The consideration of moral or ethical issues as part of the business process, which may include an appreciation of impacts on society and the environment.
Business in the Community (BITC)
UK business membership organisation that works with companies to improve the impact they have on society and the environment; publishes an annual CR Index.
A greenhouse gas released when fossil fuels are burned, considered to be a major contributory factor in climate change.
Carbon Disclosure Project
A project run on behalf of a group of institutional investors (who are responsible for the management of billions of pounds of assets) to encourage the world’s 3,000 largest companies to disclose greenhouse gas emissions; responses available at www.cdproject.net.
Carbon footprint
The amount of carbon dioxide created by an organisation, product, individual or event as a result of its processes or activities.
Carbon neutral
A status applied to an organisation or activity which results in no net emissions of greenhouse gases to the atmosphere. Moves towards carbon neutral status can be enhanced by using only renewable fuel or offsetting carbon emissions.
Carbon offsetting
A mechanism by which organisations can pay another party to make a reduction in carbon emissions on their behalf; there is considerable debate over the validity of this mechanism and the different standards and technologies available.
Climate change
Complex alterations to the Earth’s climate over time. In modern usage, climate change refers to variations in climatic conditions over the last 200–300 years, which is believed by many sources to result from human activities including the burning of fossil fuels and subsequent emissions of greenhouse gases.
CO2
The chemical formula for carbon dioxide, which is composed of two oxygen atoms bonded to a single carbon atom.
Corporate governance
The systems and processes of management that govern an organisation’s behaviour and conduct. Governance often includes strategy, risk management, accountability and auditing, as well as responsibilities, compensation, benefits and evaluation of senior management and other stakeholders.
Corporate responsibility (CR)
A term applied to various approaches to corporate self-regulation through which businesses seek to monitor and manage the impacts of their activities in relation to the environment, regulatory standards and society at large. Also referred to as corporate citizenship or corporate social responsibility (CSR), it is concerned in general with the consideration of public interest in business decision-making processes.
In the business context, this refers to the exchange of ideas and information, especially between a company and its stakeholders.
Diversity
In the business context, this refers to the fair representation of races, religions, national origins, abilities, ages, genders, sexualities in the workforce or decision-making processes.
Dow Jones Sustainability Indices
These indices track the financial performance of companies from the Dow Jones World Index that have been identified as leading sustainability-driven businesses. The aim of these indices is to provide asset managers with reliable and objective benchmarks to manage investment portfolios which take consideration of sustainability issues.
In the context of corporate responsibility, this refers to the processes through which interaction is achieved between different stakeholder groups in order to facilitate dialogue.
Equal opportunities
An approach to employment and recruitment policies and practices which are aimed at promoting fairness, in particular to ensure that people are not discriminated against because of race, religion, gender, age, disability, sexual orientation or other minority status.
ESG
Environmental, social and governance: a common formula for social responsibility in the investment world.
A product certification system which enables consumers to identify products which have been produced according to specified environmental, labour and developmental standards. The Fairtrade movement is particularly focused on ensuring farmers and workers in developing countries gain better terms of trade; consumers pay a premium over the market price that is returned to producers for social and environmental development.
Forest Stewardship Council (FSC)
An international non-profit organisation that runs a certification programme through which certified timber companies can demonstrate to customers that they manage their forests or plantations sustainably.
FTSE4Good
An international index series run by stock market index company FTSE Group which has been designed to measure the performance of companies that meet globally recognised corporate responsibility standards and to facilitate investment in those companies.
Any gas that allows sunlight to enter the atmosphere but absorbs the heat (infrared radiation) created as the sunlight is reflected off the Earth’s surface. Greenhouse gases include water vapour, carbon dioxide, methane, nitrous oxide and many gases used in refrigeration and air conditioning.
GHG Protocol
An international accounting tool for government and business leaders to understand, quantify and manage greenhouse gas emissions – see www.ghgprotocol.org.
In the business context, this refers to the cross-disciplinary programmes and measures put in place to protect the health, safety and welfare of employees in the workplace and in their personal lives. It can also refer to programmes to protect the health and safety of people who interact with an organisation’s activities.
Human rights
The wide range of rights enshrined in the UN Universal Declaration of Human Rights (1948) which talked of a “world in which human beings shall enjoy freedom of speech and belief and freedom from fear and want”; in the national context it refers mainly to political freedoms; for companies, it is mostly concerned with labour rights as defined in the International Labour Organization’s core labour standards.
The aim of achieving an inclusive workforce that fully represents the diversity of communities in which it is based. This is driven by diversity and equal opportunities programmes.
International Organization for Standardization (ISO)
Network of national standards institutes from 157 countries working with international organisations, governments, business and consumer representatives; responsible for environmental management standard ISO 14001 and more than 14,000 international standards for business, government and society – see www.iso.org.
The process by which certain groups attempt to influence legislators and officials. Governments often regulate group lobbying and it is a legitimate part of the democratic process.
London Benchmarking Group
A group of international businesses who are seeking to manage, measure and report on their involvement in the community – see www.lbg-online.net.
In the context of corporate responsibility, materiality is about identifying the issues that are most significant to the business; unlike financial materiality, which is concerned exclusively with the interests of shareholders, CR materiality gives weight to the interests of wider stakeholders such as employees, communities and NGOs.
A general term which has come to refer to pressure or advocacy groups operating independently of government; it usually does not refer to civil society organisations such as churches or foundations.
The practice by organisations of using cheaper labour in other countries to carry out core services such as administration or call centre work. It has been made possible because of modern telecommunications and the availability of cheap but well-qualified people in developing countries. It is sometimes seen as a threat to domestic jobs but can help create different jobs by making firms more efficient.
Opinion leaders/opinion formers
Those who shape opinions of the public, for example academics, journalists, NGOs, politicians.
Outsourcing
Hiring someone outside a company to provide a service rather than using internal resources.
To process used or waste material so that it can be reused.
Renewable energy
Energy generated from renewable resources such as sunlight, wind, rain, tides and geothermal heat. Biomass is also a renewable energy source which uses living or recently living biological material to generate electricity or heat (this excludes fossil fuels such as coal or petroleum which have been transformed by geological processes over large periods of time).
An approach which takes account of social and environmental issues in investment decisions, proactively choosing responsible companies and engaging with a wider range of companies on CR issues.
Stakeholders
The people and organisations who have a stake in an organisation because they are affected by its operations. Stakeholders may include employees, customers, shareholders, regulatory authorities, NGOs, local communities and community groups.
Stakeholder dialogue/engagement
Systematic process for communications with stakeholders to understand their perspectives, explain an organisation’s plans, decisions and activities, and to gain feedback on these elements.
Supplier diversity
The practice of buying products and services from a range of suppliers which reflect the broad diversity of communities in which organisations work.
Supply chain
The linked relationships that bring goods and services to market.
Sustainable development
Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.
Sustainability
In the context of corporate responsibility, sustainability refers to the ultimate goal of sustainable development, which is to meet the needs of the present without compromising the ability of future generations to meet their own needs.
Organisations of workers who have grouped together to protect their rights and bargain for better wages and conditions.
Transparency
In the business context, this refers to an approach which allows outsiders to see clearly how a business is operating, implying openness, good communication and accountability.
Triple bottom line
Refers to people, planet and profit – the combined impact of an organisation’s activities which includes social, ecological and economic factors.
