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Corporate social reporting (CSR) is the process whereby companies accountfor the impact of their activities not just on shareholders, but on the widercommunity of employees, customers, suppliers, local communities and otherstakeholders, including the environment. CSR started to become popular in the1990s, with a few pioneering companies leading the way. The initial focus ofsuch reports tended to be on the environment, and was often merely a publicrelations exercise for the businesses involved – lots of glossy photographs offish-filled lakes, lush forests and pollution-free beaches, without much substance or many facts to back up their claims.Now, the focus has broadened out to include wider social impacts, andmany companies are producing detailed and lengthy reports, some of whichare independently audited. As an example, the introduction to the latest Corporate Social Responsibility Report from H.J. Heinz shows the range and typeof information companies are providing:The H. J. Heinz Company measures success by the value we deliver to ourdifferent stakeholders, including shareholders, consumers, customers,employees, and communities. A critical area that encompasses many ofthese stakeholders is corporate social responsibility.In this, our second Corporate Social Responsibility Report, we provide asnapshot of our principles, goals and activities in key areas such as healthand wellness, nutrition, product quality, safety, labor and social concerns,environmental practices, business ethics, and corporate governance.This report focuses on the activities of the H. J. Heinz Company and itsaffiliates (excluding joint ventures) over the last two fiscal years, ending May2, 2007. We strive to include the most comprehensive data available inour reports and have applied our own high standards in collecting clearand accurate information, while building capacity to extract and compileglobal information for certain areas of our corporate social responsibilityperformance.As such, we did not seek external assurance for this report. We areworking to address data collection challenges through enhancing globalinformation reporting capabilities.(http://heinz.com/CSR_2007/index.html)Critics of CSR argue that it is a still being used by many companies as a PRtool, with voluntary disclosures being used to disguise bad practice, particularly by large multinationals in developing countries. A recent report by thecharity Christian Aid claims that CSR is in some cases counter-productive,worsening relations between business and local communities. Christian Aidhighlights Shell, British American Tobacco and Coca-Cola as firms that – italleges – preach CSR but fail to deliver on the ground.E T H I C S , I N T E L L E CT UA L CA
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