Corporate

Social

Responsibility
 Introduction
• How businesses align their values & behavior
with the expectations and needs of
stakeholders

Stakeholders - Customers
Investors
Employees
Suppliers
Communities
Regulators
Special interest groups
Society as a whole
• Through an effective CSR prog. Co’s can:

1. Improve access to capital

2. Sharpen decision-making & reduce risk

3. Enhance brand image

4. Uncover previously hidden commercial opportunities,

including new markets

5. Reduce costs

6. Attract, retain and motivate employees

 Definition…
“ A commitment to improve community well being through
discretionary business practices and contributions of corporate
resources”
- Philip Kotler & Nancy Lee (2005)

“ A way companies manage the business processes to produce an

overall positive impact on society.”
- Mallen Baker
“ 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.”

- World Business Council for Sustainable Development

 Arguments against social responsibility
1. Violation of the rule of profit maximization

2. Excessive Costs

3. Governments Responsibility

4. Weakened International BOP

5. Increase in the firms power & Influence

6. Lack of necessary skills among businesspeople

7. Lack of consensus on social involvement

 Arguments for social responsibility
1. Change in public expectations
2. Business is a part of society
3. Avoiding intervention by government
4. Balance of responsibility and power
5. Impact of internal activities of the organization on the
external environment
6. Protecting shareholders interests
7. New avenues to create profits
8. Favorable public image
9. Endeavor to find new solutions
10. Best use of resources of a business
11. Prevention is better than cure