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Incorporating CSR in contracts

More than a necessity, a competitive advantage

 

STUDENT PAPER

By Kristen Zimbardo

SKEMA Business School

Paris, France

 


 
ABSTRACT

Corporate Social Responsibility is a raising issue for every organization. This paper’s objective is to explore different alternatives to find opportunities for organizations to be engaged in this issue in their daily business and not only with actions not related to their activities. Developing three alternatives, comparing them with multi-attribute decision making tables and non-compensatory model we found an alternative bringing more benefits to the organization. AIA developed this year a sustainable exhibit to implement in contracts that facilitates to reach sustainable goals. By working with this type of document, an organization will be involved in long-term strategy and sustainability, therefore, improving its social impact.

Key words: Corporate social responsibility; CSR; Clauses; Sustainability; AIA; Stakeholders management; Sustainable contract

INTRODUCTION

Many social and environmental scandals have been unveiled in recent month and years, affecting large companies. Often, these scandals link those companies to their subcontractors. Sometimes, they are not aware because they have many subcontractors and they suffer from the information asymmetry. However, they could have avoided that kind of situation. Some big companies do not seem to remember the lessons of the past and always repeat the same mistakes. For example, Apple, affected by the repeated suicides scandal at its main supplier Foxconn in 2010, which had promised to improve the working conditions of workers and who reported on improvements since, was again denounced in 2017 for the unbearable working conditions imposed on workers at another of its Pegatron suppliers. But Apple is not the only one, all sectors have been hit by scandals about their subcontractors: The 1100 deaths due to the collapse of Rana Plaza in Bangladesh, a building operated by subcontractors of many Western fashion companies, Findus and horse meat, Nike and child labor in the 90s … But once the truth is out, these scandals dishonour their public image for a while with the public opinion and shows above all an incredible detachment regarding the treatment of employees and the environment. Thinking of hiding themselves behind subcontractors, they are primarily responsible for these scandalous situations. Why wait for a disaster before taking action to reduce the risks? Human lives are at stake and the environment must be protected, all of which goes well beyond profits.

The first that can play a role are the major distributors towards their suppliers and subcontractors. It is up to them to demand concrete measures and tangible proof of their commitment to decent working conditions and the use of products that reduce risks to the environment and workers’ health. In order to put man and Earth back in the heart of the economic game and thus avoid new scandals, it is essential for all distributors to act today at the level of their suppliers in order to commit to their social responsibility.

Step 1 – Summary of problem statement

How can organization use CSR in contracts?

Our aim will be to understand:

  • What are the possibilities to implement CSR in contracts?
  • Which is the most important criteria that organisation should choose to select an alternative?
  • What benefits can they make from incorporating CSR in contracts?

More…

To read entire paper, click here

 

Editor’s note: Student papers are authored by graduate or undergraduate students based on coursework at accredited universities or training programs.  This paper was prepared as a deliverable for the course “International Contract Management” facilitated by Dr Paul D. Giammalvo of PT Mitratata Citragraha, Jakarta, Indonesia as an Adjunct Professor under contract to SKEMA Business School for the program Master of Science in Project and Programme Management and Business Development.  http://www.skema.edu/programmes/masters-of-science. For more information on this global program (Lille and Paris in France; Belo Horizonte in Brazil), contact Dr Paul Gardiner, Global Programme Director [email protected].

How to cite this paper: Zimbardo, K. (2018). Incorporating CSR in contracts: more than a necessity, a competitive advantage, PM World Journal, Volume VII, Issue VIII – August.  Available online at https://pmworldjournal.net/wp-content/uploads/2018/08/pmwj73-Aug2018-Zimbardo-incorporating-csr-in-contracts-student-paper.pdf

 



About the Author


Kristen Zimbardo

Paris, France

 

 

 

Kristen Zimbardo is a French MSc student in SKEMA Business School, major in Project and Programme Management & Business Development (PPMBD). He comes from Sarcelles in the North of Paris (France) and studied at Lycée Jean-Jacques Rousseau in Sarcelles until the age of 20. He studied one semester in Raleigh (USA) in 2016 and worked 4 months in Kuala Lumpur (Malaysia) in 2017. In 2016, he has worked for Société Générale, a French Bank as a Human Resources research officer in Paris. He is developing a strong interest in Corporate Social Responsibility and would like to work in this field. He lives in Sarcelles, France now, and can be contacted at [email protected]