The corporate social responsibility (CSR) is a concept in which corporate
take social, environmental and economic concern into account in all their activities
and their interactions with stakeholders
(shareholders, employee, suppliers, customers, community…)
The CSR is the corporate way of sustainable development concepts. There is 3 major topics: Environmental, social, economic. The CSR aim to defined the companies’ responsibility towards the stakeholders according to the philosophy “act local, think global” (René Dubos). Thus it needs to take both global and local context into account to define the strategy.
The “social” in CSR refers to the impact on workers, and the community
on a socio-economic level. A good example is how buying practices focused on lowest cost and highest
speed of a company is closely tied to a factory worker’s wage working for one of their suppliers.
That wage then impacts the local community the worker lives and spends his/her salary.
To get an accurate picture of the holistic impact, it is necessary to take every interaction between an employee and their local community into account. Let’s use wages again to illustrate this picture.
If an employee is required to work over 12 hours daily without earning the bare minimum to cover the living expenses of his or her family, other family members including children under the age of 16 are forced to work too. Creating a vicious cycle, children of these families are left with no choice but to choose work over school, losing all opportunity to raise their own socio-economic status above poverty. Unfortunately, many do not realize how wages have a direct impact on not just the employee, but also his/her family’s future and the local community.
In response to this issue, WethicA strongly believes organizations should require discretionary wages based on the local living standards rather than forcing factories to try to adhere to legal minimum wages. In some countries, the minimum wages of two working parents combined is not enough for a family to subsist on.
This is an important approach for companies for several aspects:
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