global economy & improvements in technology have enabled the public access to information relating to how socially responsible and ethical corporations are being which has resulted in increased worldwide sensitivity to ethical issues. Consumers are taking more interest in the companies which they use, their impact on the environment, on local communities, & in how they treat their workforce. Nike was widely condemned over their treatment of workers & use of child labour in developing countries. Investors are making investment decisions based on social sustainability & governments have tightened legislation & developed economic, environmental & social initiatives to encourage CSR. The Global Reporting Initiative (GRI), provides suggestions for corporations reporting on the economic, environmental & social dimensions of their activities, products, and services whilst standards such as ISO 14001, encourage & assist firms to develop environmental programs, management systems & to report their efforts. The new UK mandatory corporate reporting regime (OFR) will force around 1,300 companies to report on social & environmental issues affecting their business, pushing CSR to the top of many board agendas. These factors mean that organizations are now evaluated on the basis of financial, social & environmental performance & are being forced to address social problems, previously perceived as the responsibility of government & civil society.