SM Notes - Corporate social responsibility BICR

CA Ayush Agarwal (Kolkata-Pune-Mumbai) (27186 Points)

23 July 2010  

 

Corporate social responsibility - business in the community

Business in the Community

BITC is an independent charity set up by leading business organisations to inspire, engage, support an challenge continually improve the impact they have on society

It defines CSR as “a company’s positive impact on society and the environment, through its operations, products or services and through its interaction with key stakeholders” (www.bitc.org.uk)

The BITC index

Each year BITC conducts a self assessment survey on how companies are managing, measuring and reporting their social and environmental impacts

For each of community, environment, market place and workplace assessment is made in terms of:

  • Community issues
  • Environmental issues
  • Market place issues
  • Workplace issues

Scores are given and a BITC index is produced

How the BITC measures CSR:

  • Commitment to CSR is evaluated in terms of the extent to which:
  • Responsibilities have been clearly defined at all levels
  • Policies are in place to ensure responsible business behaviour
  • Objectives and targets have been set to create improvement
  • There are effective communications systems to share knowledge
  • Training is provided to ensure competency and delivery of objectives
  • A process is in place for stakeholder consultation and engagement
  • There are monitoring systems in place to assess and report progress
  • Key issues, targets and performance are reported quickly.

BITC Index 2006: the top 20

  • Co-operative Bank.
  • BAA.
  • Barclays
  • BT
  • National Grid
  • PriceWaterhouseCoopers
  • CE Electric UK
  • Scottish and Southern Energy
  • Veolia Water UK
  • Boots
  • Co-operative Insurance
  • HBOS
  • Lloyds TSB
  • John Lewis Partnership
  • RWE Npower
  • Tesco
  • Reckitt Benckiser
  • Rolls Royce
  • United Utilities
  • And joint 20th- BBC,M&S, Scottish Power, Severn Trent Water.

(Source :Sunday Times 7/5/06)

Case study in CSR - Tesco
Tesco went on the offensive against criticism that it is an uncaring retail giant by unveiling a plan in turn it into a “better neighbour”

In addition to the investing in sustainable environmental technology such as wind turbine to light its stores, Tesco announced a 10 point action plan

Was this a genuine measure or corporate responsibility or an attempt to defect criticism of the power of the supermarket giants?

Tesco’s Ten Point Action Plan:

  • Halve average energy used in Tesco buildings by 2010 compared with 2000
  • Double the amount that customers recycle at stores by 2008
  • Make all carrier bags degradable
  • Put nutritional labeling on all own brand products by 2007
  • Help educate parents about healthier food for their children
  • Get 2m people running, cycling or walking in sponsored events leading up to the 2012 Olympics
  • Be a quieter neighbour by cutting the number of deliveries to Express convenience stores
  • More consultation before building new stores from 2007
  • Make it easier for small suppliers to gain access to Tesco
  • Sell more local product than other retailers and introduce regional counters into stores