An introduction to corporate social responsibility
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- 3. Objectives • Understanding the basics and fundamental principles of Corporate Social Responsibility (CSR) • To appreciate the impact of CSR on businesses • To discuss how CSR initiatives can benefit businesses 3
- 4. What is Corporate Social Responsibility? –‘Corporate Social Responsibility is the continuous 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’. –– World Business Council For Sustainable Development 4
- 5. Definition What is Corporate Social Responsibility? The responsibility of business towards the society Corporate Social Responsibility
- 6. Simple Definition 6 • A voluntary initiative on the part of a business to contribute to a better society and a greener and cleaner environment.
- 7. Myths Surrounding CSR CSR is not for small businesses It is too complicated and technical It is too expensive It is a market gimmick It is a separate corporate initiative
- 8. Benefits of CSR Benefits of CSR Winning new businesses Enhancing your influence in the industry Attracting, Retaining and Maintaining a happy workforce Increase in customer retention Differentiating yourself from the competitor Saving money on energy and operating cost Access to funding opportunities Media interest and good reputation B e n e f i t s B e n e f i t s Enhanced Relationship with stakeholders
- 9. Guiding Principles for CSR Projects • CSR is about corporate citizenship • It is about giving back to the society • It is about business sustainability • It is about thriving in a competitive business environment
- 10. Pyramid of CSR Philanthropic Responsibilities Be a good corporate citizen. Ethical Responsibilities Be ethical. Legal Responsibilities Obey the law. Economic Responsibilities Be profitable.
- 11. Corporate Social Responsibility (CSR) CSR in Equation Form Is the Sum of: Economic Responsibilities (Make a profit) +Legal Responsibilities (Obey the law) +Ethical Responsibilities (Be ethical) +Philanthropic Responsibilities (Good corporate citizen) = CSR
- 12. Business(CSR) Responsibilities in the 21st Century • Demonstrate a commitment to society’s values and contribute to society’s social, environmental, and economic goals through action.
- 13. • Insulate society from the negative impacts of company operations, products and services. 13
- 14. • Share benefits of company activities with key stakeholders as well as with shareholders. 14
- 15. • Demonstrate that the company can make more money by doing the right thing. 15
- 16. What does Research Study Say: • To illustrate how critical CSR has become, a 2017 study by Cone Communications found that more than 60 percent of Americans hope businesses will drive social and environmental change in the absence of government regulation. • Most consumers surveyed (87 percent) said they would purchase a product because a company supported an issue they care about. • More importantly, a whopping 76 percent will refuse to buy from a company if they learn it supports an issue contrary to their own beliefs 16
- 17. Building a Socially Responsible Business • Undertaking socially responsible initiatives is truly a win-win situation. • Not only will your company appeal to socially conscious consumers and employees, but would also attract the right talent to the business 17
- 18. Corporate Social Responsibility in Pakistan: Current Trends and Future Directions • The concept of CSR is relatively underdeveloped in Pakistan (Eweje & Sajjad, 2014). There is a general perception among business practitioners in Pakistan that CSR relates to self-sacrifice or philanthropic (charitable) activities. • However, only few large local companies and multinational enterprises hold a well-defined CSR policy. Small and medium enterprises limit their CSR engagement to comply with codes of conduct set by foreign buyers 18
- 19. Real Life Example of Companies giving back to society through CSR Welch's + Feeding America: "Fill the Lunchbox" • Welch's pledging to provide more than 1 million meals to children in need 19
- 20. Doritos: "Rainbow" • Consumers could buy bags of special, rainbow Doritos chips online, after sharing a quote of support and donating a minimum of $10. This campaign, which was the most successful in Frito-Lays history, raised more than $180,000 in donations © 2006 International Training Consortium, Inc. Office: 301-428-0670 Fax: 301-972-3906 20
- 21. Wendy's + Uber: "Ride for Adoption“ • Wendy's is running a limited-time partnership with Uber to raise funds to help find homes for children waiting in foster care. With more than 100,000 children waiting to be adopted from foster care in the United States, this partnership gives people an easy way to make a difference in their community and beyond. 21
- 22. SAP: "Veterans to Work“ When veterans re-enter the civilian population, almost all are searching for opportunities to learn specialized skills and get hired. Enterprise software company SAP's Veterans to Work program allows veterans to take a 17-week educational course where they can learn about SAP database and technology 22
- 23. MCQs All definitions of Corporate Social Responsibility recognize that: • a) companies have a responsibility for their impact on society and environment. • b) the natural environment should be the main focus of CSR activities. • c) business ethics is a complex issue. • d) companies must pay equal attention to business ethics and sustainability. 23
- 24. Question: What is the classical view of management's social responsibility? • a. To create specific environment in work place • b. To maximize profits • c. To protect and improve society's welfare • d. All of the above © 2006 International Training Consortium, Inc. Office: 301-428-0670 Fax: 301-972-3906 24
- 25. Question: What does the socio - economic view of social responsibility talk about? • a. Social responsibility goes beyond making profits to include protecting and improving society's welfare • b. Encourage business • c. Financial return • d. None of the above 25
- 26. Question: __________ is when a firm engages in social actions because of its obligation to meet certain economic and legal responsibilities. • a. Social obligation • b. Social responsibility • c. Social responsiveness • d. None of the above 26
- 27. Question: What is the only concern of stock holders? • a. Financial return • b. Make profits • c. Encourage business to take up social responsibility • d. None of the above 27
- 28. Assignment on CSR • Come up with the following solutions/answers in your own words: • What are 3 to 5 reasons corporations would want to have CSR programs? • What are some of the factors or reasons that might work against CSR programs in Pakistan? • Do CSR programs protect consumers and/or investors? How? • Use internet where possible 28
- 29. References • Fasset. (2018). Making the future count: Corporate Social Responsibility. Retrieved from www.fasset.org.za/downloads/CSR_Presentation.pptx • Caramela, S. (2018). What is corporate social responsibility: Business news daily. Retrieved from https://www.businessnewsdaily.com/4679-corporate-social-responsibility.html • Eweja, G. & Sajjad, A.(2014). In Gabriel Eweja (ed.) Corporate Social Responsibility and Sustainability: Emerging Trends in Developing Economies (Critical Studies on Corporate Responsibility, Governance and Sustainability, Volume 8) Emerald Group Publishing Limited, pp.163 - 187 29
Editor's Notes
- #10: Source: Archie B. Carroll, “The Pyramid of Corporate Social Responsibility: Toward the Moral Management of Organizational Stakeholders,” Business Horizons (July-August 1981). © 1991 by the Foundation for the School of Business at Indiana University. Used with permission.