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Chapter 4

This chapter discusses Corporate Social Responsibility (CSR), emphasizing its importance in integrating social, environmental, and ethical considerations into business practices. It outlines the benefits of CSR for businesses, including improved public image, employee loyalty, and financial performance, while also highlighting the role of small and medium enterprises in promoting CSR. Additionally, it covers the significance of corporate sustainability reporting and stakeholder engagement in enhancing CSR initiatives.

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21 views15 pages

Chapter 4

This chapter discusses Corporate Social Responsibility (CSR), emphasizing its importance in integrating social, environmental, and ethical considerations into business practices. It outlines the benefits of CSR for businesses, including improved public image, employee loyalty, and financial performance, while also highlighting the role of small and medium enterprises in promoting CSR. Additionally, it covers the significance of corporate sustainability reporting and stakeholder engagement in enhancing CSR initiatives.

Uploaded by

earlleabres127
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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CHAPTER 4

CORPORATE
SOCIAL
RESPONSIBILIT
Y
Prepared by: Mr. John Levy L. Rueda LPT, MBA
LEARNING OBJECTIVES
After studying this chapter, you will be able
to:

• Concept of corporate social responsibility


• CSR towards stakeholders
• CSR in small and medium enterprise
• Promotion of CSR practices
• Benefits of CSR
• Corporate sustainability report
• Business Ethics and Values
Corporate Social Responsibility (also known as CSR,
corporate conscience, and corporate citizenship) is the
integration of socially beneficial programs and practices into a
corporation's business model and culture.

The emerging concept of corporate social responsibility


(CSR) goes beyond charity and requires the company to act
beyond its legal obligations and to integrated social.
environmental and ethical concerns into company's business
process. Corporate social responsibility is a management
concept adopted by various companies today, to give back to
the society, what they have received from them.
EXAMPLES
Eradicating global poverty, improving health conditions
in poor countries, and providing education to children
are just some aspects of CSR. Another aspect of CSR
has been nature conservation that encourages firms
towards energy saving and that growth is not attained
at the cost of environmental degradation. It need not
be stated here that Mother Earth is dying, resources
are depleting faster and the menace is near in the
future. Be it international conferences like Earth
Summit on global warming or the summits of World
Forum, everywhere scientists, scholars, and
environmentalists are requesting business leaders,
policy makers, and decision makers to make long-term
goals keeping in mind the ethics, laws, and holistic
health of this planet. Reducing carbon footprints is one
THE KEY COMPONENTS OF CSR

• Corporate Governance
• Business Ethics
• Workplace and Labor Relations
• Affirmative Action/Good Practices
• Supply Chain
• Customers
• Environment
• Community
Nature of Social Responsibility
Social responsibility is an exercise that is very
important to the business organizations. The
recognition of the importance of social
responsibilities can be gauged in part by the extent
of government action and legislation on such
matters as for example, employment protection,
equal opportunities, companies acts, consumer law,
product liability and safeguarding the environment.
This has formalized certain areas of social
responsibilities into legal requirement.
Importance of Social
Responsibility
• Best Interest of Business to promote and improve the
communities
• Improves Public Image of the firm
• Improving Stock Price
• Solving Social Problems
• Resource given by the Organizations to solve the social
problem
BENEFITS OF CSR TO BUSINESSES
• Prevent financial ramifications
• Increase Employee Loyalty
• Maintain positive reputation
CSR TOWARDS STAKEHOLDERS

CSR is the concept that provides theoretical support for the


transformation in business management from striving for quantitative
expansion to striving for qualitative improvement. However, there is at
present no comprehensive definition of CSR. although there are measures
of some sort for evaluating CSR, in practice, is carried out by means of a
CSR framework, consisting of a triple bottom line of economic,
environmental and social issues. An important issue is what stakeholder
relationships are when business management is assessed from the point
of view of CRS.
CSR IN SMALL AND MEDIUM ENTERPRISES
Businesses provide number of benefits to the society. They
innovate and develop new products and services for the society
They provide employment and generate income help in
increasing exports and thus increase foreign exchange reserves of
the country.
It is argued that businesses work for profit and corporate
social responsibility will increase cost and thus profits will be
reduced. Corporate social responsibility or corporate social
responsibility (CSR) activities are an integral part of any
professional organization
CSR FOR SMALL AND MEDIUM ENTERPRISES SECTOR

The concept of Corporate Social Responsibility is very


popular amongst big corporations but small and Medium
Enterprises are lagging behind. CSR is still in its infancy for
Small and Medium Enterprises They can a big role in
helping the society by boosting their CSR initiatives. They
can provide a helping hand to small communities or by
helping NGOs in their efforts. They can take variety of steps
like conservation of natural resources, protection of
environment, steps for eradication of illiteracy. adult
education, spreading awareness in rural areas about health
care etc. They can also take steps to reduce child labor in
PROMOTION OF CSR PRACTICES
Corporate social responsibility is often thought of as altruism or public relations, and
many companies pay lip service to the notion by funding development projects in the
areas in which they operate.
In their study, value creation is most prevalent when the following factors are considered:

Centrality- closeness of fit to the firm's mission and objectives;

Specificity- ability to capture private benefits by firm;

Pro-activity- degree to which the program is planned anticipation of emerging social trends
and in the absence of crises;

Voluntarism - the scope for discretionary decision-making and the lack of externally imposed
compliance requirements;

Visibility- observable, recognizable credit by internal and/or external stakeholders for the firm;
and

Value creation - identifiable, measurable economic benefits that the firm expects to receive.
BENEFITS OF CSR

• Creating Goodwill
• Positive Image
• Attracts and Retain Staff
• More Customers
• More Investors
• Professional Growth
CORPORATE SUSTAINABILITY REPORT

It is a broad term generally used to describe a company's reporting


on its economic, environmental and social performance. It can be
synonymous with: triple bottom line reporting, corporate
responsibility reporting, ESG reporting and sustainable development
reporting but increasingly these terms are becoming more specific
in meaning and therefore subsets of sustainability reporting.

The Importance of Stakeholder Engagement

Sustainability reporting provides a means of communication and


engagement between a company and its stakeholders.
Stakeholders typically include shareholders and investors,
employees, customers, suppliers, communities and government.
BENEFITS OF ETHICS
AND VALUES
• Corporate Culture
• Conveying Company Values
• Creating an Ethical
Workplace
• Fair treatment
• Acting with Integrity
• Dealing with unethical
business values
Thank
You

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