Corporate Social Responsibility

As our global market continues to expand, it seems countries are stressing the need for sustainable development. Sustainable development encourages economic growth by utilizing resources to meet human needs while preserving the environment for present and future generations. Corporate Social Responsibility (CSR) is one area where countries are particularly focused when it comes to sustainable development. CSR is a practice that encourages companies to act in a responsible manner, in order to protect social, environmental, and economic interests of the public. There has been a recent progression throughout the world, formally adopting CSR requirements and encouraging companies to practice environmentally responsible decision making. In the U.S. the “Leadership in Energy and Environmental Design” (LEED) certification system is utilized to encourage companies to meet specific “environmental benchmarks” in their development and manufacturing process. The U.S. Green Building Council gives a specific certification to companies depending on the level of environmental achievement. The New York Times reports that companies such as Volkswagen have strived to achieve this certification. Volkswagen’s plant in Chattanooga, Tennessee received platinum (the highest) certification in 2011. Other auto companies such as Chrysler, G.M. and Honda have also achieved certification for their plants throughout the U.S. This is just one example of programs in the U.S. encouraging corporations to implement environmental awareness into their business plans. Corporate social responsibility is not just a trend in the U.S., but has seen developments in other areas in the world as well. The LEED system is an internationally recognized certification and G.M. is also seeking to achieve LEED certification for its manufacturing plant in Brazil. The plant seeks to use environmentally innovative automobile manufacturing practices to achieve LEED certification at the end of 2012. The EU has also made progress with their “Renewed EU Strategy 2011-2014 for Corporate Responsibility,” issued by the European Commission. The EU has set objectives that include transparency and reporting requirements for corporations’ environmental activities and information. The EU has also set corporate social responsibility commitments that companies should strive to achieve. The EU, like the U.S. with its LEED program, encourages environmentally friendly behavior by creating an awards program for industries who meet certain objectives. Spain has adopted a law that requires state owned enterprises and businesses with over 1,000 employees to compile and submit an annual sustainability report. China has also shown an interest by issuing a corporate social responsibility guide for state owned enterprises so that these companies can initiate a socially responsible management system. Corporate social responsibility plans are one way in which countries implement sustainable development and these development programs continue to be hot topic issues in the global environment. The United Nations Conference on Sustainable Development will be held in Rio de Janeiro in June 2012. At this conference over 130 heads of state and government and approximately 50,000 business leaders, mayors, activists and investors will review the progress of sustainable development programs and address the issues countries have faced in implementing these programs. As the New York Times reports, “Rio offers a generational opportunity to hit the reset button: to set a new course toward a future that balances the economic, social and environmental dimensions of prosperity and human well-being.” -Whitney Wilson, Legal Intern