Enhancement of Corporate Social Responsibility
As increasing amounts of scientific data validate concerns about the deterioration of our environment, the role of non-governmental organizations (NGOs) in network governance is being utilized in ever-increasing ways to halt or at least slow this deterioration. One of the ways they are accomplishing this is by directing their activities to focus on improving Corporate Social Responsibility (CSR). As a concept, CSR has existed since the first business was formed in civilization. The French philosopher Rousseau described it as the "social contract" between business and society. As theories about CSR have evolved in keeping with their times, today it is increasingly associated with sustainable practices and development, meaning that businesses have a "moral responsibility" to conduct their operations in an ecologically sustainable manner. It is no longer acceptable for corporations just to grow "the bottom line" and increase profits for their shareholders. Businesses remain free to pursue profits but are increasingly obligated to minimize their negative impact on the environment.
Network governance, in the form of NGOs, is effectively bringing to light "bad practices" by corporations, as well as highlighting those actively working to reduce their carbon footprints. Private governance networks such as CSRHUB and the Carbon Disclosure Project (CDP) are entities that hold corporations accountable for their amount of corporate social responsibility. Founded to accelerate solutions to climate change and water management, the CDP discloses information and data on water management, greenhouse gas emissions, and climate change strategies on over 3,000 companies worldwide. It is the only global climate change reporting system and encourages corporations to engage in "best practices" regarding environmental impact by making their formerly private or unknown environmental impact information available to anyone, including the general public. This information can be used (by a variety of entities) to make consumer purchase and investment decisions, formulate governmental as well as corporate policy, educate people, develop less harmful business methods for corporations and formulate action plans by environmental advocacy groups, to name a few. "The first step towards managing carbon emissions is to measure them because in business what gets measured gets managed. The Carbon Disclosure Project has played a crucial role in encouraging companies to take the first steps in that measurement and management path". This quote by Lord Adair Turner, Chairman of the UK Financial Services Authority, illustrates how network governance is enhancing CSR.
Leading European business schools joined with more than sixty multinationals to launch the European Academy of Business in Society, the mission of which is to push CSR to the forefront of business practice. Their main activities in pursuing this goal are: 1)developing ‘best-in-class’ training practices and learning resources for businesses and corporate academies, 2) including the changing role of business in society in business education and 3)creating a global research bank on the role of business in society and delivering interdisciplinary research on CSR. This is an example of network governance using education to improve Corporate Social Responsibility. Use of organization of networks in today’s society is a valid means of moving forward in preserving our environment.
Read more about this topic: Network Governance
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