What is Corporate Social Responsibility?
The Corporate Social Responsibility (CSR) concept refers to the acceptance that corporations have a degree of responsibility not only for the economic consequences of their activities, but also for the social and environmental implications.
This concept is fast growing throughout the world, and there are real implications for all Australian businesses.
Large corporations are examining their supply chains, and are insisting that all suppliers adhere to strict CSR guidelines. This means that many businesses within this supply chain are being subjected to CSR audits, and failure to comply can lead to loss of lucrative contracts, loss of corporate reputation and even more significant penalties for serious breaches.
What is the Standard for CSR compliance?
There are numerous standards that have been developed for CSR compliance, but there is NO single accepted standard such as those seen for quality or environmental management.
The SMETA standard is the one most used throughout the world, despite the development of the ISO 26000 and SA 8000 standards.
Many multinational corporations have developed their own standards, and will insist on their suppliers being audited against this standard.