A moral approach to

Corporate Social Responsibility

1. Social Leadership. Companies must take a leadership position when addressing the issue of Human Development in all its aspects, in an integral way, physically, intellectually and spiritually, by investing actively their own free cash to secure sustainable growth for them and for the individuals they employ and communities they operate in. “Business management cannot concern itself only with the interests of the proprietors, but must also assume responsibility for all the other stakeholders who contribute to the life of the business: the workers, the clients, the suppliers of various elements of production, the community of reference.” (Caritas in Veritate [40])

2. Self-Regulation. Companies have to self-regulate themselves and base their future growth on adding real value to society. Companies must declare their mission in society, their values and have a code of conduct and governance that guarantees the successful implementation of these strategies long term. “The conviction that the economy must be autonomous, that it must be shielded from “influences” of a moral character, has led man to abuse the economic process in a thoroughly destructive way. “ (Caritas in Veritate [34]), “Hiding behind corporate name, directors of business companies, forgetful of their trust, betray the rights of those whose savings they have undertaken to administer.” (Quadragesimo Anno [7])

3. Elimination of Speculation. Companies must expel non-value-adding speculators, financial and non-financial, from the global economic system. Tax burdens should shift from productive activities to non-productive activities. "What should be avoided is a speculative use of financial resources that yields to the temptation of seeking only short-term profit, without regard for the long-term sustainability of the enterprise, its benefit to the real economy and attention to the advancement, in suitable and appropriate ways, of further economic initiatives". (Caritas in Veritate [40])

4. Sustainability. Companies must balance short term profits and long term sustainable growth, paying attention to the responsible use of resources (energy conservation, alternative materials, and waste reduction/reuse/recycling) and the development of sustainable alternative manufacturing and distribution processes to guarantee their availability for future generations. ” A true concept of development cannot ignore the use of the elements of nature, the renewability of resources and the consequences of haphazard industrialization - three considerations which alert our consciences to the moral dimension of development.” (Sollicitudo Rei Socialis [34])

5. Tax Solidarity. Companies should recognize that the economy is at the service of man and not at the service of capital. They should also recognize the social aspect of the taxes they pay and actively ask and support the use of that money towards human development. “One possible approach to development aid would be to apply effectively what is known as fiscal subsidiarity, allowing citizens to decide how to allocate a portion of the taxes they pay to the State. Provided it does not degenerate into the promotion of special interests, this can help to stimulate forms of welfare solidarity from below, with obvious benefits in the area of solidarity for development as well.” (Caritas in Veritate [60]) “Consequently it is unacceptable that citizens with abundant incomes from the resources and activity of their country should transfer a considerable part of this income abroad purely for their own advantage.” (Populorum Progressio [10])

6. Human Development. Corporate Social Responsibility models should add a chapter on human development to commit the entire organization to lead the implementation of policies and strategies that benefit the entire human race. They should also create an index to measure and compare companies’ actions on this subject. “The economy needs ethics in order to function correctly — not any ethics whatsoever, but an ethics which is people-centered.” (Caritas in Veritate [5])

7. People Value. People should be the primary value in any business strategy. Values are characterized by the word “always” and companies should always measure their actions based on the final impact on their workers, their families and the communities they operate in, from their suppliers to their customers. ”The urgent need to change the spiritual attitudes which define each individual's relationship with self, with neighbor, with even the remotest human communities, and with nature itself; and all of this in view of higher values such as the common good or the full development of the whole individual and of all people." (Sollicitudo Rei Socialis [38])

PEDRO CACERES - 2009