Agenda 2030
UN action programme for Sustainable Development, the main feature of which is the Sustainable Development Goals. These are aimed at poverty reduction and sustainable development for the economy, human welfare, and the environment.
BSCI – Business Social Compliance Initiative
Corporate responsibility organisation that aims to improve the working conditions of supply chain workers in risk countries
Cleantech
Supports clean technology products, services and practices that reduce the adverse environmental impacts of business.
Corporate Responsibility, CR
A company’s responsibility for its social, economic, and environmental impacts. Responsible corporate activity takes into account the company’s direct and indirect impacts on the surrounding society.
Corruption
Illegal abuse of power in pursuit of private interest.
Due diligence
A company’s attempts to identify proactively the risks associated with procurement, company acquisition, or company operations, and to avoid and mitigate such risks.
Fair trade
The form of fair-trading, in particular to improve the position of developing country producers, including by paying a higher purchase price than the typical production costs.
Forced labour
Work done by coercion, such as by threatening with punishment, by preventing people from leaving the workplace or confiscating employees’ identity papers.
Global Compact
UN international mechanism in which companies commit themselves to ten principles including respect for human rights, ensuring fair treatment of the workforce, guaranteeing environmental wellbeing and eradicating corruption. The companies involved in the Global Compact are obliged to report to the UN annually on compliance with the principles.
Greenwash
Superficial eco-friendliness used in communications, designed to improve the public image instead of reducing actual environmental harm.
Grey economy
Business that fails to comply with statutory obligations such as payment of tax, pensions, accident compensation, or insurance premiums.
Human rights
The fundamental rights of every member of humankind. Human rights are based on the UN Declaration of Human Rights. They include the right to life, the right to work, the right to sufficient living standards, the right to health and medical care, the right to participate in trade unions, freedom of expression, freedom of faith and freedom from discrimination.
Responsibility reporting
Reporting on the social, environmental, and financial impacts of corporate activity. The international standard for responsibility reporting is the Global Reporting Initiative (GRI).
Social enterprise
A social enterprise seeks business solutions to solve social or environmental problems and promote wellbeing.
Sustainable Development Goals, SDGs
The UN’s objectives for poverty reduction and for economic, human wellbeing and environmentally sustainable development. The goals of sustainable development are a continuation of the UN Millennium Goals and constitute the main content of the Agenda 2030 agreement. There are 17 main goals with 169 sub-goals.
Tax planning
Avoidance of taxes through legitimate means, such as the avoidance of double taxation of business activity in two countries.
Tax evasion
Aggressive tax planning that seeks to minimise the tax burden using means that fall in the grey area between lawful and unlawful activities. It is estimated that due to tax evasion by multinational corporations, developing countries lose tax revenue amounting to many times the development aid they receive.
Tax haven
A country or region where taxation is non-existent or nominal, the exchange of information is incomplete, the identification of investors and business information is kept secret by legislation, and the tax advantages are often directed only to foreign investors. Tax havens include Switzerland, Cayman Islands, Virgin Islands, US Delaware, the City of London financial district, and Panama.
Transfer pricing
Pricing in transactions between companies within the same group. Market-based transfer pricing is a normal business activity, but the company can also use the method for tax evasion, for example by over or underestimation in pricing its business.
Transparency
Company’s openness and exchange of information. A transparent company reports openly and timeously on its operations, and its positive and negative environmental, human, and economic impacts, so that information is readily accessible to all.
Whitewash
Polishing the public image of an individual or organization by embellishing the social impacts of business operations and by understating the harmful ones.
Sources
www.fibsry.fi/fi/yritysvastuu/yritysvastuusanasto
www.ykliitto.fi/yk70v/taloudellinen/yritysten-yhteiskuntavastuu