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Credits trading mechanism for corporate social responsibility: an empirically grounded framework
by Shantesh Hede; Manuel José Lopes Nunes; Paula Ferreira
International Journal of Technological Learning, Innovation and Development (IJTLID), Vol. 7, No. 1, 2014

 

Abstract: This paper proposes a framework for assessing credits trading mechanisms for corporate social responsibility (CSR). The motivation to structure this framework derives from contemporary market-based mechanisms of emissions trading (or carbon/credits/offsets) and renewable energy credits (RECs). However, the framework proposed herein moves beyond existing forms of credits trading mechanisms that are primarily focused on reducing the environmental footprint of the ongoing industrial/non-industrial activities. By adopting a comprehensive perspective, the paper emphasises simultaneously social sustainability-related considerations and CSR related activities based on the sale of CSR credits or certificates which bears striking resemblance to the sale of renewable energy credits (RECs) for subsidising the production of renewable energy. This is in direct contrast to emissions trading mechanism in which carbon credits/offsets are purchased by parties who desire to release a corresponding quantity of emissions above the permitted cap. Furthermore, the paper discusses the feasibility of the proposed CSR credits trading mechanism from a broader context of the ongoing climate change crises, political economy and geopolitical circumstances which are known drivers for determining the success of CSR activities by corporation(s) in domestic or overseas locations.

Online publication date: Thu, 04-Sep-2014

 

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