CORPORATE SOCIAL RESPONSIBILITY 
 
IN A GLOBALISED WORLD
 
CHALLENGES AND OPPORTUNITIES

 

 

Fernando Franco SJ

 

 

June 2007

 

Social Justice Secretariat

Borgo S. Spirito, 4

C.P. 6139 / 00195 Roma-Prati (Italy)

+39 06689 77393 (tel)  +39 06689 77380 (fax)

<sjs@sjcuria.org>


 

 

CORPORATE SOCIAL RESPONSIBILITY IN A GLOBALISED WORLD

CHALLENGES AND OPPORTUNITIES

 

table of contents

 

 

1.                Introduction

 

 

2.                Presuppositions and methodological perspectives

 

Vision of IAJBS

Methodological standpoint

Globalisation

Challenges and Opportunities

Corporate Social Responsibility

 

 

3.                First question: are we looking at the whole of reality?

 

Excellence as looking with honesty at reality

 

4.                Second question: are we in favour of an inclusive approach to the understanding of CSR?

 

Excellence as solidarity

 

 

5.                Third question: are we ready to move from responsible to accountable social responsibility?

 

Excellence as being accountable

 

 

6.                Conclusion

 


 

1.       Introduction

 

I am grateful for the invitation to be with you this evening. I consider it a great honour to be in front of this learned audience representing the International Association of Jesuit Business Schools (IAJBS).

 

I bring greetings to all of you from Fr. Peter-Hans Kolvenbach SJ, Superior General of the Society of Jesus. He believes that these meetings are a good occasion to reflect on our specific Jesuit contribution to business education.

 

Let me start with a confession. Using meteorological language, one may characterise my relationship with Jesuit business schools as cloudy with sunny intervals. Let me recount two anecdotes. Before coming to Rome I lived and worked in India for 37 years. I was invited, in the mid 80s, to be part of a commission to study the desirability of starting a second Jesuit business school in India. After long and painful deliberations, the committee decided not to recommend the opening of a new business school. As a matter of fact, the school was finally opened. This for the cloudy weather that turned into rain!

 

A few years later, at the end of the 90s, the provincial of Jamshedpur invited me to be a member of the Board of Trustees of our prestigious business school at Jamshedpur. I spent a few years being privy to the strategic decisions made by the Board of a management school and enjoying meeting very bright and committed people. This for the sunny days.

 

In both cases I was committed to bringing the concept and practice of ‘social responsibility’ to a Jesuit business school. In India, at least, dialogue between Jesuit schools and social activists continues to be stormy.

 

At a global level, I must acknowledge that things are changing for the better. Twenty years ago it was almost a contradiction to use the words ‘corporate’ and ‘social responsibility’ in the same sentence. Today it has become part of the business culture, government public policy and the strategic planning of many NGOs.

 

I must add to my previous confession a comment about my dislike for undivided and monolithic identities. I have always tried to ride, at the very least, two horses. To put it differently, one may say that I have simultaneously inhabited two different worlds: the university world and the world of social activism. If, under normal circumstances, you require special balancing skills to ride two horses, under the typical oppositional culture of the 70s and 80s it was close to performing a miracle. The fact that I did fall frequently from the horse –now the one and now the other-- proves my failure to make a living either as a tightrope walker or as a miracle man.

 

I stand before you today with humility and hope, acknowledging my specific history. I do not claim to be a person “unencumbered by past experiences.”

 

2.       Presuppositions and methodological perspectives

 

My starting point is the vision of IAJBS I discovered in your website. IAJBS is defined as a

 

“network of institutions committed to management and business education […] to prepare men and women for leadership in the management professions in a global economy; that is, an education focused on justice, leadership, profession and vocation as defined by the Popes beginning with Pius XII and in Vatican II, and various other documents, and deeply committed to Ignatian principles.” (Emphasis mine)

 

This definition emphasizes your core business: you are in management education. It also points out to the specific character of your institutions: they are inspired by the charism of the Church and the Society of Jesus. Yours is an “education focussed on justice.” I am going to be faithful to this formulation. I have not come here to talk as an expert in business ethics…which I am not. I want to share my reflections on Corporate Social Responsibility (CSR) as a Jesuit entrusted with the task of animating social justice in Jesuit works and institutions.

 

Based on my past experience and drawing inspiration from my present responsibility, I want to clarify the methodological standpoint underpinning this presentation. This position, or rather presupposition, may be described by two inter-related elements:

 

(1)                True to the charism of the Society of Jesus, that is, to a faith that does justice, I want to position myself on the side of the excluded and marginalised of this world. I want to act in alliance with them and their interests.

 

(2)                Acknowledging that we live in a globalised world has helped me to understand more profoundly God’s plan to save the whole world. It makes today more sense to believe that God offers the banquet of life to all. Hence I prefer to adopt an inclusive approach, and choose a strategy that builds bridges, not one that deepens divisions.

 

The presentation aims at raising three fundamental questions and generating awareness of the challenges and opportunities brought about by globalisation. While the questions are meant to be an invitation to reflect on some controversial aspects of CSR, they are also addressed to Jesuit Schools committed to pursuing an “education focussed on justice.” As a matter of fact, these questions are addressed finally to this international Association that fosters the universal acceptance of its vision among its member schools.

 

Before I raise these questions I want to clarify as briefly as possible some of the terms I am going to be using in this address.

 

Globalisation

 

Let me start with the term ‘globalisation’. The word refers to a complex and ubiquitous process that touches all aspects of life. It is like the sea surrounding your house: the moment you step out you get wet, and as you try to walk you get in deeper and deeper. A document[1] prepared by an international group of Jesuits under the auspices of the Social Justice Secretariat describes it as an “unprecedented increase in the inter-connectedness of the relationships among ourselves and the whole planet.”[2]

 

This process has been paradoxically accompanied by an increase in the number of people who are marginalised, that is, by those who seem to be thrown into an economic, social, cultural and political periphery. The ‘excluded’ get disconnected from social and economic processes and some of them become ‘human waste’.

 

This process has been primarily driven by economic forces and incredible technological innovations. It has, nevertheless, profound political and cultural effects. The Secretariat’s report on globalisation notes:[3]

 

This web of new and changed interrelationships is also characterised by a certain ‘fluidity’, and ‘liquidity’ both at the conceptual and institutional levels. The ‘solidity’ of traditional relationships with its corresponding universe of meanings has been replaced by a constant melting and reshaping that bring a sense of ‘relativism’ increasing the gap between individual and collective political action. One of the consequences of this fluidity is the constant ebb and flow capable of throwing masses of individuals to the margins and creating a huge mass of human and non-human waste. [4]

 

Challenges and Opportunities

 

By the terms ‘challenges’ and ‘opportunities’ I refer to two complementary aspects of the process of globalisation. The immense possibilities open and the evils --I have called them ‘challenges’ -- brought about by this process. I do believe that they exist and I consider we must accept the challenge of fighting against them. John Paul II said: “Globalisation gives rise to new hopes [opportunities] while at the same time it poses troubling questions.”[5]

Let me start with the possibilities: we have, as never before in the history of mankind, the resources, and the technical ability to feed all the inhabitants of this planet, to win the battle over frequent disease-killers like malaria, tuberculosis and AIDS, and to arrest substantially ecological degradation. We have reached a situation where human dependence on nature, for good or for bad, has dramatically decreased. The Compendium notes: “Globalisation is able to produce potentially beneficial effects for the whole of humanity” (362).

 

In the midst of these possibilities we also discover the paradox of exclusion. Catholic Social Teaching[6] mentions specifically the following evils challenging us: increasing inequalities; marginalisation[7]; violation of human rights (365); and lack of “special attention [… to] local features and cultural differences” (366) which turns globalisation into “a new version of colonialism”[8]. Finally, the Compendium notes that “solidarity between generations must be forcefully emphasized” (367), a typical expression expressing concern for ecological and environment degradation.

 

Corporate Social Responsibility

 

Following the definition of ‘social corporate responsibility’ contained in the European Union’s Green Book I understand CSR as:

 

a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis.[9]

 

The document emphasizes that,

 

being socially responsible means not only fulfilling legal expectations, but also going beyond compliance and investing ‘more’ in human capital, the environment and the relations with stakeholders.

 

The document recognises that adopting this approach can contribute to the firm’s competitiveness and adds a remark which will guide one of my questions:

 

Corporate social responsibility should nevertheless not be seen as a substitute to regulation or legislation concerning social rights or environmental standards, including the development of new appropriate legislation.

 

 

 

 

3.                First question: are we looking at the whole of reality?

 

My first question originates in the scepticism with which CSR is viewed by many NGOs. There has been a noticeable change in corporate behaviour and culture: CSR has been embraced heartily. Many corporations wave CSR around as a sign of respectability. A few questions, however, have been raised: is this another business trick to gloss over ecological and social disasters that have attracted enormous media attention? Serious scholars have reminded us that this new interest in CSR appears often as a new fashion,[10] and it “has attracted dozens of other pieces of jargon.”[11] A few international NGOs have presented documented evidence that “the CSR landscape is uneven and full of potholes.”[12] Since I consider the matter quite important, let me remind you briefly of some of the cases reported by Christian Aid, a respected NGO.

 

In March 2001, a report[13] described the human rights abuses in Sudan perpetrated by the Sudanese government and the allied militia with the complicity of oil companies in and around the oil fields of southern Sudan. The report said:

 

Oil industry infrastructure – the same roads and airstrips which serve the companies – is used by the army as part of the war […] The Sudanese government itself now admits that oil is funding the wider civil war.[14]

 

In January 2002 a report[15] raised serious concerns about the health safety and livelihoods of contracted farmers growing tobacco for a subsidiary of British American Tobacco (BAT) in southern Brazil[16], and this resulted in remedial steps being announced by BAT.

 

In 2004 a report[17] examined the role played by Shell in Nigeria, British American Tobacco in Kenya and Brazil and by Coca-Cola in Kerala, India. Let me take up the case of Shell in Nigeria. Shell’s handling of the Brent Spar oil platform incident in 1995 and the Nigerian military execution of Ken Saro-Wiwa, a vociferous opponent of oil exploitation in Nigeria, marked a sea change in public attitude in Britain towards corporate behaviours. Shell decided on a drastic change of direction, hired the services of Shandwick Interactive leading to the creation of Shell’s cornerstone document Statement of General Business Principles adopted in 1996. My recent visit to Nigeria has confirmed Shell’s interest in contributing something to the social fabric of the region. I firmly believe that this incident can be usefully discussed as an important case study on CSR in our Jesuit schools.

 

Let me not give you the impression that I am referring to past events. As world leaders meet in Davos in 2007, to discuss ‘The shifting power equation’, Christian Aid's latest report, A Rich Seam: Who benefits from rising commodity prices? shows that, despite spectacular rises in the prices of commodity (oil, copper and gold) prices, the ‘equation’ is still weighted very much in favour of the rich, with developing countries scarcely benefiting at all. Some examples quoted in the report:

 

(1)                While mining company profits have risen eight times from 2002-2005, many of the developing countries from which the commodities are exported receive very little in either tax or royalties. There are often heavy costs, including environmental costs, related to attracting foreign investment in natural resources.

 

(2)                In Bolivia, the benefits of oil and gas following privatisation were outweighed by costs borne by the economy. Government revenue from the oil and gas sector, after privatization of its oil and gas resources, dropped by over 30% even though production levels and prices increased dramatically.

 

(3)                In Zambia the government is locked into contracts with copper companies which see the country receiving almost no tax and royalties, and in the Philippines where anti-mining demonstrations are widespread, companies paid less than 15% of profits to the government between 2001-2005.

 

Are we ready to look squarely at the challenges (evils) of globalisation? Are we also looking at the good practices, the efforts made by some companies to change behaviour and accept CSR? In one word: are we ready to look at the challenges and opportunities of globalisation?

 

Before I move to the next question let me touch finally on the consequences of this first question for the vision of Jesuit Business Schools. Jesuit tradition and vision have been grounded on the meditation of the Incarnation in the Spiritual Exercises where we are told of how God looks at the whole reality before deciding to take action and become man.

 

The first Point is, to see the various persons: and first those on the surface of the earth, in such variety, in dress as in actions: some white and others black; some in peace and others in war; some weeping and others laughing; some well, others ill; some being born and others dying, etc. […] and consider the Three Divine Persons, […] how They look on all the surface and circuit of the earth.[18]

 

If Jesuit schools have to provide a management education focussed on justice, then it needs to expose students and faculty to the whole of reality. If this is true then we might need to re-define the concept of ‘excellence’, the Ignatian magis, as including the practice of looking with honesty at reality. I would suggest that Jesuit excellence needs to incorporate the element of ‘compassionate truthfulness’: looking at reality through the eyes of the poor.

 

The first question addressed to our Jesuit Business Schools could take this form: does our management education put our students in touch with the whole reality? Does our education invite the students to factor in the element of social justice?

 

 

4.                Second question: are we in favour of an inclusive approach to the understanding of CSR?

 

This question emerges from the discussion that has dotted the history of the concept of CSR. The debate started, as you well know, with the question of the nature of the relationship between business and society: was an enterprise responsible to society? The development of the concept of CSR has entailed an inclusive process: it has, on the one hand, rejected a conception of a business enterprise as autonomous, and it has, on the other, made the enterprise responsible to those groups affected by it. The question is meant to help us examine our position with respect to the inclusiveness of our understanding of the term ‘responsible’.

 

A little history may help us remember the context in which the question is put. The earliest conception of a business emphasized the unity between capital and labour and defined it as a unit of production. Social ethics was then rightfully preoccupied with achieving an acceptable balance between both factors of production. A sort of “managerial revolution”[19] followed: the enterprise was conceived to be an autonomous organisation, free from the constraints of capital and labour, in the hands of the managers.

 

The first clear response to the question of business responsibility came from Milton Friedman: business was only responsible to the stockholder.[20] In the course of time, and in a globalised context, the responsibility of business was extended and moved meaningfully from stockholder to the stakeholders,[21] that is, those affected by business activities. The term stakeholder has been defined as follows:

 

those persons or groups that have or claim to have rights, interests, or ownership in a business enterprise and in its past, present and future activities.”[22]

 

There is a consensus that among the most important stakeholders we must consider the owner, labour, consumers, the chain of input providers, public administration and the immediate and more external environment. The nature of social responsibility emerges from the relationships that an enterprise has with each of these social groups. In the context of the increasing precariousness of labour and the worsening of the ecological balance it makes sense to give priority among the stakeholders to labour and the environment.

 

Let me offer a brief characterisation of the stakeholder or inclusive approach.

 

(1)                  An ethical defence of this approach may invoke the principle that the exercise of power carries also corresponding responsibilities. Since business exercises power over each stakeholder, business also carries responsibilities towards them.

 

(2)                  CSR cannot ultimately become a substitute for the State’s own responsibility. It has been pointed out that the growing awareness about CSR has accompanied the weakening of the state in a globalised society, but CSR should not be equated with the indiscriminate move to ‘privatise the public.’

 

(3)                The inclusive approach inherent in the concept of stakeholders needs to avoid two extremes: extend the list of stakeholders endlessly, and reduce the relationship between business and stakeholders to some activity or dimension external to, or separable from their core business. CSR will always call for social responsibility to be part of the internal structure of managing business. For example, it needs to be incorporated in decision-making.

 

(4)                The right interpretation of this inclusive approach would lead us to consider CSR as partnership between the State, business and civil society. It is in the space where all three meet and interact that CSR can find the most efficient response.

 

By raising the second question we have attempted to focus attention on the exclusion-inclusion dyad; we may now look at this ‘inclusive approach’ as another way of expressing John Paul II’s strong invitation to globalise solidarity. It is in this context that I turn my attention to reflection on the challenge of ‘solidarity’ to our management education in Jesuit business schools.

 

Catholic Social Teaching establishes

 

an intimate bond between solidarity and the common good, between solidarity and the universal destination of goods, between solidarity and equality among men and peoples, between solidarity and peace in the world.[23]

 

Jesuit business schools need to remember that General Congregation 34, the highest legislative body of the Jesuits, talking about globalisation 10 years ago, urged Jesuits to counter

 

“injustices on a massive scale, […] by working to build up a world order of genuine solidarity, where all can have a rightful place at the banquet of the Kingdom.”[24]

 

Seeking ‘excellence’ today, Jesuit business schools need to avoid the pitfall of an exclusive elitism and brand their education with a strong sense of solidarity.

 

 

5.                Third question: are we ready to move from responsible to accountable social responsibility?

 

This question emerges from the debate regarding the nature of CSR: should CSR be voluntary? The voluntary approach has been widely endorsed by European governments, and clearly mentioned by the definition provided in the Green Book. At the heart of CSR, argue those business that have developed it, is the idea that companies, on their own, can be trusted to fill an important ‘regulatory gap’. This gap exists because there may be laws binding the company in the country of origin, but there are no laws, or a lack of an effective regulatory mechanism in the poor countries and communities in which they operate.

 

Important international NGOs like Christian Aid feel that,

 

Legally binding and internationally agreed regulation for business are needed to protect the rights of poor communities. Adherence to internationally agreed standards must also be included as a pre-condition for the commencement of commercial projects that require loans from international financial institutions.[25]

 

 

The World Bank, itself a CSR player, notes:

 

Despite widespread rhetoric, the impact is still patchy; in practice, many companies’ implementation [of CSR strategies] is shallow and fragmented.[26]

 

It is also evident that during the last 20 years there has been remarkable progress. A number of institutions (Caux Round Table[27]) have come to the fore to develop a moral version of capitalism. Besides, a great variety of codes of conduct have been formulated, some of which have an accountability clause. It may be interesting to name a few.

 

The Interfaith Declaration is a Code of Ethics on International Business for Christians, Muslims and Jews.[28] The Coalition for Environmentally Responsible Economies (CERES) was formed in 1989 to promote responsible corporate environmental conduct.[29] The Ethical Trading Initiative (ETI), an alliance of companies, NGOs and trade unions that share a common interest in the labour issues associated with multinational supply chains. The International Confederation of Free Trade Union ICFTU and International Trade Secretariats (ITS) adopted in December 1997 a Basic Code of Conduct covering Labour Practices. SA8000 is the product of Social Accountability International (SAI), an organisation founded in 1997 and dedicated to addressing the growing concern among consumers regarding the working conditions of factories around the world.[30] We may add to the list the UN’s Global Compact including nine guiding principles and the Global Reporting Initiative.[31]

 

While our question does not touch directly on the relative desirability of various codes of conduct, it emphasizes that CSR has been moving in the direction indicated by the question. We need to remember, however, that adherence to a code of conduct does not automatically result in accountability. Insistence on accountability would in this case mean that the practical implementation or the de facto adherence to the code of conduct has also been checked and verified by an external authority.

 

Our contention is that CSR, within the context of voluntarism, has been also accompanied by a movement in which society demands more accountability. We believe that it is of the utmost importance to continue discussing and reflecting on the relation between responsibility and accountability. Certain guidelines may be in place.

 

(1)                The claim in favour of voluntarism is made on the assumption that the term ‘responsibility’, as a human act, must be based on the freedom of the person. One is not really responsible if s/he is forced to submit to the law.

 

(2)                Even those who do accept voluntarism as the basis for CSR are at pains to emphasize that ‘voluntarism’ should not be confused with a ‘discretionary’ approach. They argue “that moral behaviour does not only mean the fulfilment of the norms but also the acceptance of values and a type of behaviour which is coherent with these values,”[32] a kind of “moral voluntarism”. The question is not whether companies can decide or not to be socially responsible; the fact is that they are socially responsible.

 

(3)                Though legal provisions are important, some argue that legal provisions (law) may be a necessary but not a sufficient condition to make an action ethical. A company may behave according to law and yet the action may be unethical. There are many examples of this.

 

·                    Productive processes which are considered to be toxic or dangerous against the environment and banned in one country can be developed in other countries where no law banning it exists. The company is then acting legally but unethically.

·                    Technological discoveries not yet regulated by law, if put into use or tested, may result in irreparable damage to health.

·                    It may be legal to close a factory or dismiss the labour force, but there is an ethical question involved.

 

(4)                Some authors like to speak of ‘responsiveness’ rather than responsibility.[33] This concept seems to stress the leadership role that business can take in social transformation; business is thus looked upon as a part of society, as having a civic responsibility. By being pro-active, by trying to foresee the effects of their decisions, business becomes co-responsible with other actors. Responsiveness does not imply an increase in the list of stakeholders; it is not a matter of introducing a few ‘changes’ but of moving into a new paradigm.

 

(5)                Following this line of approach, others want to develop a certain empathy to resolve negotiations among various stakeholders. Quite often negotiations fail because an action benefiting all may not succeed; this may be because each group wants to minimise their individual costs.[34]

 

The move from voluntarism to a demand for accountability may also have important consequences for Jesuit Business Schools. As reflected in the Spiritual Exercises, Jesuit spirituality and tradition have always relied on the freedom of the individual to change the course of her life. Ignatius was also insistent that good intentions ought to be checked against the determination of the will and to be validated by the accountability to the Superior.

 

While accepting that a fierce sense of independence has always guided the development of each Jesuit Business School and been responsible for a great deal of innovation, quality and creativity, we need to acknowledge that there are already many academic institutions using external instruments of certification.

 

I propose that, if it has not been already developed, the IAJBS could develop a system of external certification in what concerns the Jesuit character of a business school, its characteristic of being focussed in justice. The development of such certification may be a great step towards accountability. Jesuit excellence, to be credible, needs to be accountable, to be perceived as such by society, and to be independently confirmed.

 

 

6.                Conclusion

 

Let me express my gratitude for the patience you have shown in listening to me. I want to remember all those Jesuits, lay partners and institutions that have played an important role in developing business ethics and have contributed to making Jesuit Business Schools different.

 

My questions today have only aimed at fostering your efforts and at reminding you about the urgency of the theme. I have also proposed that while accepting a definition of ‘excellence’, the Ignatian magis, based on solid academic standards, needs to be blended with a Jesuit understanding of excellence. I have put forward the idea that Jesuit excellence must incorporate the ability to

 

look compassionately at the whole reality;

have an inclusive approach (solidarity);

and to be accountable.

 

I believe that we, working with other people of good will, have the capacity to change the values that govern society. We need to change a narrow understanding of business success. Jesuit Business Schools need to face the fact that teaching social responsibility and being focussed on justice has a cost. The call of the magis is a beacon calling us to face the challenges squarely, to take advantage of the opportunities offered by globalisation.

 

Thank you



[1] Social Justice Secretariat, Globalisation and Marginalisation: Our Global Apostolic Response, (Rome, 2006)

[2] Globalisation op cit. p. 9.

[3] Globalisation, op cit. n. 38

[4] The quotation relies heavily on the following analysis: “The ‘melting of solids’, the permanent feature of modernity, has therefore acquired a new meaning, and above all has been redirected to a new target--one of the paramount effects of that redirection being the dissolution of forces which could keep the question of order and system on the political agenda” (Zygmunt Bauman, Liquid Modernity, Polity: Cambridge, 2001, p.6).

[5] John Paul II, Post-Synodal Apostolic Exhortation Ecclesia in America, 20, AAS 91 (1999), 756.

[6] Pontifical Council for Justice and Peace, Compendium of the Social Doctrine of the Church, (Città del Vaticano: 2004). Numbers in brackets indicate the numbers of the text.

[7] John Paul II, Message for the 1998 World Day of Peace, 3, AAS 90, (1998), 150.

[8] John Paul II, Address to the Pontifical Academy of Social Sciences (11 April 2002), 3; L’Osservatore Romano, English Edition (24 April 2002), 10.

[9] European Commission, Directorate-General for Employment and Social Affairs, Promoting a European framework for corporate social responsibility, Green Paper (Brussels, 2001), p. 8

 

 

[10] Editorial, ‘La Responsabilidad social de la empresa, ¿El coste de tener conciencia?’, Revista de Fomento Social, 244, 61, (Octubre-diciembre 2006), 501.

[11] Christian Aid, Behind the Mask. The Real Face of Corporate Responsibility, (London, 2004) Website: www.christianaid.org.uk

[12] Christian Aid, ibid, p. 5

[13] The Scorched Earth: Oil and War in Sudan, (place of publication, 2001)

[14] Ibid. p. 1

[15] Hooked on Tobacco ( place of publication, 2002)

[16] “There is considerable evidence of farmers suffering illnesses associated with exposure to pesticides including depression, anxiety, neurological dysfunction, muscle aches and Parkinson's disease-like tremors. Farmers also suffer from exposure to high levels of nicotine and experience an annual catalogue of sickness coinciding with the tobacco-growing calendar.”

(http://www.christian-aid.org.uk/indepth/0201bat/batsum.htm)

[17] Behind the Mask, op cit. See also the report Fuelling Poverty: Oil, War and Corruption, (place of publication, 2003) which examines the curse of oil on poor communities in resource-rich developing countries.

 

[18] Spiritual Exercises, n. 106

[19] J. Burnham, The Managerial Revolution, John Day Co. (New York, 1941)

[20] Milton Friedman, ‘The Social responsibility of business is to increase its profits’, New York Times, 13 September 1970.

[21] R. Freeman, Strategic management: A Stakeholder Approach, Pitman Publishing Co, (Boston, 1984)

[22] M. Hopkins, The Planetary Bargain: Corporate Social Responsibility Comes of Age, MacMillan Press (London, 1999), p. no?

[23] John Paul II, Encyclical Setter, Sollicitudo Rei Socialis, 17,39,45; AAS (1988), 532-533, 566-568. Vatican Ecumenical Council II, Pastoral Constitution Gaudium et Spes, 83-86: AAS 58 (1966), 1107-1110. See also Globalisation, op. cit. n. 77

[24] GC 34, D. 3, n. 7

[25] Behind the Mask, op.cit. p. 5.

[26] http://www.worldbank.org/privatesector/csr/

[27] The Caux Round Table was founded in 1986 by Frederick Phillips, former President of Philips Electronics and Olivier Giscard d'Estaing, former Vice-Chairman of INSEAD, as a means of reducing escalating trade tensions. It is an international network of principled business leaders working to promote a moral capitalism. The CRT advocates implementation of the CRT Principles for Business through which principled capitalism can flourish and sustainable and socially responsible prosperity can become the foundation for a fair, free and transparent global society. (http://www.cauxroundtable.org/about.html)

[28] The Declaration emerged from a series of consultations between distinguished Christians, Muslims, and Jews, which took place under the patronage of HRH the Duke of Edinburgh, HRH Crown Prince Hassan Bin Talal of Jordan, and Sir Evelyn de Rothschild. Discussion of the Declaration’s terms began in 1988 and concluded in 1993.

[29] Shortly after the disaster of the Exxon Valdez , CERES announced the creation of the Valdez Principles. Later renamed the CERES Principles, this statement represents an environmental ethic for corporations.

[30] SA8000 is intended to overcome the difficulties associated with monitoring internal corporate codes of conduct. It offers (1) a standard for workplace conditions, and (2) a system for independently verifying a factory’s compliance with this standard. Its social accountability requirements address nine areas: Child Labour; Forced Labour; Health and Safety; Compensation; Working Hours; Discrimination; Discipline; Free Association and Collective Bargaining; and Management Systems. SAI accredits firms to act as external auditors that certify whether manufacturing facilities are in compliance with SA8000.

(http://www.cepaa.org/SA8000/SA8000.htm)

[31]Fundación Ecología y Desarrollo, Responsabilidad Social Corporativa, mimeo 2003.

[32] Editorial, Revista de Fomento Social, 244, 16, octubre-diciembre 2006, p. 515

[33] Pedro M. Sasia, La empresa a contracorriente. Cuestiones de ética empresarial, Alboan-Mensajero, (Bilbao, 2004).

[34] M. Olson, The Logia of Collective Action, Harvard University Press (Cambridge, Massachusetts, 1965). The Rise and Decline of Nations, Yale University Press (New Haven, 1982).