|
Corporate Social Responsibility
News
1.20.2004 ET
|
CSR News from:
|
|
|
News Category:
|
|
Study Reveals Corporate Social Responsibility a Major Factor in Overseas Investment and Purchasing
(CSRwire) NEW YORK, NY/LONDON, UK - Corporate social responsibility is
increasingly influencing where and with whom major multinational
corporations do business. That is the conclusion of Race to the
Top, a new study prepared for the World Bank and the International
Finance Corporation.
The project was commissioned by the World Bank Group to shed light on
whether corporate social responsibility affects the international
investment and purchase decisions of the largest companies in the world.
The project also explored the practices and preferences of companies
working with host governments on sustainability issues. More than 100
multinational enterprises participated.
The study was jointly conducted by PELC, a New York-based firm that
advises corporations on social strategies for operating in the developing
world, and by Ethical Corporation Magazine, the London-based monthly
publication of corporate social responsibility. The full text of the study
with more than 40 graphs and charts, is available on the PELC website, www.pelc.net as well as the
Ethical Corporation website, www.ethicalcorporation.com,
and the World Bank website www.worldbank.org/privatesector/csr.
"Many global companies have made a commitment to creating lasting social
and economic value in their host communities," said Jonathan Berman,
PELC's president and the study's director. "This study clearly indicates
that their investment and purchase decisions are now being influenced by
where they can meet those commitments."
"This report is a landmark in corporate social responsibility, both for
its form and contents," said Toby Webb, Ethical Corporation's Editor in
Chief. "In an arena filled with anecdotal and speculative evidence, Race
to the Top delivers quantitative information never before gathered."
The participating companies have over US$1.66 trillion in combined annual
revenues. The annual revenue of the average participating company is
US$15.5 billion. Among the critical findings are:
An overwhelming majority (88%) of participating companies report that
CSR factors are of greater influence in determining where they source and
invest than such factors were five years ago. Of these, more than half
report that CSR factors are "much more influential" than they were five
years ago.
A majority of participating companies (52%) have chosen one
developing-country partner over another on the basis of their CSR
policies.
Over the last five years, participants report increasing their
investment in CSR, in terms of staff (74%), budget (72%) and most
importantly, top executive time (68%)
A large majority of respondents (81%) report they are involved in
social issues "beyond the factory gates," in which they seek partnership
from local government and civil society.
The report concludes with policy guidance to governments and the
development institutions that support them. The recommendations
include:
Communicating a "CSR-friendly" environment as part of the overall
investment-attraction effort.
Addressing CSR concerns of potential investors early in their
assessment of new ventures.
Identifying or building a base of local companies that are
"CSR-ready" partners for international firms.
Evenly enforcing strong laws on CSR-related issues, such as
environment, health, safety and corruption.
Reaching out to large multinational corporations as public-private
partners, focusing on the company's stated CSR goals and programs.
Engaging local religious institutions and civil society in creating
an environment that enables CSR.
PELC is a consulting firm that assists companies in creating and
implementing social strategies for operations in the developing world, and
assists governments and development institutions to promote socially
sustainable investment. The company draws its consultants from the ranks
of senior corporate sustainability executives, as well as from civil
society and academia. More information on PELC can be found at www.pelc.net .
Ethical Corporation Magazine is an independent business information
provider and events producer on the issues in and around corporate social,
financial and environmental responsibility. The company has 12,000
registered business users on the web and in print. Over 1,500 Senior
Corporate Executives, NGO representatives and the media have attended
Ethical Corporations conferences and workshops worldwide. More
information on Ethical Corporation can be found at www.ethicalcorporation.com.
|
|
