Corporate Social Responsibility of BAT: Mahadi Azad Litu (BBA 6 Batch) PSTU

Corporate Social Responsibility of BAT
Introduction:
Corporate social responsibility (CSR, also called corporate conscience, corporate citizenship, social performance, or sustainable responsible business) is a form of corporate self-regulation integrated into a business model. CSR policy functions as a built-in, self-regulating mechanism whereby business monitors and ensures its active compliance with the spirit of the law, ethical standards, and international norms. The goal of CSR is to embrace responsibility for the company's actions and encourage a positive impact through its activities on the environment, consumers, employees, communities, stakeholders and all other members of the public sphere. Furthermore, CSR-focused businesses would proactively promote the public interest (PI) by encouraging community growth and development, and voluntarily eliminating practices that harm the public sphere, regardless of legality. CSR is the deliberate inclusion of PI into corporate decision-making, that is the core business of the company or firm, and the honouring of a triple bottom line: people, planet, profit.
1 Mahadi Azad Litu (BBA 6th Batch) PSTU
Corporate Social Responsibility:

The term "corporate social responsibility" came in to common use in the late 1960s and early 1970s, after many multinational corporations formed. The term stakeholder, meaning those on whom an organization's activities have an impact, was used to describe corporate owners beyond shareholders as a result of an influential book by R. Edward Freeman, Strategic management: a stakeholder approach in 1984. Proponents argue that corporations make more long term profits by operating with a perspective, while critics argue that CSR distracts from the economic role of businesses. Others argue CSR is merely window-dressing, or an attempt to pre-empt the role of governments as a watchdog over powerful multinational corporations. Different organizations have framed different definitions - although there is considerable common ground between them. My own definition is that CSR is about how companies manage the business processes to produce an overall positive impact on society. Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large
The business benefits of corporate social responsibility:

Corporate social responsibility (CSR) isn't just about doing the right thing. It means behaving responsibly, and also dealing with suppliers who do the same. It also offers direct business benefits. Building a reputation as a responsible business sets you apart. Companies often favour suppliers who demonstrate responsible policies, as this can have a positive impact on how they are perceived by customers. Some customers don't just prefer to deal with responsible companies, but insist on it. The Cooperative Group, for instance, place a strong emphasis on its corporate social responsibility and publishes detailed 'warts and all' reports on its performance on a wide range of criteria from animal welfare to salt levels in its pizzas. Reducing resource use, waste and emissions doesn't just help the environment - it saves you money too. It's not difficult to cut utility bills and waste disposal costs and you can bring immediate cash benefits. For more information read our guide on how to save money by reducing waste.
There are other benefits too:

A good reputation makes it easier to recruit employees. Employees may stay longer, reducing the costs and disruption of recruitment and retraining. Employees are better motivated and more productive. CSR helps ensure Company to comply with regulatory requirements. Activities such as involvement with the local community are ideal opportunities to generate positive press coverage. Good relationships with local authorities make doing business easier. Understanding the wider impact of business can help to develop new products and services. CSR can make more competitive and reduces the risk of sudden damage to business reputation (and sales). Investors recognize this and are more willing to finance in business.
About British American Tobacco
The presence of British American Tobacco in this part of the world can be traced back to 1910. Beginning the BAT as Imperial Tobacco 100 years ago, the Company set up its first sales depot at Armanitola in Dhaka. After the partition of India in 1947, BAT company was established in 1949. It then became Bangladesh Tobacco Company Limited in 1972 immediately after Bangladeshs independence. In 1998, the Company changed its name and identity to British American Tobacco Bangladesh Company Ltd.
Shareholders
BAT one of the first companies listed on Dhaka and Chittagong stock exchanges. The British American Tobacco Group holds 65.91% of the shares in British American Tobacco Bangladesh. Other shareholders are the Investment Corporation of Bangladesh, Shadharan Bima Corporation, Bangladesh Shilpa Rin Shangstha, Government of Peoples Republic of Bangladesh, Sena Kalyan Shangstha and other members of the public.
Contributions
British American Tobacco Bangladesh is one of the largest multinational companies in Bangladesh. Consequently, BAT are also the largest private sector tax payer in Bangladesh. In 2010, BAT contributed Tk 46.27 billion in the form of Supplementary Duty, Value Added Tax (VAT) and other taxes to the national exchequer. Over time, BAT have successfully established BATselves as the company contributing to economic, social and human resBATce development. BAT continue to move forward to deliver higher promises.

Beliefs
At British American Tobacco Bangladesh, BAT strive to be a responsible company wherever BAT operate - that may be to BAT shareholders, employees, business partners or any other relevant internal and external stakeholders. To us, responsibility is a way of life and that is why BAT believe success and responsibility go together.
People
At British American Tobacco Bangladesh, difference is BAT advantage and diversity is BAT strength. BAT employ more than 1,186 people directly and about 50,000 people indirectly as farmers, distributors and local suppliers. Moreover, around 900,000 retailers in the country sell BAT brands to earn their living. BAT take great pride in saying that BAT are one of the most preferred employers in the country. Having people from a wide variety of cultures and backgrounds who support each others success makes us unique. It is BAT pool of talented people who give this place the wonderful and pleasant working environment that takes us forward every day.
BAT Corporate social responsibility in Bangladesh
Responsibility is a way of life for us. This is because BAT believe in the success that has come to us as a result of responsible business operations. All BAT activities reflect BAT belief that Success and Responsibility Go Together. Therefore, BAT have in place very robust CSR initiatives. Through such endears of BATs, BAT aim to achieve the necessary balance of sustainable environmental, social and economic development.

Afforestation
BAT started BAT afforestation programme when BAT joined hands with the Forest Department in 1980 to conserve the forests and combat the negative impacts of climate change. Till now, BAT have contributed around 67.5 million saplings throughout Bangladesh. This probably makes BAT imitative the largest private sector driven afforestation programme in the country. BAT endeavBATs have received several awards both at the National and Local Government levels. BAT will distribute fBAT million saplings in 2011.
Safe drinking water: Probaho

For millions of people in Bangladesh, the only available drinking water is laced with arsenic and therefore extremely hazardous to health. Having recognised the gravity of the issue, BAT have stepped forward with the Probaho, Bangla for flow, project. Through Probaho, BAT aim to provide rural communities with safe drinking water. This initiative is also aligned with the Governments aim to achieve the Millennium Development Goals (MGDs). Using Government approved community based water filtration technology, BAT 18 water filtration plants in Manikganj, Satkhira, Meherpur, Kushtia, Jhenidah, Tangail, Kurigram, Lalmonirhat and Chuadanga districts provide approximately 95,000 litres of pure drinking water for 47,000 people every day.
Sustainable agriculture
BAT supply chain starts with the hard work of around 34,000 registered farmers within the village community. Therefore, BAT try BAT best to ensure that BAT sBATces are sustainable and responsible. BAT aim to do this by proactively setting high standards for agricultural practices. BAT initiatives include Green Manuring with Dhaincha (Sesbania aculeata)- an effective approach in enriching soil health and fertility. Dhaincha is also promoted as alternate fuel in leaf growing areas. Moreover, BAT have introduced Integrated Pest Management Clubs and Farmer Field Schools in collaboration with the Department of Agriculture Extension to educate BAT farmers about the adoption of Good Agriculture Practices.

From A Bangladeshi Newspaper
Dhaka, Sunday March 21 2010
BAT Bangladesh launches new CSR initiative:

British American Tobacco Bangladesh has embarked on a new CSR initiative called PROBAHO as the company launched a safe drinking water plant at Bheramara in Kushtia district recently. BAT Bangladesh's new initiative is to provide communities with safe drinking water in arsenic prone areas, prompting the Company to launch PROBAHO. BAT Bangladesh has taken this initiative to help the community where it operates by providing them with safe drinking water to complement development efforts made by the Government to achieve the Millennium Development Goals (MDGs). Water and sanitation is a critical factor to achieve the MDGs by 2015, said a press release. As a part of PROBAHO, the safe drinking water initiative, BAT Bangladesh has so far installed 6 filtration plants to make water free from arsenic and other harmful contents. The other PROBAHO plants are located in Manikganj, Satkhira, Jhenidah, and Meherpur districts. All the six plants are providing approximately 25,000 litres of pure water that can meet the demand of around 12,000 people in one day. BAT Bangladesh Board Members led by Mr Golam Mainuddin, Chairman, formally inaugurated the plant. Other members of the Board including Mr Dewan Zakir Hussain, Secretary, Ministry of Industries; Mr Kamrul Hasan, Secretary, Ministry of Defence; and Mr Md. Humayun Kabir, Managing Director, Investment Corporation of Bangladesh, BATre present at the inauguration. BAT Bangladesh has launched PROBAHO using SIDKO Water Filtration Unit, which is a government approved community based technology.
Sustainable agriculture and environment
Indonesia
The funds donated by British American Tobacco p.l.c. after the tsunami disaster in 2004 are helping to develop sustainable livelihoods in 20 villages in the Aceh Jaya district in Indonesia, as part of a three-year project run with Indonesian Government and Fauna and Flora International, one of BAT partners in the British American Tobacco Biodiversity Partnership. In 2005, fields in 18 villages BATre cleared and community nurseries established to produce peanut and soya seeds for distribution across the area and farmers are now getting income from their crops. In 2006, the project has focused on capacity building and agro-forestry related activities within the villages to provide more sustainable income.
Kenya
British American Tobacco Kenya has worked for several years in the Kerio community, donating some 250,000. It funded the start-up of the Kerio Tradewinds company to coordinate local income generating activities, when 784 farmers grew 16 hectares of French beans, selling 21 tonnes to canners. Further company funding helped to expand Kerio Tradewinds activities into planting fruit trees, tea production, dairy farming, tBATism and mining.
Nigeria
The British American Tobacco Nigeria Foundation was established in 2002 to improve the quality of life in rural and urban areas. It focuses on poverty reduction through agricultural development, sustainable income generation, drinking water supply and environmental protection. Its work has included training over 1,000 farmers in the Ago-Are farming community in cassava, maize and watermelon cultivation, leading to excellent harvests and improved average earnings. A drinking water supply project is providing boreholes to rural communities in critical need of water and it has completed an environmental protection project to address desert encroachment along the Sahara borders, establishing a 50 hectare Neem tree plantation at the Barawa Forest Reserve in Katsina.
Pakistan
In the late 1980s, BAT subsidiary Pakistan Tobacco Company surveyed the conditions of workers in the northern leaf growing areas and around its factories, Jhelum in Punjab and Akora Khattak in the north. It identified the depth of the problem of people living without basic medical care and sometimes resorting to unqualified medical advice. The company introduced mobile dispensaries staffed by doctors and a trained pharmacist, offering free onthe-spot medical check-ups and free prescribed medicine. These cover a 30km radius and help 1,600 people each month. The company also sends the dispensaries to the sites of natural disasters such as floods and the earthquakes in 2005, providing vaccines and emergency treatments.
South Africa
BAT company funded a programme with the Jumba community in one of the countrys poorest areas. Support of 250,000 over three years enabled various activities including growing 600 hectares of maize and beans on seven per cent of the areas arable soils. Some 175 farmers BATre involved initially, with the benefits spread widely across the Jumba community.
Corporate social investment:

BAT recognizes the role of business as a corporate citizen and BAT companies have long supported local community and charitable projects. BAT approach corporate social investment (CSI) as an end in itself, rather than as a way to promote BATselves, and BAT companies have always been closely identified with the communities where they operate. BAT was born international over a century ago, operating from the start outside either Britain or America, despite BAT name. This has helped to make us instinctively international, with a long-held respect for the many cultures where BAT operate. So BAT companies community and charitable contributions vary to address local needs and aspirations, largely involving the environment, employment and education, arts and cultural activities, disaster relief and primary healthcare.

Donations
BAT provides BAT companies with guidance on selecting, managing and evaluating major CSI activities and asks them to calculate their contributions using the London Benchmarking Group (LBG) model, used by over 100 businesses. This includes cash contributions, in-kind donations and employee volunteering in company time. Over recent years, greater alignment of BAT global spend with BAT Corporate Social Investment framework has led to us concentrating on a smaller number of large projects that are focused on BAT key themes. BAT believe this will ensure that BAT community investments have greater impact in the areas that really count. Where BAT have exited partnerships and charitable relationships, BAT have done so over time or with sufficient prior communication to limit any negative impact from BAT withdrawal of support. Much of the reduction in spend relates to one-off donations though, so BAT believe the negative impacts have been minimal. BATS global CSI expenditure in 2010 under both the LBG model and the statutory criteria was 15.4 million. This is in comparison to a total LBG spend of 14 million in 2009 (13.8 million under statutory criteria) and a total LBG spend of 17.4 million in 2008 (18.4 million under statutory criteria).
BAT global themes

BAT are encouraging companies to focus their CSI activities around three key themes:

Sustainable agriculture and environment Civic life Employment
Sustainable agriculture and environment covers contributions to the social, economic and environmental sustainability of agriculture. It includes activities such as efforts to improve biodiversity and access to water, afforestation, programmes to prevent child labour, grants for agricultural research and training to help farmers grow non-tobacco crops. BAT expect this type of CSI to complement BAT own agricultural, environmental and biodiversity conservation practices. Read about recent examples. Civic life encompasses activities that aim to enrich public and community life, including supporting the arts and educational institutions, conserving indigenous cultures and restoring public spaces. Read about recent examples. .
Civic life:
Chile
BAT company British American Tobacco Chile runs a Culture Bus in the towns of San Fernando and Casablanca where it operates, visiting communities with books, magazines and educational materials for loan free of charge. Users can also receive basic computer training. In its first 3 months, more books are loaned through the Culture Bus in Casablanca than in the previous 20 years through the local library.
Netherlands
The British American Tobacco Artventure Collection is a collection owned by the company of more than 1,400 contemporary artworks, mainly paintings, by artists from over 40 countries. It was founded originally to improve the factory working environment and today has become one of Europes most notable contemporary art collections. It is exhibited at company sites in the Netherlands, Switzerland and France.
UK
As part of BAT 2002 Centenary celebrations, BAT sponsored a new production of Bizet's Carmen at the Glyndebne opera house and, to bring it to a wider audience, sponsored a live relay of a performance shown free to the public on a big screen in the coyer of Somerset House in central London.
Venezuela
The Bigott Foundation was established in 1963 as a division of BAT local subsidiary Cigarrera Bigott and has become a centre of excellence for promoting and preserving Venezuelan culture. The Foundation's popular workshops on traditional music and dance, staged annually in Caracas, attract hundreds of entrants and have helped in the success of many professional performance groups. It has helped to make traditional Venezuelan culture more available via books, magazines, radio and television, works closely with the Ministry of Education, supports teacher training on Venezuelan folklore and helps to export the culture through overseas performances.
Youth smoking prevention:

BATS believe that tobacco products are only suitable for adult consumers and BAT do not want children to smoke. BAT fully support laws and regulations prohibiting the sale of tobacco products to anyone under the legal minimum age in their country. BAT also believe that enforcement and penalties for breaking such laws must be tough enough to discourage anybody from selling to the under age. BAT also knows how important it is that BAT marketing practices should not undermine efforts to combat under age smoking. Thats why BAT companies abide by BAT strict International Marketing Standards which are globally consistent and demonstrate BAT commitment to marketing appropriately and only to adult tobacco consumers. A global approach BAT requires all companies to:

engage with governments to establish a minimum age law of 18 where none exists; and raise retailers awareness of minimum age laws in their country.
Activities Typically BAT around the world work with retailers, a front-line in the battle against under age smoking. BAT run or support programmes which include proof-of-age schemes, eye-catching signs clearly stating sales will not be made to the under age, and training to help shop staff spot under age buyers and refuse to sell to them. BAT recognize that it is not always appropriate for us to play a role in youth smoking prevention outside of the retail environment. However, in a few countries, with the support of interested parties, BAT are also involved in educational and advertising-based efforts to help discourage youth smoking.

How BAT are doing
See Youth smoking prevention in BAT 2010 Sustainability Report for the latest data about these programmes and minimum age laws around the world.
Environment, health and safety:

Environment, health and safety management are high priorities for responsible companies and British American Tobacco is no exception.
BAT accept that BAT companies operations affect the environment and BAT are committed to following high standards of environmental protection, adhering to the principles of sustainable development and protecting biodiversity. BAT environmental management systems conform to best international practices. In safety management, BAT set zero accidents as a local objective for BAT companies and, by taking a proactive stance, BAT aim to be among the leaders in the field of occupational health improvement. Each year BAT aim to improve BAT EHS performance, systems, programmes, datagathering and target-setting and to develop BAT reporting on progress. Responsibility for BAT EHS Policy lies with the Board. It applies across all BAT activities including BAT supply chains and requires BAT companies, as Ball as complying with all applicable laws and regulations, to regularly assess and review the EHS impacts of their present and future activities and to pursue continual improvement in seeking to safeguard the physical environment and the health and safety of employees and non company personnel on company premises.
Globalization and human rights:
BAT believe that the globalised economy, with more liberal trade, freer movement of capital, and opportunities for companies to transfer skills, technologies and best practice can, over time, bring many benefits in prosperity, improved living standards and more social equity. BAT also recognizes that for some countries the going is tough. The pace of change and the speed of capital and goods moving around an increasingly borderless world have given rise to concerns. There have been angry protests about globalization at meetings of the G8 countries, the worlds most developed nations, and questions are asked about the probate of multinational companies and whether governments can really manage national economies. Human rights are a key area of concern, including much debate about the role of business.
Human rights
As trade barriers fall and multinational companies operate in more countries around the world, what is their role in countries where governments human rights records have been criticized? Is it collusion simply to do business there? If a business pulls out of a country, does it add to pressure for change, or simply remove fair employment opportunities and an example of good practice? Should businesses attempt to influence governments on human rights? BAT believe that multinational companies can lead by example and use their influence where they can, such as in employment standards, business practice, environmental management and community support.

But if a government is thought to be failing in its duties to its citizens, BAT do not believe that business can, or should, take on the role of international diplomacy or direct countries on how they should be governed. Heater large and successful they are, companies do not have the ability nor the mandate to step into areas of authority or decision making that are rightly for governments or communities. The capacity of business to lobby on human rights is generally limited to human rights in the workplace, although business has legitimate cause to express concern if human rights violations hamper its ability to operate effectively and responsibly.
Group CSR governance:
Group CSR performance is monitored through a Board CSR Committee and at regional and local levels through combined audit and CSR committees. The structure aims to support the embedding of CSR principles across the Group and monitor BAT performance against BAT principles and standards. The British American Tobacco p.l.c. CSR Committee was established in 2001 alongside the Audit, Remuneration and Nominations Committees of the Board. It is currently chaired by the Karen de Segundo, Non-Executive Director of British American Tobacco p.l.c., and its members are other Non-Executive Directors. The Board CSR Committee meets at least three times a year and is attended by the Company Chairman, the Executive Directors and senior managers. Through feedback from the regional and local committees, it reviews Group social, environmental and corporate citizenship performance, evaluates BAT policies in the area of social, environmental and reputational risks and, where necessary, makes recommendations for change. It also reviews the British American Tobacco p.l.c. sustainability agenda and plans.
Regional and local committees

The CSR Committee is supported at regional and local levels through combined audit and CSR committees, with the exception of a small number of local audit and CSR committees that have remained separate. The structure aims to support the embedding of CSR and sustainability principles across the Group and to allow performance against those principles to be monitored. The regional audit and CSR committees meet three times annually, and they follow a standard agenda, in order that materials and issues which are presented and raised at regional level may feed into Board level discussions, and vice versa.
Health and Safety Policy Statement

This policy statement applies to all British American Tobacco operating companies, including those in which British American Tobaccos shareholding is 50% or greater. British American Tobacco prides itself on being a responsible business that operates with integrity, regardless of the geographical location of its operations. As one of the leading tobacco businesses, BAT recognizes the paramount importance of the health, safety and welfare of all employees and non-company personnel in the successful conduct of BAT business. BAT are therefore committed to the prevention of injury and ill-health and strive for continual improvement in BAT health and safety management and performance, through setting clear objectives, including the monitoring and measurement of key performance indicators. British American Tobacco believes in the active participation of each employee and others as appropriate, in promoting, achieving and maintaining the highest standards of health and safety, in so far as it is reasonably practicable. BAT will provide and maintain safe and healthy working conditions, equipment and systems of work for all employees and other associated personnel; and provide instruction, training and supervision as may be required for this purpose. BAT approach will be based on hazard identification and risk assessment, for the purpose of effectively controlling health and safety risks in the workplace. British American Tobacco will meet its applicable health and safety legal and other obligations to employees and non-company personnel who may be affected by its business activities. All staff regardless of their level in the organization must take reasonable care of the health and safety of themselves and others whilst at work, and co-operate fully with the Company in all health and safety related matters. Arrangements for carrying out BAT commitments will incorporate consultation with appropriate staff and others, and reference will be made to practical guidance and approved codes of practice. This policy statement, its commitments and implementing measures will be kept under review by the Management Board and updated, as often as may be appropriate to ensure BAT objectives are achieved. Any revision will be published by the Company and brought to the notice of all employees and other relevant personnel.
Tobacco industry and corporate responsibility...

World Health Organization
Education: Another field where several tobacco companies have focused their CSR
activities is education, often in the form of grants, scholarships, professorships, even the creation of an entire school. At the end of 2000, the University of Nottingham announced the creation of the UKs first International Centre for Corporate Social Responsibility, thanks to a 3.8 million from BAT.
Health: The tobacco industry is also involved in community-level development projects,

such as the Kerio Trade Winds Project in Kenya, a partnership betBATen the community and BAT that aims to develop[ing] tobacco growing activities as an option towards alleviating poverty in line with the governments poverty alleviation strategy. The Tobacco Association of Malawi has joined in ILO efforts to discBATage abusive child labBAT practices in tobacco farming in Malawi. Souza Cruz, the Brazilian subsidiary of BAT, sponsored a concert tBAT to celebrate the 40 year career anniversary of an internationally-known Brazilian pianist in support of the newly elected Brazilian Presidents campaign to eliminate hunger, Fome Zero. These activities come less than a year after a Christian Aid investigation of the Brazilian subsidiary of BAT, Souza Cruz, exposed labBAT practices ranging from alleged price control abuses, to failure to protect workers from pesticides and other hazardous chemicals, to failure to improve conditions where children are forced to labBAT in tobacco fields to help alleviate family debt. Perhaps most remarkable, and most cynical, are those tobacco industry sponsored programmes that aspire to public health goals. For instance, BAT Bangladesh extended their support to Shandhani Andhatyamochan (Blindness Relief) Lottery organized by Shandhani National Eye Donation Society by purchasing a large quantity of lottery tickets and making a donation to the Shandhani National Eye Donation Society, handing over a cheque at a public ceremony held the BAT factory in Dhaka.IX No mention was made of the link betBATen smoking and cataracts, a major cause of blindness. The same factory was the venue for an occupational health workshop for students of Bangladesh University.X In

ZimbabBAT, BAT invested in 2002 US$6 million in a Harare medical clinic for the companys 400 factory workers. A local paper reported, The British American Tobacco Company ZimbabBAT should therefore be commended for focusing on the health and BATll being of its employees
Conclusion:
CSR is titled to aid an organization's mission as well as a guide to what the company stands for and will uphold to its consumers. Development business ethics is one of the forms of applied ethics that examines ethical principles and moral or ethical problems that can arise in a business environment. ISO 26000 is the recognized international standard for CSR. Public sector organizations (the United Nations for example) adhere to the triple bottom line (TBL). It is widely accepted that CSR adheres to similar principles but with no formal act of legislation. The UN has developed the Principles for Responsible Investment as guidelines for investing entities. Many companies use the strategy of benchmarking to compete within their respective industries in CSR policy, implementation, and effectiveness.
Reference:
K.Aswathppa, Essentials of Business Environment, 7/e http://www.bat.com http://www. Wikipedia.com http://www.who.int/tobacco

Corporate Social Responsibility of BAT: Mahadi Azad Litu (BBA 6 Batch) PSTU

Загружено:

Сведения о документе

Оригинальное название

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

Corporate Social Responsibility of BAT: Mahadi Azad Litu (BBA 6 Batch) PSTU

Загружено:

Авторское право:

Доступные форматы

Corporate Social Responsibility of BAT

1 Mahadi Azad Litu (BBA 6th Batch) PSTU