Seminar in Accounting

Lecturer : Mukhtaruddin, S.E., M.Si., Ak

Urgencies of CSR Performance to Achieve MDGs

Natasha Fitri Nasution

01071003056

2010

Urgencies of CSR Performance

To Achieve MDGs

By

Natasha Fitri Nasution

01071003056

2010

Abstract

Trans-National business (TNs) have the opportunity to contribute directly to specific national development goals, in the short term and achieving targets under the Millennium Development Goals (MDGs) in the medium to long terms. In such an investment negotiating environment, opportunities will be created to enable governments in developing Commonwealth member States to leverage Corporate Social Responsibilities ( CSR) Inclusive Business (IB) strategies of multi-national companies to create “Triple Wins” for investors, governments and communities.

This study, aimed at demonstrating the link organizational activities, core labor standards and the Millennium Development Goals and that as trade unionists we can bring about change to working practices, not only to the communities in which organizations operate – but the broader accountability in practices relating to the developing world – this to include labor exploitation, national humanitarian campaigns, trade inequalities and corruption that impacts individuals and communities in the developing world.

The objectives of this ongoing work will be o demonstrate : how the Millennium Development Goals can help deliver organizational CSR policies; that organizations play a role, through their overseas operations and supply chains, in alleviating poverty by providing safe, decent and human work; how organizational humanitarian / charitable activities can contribute to the Millennium Development Goals and also how trade union members, as stakeholders, can participate in the CSR process.

Keywords : Corporate Social Responsibility (CSR), Millennium Development Goals (MDGs), UNDP.

Urgencies of CSR Performance

To Achieve MDGs

Content

1. INTRODUCTION1.1. Background 1 - 21.2. Problem Statement 2

1.3. Study Purpose and Benefit1.3.1. Study Purpose 21.3.2. Benefit 3

2. THEORETICAL FRAMEWORK2.1. Concept of Corporate Social Responsibility (CSR) 3

2.1.1. History of Social Accounting - Corporate Social Responsibility (CSR) – 3 - 4

2.1.2. Social Accounting- Corporate Social Responsibility (CSR) – 4

2.1.3. Definition of Corporate Social Responsibility (CSR) 52.1.4. Activities of Corporate Social Responsibility (CSR) 5 - 6

2.2. Concept of Millennium Development Goals (MDGs)2.2.1. The Background : End Poverty 2015 62.2.2. Definition of Millennium Development Goals (MDGs) 72.2.3. 8 Millennium Development Goals (MDGs) 7 - 14

3. RESEARCH METHODOLOGY3.1. Data Resources 143.2. Data Analyze Technique 15

4. RESULT 15Implementation of MDGs 16Official List of MDGs Indicator 17- 21Business call to Action 21 - 22The Impact of CSR on MDGs

5. CONCLUSION AND LIMITATION5.1. Conclusion5.2. LimitationREFERENCES

1. INTRODUCTION

1.1. Background

Within the world of business, the main “responsibility” for corporations

has historically been to make money and increase shareholder value. In other

words, corporate financial responsibility has been the sole bottom line driving

force. However, in the last decade, a movement defining broader corporate

responsibilities – for the environment, for local communities, for working

conditions, and for ethical practices – has gathered momentum and taken hold.

This new driving force is known as corporate social responsibility (CSR). CSR is

oftentimes also described as the corporate “triple bottom line” – the totality of the

corporation’s financial, social, and environmental performance in conducting its

business.

As the commercial sector increases its investments in corporate social

responsibility in its three usual venues (the workplace, the marketplace, and the

community). It presented with the unique opportunity to create corporate

partnerships that can help expand, enhance, and sustain in developing countries.

In a rapidly globalizing world, interest in corporate responsibility

continues to grow among abroad range enterprises, investors, civil society actors

and other stakeholders. The United Nations has undertaken various actions to

respond to this interest and to promote positive corporate contributions to

sustainable development. The United Nations Global Compact has become the

largest corporate citizenship initiative in the world and continues to attract more

signatories from all corners of the globe. The United Nations Principles for

Responsible Investment is attracting large numbers of institutional investors who

see corporate responsibility factors as affecting their investments. With trillions of

dollars around the world invested in funds that explicitly consider corporate

responsibility issues, and with stakeholders demanding more non-financial

information from enterprises, the call for clear, concise and concrete guidance on

corporate responsibility reporting has never been louder.

Adopted by world leaders in the year 2000 and set to be achieved by 2015,

the MDGs are both global and local, tailored by each country to suit specific

development needs. They provide a framework for the entire international

community to work together towards a common end – making sure that human

development reaches everyone, everywhere. If these goals are achieved, world

poverty will be cut by half, tens of millions of lives will be saved, and billions

more people will have the opportunity to benefit from the global economy.

So, in order to achieve MDGs that become a worldwide purpose;

Government, NGOs, private sector must hand in hand to get involved on it. That

is why the Researcher interest to write this paper with title: “ Urgencies of CSR

Performance to Achieve MDGs.”

1.2. Problem Statement

Based upon background, the problem statement that will be studied on this paper :

1. What is Corporate Social Responsibility (CSR)?

2. What are Millennium Development Goals (MDGs)?

3. What is the relationship between CSR performance and MDGs?

4. What is the impact of CSR on MDGs?

1.3. Study Purpose and Benefit

1.3.1. Study Purpose

Purpose of this study :

1. To know about CSR

2. To know about MDGs

3. To know the relationship between CSR performance and MDGs

4. To know the impact of CSR on MDGs

1.3.2. Benefit

Benefit of this study :

1. For researcher

Through this research study, Researcher can improve his or her knowledge

about CSR, MDGs, the relationship between them and the impact of CSR

on MDGs that become worldwide serious problem this day.

2. For corporate and government

This study can make the corporate notice the importance of CSR to reach

MDGs that become an United Nation Development Program ( UNDP ).

And the government needs corporate support in the way to reach MDGs

by their CSR programs.

3. For academician

This study could be helpful for other academician whom need reference in

order to continue the next research study which has the same topic.

2. THEORETICAL FRAMEWORK

2.1. Concept of Corporate Social Responsibility (CSR)

2.1.1. History of Social Accounting - Corporate Social Responsibility (CSR) -

Modern forms of social accounting first produced widespread interest in the

1970s. Its concepts received serious consideration from professional and

academic accounting bodies, e.g. the Accounting Standards Board’s predecessor,

the American Accounting Association and the American Institute of Certified

Public Accountants. Business-representative bodies, e.g. the Confederation of

British Industry, likewise approached the issue.

Abt associates, the American consultancy firm, is one of the most cited early

examples of businesses that experimented with social accounting. In the 1970s

Abt Associates conducted a series of social audits incorporated into its annual

reports. The social concerns addressed included “productivity, contribution to

knowledge, employment security, fairness of employment opportunities, health,

education and self-development, physical security, transportation, recreation, and

environment”. The social audits expressed Abt Associates performance in this

areas in financial terms and thus aspired to determine the company’s net social

impact in balance sheet form. Other examples of early applications include

Laventhol and Howarth, then a reputable accounting firm, and the First National

Bank of Minneapolis (now U. S. Bancorp).

Yet social Accounting practices were only rarely codified in legislation. The

French bilan social and the British 2006 Companies Act process a significant

exception. Interest in social accounting cooled off in the 1980s and was only

resurrected in the mid-1990s, partly nurtured by growing ecological and

environmental awareness.

2.1.2. Social Accounting - Corporate Social Responsibility (CSR) -

Social accounting (also known as social and environmental accounting, corporate

social reporting, corporate social responsibility reporting, non-financial reporting,

or sustainability accounting) is the process of communicating the social and

environmental effects of organizations’ economic actions to particular interest

groups within society and to society at large.

Social accounting is a widespread practice in a number of large organizations. In

many instances the reports are produced in (partial or full) compliance with the

sustainability reporting guidelines set by the Global Reporting Initiative (GRI).

Social accounting is commonly used in the context of business, or corporate

social responsibility (CSR), although any organization, including NGOs, charities,

and government agencies may engage in social accounting.

2.1.3. Definition of Corporate Social Responsibility (CSR)

CSR is a business strategy providing companies to differ of other firms which

produce similar products and services and keep corporations alive in the recent

competitive business markets. However, it would be a big mistake to evaluate

CSR as only a marketing tool which is used to attract customers’ attention.

Because CSR is a development process including many stakeholders (for

instance: NGOs, Manufacturers, Labor, Society and Media).

There are different definitions of CSR below :

The World Business Council on Sustainable Development’s (WBCSD),

Corporate Social Responsibility is the continuing commitment by business to

contribute to economic development while improving the quality of life of the

workforce and their families as well as of the community and society at large.”

The European Commission,

Corporate Social responsibility in a Green Paper as a concept in which

“companies integrate social and environmental concerns in their business

operations and in their interaction with their interaction with their stakeholders on

a voluntary basis.”

2.1.4. Activities of Corporate Social Responsibility (CSR)

According to five activity pillar of Corporate Social Responsibility from Prince of

Wales International Business Forum, activity of CSR are (Wibisono, 2007, p. 119) :

a. Building Human Capital

Internally, company was prosecuted to create rely on human resource. Externally,

company was also prosecuted to make social empowerment, usually pass through with

community development.

b. Strengthening Human Capital

Company was prosecuted to not be rich itself, while community environment around it is

poor, they have to empower economy around the company.

c. Assessing Social Chesion

Company was prosecuted to keep the harmony with surrounding society, in order to

avoid the conflict

d. Encouraging Good Governance

In running their business, company have to perform manage order of business well.

e. Protecting The Environment

Company has to make serious efforts to keep environment preservation.

2.2. Concept of Millennium Development Goals (MDGs)

2.2.1. The Background : End Poverty 2015

“We will spare no effort to free our fellow men, women and children from the abject and dehumanizing conditions of extreme poverty, to which more than a billion of them are currently subjected. We are committed to making the right to development a reality for everyone and to freeing the entire human race from want.”

This was the promise that 189 heads of state made to their people ten years ago. Since then, progress has been made in the fight against extreme poverty. But not nearly enough. Today, 50,000 people continue to die every day as a result of poverty. A woman

dies every minute in pregnancy and childbirth. Around the globe, 72 million children still do not go to school.

The aim of Millennium Development Goals (MDGs) are to encourage development by improving social and economic conditions in the world's poorest countries. They derive from earlier international development targets, and were officially established at the Millennium Summit in 2000, where all world leaders present adopted the United Nations Millennium Declaration, from which the eight goals were promoted.

2.2.2. Definition of Millennium Development Goals (MDGs)

The Millennium Development Goals (MDGs) are eight international development goals that all 192 United Nations member states and at least 23 international organizations have agreed to achieve by the year 2015.

2.2.3. 8 Millennium Development Goals (MDGs)

At the 2000 UN Millennium Summit, world leaders from rich and poor countries alike committed themselves - at the highest political level - to a set of eight time-bound targets that, when achieved, will end extreme poverty

worldwide by 2015.

Goal 1:

Eradicate extreme poverty and hunger

Introduction

Over the years, we've been inundated with the statistics and the pictures of poverty

around the world-so much so that many people in both the North and South have come to

accept it as an unfortunate but unalterable state of affairs. The truth, however, is that

things have changed in recent years. The world today is more prosperous than it ever has

been. The technological advances we have seen in recent years have created encouraging

new opportunities to improve economies and reduce hunger.

The targets

Goal 1 of the Millennium Development Goals sets out by the year 2015:

Halve, between 1990 and 2015, the proportion of people whose income is less

than one dollar a day.

Achieve full and productive employment and decent work for all, including

women and young people.

Halve, between 1990 and 2015, the proportion of people who suffer from

hunger.

Goal 2:

Achieve universal primary education

Introduction

Every human being should have the opportunity to make a better life for themselves.

Unfortunately, too many children in the world today grow up without this chance,

because they are denied their basic right to even attend primary school. A sustainable end

to world poverty as we know it, as well as the path to peace and security, requires that

citizens in every country are empowered to make positive choices and provide for

themselves and their families.

The Targets

Goal 2 of the Millennium Development Goals sets out by the year 2015 to:

Ensure that, by 2015, children everywhere, boys and girls alike, will be able to

complete a full course of primary schooling.

Goal 3:

Promote gender equality and empower women

Gender equality refers to equality between women and men. The goal of gender equality

is to provide women and men with equal opportunities, rights and responsibilities.

Human rights are universal legal guarantees which protect the human values of all people

– freedom, equality and dignity. They are inherent to individuals and, to some extent,

groups; and are reflected in international norms and standards which are legally binding

on States.

Introduction

Poverty has a woman's face. Global prosperity and peace will only be achieved once all

the world's people are empowered to order their own lives and provide for themselves

and their families. Societies where women are more equal stand a much greater chance of

achieving the Millennium Goals by 2015. Every single Goal is directly related to

women's rights, and societies were women are not afforded equal rights as men can never

achieve development in a sustainable manner.

The Targets

Goal 3 of the Millennium Development Goals sets out by the year 2015 to:

Eliminate gender disparity in primary and secondary education, preferably by

2005, and in all levels of education no later than 2015.

Goal 4:

Reduce child mortality

Introduction

One of the darkest characteristics of poverty is that is seems to prey on the vulnerable and

defenseless. In low-income countries, one out of every 10 children dies before the age of

five. In wealthier nations, this number is only one out of 143.

The Targets

Goal 4 of the Millennium Development Goals sets out by the year 2015 to:

Reduce by two-thirds, between 1990 and 2015, the under-five mortality rate.

Goal 5:

Improve maternal health

Introduction

Many people consider the day their child was born the happiest day in their life. In the

world's wealthier countries, that is. In poorer countries, the day a child born is all too

often the day its mother dies. The lifetime risk of dying in pregnancy and childbirth in

Africa is 1 in 22, while it is 1 in 120 in Asia and 1 in 7,300 in developed countries.

The Targets

Goal 5 of the Millennium Development Goals sets out by the year 2015 to:

Reduce by three quarters, between 1990 and 2015, the maternal mortality ratio.

Achieve, by 2015, universal access to reproductive health.

Goal 6:

Combat HIV / AIDS. Malaria and other diseases

Introduction

Malaria, together with HIV/AIDS and TB, is one of the major public health challenges

undermining development in the poorest countries in the world. Malaria kills an African

child every 30 seconds. Many children who survive an episode of severe malaria may

suffer from learning impairments or brain damage. Pregnant women and their unborn

children are also particularly vulnerable to malaria, which is a major cause of perinatal

mortality, low birth weight and maternal anemia.

The Targets

Goal 6 of the Millennium Development Goals sets out by the year 2015 to:

Have halted by 2015 and begun to reverse the spread of HIV/AIDS.

Achieve, by 2010, universal access to treatment for HIV/AIDS for all those who

need it.

Have halted by 2015 and begun to reverse the incidence of malaria and other

major diseases.

Goal 7:

Ensure environmental sustainability

Introduction

Reducing poverty and achieving sustained development must be done in conjunction with

a healthy planet. The Millennium Goals recognize that environmental sustainability is

part of global economic and social well-being. Unfortunately exploitation of natural

resources such as forests, land, water, and fisheries-often by the powerful few-have

caused alarming changes in our natural world in recent decades, often harming the most

vulnerable people in the world who depend on natural resources for their livelihood.

The Targets

Goal 7 of the Millennium Development Goals sets out by the year 2015 to:

Integrate the principles of sustainable development into country policies and

programs and reverse the loss of environmental resources.

Reduce biodiversity loss, achieving, by 2010, a significant reduction in the rate of

loss.

Halve, by 2015, the proportion of people without sustainable access to safe

drinking water and basic sanitation.

By 2020, to have achieved a significant improvement in the lives of at least 100

million slum dwellers.

Goal 8:

Develop a Global Partnership for Development

The Global Partnership for Development refers to the responsibility of rich countries to

deliver more effective aid, more sustainable debt relief and fairer trade rules, well in

advance of 2015.

Introduction

The Millennium Goals represent a global partnership for development. The deal makes

clear that it is the primary responsibility of poor countries to work towards achieving the

first seven Goals. They must do their part to ensure greater accountability to citizens and

efficient use of resources. But for poor countries to achieve the first seven Goals, it is

absolutely critical that rich countries deliver on their end of the bargain with more and

more effective aid, more sustainable debt relief and fairer trade rules, well in advance of

2015.

The Targets

Goal 8 of the Millennium Development Goals sets out by the year 2015 to:

Develop further an open, rule-based, predictable, non-discriminatory trading and

financial system.

Includes a commitment to good governance, development and poverty reduction –

both nationally and internationally.

Address the special needs of the least developed countries

Includes : tariff and quota free access for the least developed countries’ exports;

enhanced program of debt relief for heavily indebted poor countries (HIPC) and

cancellation of official bilateral debt; and more generous ODA for countries

committed to poverty reduction.

Address the special needs of landlocked developing countries and small island

developing States (through the Program of Action for the Sustainable

Development of Small Island Developing States and the outcome of the twenty-

second special session of the General Assembly).

Deal comprehensively with the debt problems of developing countries through

national and international measures in order to make debt sustainable in the long

term.

In cooperation with pharmaceutical companies, provide access to affordable

essential drugs in developing countries.

In cooperation with the private sector, make available the benefits of new

technologies, especially information and communications.

3. RESEARCH METHODOLOGY

3.1. Data Resources

Data collection method is an integral part of research design. There are several

data collection methods, each with its own advantages and disadvantages.

Problems researched with the use of appropriate methods greatly enhanced the

value of the research.

Data can be collected in a variety of ways, in different settings --- field or lab ---

and from different sources. It can be obtained from primary or secondary sources.

Primary data refer to information obtained firsthand by the researcher on the

variables of interest for the specific purpose of the study. Secondary data refer to

information gathered from sources already existing. Such data can be internal or

external to the organization and accessed through the internet or perusal or

recorded or published information.

Data resources that used in this research is secondary data. The advantage of

seeking secondary data sources is savings in time and costs of acquiring

information that offer current and up-to-date information. Generally, secondary

data in the form of evidence, note or historical report, company records or

archives, government publications, industry analyses offered by the media, web

sites, and the internet. And most of Researcher datum was collected from internet,

but there are many others form of secondary data.

3.2. Data Analyze Technique

This research is a descriptive research which describe the theory from literature

survey. Data analyze technique that used in this research is qualitative data.

4. RESULT

In 2007, Prospect received funding from the International Development Learning Fund

(part of the DFID / TUC Strategic Framework Partnership Arrangement) which enabled

us to develop and promote the theme of a trades union based approach to corporate social

responsibility.

A myriad of social and environmental concerns can be found under the umbrella of CSR

or IB of TNs. In the main, many studies on CSR address issues such as labor conditions

rights, community / stakeholder engagement, accountability, good governance,

philanthropy, volunteering by employees and ethical procurement. Not considered

directly is the link between CSR / IB and Foreign Direct Investment (FDI). There is a

need, therefore to identify opportunities for partnerships among public, business and

community interests to flourish and boost national development as a consequence of

inward investments and compliance with national legislation and job creation, while

demonstrating best practice reflective of CSR / IB strategies that could trigger additional

rewards from national governments for investments.

The Millennium Development Goals (MDGs) are the most broadly supported,

comprehensive and specific development goals the world has ever agreed upon. These

eight time-bound goals provide concrete, numerical benchmarks for tackling extreme

poverty in its many dimensions. They include goals and targets on income poverty,

hunger, maternal and child morality, disease, inadequate shelter, gender inequality,

environmental degradation and the Global Partnership for Development.

Implementation of the MDGs

At the midpoint in MDG timeline, great progress has already been made. Reducing

absolute poverty by half is within reach for the world as a whole. With the exception of

Sub-Saharan Africa and South Asia, primary school enrolment is at least 90 percent.

Malaria prevention is expanding, with widespread increases in insecticide-treated bed-net

use among children under five in sub-Saharan Africa. In 16 out of 20 countries, use has at

least tripled since around 2000. One point six billion people have gained access to safe

drinking water since 1990.

Alongside the successes are an array of goals and targets that are likely to be missed

unless more action is taken urgently: about one quarter of all children in developing

countries are considered to be underweight and are at risk of long-term effects of

undernourishment; more than 500,000 prospective mothers in developing countries die

annually in childbirth or of complications from pregnancy; in Sub-Saharan Africa, the

proportion of people living on just over a dollar a day is unlikely to be cut in half.

Additionally, in middle income countries like Mexico, Brazil, Romania, Macedonia, and

Indonesia, inequality has also led to ‘pockets of poverty’ – socially-excluded groups that

will need specific attention if their countries are to reach the MDGs.

The global economic crisis also threatens to destabilize progress, as a better future for the

world’s most vulnerable people could fall victim to contraction of trade, remittances,

capital flows and donor support. At a time when investing in development is more vital

than ever to ensure social stability, security and prosperity, donor governments are called

upon to renew rather than revoke their commitment to reaching the MDGs.

The eight MDGs break down into 21 quantifiable targets that are measured by 60 indicators :

Official list of MDG indicators

All indicators should be disaggregated by sex and urban/rural as far as possible.

Effective 15 January 2008

Millennium Development Goals (MDGs)Goals and Targets

(from the Millennium Declaration)Indicators for monitoring progress

Goal 1: Eradicate extreme poverty and hungerTarget 1.A: Halve, between 1990 and 2015, the proportion of people whose income is less than one dollar a day

1.1 Proportion of population below $1 (PPP) per dayi

1.2 Poverty gap ratio 1.3 Share of poorest quintile in national consumption

Target 1.B: Achieve full and productive employment and decent work for all, including women and young people

1.4 Growth rate of GDP per person employed1.5 Employment-to-population ratio1.6 Proportion of employed people living below $1 (PPP)

per day1.7 Proportion of own-account and contributing family

workers in total employment Target 1.C: Halve, between 1990 and 2015, the proportion of

people who suffer from hunger

1.8 Prevalence of underweight children under-five years of age

1.9 Proportion of population below minimum level of dietary energy consumption

Goal 2: Achieve universal primary educationTarget 2.A: Ensure that, by 2015, children everywhere, boys and girls alike, will be able to complete a full course of primary schooling

2.1 Net enrolment ratio in primary education2.2 Proportion of pupils starting grade 1 who reach last

grade of primary 2.3 Literacy rate of 15-24 year-olds, women and men

Goal 3: Promote gender equality and empower womenTarget 3.A: Eliminate gender disparity in primary and secondary education, preferably by 2005, and in all levels of education no later than 2015

3.1 Ratios of girls to boys in primary, secondary and tertiary education

3.2 Share of women in wage employment in the non-agricultural sector

3.3 Proportion of seats held by women in national parliament

Goal 4: Reduce child mortality Target 4.A: Reduce by two-thirds, between 1990 and 4.1 Under-five mortality rate

4.2 Infant mortality rate

2015, the under-five mortality rate

 

4.3 Proportion of 1 year-old children immunised against measles

Goal 5: Improve maternal health Target 5.A: Reduce by three quarters, between 1990 and 2015, the maternal mortality ratio

5.1 Maternal mortality ratio5.2 Proportion of births attended by skilled health

personnel Target 5.B: Achieve, by 2015, universal access to reproductive health

5.3 Contraceptive prevalence rate 5.4 Adolescent birth rate5.5 Antenatal care coverage (at least one visit and at least

four visits)5.6 Unmet need for family planning

Goal 6: Combat HIV/AIDS, malaria and other diseasesTarget 6.A: Have halted by 2015 and begun to reverse the spread of HIV/AIDS

 

 

 

 

6.1 HIV prevalence among population aged 15-24 years 6.2 Condom use at last high-risk sex6.3 Proportion of population aged 15-24 years with

comprehensive correct knowledge of HIV/AIDS6.4 Ratio of school attendance of orphans to school

attendance of non-orphans aged 10-14 years

Target 6.B: Achieve, by 2010, universal access to treatment for HIV/AIDS for all those who need it

6.5 Proportion of population with advanced HIV infection with access to antiretroviral drugs

Target 6.C: Have halted by 2015 and begun to reverse the incidence of malaria and other major diseases

 

 

 

 

6.6 Incidence and death rates associated with malaria6.7 Proportion of children under 5 sleeping under

insecticide-treated bednets6.8 Proportion of children under 5 with fever who are

treated with appropriate anti-malarial drugs6.9 Incidence, prevalence and death rates associated with

tuberculosis6.10 Proportion of tuberculosis cases detected and

cured under directly observed treatment short course

Goal 7: Ensure environmental sustainabilityTarget 7.A: Integrate the principles of sustainable development into country policies and programmes and reverse the loss of environmental resources

 

7.1 Proportion of land area covered by forest7.2 CO2 emissions, total, per capita and per $1 GDP

(PPP)7.3 Consumption of ozone-depleting substances7.4 Proportion of fish stocks within safe biological limits7.5 Proportion of total water resources used 7.6 Proportion of terrestrial and marine areas protected

  

Target 7.B: Reduce biodiversity loss, achieving, by 2010, a significant reduction in the rate of loss

7.7 Proportion of species threatened with extinction

Target 7.C: Halve, by 2015, the proportion of people without sustainable access to safe drinking water and basic sanitation

7.8 Proportion of population using an improved drinking water source

7.9 Proportion of population using an improved sanitation facility

Target 7.D: By 2020, to have achieved a significant improvement in the lives of at least 100 million slum dwellers

7.10 Proportion of urban population living in slumsii

Goal 8: Develop a global partnership for developmentTarget 8.A: Develop further an open, rule-based, predictable, non-discriminatory trading and financial system

Includes a commitment to good governance, development and poverty reduction – both nationally and internationally

Target 8.B: Address the special needs of the least developed countries

Includes: tariff and quota free access for the least developed countries' exports; enhanced programme of debt relief for heavily indebted poor countries (HIPC) and cancellation of official bilateral debt; and more generous ODA for countries committed to poverty reduction

Target 8.C: Address the special needs of landlocked developing countries and small island developing States (through the Programme of Action for the Sustainable Development of Small Island Developing States and the outcome of the twenty-second special session of the

Some of the indicators listed below are monitored separately for the least developed countries (LDCs), Africa, landlocked developing countries and small island developing States.

Official development assistance (ODA)

8.1 Net ODA, total and to the least developed countries, as percentage of OECD/DAC donors’ gross national income

8.2 Proportion of total bilateral, sector-allocable ODA of OECD/DAC donors to basic social services (basic education, primary health care, nutrition, safe water and sanitation)

8.3 Proportion of bilateral official development assistance of OECD/DAC donors that is untied

8.4 ODA received in landlocked developing countries as a proportion of their gross national incomes

8.5 ODA received in small island developing States as a proportion of their gross national incomes

Market access

8.6 Proportion of total developed country imports (by value and excluding arms) from developing countries and least developed countries, admitted free of duty

8.7 Average tariffs imposed by developed countries on agricultural products and textiles and clothing from developing countries

8.8 Agricultural support estimate for OECD countries as a percentage of their gross domestic product

8.9 Proportion of ODA provided to help build trade capacity

General Assembly)

Target 8.D: Deal comprehensively with the debt problems of developing countries through national and international measures in order to make debt sustainable in the long term

Debt sustainability

8.10 Total number of countries that have reached their HIPC decision points and number that have reached their HIPC completion points (cumulative)

8.11 Debt relief committed under HIPC and MDRI Initiatives

8.12 Debt service as a percentage of exports of goods and services

Target 8.E: In cooperation with pharmaceutical companies, provide access to affordable essential drugs in developing countries

8.13 Proportion of population with access to affordable essential drugs on a sustainable basis

Target 8.F: In cooperation with the private sector, make available the benefits of new technologies, especially information and communications

8.14 Telephone lines per 100 population 8.15 Cellular subscribers per 100 population8.16 Internet users per 100 population

The Millennium Development Goals and targets come from the Millennium Declaration, signed by 189 countries, including 147 heads of State and Government, in September 2000 (http://www.un.org/millennium/declaration/ares552e.htm) and from further agreement by member states at the 2005 World Summit (Resolution adopted by the General Assembly - A/RES/60/1, http://www.un.org/Docs/journal/asp/ws.asp?m=A/RES/60/1). The goals and targets are interrelated and should be seen as a whole. They represent a partnership between the developed countries and the developing countries “to create an environment – at the national and global levels alike – which is conducive to development and the elimination of poverty”.

For monitoring country poverty trends, indicators based on national poverty lines should be used, where available. The actual proportion of people living in slums is measured by a proxy, represented by the urban population living in households with at least one of the four characteristics: (a) lack of access

to improved water supply; (b) lack of access to improved sanitation; (c) overcrowding (3 or more persons per room); and (d) dwellings made of non-durable material.

In these years in which we have been trying to surpass some global problems both economic

and ecologically, the importance of CSR continues to grow in every minute because of

customers’ more careful and sensitive choices. Rising of corporation numbers – care about CSR

-- to contribute to social development and economic growth.

Otherwise, lack of private sector help, neither NGO’s nor Government won’t be able to achieve

the aim of sustainable development. In this sense, CSR is a vital tool offering opportunities for

stakeholders to communicate and interact better and also supporting to achieve common targets.

The Call to Action on The MDGs and The Private Sector

The world is facing a development emergency – at the current rate, we will fail to achieve the MDGs.

The Business Call to Action is part of the Call to Action, a major campaign launched by Gordon Brown

in July 2007. It aims to accelerate progress on the MDGs during 2008. The private sector is crucial to

the Call to Action. To achieve the MDGs a bigger global effort is needed, and business has a vital role

to play in this.

Over the next five years, the initiatives are expected to save almost half a million lives, create

thousands of jobs, and benefit millions of poor people across Africa, Asia and Latin America. They are

part of a concerted push to meet the Millennium Development Goals (MDGs) that will enable poor

people to access up-to-the-minute information, money and business expertise as well as creating new

businesses and employment opportunities.

CEOs and Chairmen signed up to the Business Call to Action Declaration at the event on 6 May

alongside the 21 companies who had already signed up on 31 July 2007. By signing the Declaration,

CEOs and Chairmen are committing their company to take action through their core business in a

transformative and scalable manner that will enhance growth and help meet the MDGs. An

international process will be established to take forward the work of the Business Call to Action and

track progress on initiatives.

The Business Call to Action welcomes concrete initiatives that might achieve one or more of the

following:

Generate significant new employment opportunities in developing countries;

Improve the quality of supply chains, helping local businesses to diversify, and/or

become internationally competitive;

Include innovations and/or technologies which make it easier for individuals and

businesses to make a living.

Business is crucial to tackling poverty

Business is an engine of growth and development. It has enormous potential to

change lives and livelihoods in developing countries.

Business activity can lead to increased investment, the creation of jobs, and the

development of goods, technologies and innovations. These can all have a powerful

influence on improving quality of life and driving down poverty.

Leveraging CSR to Achieve MDGs

In developing countries, host governments must be supportive through a bilateral development

framework. Whether or not the government is a full partner in the CSR initiative, or whether its role in

the initiative is formal or informal, keeping the government well informed about the initiative enhances

the environment for the initiative’s future success. Governments have resources that can be leveraged,

such as funds, staff, expertise, and infrastructures.

In considering how CSR can be mainstreamed in inward investments, government officials negotiating

with investors and policy makers formulating investment frameworks need to be innovative in

providing additional incentives to enhance the business competitiveness of their respective States. This

will involve matching investment needs with priority sectors such as energy, communications, women,

youth and/or geographic areas, including communities with high levels of unemployment.

Governments and in some instances communities determine the land and labour available to investors

and are frequently guardians of the resources required by investors. More, often than not, however, it is

traditional for governments and businesses to benefit directly and significantly from the harnessing of

resources for development and communities to be left at the mercy of both their governments and

investors. In the context of Commonwealth States, CSR can be considered as a broader perspective of

business, one that leads investors to more complex assessments of prospective investments and greater

consideration of customer views and initiatives to be able to thrive in a highly competitive, and

sometimes hostile, business environment.

Creating awareness and increasing understanding of CSR are essential requirements for negotiating

teams and policy makers in ministries such as Finance, Economic Development, Trade and Commerce

and dedicated investment agencies. “With heightened awareness and understanding of CSR, such teams

will be equipped to consider and develop appropriate innovative and strong investment frameworks to

attract FDI. Not only will strong frameworks provide benefits to shareholders, but simultaneously

contribute to improving lives and livelihoods of the communities in which investments are based and

promote national economic development” the study concludes.

Specific actions that should be taken and issues explored by teams negotiating investments and policy

makers in finance and sectored ministries include :

Fostering strategic and innovative approaches when revising investment frameworks and

negotiations, especially in the face of recent turmoil in global financial markets. Agreed incentives

should be defined clearly in contracts.

Reviewing lessons learnt from approaches taken by some countries to make social demands of

incoming businesses, as in the case with Mauritius, where there is a Corporate Governance Committee

which imposes certain taxes across the board.

Principle-based standards such as United Nations Global Compact, Organization for Economic

Cooperation and Development (OECD) guidelines for multi-national enterprise and Caux Roundtable

principles for business could provide a meaningful starting point when considering CSR credentials of

TNs, but should not be viewed as comprehensive for informed decision making. Additional

information sources should be reviewed and considered.

Focusing on assessing the robustness of information provided by potential investors, as this will

lead to the development of best practices for investment negotiations rather than settling for accepted

practice that may not be in the best interest of national goals and communities’ interest.

Applying a sliding scale of rewarding good behavior – based on cost, its duration, extent of

impact and / or geographical location.

In some sectors e.g. mining, practices such as the use of resource saving technologies go

beyond minimum requirements and open the door to providing extra incentives for additional good

behavior by investors.

Formulating certain strategies to deal with investors already demonstrating exceptional

corporate citizenship in applying CSR to non-core business areas and, under a different guise e.g.

financial institutions partnering with local councils / municipalities to maintain parks and street

furnishings in cities and towns – beautification / aesthetics.

Unifying the approach to investment initiatives across sectors is not necessarily appropriate as

sector issues vary and national development needs change, in addition to wide ranging differences in

the level of progress made towards achieving MDG.

Commonwealth governments that leverage the CSR strategies of TNs could contribute to increasing the

attractiveness of their countries as investment destinations and increase business competitiveness.

Additionally, they could formulate investment incentives attractive to TNs to support and / or build

capacity in the local supply chain, thus promoting enterprise and improving livelihoods.

The Impact of CSR on Millennium Development Goals

In this section, we’ll gather CSR under 3 tittles about its contribution to MDGs :

A. Community Investment Projects

Mostly consisting with the implementations of companies related to social and

environmental issues. Working with countries for more transparent and accountable

management in the delivery of public services.

Such as :

Education

Health

Employment

The business community can make tremendous contributions.

Contribution to MDGs :

Goal 1 ( Eradicate extreme poverty and hunger )

Millennium Project Report - Halving hunger: it can be done

Halving Hunger examines current world progress towards eliminating hunger, and calls for the

implementation of seven recommendations in the areas of: political action, national policy

reforms, increased agricultural productivity for food insecure farmers, improved nutrition for

the chronically hungry, productive safety nets for the acutely hungry, improved rural incomes

and markets, and restoration and conservation of natural resources essential for food security.

Goal 2 ( Achieve universal primary education )

Millennium Project Report - Toward universal primary education: investments, incentives, and

institutions

Better education is fundamental to the prospects for economic and social development and the

end of world poverty. Toward Universal Primary Education offers a rigorous set of

interventions that countries can choose from to help provide universal access to high-quality

education by focusing on hard-to-reach groups of people, educating girls and women to break

the cycle of low education and strengthening educational opportunities for adolescents.

Goal 3 ( Promote Gender Equality and Empower Women )

Increasing the number of women in public office, and promoting advancing women's leadership and gender equality.

Millennium Project Report Taking action: achieving gender equality and empowering women

There are many practical steps that can be taken to reduce inequalities based on gender, which

hinder the potential to reduce poverty and achieve high levels of well-being in societies around

the world. Those detailed in Taking Action include strengthening opportunities, increasing

access, investing in infrastructure, guaranteeing rights, eliminating inequality in employment,

increasing women's representation in government and reducing violence against girls and

women.

Goal 4 ( Reduce Child Mortality ) and Goal 5 ( Improve Maternal Health )

Millennium Project Report - Who's got the power? Transforming health systems for women and

children

The central thrust of Who's Got the Power? is that dramatic, meaningful, sustainable progress

toward decreasing child and maternal mortality requires an intense focus on improving health

systems. The authors highlight that change is possible and they advance a comprehensive action

plan that recommends the rapid and equitable sale-up of interventions such as integrated

management of childhood illness, the universal provision of emergency obstetric care and

sexual and reproductive health services, and the provision of strengthened health systems.

Goal 6 ( Combating HIV / AIDS, malaria, and other disease )

Millennium Project Reports

1. Combating AIDS in the developing world

HIV/AIDS is a global catastrophe, threatening social and economic stability in the most

affected areas, while spreading relentlessly into new regions. Over the past year, 3 million

people died of AIDS, more than ever before and more than from any other infectious disease.

Combating AIDS in the Developing World offers solutions to overcome obstacles to

prevention, treatment and support for affected households, with a focus on achieving tangible

results.

2. Prescription for healthy development: increasing access to medicines

Access to essential medicines is vital for the health and prosperity of people in developing

countries. Prescription for Healthy Development presents authoritative and in depth strategies

for increasing the availability, affordability and appropriate use of medicines in developing

countries. Strategies include providing new incentives for research, better procurement, supply

and distribution, strengthened primary health systems, pro-poor planning and budgeting, close

collaboration with communities, and large increases in funding and the number of health

workers.

B. Sustainable Environment

Despite the practical usefulness of eco-efficiency indicators, their construction and use are

highly problematic. Detailed explanations are needed for the preparers and users of eco-

efficiency indicators so that they can produce internally consistent environmental and

financial information, thus improving the quality of environmental reporting and

stakeholder satisfaction.

Contribution to MDGs :

Goal 7 ( Ensure environmental sustainability )

Millennium Project Reports

1. Environment and human well-being: a practical strategy

Achieving human development while overcoming, rather than exacerbating

environmental challenges – such as the degradation of land, watersheds and marine

fisheries, deforestation, pollution, and climate change – is an immense but central

challenge to humanity. Environment and Human Well-Being presents principles upon

which each country can determine for itself the most appropriate steps to take towards

achieving environmental sustainability.

2. Health, dignity, and development: what will it take?

At least 1.1 billion people lack access to safe water and 2.6 billion lack access to basic

sanitation, resulting in the deaths of 3900 children per day. Health Dignity and

Development highlights the global water and sanitation crisis and advances a

comprehensive set of strategies to tackle the problem, including national elaboration,

government and stakeholder commitments; focusing on sustainable service delivery,

empowering communities, support from private partners, promoting innovation and

improving global structures.

3. A home in the city

More than 900 million people currently live in urban slums and the number is growing

as rapid urbanization continues in the developing world. A Home in the City urges

countries to strengthen their focus on the growing urban crisis and improving the lives

of slum dwellers. Proposed are specific investments and policy changes required at local

and national levels to create a vibrant, equitable and productive urban environment.

C. Global Development Alliance (GDA)

Strengthening the capacity of democratic institutions to build networks, represent all

peoples and enact change.

The Global Development Alliance (GDA) is based on the agency’s recognition that the

dynamics of international development are changing. No longer are governments,

international organizations and multilateral development banks the major sources of

development funding and expertise. Rather, in the last decade, the private sector, including

the corporate sector and private foundations, has had an increasing role in catalyzing human

and social development.

Through GDA strategic alliances, it aims to mobilize resources for addressing international

development issues. Both GDA and corporate social responsibility partnerships aim to

stimulate new technologies and investments by bringing in new actors and ideas to the

development arena. Both also recognize the corporate sector as a powerful force for

promoting greater productivity and social change. Corporate Social Responsibility can be

an effective vehicle to draw in new resources, new ways of reaching target populations,

and innovative program initiatives.

Contribution to MDGs :

Goal 8 ( Develop a global partnership for development )

Millennium Project Reports

1. Trade for development

The current international trading system is stacked against developing countries, a situation that

severely hampers development and ongoing attempts to eradicate poverty. Trade for

Development presents the framework necessary to correct this imbalance and give developing

countries greater economic growth potential and a more effective capacity to defeat poverty.

2. Innovation: Applying Knowledge in Development

Innovation makes a powerful case for development policies to focus on key sources of

economic growth, particularly the use of scientific and technological knowledge and related

institutional adjustments. It outlines core areas for policy action, including a focus on platform

or generic technologies, defining infrastructure services as foundations for technology, placing

universities at the centre of local development and improving science education, spurring

entrepreneurial activities, improving the policy environment and focusing on areas of under-

funded research for development.

5. CONCLUSION AND LIMITATION

5.1. Conclusion

Today, more and more companies are realizing that in order to stay productive,

competitive, and relevant in a rapidly changing business world, they have to become socially

responsible. In the last decade, globalization has blurred national borders, and technology has

accelerated time and masked distance. Given this sea change in the corporate environment,

companies want to increase their ability to manage their profit and risks, and to protect the

reputation of their brands. Because of globalization, there is also fierce competition for skilled

employees, investors, and consumer loyalty.

While there is no universal definition of corporate social responsibility, it generally

refers to transparent business practices that are based on ethical values, compliance with legal

requirements, and respect for people, communities, and the environment. Thus, beyond making

profits, companies are responsible for the totality of their impact on people and the planet.

“People” constitute the company’s stakeholders : its employees, customers, business partners,

investors, suppliers and vendors, the government, and the community. Increasingly,

stakeholders expect that companies should be more environmentally and socially responsible in

conducting their business. In the business community, CSR is alternatively referred to as

“corporate citizenship,” which essentially means that a company should be a “good neighbor”

within its host community.

There are scores of CSR organizations and business associations promoting corporate

social responsibility, with a collective membership of thousands of companies –big, small, and

medium sized- in diverse industries. Forum counts 60 major global companies as members, and

has established affiliate resource centers in emerging market economies where there is a

demand for corporate involvement in social causes. It can be said that there as many variations

of CSR activities as there are CSR advocate companies and organizations.

The Business Call to Action challenges companies to use their expertise to explore new

business opportunities. Whether through manufacturing, finance, telecommunications or other

activities, businesses can improve their commercial success and contribute to achieving the

MDGs.

For businesses, making a profit and ‘doing the right thing’ are not mutually exclusive.

Contributing to the MDGs not only helps create a safer and more prosperous world but also

helps secure new markets for the future and build a more profitable business environment.

Although many companies are already practicing business in a way that creates jobs and

boosts prosperity in the developing world, the Business Call to Action aims to encourage

companies to take it further – to invest more in more developing countries, and on a larger

scale. Only by doing this can they have a greater impact on enhancing economic growth and

contributing to the MDGs.

Many companies do not see the developing world as a safe environment in which to do

business. The Business Call to Action proves that some of the biggest and most successful

companies in the world are finding new opportunities in emerging markets such as Africa and

India. The Business Call to Action aims to inspire other business leaders to reflect on their own

strategies and operations and consider how they can do the same.

The Business Call to Action is part of a major campaign to accelerate progress towards

meeting the MDGs by 2015. 2008 is a crucial year for businesses, governments, non-

governmental organizations (NGOs), faith groups and citizens. The time has come to step up

activity to meet the MDGs and ensure a safer, developed and more prosperous world.

The Millennium Summit was presented with the report of the Secretary-General entitled

‘We the Peoples: The Role of the United Nations in the Twenty-First Century’. Additional input

was prepared by the Millennium Forum, which brought together representatives of over 1,000

non-governmental and civil society organizations from more than 100 countries. The Forum

met in May 2000 to conclude a two-year consultation process covering issues such as poverty

eradication, environmental protection, human rights and protection of the vulnerable. The

approval of the MDGs was possibly the main outcome of the Millennium Summit. In the area

of peace and security, the adoption of the Brahimi Report was seen as properly equipping the

organization to carry out the mandates given by the Security Council.

There are just five years left until the 2015 deadline by which world leaders have

pledged to achieve the Millennium Development Goals (MDGs), in order to eradicate extreme

poverty and its root causes. Time is running out. But it’s not too late. Join the global movement

in support of the Millennium Development Goals. We are the generation that can end poverty,

and we should refuse to miss this opportunity. Let’s send a clear message to our leaders: We

will no longer stay seated or silent in the face of poverty and broken promises to end it.

5.2. Limitation

This study is about the urgencies or we can call the need of CSR performance to

achieve Millennium Development Goals (MDGs). Researcher use literature survey so

data that had been used is qualitative data.

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