An introduction to:
Corporate Social
Responsibility
Objectives for this session:
At the end of this session, you should be able to
identify and describe:
CSR
Reasons for having a CSR programme
Objections to CSR
What makes a CSR programme
How a CSR programme is communicated
Principles of reporting for CSR
Some alternative viewpoints on CSR
What is :
Corporate Social
Responsibility?
Also known as:
Corporate Citizenship
Corporate Responsibility
Responsible Business
Definition:
Specifically, we see CSR as the voluntary
actions that business can take, over and
above compliance with minimum legal
requirements, to address both its own
competitive interests and the interests of
wider society.
Source: [Link]
Why CSR?
Consumers:
Investors: expect responsible
responsible behavior + green &
behavior ethical
consumerism
Globalization:
Legislation: H&S, Adoption of best
EPA, sustainability, practices,
& codes of practices Consumer & legal
acceptance
Business Advantages of CSR
HR: recruitment, Risk Management:
retention, & staff ethical band equity,
morale greenwash effect!
Brand
Diversification: as
USP, brand loyalty,
reputation and
brand attractiveness Continued ..
Business Advantages of CSR
Business Resource
Development: new Management: improved
markets, products & management &
services conservation
Stakeholder
Management: improved
relationships, freedom
of operations, and
reduced external
inteference
Corporate Social Responsibility:
adds value
Why not CSR?
May take management focus away from
core business activity
May appear cosmetic without genuine
social benefit
May make organisation more vulnerable to
revelation of bad / unethical business
practice
A restriction to free trade?
Economist, Milton Friedman says:
The social responsibility of business is to
increase its profits.
What does it mean to say that "business"
has responsibilities? Only people can have
responsibilities.
in a free society there is one and only one social
responsibility of business to use its resources and engage in
activities designed to increase its profits so long as it stays
within the rules of the game, which is to say, engages in open
and free competition without deception or fraud."
Some of the most common ways in
which CSR is demonstrated:
Specialist adopted
projects
Corporate charitable
donations
Voluntary schemes for
staff
Staff fundraising activities
Changes to organisational
operations
The four components of CSR:
Economic
Legal
Ethical
Discretionary
Communicating Corporate
Social Responsibility
General values statement
Define ethical
General value May form of more
framework for
statement, reflecting comprehensive
mission
CSR stance mission statement
accomplishment
These statements could FOCUS on one or some
of the following :
Organizational
Environmental
Customer
Employee
Stakeholder
Example: Organisational Focus
JP Morgan Chase
Example: Environmental Focus
Coca Cola
Example: Customer Focus
Home Depot
Example: Employee Focus
Johnson and Johnson
Example: Stakeholder Focus
Credit Suisse
United
Technologies
Example: Social Focus
Bristol-Myers Squibb
Mari Petroleum
Company Ltd
MPCL has made a paradigm shift in its approach
towards serving the communities: it is now more focused
on sustainable service delivery in addition to the brick-
and-mortar projects. We have utilized the services of the
Implementing Partners (NGOs/ Development Sector
Organizations), who have the required expertise in the
implementation of service delivery. This enabled MPCL
to deliver high impact and sustainable services. We
maintain participative relationship with the society and
continuously invest in the interventions related to
education, health, water supply schemes, philanthropic
donations and communication infrastructure.
MPCL CSR
Rs 188 M in 2016-17
Natural
Medical Education
Disasters
Civic
Sports
Facilities
Reporting CSR:
CSR projects may be administered and
communicate achievements via:
A dedicated CSR section or department
The HR department
Business development section
Public Relations department
Directly via CEO and / or Board of
Directors
Reporting Formats:
The Triple Bottom Line
This means expanding the traditional
reporting framework to take into account
performance in terms of:
Social (People)
Environmental (Planet), as well as
Financial (Profit)
In conclusion:
In this session we have looked at:
What is CSR
Why CSR is likely to be come more widely
adopted
The business case for CSR
The Value Statement (Customer, Employee,
Stakeholder and Social focus)
Reporting and Accountability options for CSR
including the Triple Bottom Line concept
Example: Mari Petroleum Company Ltd
Corporate Social Responsibility:
adds value
Reporting Formats:
The Triple Bottom Line
Concept developed by John Elkington in
1994
Expects organisations to be responsible to
stakeholders interests rather than
shareholders profit
Related concepts:
Full-cost accounting
Social entrepreneurialism
Social and natural capital
