Concepts in Creating Organizational

Social Responsibility
Group 12:
Sarte, Christina H.
Sero, Gabriel B.
Sinsuat, Anshiefria
Solas, Johna Belle
Sula, Jasmin
What Is Social Responsibility?

• Social responsibility means that businesses, in

addition to maximizing shareholder value, must
act in a manner that benefits society. Social
responsibility has become increasingly important
to investors and consumers who seek investments
that are not just profitable but also contribute to
the welfare of society and the environment.
What is a CSR strategy?

• A corporate social responsibility strategy (CSR) is the total plan

a business has to build, execute and optimize its social
responsibilities initiatives.
• There are four types of CSR categories, and a CSR strategy helps
you define which one is best for your business, ways in which you
can implement it, and track the results of your efforts.
The four areas of CSR are:

1. Environmental responsibility
• Environmental responsibility initiatives aim to reduce pollution and
greenhouse gas emissions and the sustainable use of natural resources.

2. Human rights responsibility

• Human rights responsibility initiatives involve providing fair labor practices
(e.g., equal pay for equal work) and fair-trade practices, and disavowing
child labor.
The four areas of CSR are:

3. Philanthropic responsibility
• Philanthropic responsibility can include things such as funding educational
programs, supporting health initiatives, donating to causes, and supporting
community beautification projects.

4. Economic responsibility
• Economic responsibility initiatives involve improving the firm’s business
operation while participating in sustainable practices – for example, using a new
manufacturing process to minimize wastage.
Why is a CSR strategy important?

A CSR strategy is essential to ensure your business

delivers effective corporate social responsibility
initiatives. Having a CSR strategy enables your business
to remain goal-driven for CSR, and to know what success
looks like for your initiatives.
Business Benefits of CSR

• In a way, corporate social responsibility can be seen as

a public relations effort. However, it goes beyond that, as
corporate social responsibility can also boost a firm’s
competitiveness. The business benefits of corporate
social responsibility include the following:
Benefits of CSR

1. Stronger brand image, recognition, and reputation

• CSR adds value to firms by establishing and maintaining a good corporate
reputation and/or brand equity.
2. Increased customer loyalty and sales
• Customers of a firm that practices CSR feel that they are helping the firm support
good causes.
3. Operational cost savings
• Investing in operational efficiencies results in operational cost savings as well as
reduced environmental impact.
Benefits of CSR

4. Retaining key and talented employees

• Employees often stay longer and are more committed to their firm
knowing that they are working for a business that practices CSR.
5. Easier access to funding
• Many investors are more willing to support a business that practices CSR.
6. Reduced regulatory burden
• Strong relationships with regulatory bodies can help to reduce a firm’s
regulatory burden.
How does CSR integrate into business strategy?

• There are a few different ways CSR can integrate into business strategy. It
depends on your company’s needs and goals. Look at your company’s
strategic goals to help you shape your CSR strategy, for example, whether
it’s to have an impact, engage or retain employees, or engage consumers.

• CSR can help with employee retention and employer branding, so can be
aligned with your Human Resources strategy. It’s also shown to increase
customer retention and loyalty.
Who decides the CSR strategy?

• A CSR strategy is not built by one person alone. A

collective of productive heads is much better
than one. However, the project certainly needs
one core manager to lead the way, assign
responsibilities and ensure everyone stays on
track.
How to Create a successful CSR Strategy

1. Know thyself. Your CSR strategy must be authentic and must ring true for your
organization. The best way to ensure that this is the case is to closely match it to
your company’s mission, vision, and values. Employees, customers, and others
will know when it’s not authentic, and your CSR strategy won’t have the desired
effect.

2. Get a good fit. The goals you select for your CSR strategy must fit your company
and its products and services. For example, if your business is a boutique selling
women’s clothing, then actively supporting breast cancer research is a good fit.
How to Create a successful CSR Strategy

3. Be consistent. Be sure that everyone in your organization knows what your CSR
strategy and goals are and that everyone can express them consistently to one
another — and to the general public. Your CSR efforts are multiplied when
everyone in your company has a clear understanding of his or her role and is
completely aligned with the program.

4. Simplify. In developing and implementing a CSR strategy, simpler is usually

better. Organic yogurt maker Stonyfield Farm’s mantra is simple: “Healthy food,
healthy people, healthy planet.” Anyone can understand what the company is
committed to accomplishing, and customers feel tremendous brand loyalty
because they want to be a part of what Stonyfield is doing.
How to Create a successful CSR Strategy

5. Work from the inside out. Your CSR strategy isn’t worth the paper it’s written
on if you haven’t engaged your employees in the process of developing and
implementing it. Instead of forcing a CSR strategy on your employees, invite
their active participation in creating it and then rolling it out. You’ll get better
results and your employees will be pleased that you thought highly enough
about them to involve them in the process.

6. Know your customer. When developing a CSR strategy, it’s better to address the
immediate needs of your customers before you try to solve all the problems of
the world. These customer needs often boil down to the most basic of human
needs: safety, love and belonging, self‐esteem, and self‐actualization. If you can
address these customer needs, you’ll have a customer for life.
How to Create a successful CSR Strategy

7. Tell your story. When you have your CSR strategy in place, don’t be
afraid to publicize your efforts to be socially responsible along with
your successes. Again, many people are attracted to companies
that operate in a socially responsible way. If you don’t get out the
word about your programs, you’ll lose this powerful advantage. So
tell your story — as often as you can — to your employees and to
the general public. Use company newsletters and brochures, your
website, and online social media such as Twitter, Facebook,
LinkedIn, and YouTube.
END