Opening arguement from Uchita de Zoysa (uchita@sltnet.lk)

I see four categories of companies who use CSR.

1. 1^st group use CSR for white washing or to cover up their bad practices; I call them the “Bad Corporates”.
2. 2nd group use CSR as publicity and image building tool; they are the “Opportunist Corporates”.
3. 3rd group wants to do something for the community; they are the “Philanthropic Corporates”.
4. 4th group understands, appreciates and uses CSR as a Sustainability Strategy; they are the “Smart Corporates”.

Most companies range from group 1-3.  Those moving from 3 to 4 will have a strategic advantage in corporate sustainability.

Although the concept of CSR has been developing since the early 1970s, there is no single, commonly accepted definition of CSR.  With so many interpretations, one has to be careful in understanding and defining the term “CSR” because it is sometimes mistakenly equated with either corporate philanthropy or simply compliance with law.

CSR generally refers to:

1. A collection of policies and practices linked to relationship with key stakeholders, values, compliance with legal requirements, and respect for people, communities and the environment; and
2. The commitment of business to contribute to sustainable development, commonly understood as sustainable development is the ability of the current generation to meet its needs without compromising the ability of future generations to meet theirs.

The interest in CSR is growing because;

1. Rise of consumer awareness and activism
2. Social pressure to protect environment.
3. Growing Regulatory framework
4. Emphasis on good employee relations and human rights.
5. Critical role of supply chain & supply chain relations.
6. Recognition of stakeholder participation.
7. Public endorsement becoming more vital to operate business.
8. Business interest in assuming leadership role.
9. Strategic capacity for building, managing & maintaining image/reputation.
10. Understanding of sustainability for secure business future.

Some key features of good CSR are:

1. Integrating values & principles
2. Transparency and accountability
3. Respect for people, communities and the environment
4. Compliance with legal requirements
5. Going beyond compliance in standards and systems
6. Relationships with key stakeholders
7. Caring and sharing beyond corporate philanthropy
8. Leadership role in social and national development
9. Commitment to sustainable development
10. Disclosure and reporting

CSR should not be considered as a replacement of;

1. Commitment to ethical corporate behavior
2. Commitment to other stakeholders (consumers, community, suppliers, employees, government, interest groups, etc)
3. Responsibilities towards protecting the environment.
4. Covering-up any corporate deficiencies
5. Whitewashing image.

Investment in CSR should be considered as an investment for;

1. Enabling corporate sustainability
2. Enhancing leadership acceptance by stakeholders
3. Creating positive business operational environment
4. Displaying true commitment to wellbeing of the community and nation that enables profit for the company.
5. Generating positive publicity and perception