The Role of the Public Sector In Corporate Social Responsibility. Philip Dalsou Permanent Secretary Ministry of the Public Service & HRD

Transcription

1 The Role of the Public Sector In Corporate Social Responsibility Philip Dalsou Permanent Secretary Ministry of the Public Service & HRD

2 Outline of Presentation Definitions Different Perspectives on Corporate Social Responsibility (CSR) and the State Roles of the Public Sector in CSR The role of the public sector in the context of the CSR Agenda Relevance of CSR to developing countries Concluding Remarks

3 Definition of CSR Corporate Social Responsibility has been described as a rather blurred concept Initially, Social or Societal referred to the innovative concepts in particularly the environmental field Later academic writings confined the the reference to labour law because of its social semantic reference

4 ILO Definition of CSR According to a Report by the ILO on Governance, International Law and Corporate Social Responsibility, the whole philosophy behind CSR can be summed up in the triple bottom line theory People, Planet and Profits. Based on this definition, a business, no matter where it carries out its activity, must be judged according to how it treats its employees, how it activity affects the environment and how much profits it makes.

5 World Business Council For Sustainable Development According to the WBCSD, CSR is defined as the commitment of business to contribute to sustainable economic development, working with employers, their families, the local community and society at large to improve their quality of life. CSR is a process of managing the costs and benefits of business activity to both internal and external stakeholders.

6 Perspectives on CSR Anti Neoliberal view Views CSR as a means of sustaining and legitimising capitalism. Proponents of this view make reference to a famous quote by Milton Friedman: Few evolutions could undermine the very foundations of our society so thoroughly than the fact that managers would accept another social responsibility than making much money as possible for their shareholders

7 Perspectives on CSR This perspective sees CSR as the weakening of the state in the economy. Based on the neoliberal doctrine that discredits the role of public authorities as arbiters between divergent interests, as regulators of economic and financial activities and guarantors of public services of national interest. CSR is viewed as replacing hard law with soft law. Laws are in effect being replaced with recommendations.

8 Perspectives on CSR This view sees CSR as a mechanism that the state and trade unions need to safeguard themselves against. There is need to ensure that the state remains in control of the economy and effectively regulates all sectors.

9 A More Orthodox Perspective This perspective views CSR within the context of the WBCSD definition. CSR is a positive development that impacts favourably on the economy and society. Many developing countries are beginning to view CSR activities as a means to enhance sustainable development strategies, as a component of their national competitiveness

10 A More Orthodox Perspective Governments and businesses should consider the following when forming CSR policies: History, culture, Business climate Public awareness Government

11 Does the Public Sector have a role to Play in Promoting CSR? There is general agreement that the public sector has a role to play in promoting CSR The public sector s role must be a proactive one In cases where there are issues of corporate accountability, it is suggested that public sector engagement is particularly crucial

12 The Roles of the Public Sector Four roles have been identified for the public sector in promoting CSR: Mandating Laws, regulations, penalties and associated public sector institutions that relate to the control of some aspect of business investment or operations Facilitating setting clear overall policy frameworks and positions to guide business investment in CSR

13 The Role of the Public Sector Within the Context of the CSR Agenda A World Bank Report has identified 10 key Themes of the CSR Agenda that are relevant to the public sector roles I will examine some of these themes within the context of the public sector roles

14 The Roles of the Public Sector Partnering This involves combining public resources with those of business and other actors to leverage complementary skills and resources to tackle issues within the CSR agenda Endorsing Showing public political support for particular kinds of CSR practice in the market place or for individual companies

15 Themes of CSR Agenda Setting and Ensuring Minimum Compliance With Minimum Standards Mandating role is clear Laws are passed prescribing these minimum standards Facilitating Government can also provide support to businesses in order to ensure standards are met by offering assistance by way of training and assistance

16 Themes of CSR Agenda Partnering The State and the Private Sector can also agree on setting standards that meet certain desired targets. This could be by way of an agreement. Endorsing An emerging role for public sector action on minimum standards is supporting citizens in action against worst practices.

17 Themes of CSR Agenda Corporate Governance Poor corporate governance practices can be addressed by way of establishing corporate governance guidelines and codes of conduct Legally mandated disclosure requirements Philanthropy and Community Development Initiatives are common strategies for businesses.

18 Themes of CSR Agenda A common intervention is to create incentives for voluntary corporate donations and social investments. This can be implemented by way of tax incentives. Stakeholder engagement and representation Public sector has a key role to play in facilitating meaningful stakeholder dialogue with the business community. Governments also represent the interests of particular groups in multilateral organizations eg WTO

19 Themes of CSR Agenda Pro CSR Certification, beyond Compliance, Standards and Management Systems Certification and Labelling Schemes May be awarded at company level Public Sector agencies in developing countries have also engaged in a range of activities designed to build capacity to help domestic producers meet the CSR requirements.

20 Themes of CSR Agenda Pro CSR Reporting and Transparency Promoting access to information on environmental and social issues is part of the sustainable development agenda. Public sector initiatives related to reporting includes mandatory disclosure against environmental or social targets or development of guidelines for voluntary reporting.

21 The Need to Strengthen Public Sector Action on CSR in Developing Countries There is need to build awareness of the CSR Agenda and its implications Provide information on the overall drivers of the agenda, key players and pressure points Building capacity to shape the CSR agenda Building a Stable and Transparent Environment for pro CSR Investment Engaging the Private Sector in Public Policy Processes

22 Concluding Remarks The roles of the public sector in promoting CSR in developing countries is still at an early stage There is increasing recognition of the possible alignment of public good outcomes with public sector priorities The type of CSR that emerges will depend on the roles that the public sector plays

23 THANK YOU