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CORPORATE SOCIAL RESPONSIBILITY

Social Responsibility

 It is a social obligation of everybody in the society that affects business.


 Is more appropriately referred to as Corporate Social Responsibility (CSR)

CORPORATE SOCIAL RESPONSIBILITY

Also known as corporate citizenship, corporate responsibility, Responsible business,


Sustainable responsible business and Corporate Social Performance.
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.
The voluntary compliance of social and ecological responsibility of companies is called
Corporate Social Responsibility (CSR).

THE TRIPLE BOTTOM LINE OF CSR

1. Planet - environment
2. People- social
3. Profit – financial

TYPES OF CORPORATE SOCIAL RESPONSIBILITY


There are four types of CSR according to its beneficiaries:

1. Environment - Focused Corporate Social Responsibility


2. Community - Based Corporate Social Responsibility
3. Human Resource - Based Corporate Social Responsibility
4. Charity - Based Corporate Social Responsibility

HOW CORPORATION BENEFIT FROM CSR

 Improves Public Image

 Increases Media Coverage

 Boosts Employee Engagement

 Attracts & Retains Investors


HOW NON-PROFITS BENEFIT FROM CSR

 Funding Via Matching Gift Programs

 More Volunteer Participation

 Forging Corporate Partnerships

 Varied Sources of Revenue

HOW EMPLOYEES BENEFIT FROM CSR

 Positive Workplace Environment

 Increase in Creativity

 Encourages Professional & Personal Growth

 Promotes Individual Philanthropy

Four Human Behavior Component of Corporate Social Responsibility

1. Employee Relations

 The way in which managers treat employees on the job, or the way they treat job applicants
in interviews, can impact the community as a whole.

2. Customer Interaction

 The way in which company representatives behave when interacting with customers can
have social impacts, as well.

3. Ethics and Law

 The law has far-reaching effects on society in general, and the behavior of corporate
employees can have significant impacts on the law itself.

4. External Impacts

 Corporations impact a wider range of stakeholders than just employees and customers.
Corporate employees' behaviour at work can impact people who have nothing to do with a
company.
Model of CSR

By Dr. Archie B. Carroll

 Economic Responsibilities- it says that a company needs to be primarily concerned with


turning profit.
 Legal Responsibilities- are the requirements that are placed on it by the law.
 Ethical Responsibilities- are the Responsibilities that a company puts on itself because
owners believe it’s the right thing to do.
 Philanthropic Responsibilities- are the Responsibilities that go above and beyond ehat is
simply required or what the company believes is right. They involve making an effort to
benefit society.

FIVE DIMENSIONS OF CSR

1. Environmental -it refers to the business impact and practices that benefit on the
environment.

2. Social -involves the relationship between the business and society as whole. This could
involve sourcing fair trade products.

3. Economic -refers to the effect that corporate social responsibility has on the finances of
the company.

4. Stakeholder-the stakeholder are all of the people affected by the company’s actions.
5. Voluntariness -is actions that fall into the Voluntariness dimension are those that you
are not required to do. These actions based in what the company believes is the correct
thing to do.

CORPORATE SOCIAL RESPONSIBILTY STRATEGIES

 The business goal of CSR is to encourage the company’s actions toward the positive
impact of consumer, community and employee responsibility.

EXAMPLE OF CORPORATE SOCIAL RESPONSIBILTYSTRATEGIES

 VOLUNTARY HAZARD ELIMINATION

 Take action to voluntarily eliminate production practices that could cause harm for the
public, regardless of whether they are required by law.

 Community Development

 Concerned with social responsibility align with appropriate institutions to create a


better environment to live and work.

 Philanthropy

 Provide aid to local charitable, educational and health-related organizations to assist


under-served or impoverished communities.

 Creating Shared Value

 is based upon the connection between corporate success and social well-being

 Social Education and Awareness

 Companies that engage in socially responsible investing use positioning to exert


pressure on businesses to adopt socially responsible behavior themselves.

THE IMPORTANCE OF CSR

 Identify and improve companies impact on society and environment

 Brand enhancement

 Market differentiation

 Employee satisfaction

SUCCESSFUL WAYS OF ENGAGING CSR


 Better living condition
 Saving the environment
 Education
 Health services

ADVANTAGES of CSR

 Improvement in the image of the Corporation

 Increased Attraction and Retention of Employees

 Regulatory Authorities become less hostile

 Attracts more Capital Inflow from Various Sources

 Positive Publicity

DISADVANTAGES

 Shift from the Profit-Making Objective

 Company Reputation takes a hit

 Customer Conviction

 Increase in Cost of Production

Conclusion:

Corporate social responsibility is the heart and soul of modern corporations and it is important
standard for corporate governance. Csr is the pole star for modern corporations in order to
maintain the integrity of moral fabrics both inside and outside the corporation while conducting
social responsible business.

“Responsibility is the Price of Greatness”- William Churchill