Corporate Governance relates to the system in the organisation that enable the management to act in the best interest of the shareholders and stakeholders.
Corporate Social Responsibility relates to the extend organisation will exceed its minimum expectation to stakeholders.
Responsibility is one of the key concepts underpining corporate goverance. It is in the interest for organisation to take on corporate social responsibility to promote good goverenace.
Cartier
In display of corporate social responsibility, Cartier took a stand against precious stones from Myanmar along with many other buyers. The boycott will have an immediate effect in the military rulers as the sale of precious stones is one of the country’s lucrative source of income. The Sept demonstration in Myanmar over fuel price increase telecasted images of Burmese soldiers using direct violence on citizens and bloodied deaths of monks. The aftermath was an international concern over the method used by the military government used to resolve the rebels. As a display of righteousness, individuals boycott against products from Myanmur. As a response to stakeholders interest, the corporate responsibility director of Cartier swore off the rubies from Myanmur and are turning to other stones to stockup for this Christmas.
Prima Deli
A hotline was setup to respond to those affected by the recent food poisioning due to consumption of Prima deli’s cakes. Prima Deli took responsibility to the public by recalling chocolate cakes, shutting down 39 franchises and granting paid annual leave to workers while the factory is shut down for testing. The food poisoning caused 109 sick, of which 8 hospitalised. Having Christmas round the corner, it is in Prima Deli’s interest to take the neccessary steps to gain back consumers trust in their brand so that it will not have a big impact on the season’s earnings.
The Body Shop
The first to be awarded the Humane Cosmetics Standard for their Against Animal Testing Policy. The Body Shop runs corporate social responsibility on the platform of their five values: Protect the Planet, Support Community Trade, Against Animal Testing, Defend Human Rights & Activate Self Esteem. It is their aim to govern all that they do and to reduce carbon footprint.
