Corporate social responsability HW 4

Alberto Iglesias Senn Gonzlez

What is the social responsibility of a firm?

Based on the International Labour Office conference in Geneve (March 2006) we can find an accurate approach to Corporate Social Responability definition. Corporate Social responsibility (CSR) is how the corporations take in consideration the impact of their activities on the society. First we have to difference between do the things according to law and CSR, all the companies have to work according to some environmental regulations, salary regulations CSR is voluntary so depends on the company and are a set of methods and processes to show and affirm its values and principles.

Which firms do you think is good at social responsibility?

There are many firms good at CSR, for example the spanish company Abengoa: Abengoa is an international company that applies innovative technology solutions for sustainable development in energy and environment sectors, generating electricity from the sun, producing biofuels, desalinating sea water or industrial waste recycling. Articulating their business around three activities: Engineering and construction. Infrastructure concession type. Industrial production.

CSR in Abengoa
1-Enviroment: policy of ongoing reduction of their environmental footprint. How? The indicators cover energy and water consumption, impact on biodiversity, emission of pollutants, noise emissions, soil and aquifer contamination, the recyclability Inventory of greenhouse gas (GHG) emissions. This iniciative started in 2008 since then this inventory enables Abengoa to measure the GHG emissions of all company activities. This system is based on an internal regulation that is comparable to international standards. The purpose of the inventory is to gain knowledge of the direct and indirect GHG emissions of each one of their activities, enabling them to: draw up annual reduction plans, label our products and services, and evaluate suppliers according to the GHG emissions associated with the products and services they provide.

CSR in Abengoa
2-Social: They are not focus only in growth they try to fulfill the expectation of all the stakeholders and the society. Employees: Abengoa tries to create the right conditions for their personal and professional growth. Customers: Trying to be sure that their products and services are always according to customer expectations Providers:relationship based on confidence and mutual benefit, for Abengoas commitment to quality. Society and minorities: initiatives of general interest for the community in 5 main areas: assistance, culture, education, research and employee social action. Shareholders. Communication based on transparency, ethics and equity.

CSR in Abengoa
Social (2): Sustainable mobility office: Implementation of a shuttle bus fleet: to take employees to company facilities from different locations in the city. Training in efficient driving techniques: Their employees can take for free a course about efficient driving techniques, this course will allow them to reduce a 30% of emissions and save money. Promoting bycicle and motorcycle: Creation of parking facilities inside the headquarters, creation of a repair shop at the companys office location. Sharing taxis to airport and train stations policy.

CSR in Abengoa
Social(3) Campus Palmas Altas Day care service for employees children between 0 to 3 years. A Medical service that provides an innovative telemedicine system for online consultation of specialized physicians for diagnostic pursposes and to maximizes treatment suitability in real time. Three restaurants with special price for the employees. Two fitness areas Lounge with computers, newspapers, magazines

CSR in Abengoa
3- Transparent and reliable information: Abengoa submit all of their processes and their information systems to rigorous control, supervision and auditing procedures: Internal auditing: Supplier auditing: External auditing:

CSR in Abengoa
Abengoa have received several prizes because of their Corporate social responsibility policy and also has gained a good name in the industry, this good name has allowed them to be one of the 30 biggest companies in Spain, and developed some important projects like built the 2 biggest thermic solar energy plant in the world.

3- If you own a firm, what social responsibility would you have? Why do you think that?
Depend on the nature of my business and the conditions around the company Iwould focus on some activities or another. We found 3 main reasons to do SRC: Moral, economic, and social. Obviously the companies have a importal moral role with the enviroment or social impact of their activities taking a look of the last case, Abengoa is a green company so they want to show their compromise with the enviroment through green measures, also another measure is to audit their own accounts and providers accounts all this measures give them a very good name, and also attract the investors. Also they offered scholarships to their employees and relatives, with this measure they get high qualified employees who also get a moral debt with the company so you are making loyal high qualified employees. What kind of SRC would i have? Measures that give to my company a good name and reputation, like those right above and attract the future investors.

4- Is there positive or negative relationship between social responsibility and competitive advantage? Why? It is negative in terms of efficiency, but also if the company play well can also get a good name that can make the difference with their competitors and gain a competitive advantage. For example take measures of the ECG gasses it cost money for Abengoa, but also Abengoa is a green company and their image is build in these terms. Or doing 3 different auditing, it may seems like a waste of money, but also the shareholders will trust more in their accounts and it is also a smart way to attract new investors and keep the money of the investors that you already have.

Thank you!