Corporate Social Responsibility is increasingly seen as going beyond the 'bottom line' of profit to the 'triple bottom line' of social, environmental and ethical concerns (Doreen McBarnet, et al., 2007 ). The concept of 'corporate social responsibility' (CSR), once seen as just a matter of voluntary good practice or indeed PR, has now become very much a legal issues the latest being the Bp DeepWater Horizon Accident. The problem is that many companies that claim to be socially responsible often do not live up to such a standard. Because CSR is becoming a more commonplace amongst corporations, there are concerns that some companies promote an image of CSR out of regards to whether or not they have a true strategy in place and the result is disastrous.
Most of the company laws adopt a traditional frameworks that focuses on directors' duties to shareholders, but the legal concept of corporate responsibility is still not seen as an important entity by most companies as a source of competitive advantage. The vision that captains of the industries should learn from the bp lessons is that it does not favour the company's bottom-line or image by ignoring CSR (Doreen McBarnet, et al., 2007 )However, companies are now expected to perform well in non-financial areas such as human rights, business ethics, environmental policies, corporate contributions, community development, corporate governance, and workplace issues. Some examples of CSR are safe working conditions for employees, environmental stewardship, and contributions to community groups and charities. Here the author would like to discuss two details of case study by discuss and critically evaluate the arguments for and against Corporate Social Responsibility being left to the social conscience of multinational companies, or being firmly embedded in legislation. The first example case that author would like to bring up is the Bp DeepWater Horizon Accident issue.The second case is about Schawk Imaging company which is located in Malaysia.
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Author would like to discuss the first case which is about Bp DeepWater Horizon Accident. Bp is a oil and gas base industry. The case is actually about explosion and fire on the rig which is occurred on 20th April 2010 is where blowout that killed 11 people and 17 others were injured which resulted in a massive oil spill in the Gulf of Mexico. The fire which was fed by hydrocarbons from the well, continued for 36 hours until the rig sank. Hydrocarbons continued to flow from the reservoir through the wellbore and the blowout preventer for 87days, causing a spill of national significance. The effects of oil spill had a negative impact towards the sea life as well as employees been killed.
Recent National Oceanic and Atmospheric Administration's National Marine Fisheries Service(NOAA) findings, such as dead and dying deepwater coral in the Gulf, make it clear scientists do not know what effect the spill, potentially the worse marine ecology disaster in history, will ultimately have. "There are impacts to sensitive habitats and longer- term assessment of impacts on populations of fish, shrimp, crabs, oysters, sea turtles, marine mammals. (November 18th 2010 Eric Schwaab). NOAA announced that month that one of its research vessels had found dead and dying coral several miles (km) from the well that spilled more than 4 million barrels of oil into the Gulf from late April until mid-July. The coral, at a depth of about 4,500 feet (1,370 metres), was covered by "what appeared to be a brown substance
According to the Bp internal investigation Report (September 08, 2010), there are eight key findings related to the cause of the accident which is the annulus cement barrier did not isolate the hydrocarbons, the shoe track barriers did not isolate the hydrocarbons, the negative-pressure test was accepted although well integrity had not been established, Influx was not recognized until hydrocarbons were in the riser, well control response actions failed to regain control of the well, diversion to the mud gas separator resulted in gas venting onto the rig, the fire and gas system did not prevent hydrocarbon ignition and finally the BOP emergency mode did not seal the well.
According to Carroll 1979, she believed the concept in four part model of corporate social responsibility which is economic, legal, ethical, and philanthropic with the concept of corporate social responsibility encompasses the economic, legal ethical and philanthropic expectations placed on organization by society at a given point in time. It brings out different dimension of corporate social responsibility (CSR) whilst recognising the importance of and the responsibility for profitability and legal compliance.
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In the case here, author would highlight the point on effects occurred from the oil spill and also on the Bp internal investigation report as well. Well, on the first hand, the author question is, why, how, when does the oil spill? According to the author's research bp oil spill occurred due to their carelessness and by investigating internally on why does the oil spill, it clearly shows that Bp itself is responsible for the incident. Thus, there are not playing the role of CSR. It also clearly shows the impact on the environmental as well. How does these will effect the communities? Author did not intend to suggest that all toxins "accumulate in ever increasing concentrations". We and other creatures are good at protecting ourselves from toxins that we have evolved in contact with. There are some chemicals though that we have not evolved defenses for and they do not pass through our digestive system as waste or after being absorbed are not excreted in urine. They accumulate in our tissue as they did in the tissue of the creature we ate and the creature it ate. The more we eat the higher the concentration of toxins in our tissue. Life after all is just complex chemistry, so complex that we do not understand it fully and introducing complex chemicals that we did evolve with into the mix is not a good idea even if the chemicals have not yet been proven harmful.
Communities eat shrimp along with toxic chemicals that accumulates in ever increasing concentrations as it moves up the food chain. That's not necessarily so. Different organism sequester different chemicals differently. Many are simply passed through as waste, but it has to be tested for each individual compound.
The EPA used available toxicity data, generated some new toxicity data and used repeated sampling to evaluate toxicity, and it did so correctly within the scope of available time and knowledge. I checked some of these numbers.
the information is all easily accessible online.
TheÂ Deepwater Horizon oil rig explosion and still-growing crisis in the regionhave dealt a massive blow to the environmental conditions of thousands of miles of coastline, but they've also hurt the public confidence in corporate attempts to push forth a progressive image. That's because BP hadÂ spent the better part of a decade and millions of marketing dollarsÂ rebranding itself as "beyond petroleum" with a green-and-yellow sunburst logo (right). Some oil companies still seem content to be unapologetically evil; this was the first oil company to admit to the realities of global warming, was seemingly candid about the need to invest in alternative energy sources, andÂ earned consumer approvalÂ as a "green" brand.
The second case is study is about Schawk imaging. Schawk imaging is a designing company located throughout the world. It produces artwork for international companies such as British American Tobacco, Wal-Mart, Procter and gamble, and etc. Schawk imaging performed non-financial in the term of the printer that the artwork would be printed out. The ink of the artwork printed does not have any chemical thus it will not effects the employees of the Schawk imaging, indirectly it also benefits the customers as well as there is no negative effects through the colors. It prevents from the skin disease, lungs infection when employees smell the colors as well.
Schawk Imaging is committed to corporate social responsibility and operating as a good corporate citizen worldwide. The Code of Ethics, which is signed by every single employee, outlines the conduct we expect from each and every one of its employees when working with clients, partners, employees, and colleagues.
Schawk operates using clean production technologies and constantly seek new and better ways of delivering its services and helping the clients develop their products as well as to reduce the impact on the environment today and for generations to come. Many of the products and services Schawk Imaging offer and the manner in which they are delivered have an impact on our own business but a much, much greater impact on the businesses of Schawk clients - many of the world's largest goods-producing companies.
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Schawk also operate according to strict safety guidelines to protect the wellbeing of its employees, and have corporate governance guidelines in place to protect the shareholders. Additionally, Schawk Imaging supports the local communities in which Schawk Imaging operates through charitable donations and employee volunteerism.
Schawk's founder and Chairman, Clarence W. Schawk, has a long and quiet history of philanthropic activity conducted through the Clarence W. and Marilyn G. Schawk Family Foundation, a private non-operating foundation. For example, honored to donate $250,000 to the Marine Corps Scholarship Foundation to assist the deserving sons and daughters of U.S. Marines in their academic pursuit.Â Other organization that have received donations from the foundation include the united way, National committee to prevent child abuse, national foundation for abuse and neglected children, national multiple Sclerosis society, neediest kids fund, American red cross, Salvation army, boy scouts of America, LEAPS Program at Valparaiso University, Marine Corps Scholarship Foundation, American Family Association, and inner city schools of Chicago, as well as dozens of neighborhood high schools, parks, churches, and inner-city organizations. The Foundation has a history of donating anywhere from $500,000 to $750,000 annually to such needy causes, including matching company-wide donations made by the employees of Schawk, Inc.( Care&Commitment july 2009)
Environmental Sustainability. Schawk is committed to sustainable processes, and its Los Angeles facility was awarded chain-of-custody certification from the Forest Stewardship Council (FSC) in December 2006. Additionally, the Company's London facility has been re-accredited with ISO 14001-2004 management systems.
The Schawk commitment to environmental sustainability includes seven pledges which is ensuring that its operations all over the world continue to use clean production technologies and follow best practices for environmental protection, providing goods and services to its clients that enable them as brand owners and retailers to meet and exceed both regulatory and proprietary environmental initiatives, building and nurturing collaborative relationships with its clients, suppliers, product and service collaborators and industry associations to enable a swift and intelligent exchange of environmental solutions, helping its clients streamline their brand development workflow through better use of best practice workflows, technology, enhanced materials selection, and source reduction, leveraging its knowledge and experience to innovate new services and solutions that drive environmentally friendly brand development thinking forward, nurturing the climate of innovation inside the company that makes great leaps forward possible, and creating a healthy environment in the communities in which we live and work and to the world community as well.
As a conclusion, based on the above case studies, author strongly felt that, companies do need to play the role of corporate social responsibility to Increase bottom line and image of the particular companies.
McBarnet, Doreen et al (ed.) (2009). The new Corporate Accountability Corporate Social Responsibility and the Law. London : Cambridge Publishing.
Hanks, douglas (2010, 29 may). Gulf oil Spill's economic will be long term
United Way, National Committee to Prevent Child Abuse, National Foundation for Abused and Neglected Children, National Multiple Sclerosis Society, Neediest Kids Fund, American Red Cross, Salvation Army, Boy Scouts of America, LEAPS Program at Valparaiso University, Marine Corps Scholarship Foundation, American Family Association, and inner city schools of Chicago, as well as dozens of neighborhood high schools, parks, churches, and inner-city organizations. The Foundation has a history of donating anywhere from $500,000 to $750,000 annually to such needy causes, including matching company-wide donations made by the employees of Schawk, Inc.