CSR

CORPORATE SOCIAL
RESPONSIBILITY
Corporate

Social Responsibility is
the continuing commitment by
business to behave ethically and
contribute to economic development
while improving the quality of life of
the workforce and their families as
well as of the local community and
society at large

CORPORATE SOCIAL
RESPONSIBILITY
CSR isnt about giving money to charity, or just
asking people not to print emails for the sake of
Mother Earth!
First and foremost, businesses exist to make
profit, and this isnt meant to change as a goal.
The reality is that no organization operates in
isolation; there is interaction with employees,
customers, suppliers and stakeholders.
CSR is about managing these relationships to
produce an overall positive impact on society,
whilst making money.

THE IMPORTANCE OF CORPORATE

SOCIAL RESPONSIBILITY IN BUSINESS
CSR isnt just good for the environment and
communities its likely to significantlyinfluence
business success
CSR as an add-on, rather than an integral part of
how their business operates
Enabling employees toparticipate in charitable
initiativescould actually deliver returns to
businesses by reducing training and development costs
Giving employees a sense of prideby empowering
them to make a difference to their communities can
help with staff retention

TWO ASPECTS OF OPERATIONS

1.

The quality of their management both in terms of people and processes

2. The nature of, and quantity of
their impact on society in the various
areas.

Preliminary definitions of CSR

The

impact of a companys actions on

society
Requires a manager to consider his acts in
terms of a whole social system, and holds
him responsible for the effects of his acts
anywhere in that system

CORPORATE CITIZENSHIP
CONCEPTS
Corporate

social responsibility emphasizes

obligation and accountability to society
Corporate social responsiveness emphasizes
action, activity
Corporate social performance emphasizes
outcomes, results

HISTORICAL PERSPECTIVE
Economic model the invisible hand of the
marketplace protected societal interest
Legal model laws protected societal interests

SOCIALAND FINANCIAL
PERFORMANCE
Perspective 1: CSP Drives the Relationship
Good Corporate
Social Performance

Good Corporate
Financial
Performance

Good Corporate
Reputation

Perspective 2: CFP Drives the Relationship

Good Corporate
Financial
Performance

Good Corporate
Social
Performance

Good Corporate
Reputation

Perspective 3: Interactive Relationship Among CSP, CFP, and CR

Good Corporate
Social Performance

Good Corporate
Financial
Performance

Good Corporate
Reputation

KEY ISSUES IN CSR

Labour rights:
child labour
forced labour
right to organize
safety and health

Environmental conditions
water & air emissions
climate change

Human rights
cooperation with paramilitary forces
complicity in extra-judicial killings

Poverty Alleviation
job creation
public revenues
skills and technology

CSR Management: Management structure

Audit
Committee
of Board

Board of
Directors

President &
CEO

Group
Presidents

Chief
Financial
Officer

VP of
Human
Resources

General
Counsel

Corporate
Responsibi
lity Officer

Steering
Committee

Corporate Social Responsibility

Fight social
responsibility
initiatives

Do more than
required; e.g.
engage in
philanthropic
giving

Integrate
social
objectives
and business
goals

Maximize
firms profits
to the
exclusion of
all else
Do what it
takes to
make a
profit; law;
fly below
social radar

Balance
profits
and
social
objectives
Comply; do
what is
legally
required

Articulate
social
value
objectives

Lead the
industry and
other
businesses
with best
practices

CSR Management:
Plan, Do, Check, Act method
Plan

Do

Consult stakeholders
Establish code of conduct

Establish management
systems and personnel

Set targets

Promote code compliance

Act

Check

Corrective action

Measure progress

Reform of systems

Audit
Report

SPHERE OF INFLUENCE
Who is to be influenced?

SPHERE OF INFLUENCE
What issues are to be influenced?

Sphere of Influence
How are those issues to be influenced?

Compliance Management:
Management by certification

ISO 26000: Social Responsibility

ISO 26000 ROADMAP

Principles of SR
1. Ethical behaviour 2. Respect for rule of law
3. Respect for international norms of behaviour
4. Respect for and considering of stakeholder interests
5. Accountability 6. Transparency
7. Precautionary approach 8. Respect for human rights

Core Subjects

7.3 Working With Stakeholders

7.2
7.4
Defining scope Integrating into organization
Fair operating
practises

Community & society

development

Consumer issues

Human Rights

Environment

Labour Practises

Organizational
Governance

Implementing SR

7.5
Implementing in daily practise
7.7
Evaluating performance
7.8
Enhancing credibility
7.3 Communicating

Business Criticism / Social Response Cycle

Factors in the Societal Environment
Criticism of
Business
A Changed
Increased concern
Social Contract
for the Social
Environment
Business Assumption of Corporate Social
Responsibility
Social Responsiveness, Social Performance,
Corporate Citizenship
A More Satisfied
Society
Fewer Factors
Increased Expectations Leading
Leading
to More Criticism
to Business
Criticism

CARROLLS FOUR PART

DEFINITION
CSR encompasses the economic, legal, ethical
and discretionary (philanthropic) expectations
that society has of organizations at a given point
in time
Economic Responsibilities
Be profitable.
Legal Responsibilities
Obey the law.
Ethical Responsibilities
Be ethical.
Philanthropic Responsibilities
Be a good corporate citizen.

CARROLLS FOUR PART DEFINITION

UNDERSTANDING THE FOUR
COMPONENTS
Responsibil Societal
Examples
ity
Expectati
on
Required
Be profitable. Maximize
Economic
sales, minimize costs,
etc.
Required
Obey laws and
Legal
regulations.
Expected
Do what is right, fair and
Ethical
just.
Be a good corporate
Discretiona Desired/
citizen.
ry
Expected

FOUR CHALLENGES TO A GLOBAL ETHIC

Global rules emerge from negotiations and will reflect
values of the strong
Global rules may be viewed as an end rather than a
beginning
Rules can depress innovation and creativity
Rules are static but globalization is dynamic