students to study abroad. Another example is the Khan’s
daughter Natavan, who built the first public
water pipe line in Shusha.
58
Situation in Azerbaijan business
Similar to many other countries with a low level of business activity, local companies have practically no
notion of corporate social responsibility. Except for foreign companies, CSR projects are supported
mainly by joint ventures. In the box below are several samples of good corporate social responsibility
approaches of companies in Azerbaijan.
♦
A Bakcell advertisement features a rich girl giving away her toy to a small beggar girl.
♦
McDonalds at the Fountain Square stayed open the entire night of the November 2001 earthquake.
The restaurant offered shelter, and what is much more important, it inspired hope in frightened people
through its uninterrupted service to the community.
♦
The Katell telephone company states in its advertisement that they accept payment on an installment
basis from some categories of their customers: the disabled, war veterans and pensioners.
♦
Azercell supports Umud Yeri, non-governmental orphanage.
♦
Art projects are often supported by Karadag Cement plant and Shollar company.
The majority of Azerbaijan companies are at the charity stage and view their public projects as personal
initiatives of their managers or owners, who wish to feel noble for a few pennies.
We believe it is time for Azerbaijan companies to realize their obligations towards society and design
their own standards of ethical behavior towards society, if they wish to survive in the long-term
competition and meet growing expectation of the public that companies behave responsibly.
There is one more point to mention. Charity of state agencies financed from the state budget is, mildly
put, illegal, due to lack of legal foundation for such “charity activities”.
SELF-ASSESSMENT QUESTIONS TO CHAPTER VII. CORPORATE SOCIAL
RESPONSIBILITY
The questions below are designed to assess your understanding of the material.
What is corporate social responsibility?
State regulation
♦
How do Western countries encourage and/or require businesses to assume corporate social
responsibilities?
♦
Please give examples of a responsible and irresponsible attitude towards corporate social
responsibility by Azerbaijan companies and public agencies. What are the consequences for
Azerbaijan society?
Crisis management
♦
Please give the main causes of Western industrial accidents of the 1970’s.
♦
What is a crisis management program and what does it encompass?
♦
Do you have a crisis management program at your enterprise?
Production process safety
♦
Why is the production process safety principle included under
corporate social responsibility?
♦
Please
give samples, illustrating that Azerbaijan companies follow and/or violate this principle.
Environmental ethics
♦
What led to the elevation of environmental protection from a grass roots movement to a national
agenda of Western countries?
♦
Please give examples of irresponsible attitudes towards the environment in Azerbaijan.
Ethical attitude towards local culture and history
58
Manaf Souleimanov, The Days Past, Azerbaijan State Publishing House, Baku, 1990
♦
Why is respect for local culture and history included in the concept of corporate social responsibility?
♦
Please give samples illustrating respectful and disrespectful attitudes towards local culture and history
in Azerbaijan by local and foreign firms.
Excessive consumption and hunger
♦
Please give samples of special problems, considered by Western corporate social responsibility ethics.
♦
Are these problems relevant for Azerbaijan companies at the current stage of market development?
Limits of corporate social responsibility
♦
What are the limits to corporate social responsibility?
♦
The “dependency syndrome” - how broadly is it spread and to what degree can it be justified?
♦
How should businesses efficiently prioritize their social spending and award funding?
Internal procedures of companies
♦
How can companies simplify the selection of social projects with the help of internal procedures?
♦
How and why should companies report to society on social programs?
Arguments against social spending
♦
Please give the most frequent arguments for and against social spending.
♦
Please justify the arguments you agree with and refute arguments you disagree with.
Situation in Azerbaijan business
♦
Please give examples of social projects funded by Azerbaijan businesses.
♦
What kind of social programs would you personally like to support or participate in?
CASE STUDIES FOR CHAPTER VII. CORPORATE SOCIAL RESPONSIBILITY
Please read the cases below and chose your answer from the options provided. Please substantiate your
answer. The notes to cases can be found at the end of the book.
1. A private publishing house plans to publish a book, devoted to an investigation of activities of a
terrorist organization that committed several terrorist acts in our country. The book is based on thorough
analysis of facts and is eagerly anticipated by readers. One chapter describes in detail the fabrication of a
bomb out of improvised means. The publisher is concerned that this chapter might be used by criminals
and suggests its removal. The author is against the chapter’s removal.
a)
What would you do, if you were in the publisher’s position?
b)
Is the publisher responsible for the content of material published?
c)
Is this information really dangerous for the public at large?
d)
Is the publisher entitled to omit some details from the book?
2. A privately owned restaurant is located at the basement of a residential block and shares an emergency
exit to the yard. The owner of the restaurant demolished internal support
walls to increase capacity,
installed a pump to suck gas and water directly from the general line, installed electric cable directly from
the power distribution switchboard and built a furnace with a chimney, opening directly into the
communal yard. In addition, a cook discharges cooking waste directly into the communal sewage system.
The restaurant is open late and the band plays loud music until 3 o’clock in the morning. The owner
claims that the restaurant has brought residents more benefit than inconvenience, by occupying a
previously unoccupied and rat-invested basement, and because the owner repaired the road and installed
benches and swings for children in the yard.
(a)
Who has more rights in this situation?
(b)
Should authorities prohibit building restaurants in residential houses?
(c)
How can this situation be resolved so that both parties are satisfied?
(d)
Should the owner make additional expenditures to eliminate inconveniences for residents?
(e)
Would you say that residents lost or benefited under the current circumstances?
3. A small kiosk sells magazines and snacks, including magazines with indecent cover photos. Children
from a school on the other side of the street regularly buy stuff at the kiosk. The school principal is
threatening to punish several 7th grade boys, who bought the questionable magazines and brought them