NAFTA and Social Responsibility

Donna M. Schaeffer, PhD, Marymount University, Arlington, VA
Patrick C. Olson, PhD, national University, San Diego, CA
donna.schaeffer@marymount.edu
polson@nu.edu

(Source: National Institute of Health)

(Source: NASA)

Issues range from:

Efforts to Define CSR:

Universal Declaration of Human Rights United Nations, 1948
The UN Global Compact United Nations, 2000
International Labor Standards International Labor Organization, 1918	>

What is NAFTA?

The North American Free Trade Agreement (NAFTA) was signed by the governments of the United States, Canada, and Mexico in 1994.

• eliminate barriers to trade and investment between the USA, Canada and Mexico.
• reduce or eliminate tariffs on many items between the US and Mexico within 10 to 15 years of initiation

The North American Free Trade Agreement (NAFTA) has two supplements:

North American Agreement on Environmental Cooperation

North American Agreement on Labor Cooperation

NAFTA and CSR

	"We want to build stronger, long-term relationships with local communities and society in general. Hence, we encourage open dialogue to help us understand and respond to their concerns. As part of these efforts, many of our facilities hold regular meetings with community leaders to gather information about local needs." (Source: 2008 Corporate Social Report.)
	"We view social responsibility as our voluntary duty and believe it is the key to the continued growth and development of the company and Mexico. Through our partnerships with civil institutions, government agencies and different interest groups, we are supporting the country�s social and economic growth, as well as supporting the communities in which Modelo operates." (Source: Grupo Mondelo corporate Website, http://www.gmodelo.com.mx/index-6_en.asp)
	"To be leaders of the construction industry with products that will preserve our clients patrimony and the reputation of professionals and installers, while generating a growing and sustainable value for our distributors, personnel, and stockholders, having a lasting commitment to the community and it�s environment. Corporate Values Respect for the Human: Working under the bases of responsibility, honesty and loyalty. Focused on the Client: With a spirit of service, teamwork and positive attitude. Emphasis on Quality: Always searching to improve our quality, the development of our personnel and respect towards the Ecology. Results Oriented: Focusing our efforts towards responsibility, performance and the optimization of our resources. " (Source: Grup Lemosa Corporate website, http://www.lamosa.com/en/company/commitment.htm)
"I believe that a company's actions speak louder than its words. At RBC, corporate responsibility can be seen in how we govern our business with integrity, have a positive economic impact, operate with integrity in the marketplace, provide a supportive workplace, support environmental sustainability, and contribute to communities. - Gordon M. Nixon, President and CEO/" Source: Royal Bank of Canada corporate website, http://www.rbc.com/responsibility/index.html)
"At Manulife, we value our good name. Integrity is the hallmark of everything we do�" (Source: Manulife corporate website, http://www.manulife.com/corporate/corporate2.nsf/Public/GovernanceAtManulife.html)
�There�s no question that the environmental issues associated with oil sands development are pressing. However, tough issues have a way of getting solved when we apply human ingenuity and technological innovation." Corporate CEO Bruce Marsh. (Source: Q & A With The Chairman, http://www.imperialoil.ca/Canada-English/Corporate_Citizenship/CC_QA08.asp)

Survey of American College Students (n = 35, 2009):

Only 28% of the recipients stated environmental or social awareness of a corporation was their reason for choosing the product

100% percent of the participants chose to buy the products based on quality

85% of the respondents said brand recognition was a factor in their purchase of a particular product.

42% of the respondents stated they were likely to purchase products by companies known for their environmental stance

42% of the participants stated they were likely to purchase products from companies that support human rights

30% stated a company violating human rights would affect their purchasing habits

28% said it would be unlikely that human rights violations would affect their purchasing of a product

30% said they would unlikely support a price increase to benefit the environment

70% of the respondents stated organizations should be very responsible concerning the environment

Conclusions:

Organizations must provide products and services that satisfy cosnumers from various societies

Environmental concerns (see The Story of Stuff )

There is little agreement on what the term "social responsibility" means

There are individual-level efforts from individual organizations

Globalization presents new challenges

Thre is a growing awareness of abuses of human rights

There is an increase in poverty levels and growing disparity between the "haves" and "have nots"

Leadership education must include attention to the ethical implications of being a leader in a global society