I googled what CSR means and found As You Sow Org, according to them Corporate Social Responsibility (CSR) refers to operating a business in a manner that accounts for the social and environmental impact created by the business. CSR means a commitment to developing policies that integrate responsible practices into daily business operations, and to reporting on progress made toward implementing these practices.
Companies now adays are looking into CSR for their corporation's sustainability. CSR programs also serves as a marketing strategy of the organization promoting their advocacy and civic awareness, some companies also go through the acreditation for ISO 26000 (ISO 26000 is the international standard developed to help organizations effectively assess and address those social responsibilities that are relevant and significant to their mission and vision; operations and processes; customers, employees, communities, and other stakeholders; and environmental impact.)
This week we tackle two cases (Gap's Labor Problems & PNOC EDC)to catch up with last week's session.
The factory in El Savador that made GAP clothes was run by Mandarin International. Mandarin paid its workers about only 12 cents for assembling a clothes that retailed for $20 in the United States. In 1995 GAP's problems at the Mandarin plant began when an employee publicize the sweatshop conditions in Mandarin plant described workers are long hours of work for 56 cents an hour, violence against union supporters, fired the factory when tried to form a union, sexual harrasment from supervisors, lack of clean drinking water, not being allowed to use rest rooms, and being forced to sweep the factory grounds under a torrid sun as a punishment. The consumers would be asked to boycott GAP until the company reinstated the fired union workers and agreed to have an independent third party monitor the plant’s compliance with GAP's own code of conduct. GAP resisted that demands, because the company explained that the workers involved were not GAP's but were employee of Mandarin Int. as an independent company, so their work conditions were not GAP responsibility, but the responsibility of the Mandarin as the owner.
In my opinion, GAP is still responsible for the workers in El Salvador as they are still representing GAP. GAP should have checked if the employees hired by their contractor are treated fairly. Like in a BPO industry, even they are from a different company, the client has vendor managers that serves as liaison offer between the third party employer and their brand. GAP should have hired a Vendor Manager to handle relationships with manufacturers and his company’s operational department to ensure quality of supplies, delivery timelines and even working conditions of their employees.
PNOC EDC
A tragic incident happened at dawn of March 26, 2004, a band of about 60 armed extremists seized the company’s P100-million Rig 8 in Barrio Tongonan in Kananga, Leyte demanding ransom payment. PNOC EDC ignored the extremists’ demand, the extremists killed some regular workers who were coming to work. Aquino, who had just president of the company a month before, noticed that there were full of onlookers and just curious at what was going on and no sympathy for the bereaved families. To find out why the townsfolk seemed unconcerned about the tragic incident, Aquino had an informal survey done. The survey showed that residents of the host communities did not relate to PNOC EDC or to its employees. To them the company only exploited the area without giving back anything to the local residents. Local people considered PNOC EDC employees aloof and supercilious.
PNOC EDC should take care of the community where their power plant is located. They should think of sustainability on how they would make the community more involved in working in harmony. It's the company's goal to ensure safety and take care of the resources that the community. It should be a symbiotic relationship for the corporation and the community.
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