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Csr Environment Essay

2358 words - 10 pages

Corporate social responsibility (CSR) is an idea that corporations taking some sort of activities with responsibility for society’s benefits to effect their customers, employees, shareholder and environment within their operations. This is a voluntary behavior to improve employees and their families’ quality of life as well as society. Nevertheless, it is not a statutory law that organizations have to comply with. Over the last two decades, the public and the media have increasingly concerned about CSR. Therefore, this has led to more interactions between governments and organizations and society as a whole. In the past, corporations focus on earning profit invariably, ...view middle of the document...

Today, however, it has become one of the most favorable and common drinks in the world which is a kind of non-alcohol drink (tea, coffee and coco). The emergences of the tea not only promote the process of civilization in the world, but also greatly boost the development of tea industry in the business world. We could know that the British black tea markets and United States green tea markets are the main consumers and importers within the international tea industry. They are also the major markets where the modern China exports to. Even so, India and Japan have pillaged parts of tea markets too. (There are various tea corporations such as Lipton, Zealong and Starbuck Corporation, etc. The basic types of the can be divided into: black, green and oolong. The major producers in Southeast Asia are China and Japan, which accounted for approximately 30% of the total amount over the world. India, Sri Lanka and Banglad occupied 40% of the tea producing total quantity.
1.2 Ethical issues in Tea industry
In spite of the global tea prices are at a high level in comparison to the historical prices, tea famers and pickers are in the bottom part of the supply chains pyramid which it means that they pay the most labor force but also the most vulnerable one. They don’t have much bargaining power in this game. According to the structure of global tea supply chains, we can see that the vast majority of profits are captured by those big companies. Here is a set of statistics to make you better understand where the money goes from a cup of tea: 53% goes to retailers (e.g. supermarkets), 33% goes to blender (e.g. Typhoo, Tetley), 7% goes to factories, 6% goes to traders/buying agents, 1% tea auction and brokers and the least one is less than 1% that goes to tea pickers. (Source: War on Want, ‘A Bitter Cup – The exploitation of tea workers in India and Kenya supplying British Supermarkets’ July 2010).
Donaldson and Preston(1995, p.67) held that the stakeholder theory has a normative core based on two major idea(1)stakeholders are person or groups with legitimate interests in procedural and/or substantive aspects of corporate activity and (2)the interest of all stakeholders are of intrinsic value. According to this, as a socially responsible company, it requires not only to balance the interests of the firm’s shareholders, but also to simultaneous concern on the legitimate interests of all appropriate stakeholders. There is a long history for tea farmers and pickers who are working with low wages and adverse working conditions. These leave the problems for tea workers. A group of organizations called Oxfam and the Ethical Tea Parnership (ETP) concerned about the wages of tea workers and organized an investigation in respect of wages problem and benefits on plantations in Malawi, West Java in Indonesia and Assam in India where there are the representative of tea export market. Uniliver was one of the 11...

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