CSR MGT 4 C Module 5 - 1

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Reyenna Lonica S.

Ralutin
BSBA 3D

MODULE 5

I. LEARNING ACTIVITIES

Internet Exercise

1. Locate the website for Business for Social Responsibility. What is the stated mission of
the BSR? What does the BSR do? List four benefits of what BSR claims corporations
can achieve through CSR programs. List four well-known companies that are members
of the BSR.
Mission

 Our mission is to work with business to create a just and sustainable world. We
envision a world in which everyone can lead a prosperous and dignified life within
the boundaries of the Earth’s natural resources.

What does the BSR do?


 Our team of sustainable business experts works with our 300 member
companies and other partners from civil society and government to enable
business to develop ambitious strategies and translate them into action that
builds resilience, drives innovation, and delivers value for business and society.

4Benefits of BSR

 Access Finance- investors are more likely to back a reputable business.


 Attract positive media attention- when taking part in community activities.
 Reduce regulatory burden- good relationship with local authorities can often
make doing business easier.
 Identify new business opportunities- for the development of new products or
services.

4 well-known companies that are members of the BSR.


 Twitter, Inc.
 Yahoo! Inc.
 Ralph Lauren Corporation
 Yokogawa Electric corporation
2. Locate the website for Ideals Work. What is the goal of the Ideas Work
organization? What services does the organization offer? How does the mission
of the BSR differ from that of Ideals Work?
 The goal of the ideals wok organization is to empower individuals and
organizations to align their actions with their values.
 It offers research workstation, portfolio management tool, client research
integration, investment compliance reporting, custom research, private label and
training and support solutions.
 In BSR is to work with business to create a just and sustainable world. We
envision a world in which everyone can lead a prosperous and dignified life within
the boundaries of the Earth’s natural resources. While the Ideals Work provides
environmental, social and governance research, consulting, and portfolio
management solutions to asset management firms, managed accounts
sponsors, institutional investors, plan sponsors, and investments advisors.

3. Locate the website for the corporate social responsibility newswire CSRWire. What
does CSRWire do? List four CSRWire members and explain the services that receive
from CSRWire. Find the CSR Events page and identify the next scheduled event.
Briefly summarize the location and planned agenda for the event. If the event has a
website. Visit the site and record the name of the keynote speakers.
 A newswire service which promotes the growth of corporate social
responsibility and sustainability through solutions-based information and
examples.
 Western Union- a leader in global payment services, believes access to
financial services is a necessity. Western Union moves money reliably and
quickly to almost every country and we do it for extraordinary people seeking
a better life and for businesses that generate jobs and opportunity.
Sustainable Brands- is the premier global community of brand innovators
who are shaping the future of commerce worldwide. Since 2006, our mission
has been to inspire, engage and equip today’s business and brand innovators
to prosper for the near and long term by leading a way to a better future.
Ceres- is a national network of investors, environmental organizations and
other public interest groups working with companies and investors to address
sustainability challenges such as global climate change.
Ralph Lauren- is a global leader in the design, marketing and distribution of
premium lifestyle products in five categories: apparel, footwear and
accessories, home, fragrance and hospitability. For more than 50 years,
Ralph Lauren’s reputation and distinctive image have been consistently
developed across an expanding number of products, brands and international
markets.
 CSR next Events
-July 21
Taproot foundation
-Sept.- Dec.
12-13
Ceres
-Sept. 28-29
Ceres
-Oct. 18
Ceres

II. ASSIGNMENT

Mini-Case
Banning the Real Thing

In 1999, following a campaign by a student group known as Students Organizing for


Labor and Economic Equality (SOLE), the University of Michigan instituted a Vendor
Code of Conduct that specified key performance criteria from all university vendors. The
code included the following:

General Principles

The University of Michigan has long withstanding commitment to sound, ethical, and
socially responsible practices, the University seeks to recognize and promote basic
human rights, appropriate labor standards for employees and a safe, healthful and
sustainable environment for workers and the general public. In addition, the University
shall make every reasonable effort to contract only with vendors meeting the primary
standards prescribed by this Code of Conduct.

Primary Standards

 Non-discrimination
 Affirmative Action
 Freedom of Association and Collective Bargaining
 Labor Standards: Wages, Hours, Leaves, and Child Labor
 Health and Safety
 Forced Labor
 Harassment or Abuse

Preferential Standards

 Living wage
 International Human Rights
 Environmental Protection
 Foreign Law
University-Vendor Partnership. The ideal University-vendor relationships is in the nature
of a partnership, seeking mutually agreeable and important goals. Recognizing our
mutual interdependence, it is in the best interest of the University to find a resolution
when responding to charges or questions a about a vendor’s compliance with the
provisions of the Code.

On Nov. 30, 2004, SOLE submitted formal complaint against one specific university
vendor the Coca Cola Company-with whom the university held 12 direct and indirect
contracts totaling just under $1.3 million in FY 2004. The complaints against Coke were
as follows:

 Bio-solid waste disposal in India. The complaint alleged that bottling plant sludge
containing cadmium and other contaminants has been distributed to local
farmers as fertilizers
 Use of groundwater in India. The complaint alleged that Coca-Cola is drawing
down the water table/aquifer by using deep bore wells; water quality has
declined; shallow wells used by local farmers have gone dry; and poor crop
harvests near bottling plants have resulted from lack of sufficient irrigation water.
 Pesticides in the product in India. Studies have found that pesticides have been
detected in Coca-Cola products in India that are in excess of local and
international standards
 Labor practices in Columbia. Data showing a steep decline in SIALTRAINAL, a
Columbian bottler’s union (from approximately 2,300 to 650 in the past decade);
SOLE claims repeated incidents with paramilitary groups threatening and
harming union leaders and potential members, including allegations of
kidnapping and murder, SOLE is also concerned about working conditions within
the bottling plants.

The Vendor Code of Conduct Dispute Review Board met in June 2005 to review the
complaints and recommended that Coca-Cola agree in writing no later than Sept. 30,
2005 to a third-party independent audit to review the complaints. An independent
auditor satisfactory to both parties had to be selected by Dec. 31, 2005. The audit had
to be completed by March 2006, with the findings to be received by the University no
later than Apr. 30, 2006. Coca-Cola would then be expected to put a corrective action
plan in place by May 31, 2006. Since one of the 12 contracts was scheduled to expire
on June 30, 2005 with another 7 expiring between July and November 2005, Coca-Cola
was formally placed on probation until August 2006 pending further investigation of the
SOLE complaints. The board also recommended that the University not enter into new
contracts or renew any expiring contracts during this period, and that it agrees only to
short-term conditional extensions with reassessment at each of the established
deadlines to determine if Coca-Cola has made satisfactory progress toward
demonstrating its compliance with the Vendor Code of Conduct.

The situation got progressively worse for Coca-Cola. By December 2005, at least a
dozen institutions worldwide had divested from the Coca-Cola Company on the grounds
of alleged human rights violations in Asia and South America. On December 8 th, New
York University began pulling all Coke products from its campus after Coke refused to
submit to an independent investigation by that day’s deadline.

On Dec. 30, 2005, the University of Michigan suspended sales of Coke products on its
three campuses beginning Jan. 1, 2006, affecting vending machines, residence halls,
cafeterias, and campus restaurants. Kari Bjorhus, a spokesperson for the Coca-Cola
Company, told the Detroit News, “The University of Michigan is an important school,
and I respect the way they worked with us on this issue. We are continuing to try hard to
work with the University to address concerns and assure them about our business
practices.

Questions:

1. Which ethical standards are being violated here?


 First, is the bio solid waste in India.
 Second, is the use of groundwater in India.
 Third, is the pesticides in the product of India.
 Lastly, is the labor practices in Columbia.

2. Is the University being unreasonable in the high standards demanded in its


Vendor Code of Conduct?
 It is reasonable as long as it recognize and promote basic human rights,
appropriate labor standards for employees and a safe, healthful and
sustainable environment for workers.

3. Do you think the university would have developed the Vendor Code of
Conduct without the aggressive campaign put forward by SOLE?
 No, because if they will not resort in aggressiveness of their campaign it will
not be effective and most of their vendor will not obey the code of conduct.

4. How should Coca-Cola respond in order to keep the University of Michigan


contracts?
 I believe that coca cola should make adequate progress I terms of labor
practices. And that the environment should be prioritized. They must
immediately adhere to the university’s vendor code of conduct in order for
Coca-Cola to be allowed to sell its products in the university again.

5. How would you relate the situation in the local environment?


 The local government sometimes didn’t think about the effects of their
business in our environment. Mostly they are profit driven. They didn’t
consider the health and societal issues on what are they implementing.

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