Lecture Note 1

Corporate Social Responsibility

Lecturer: Ms. Zelda Arku

Dpt. Of Management Studies
Contact: zarku@umat.edu.gh

UNIVERSITY OF MINES AND

TECHNOLOGY
 Course Aims and Objectives

The aims of this course are:

• To prepare the student to understand
the concepts and principles of CSR;

• To help the student integrate the

critical issues of CSR;

• To help the student understand the

role of CSR and Ethics in business; and

• To prepare students with the ability to

argue for and against the assumptions
of social responsibility business

CSR: Ms. Zelda Arku 6/19/2023 Slide 2

 The objectives of this course

• To provide a general overview and historical perspective of CSR;

• To explain the context of CSR theories and its applicability;
• To evaluate corporate ethics and governance as applied to CSR;
• To discuss the critical issues of CSR;
• To explain strategic management and its applicability to CSR
implementation and decision making;
• To evaluate CSR trends in Ghana from Oil and Gas perspective;
• To analyse the forms of business and their role in CSR practice; and
• To provide case analysis to guide the application of theories to CSR
issues

CSR: Ms. Zelda Arku 6/19/2023 Slide 3

 Course Outline

This course is designed to cover the following areas:

• Overview of CSR;
• Theories of CSR;
• Corporate Ethics and Governance;
• Critical Issues for CSR;
• CSR Trends in Ghana;
• CSR and Strategic Management;
• Forms of Business and CSR in SMEs;
• CSR Case Analysis.

CSR: Ms. Zelda Arku 6/19/2023 Slide 4

 Course Assessment

• Student Assessment: Two forms of student assessment are

designed namely, Continuous assessment & Examination

• The continuous assessment carries 40% of the total mark

and will consist of individual assignments and group work.

• Self-Assessment will be given for each topic treated to

encourage the student to test and consolidate his or her
understanding of the discipline.

• There will be 10 marks for attendance, 20 marks for a quiz

and 10 marks for group presentation.
•
CSR: Ms. Zelda Arku 6/19/2023 Slide 5
 Expected Outcomes

• At the end of the course, the • Implement CSR activities and

student is expected to:
• Understand the historical
perspectives of CSR and its
benefits to stakeholders and
corporations;
• Articulate the theories of CSR;
• Understand the concepts of
ethics and governance as
applied to CSR;
CSR: Ms. Zelda Arku 6/19/2023
review existing ones
incorporate organisations;
• Understand strategic
management as an
organisational tool for CSR
decision making;
• Evaluate forms of business
organisations; and
• Understand CSR trends in the
extractive industry.
Slide 6
 Lecture 1

OVERVIEW OF CORPORATE SOCIAL

RESPONSIBILITY (CSR)

CSR: Ms. Zelda Arku 6/19/2023 Slide 7

 Objectives

❖ To provide the general overview

of corporate social responsibility ❖ To give the course outline and
(CSR); assessment procedure; and

❖ To discuss the historical ❖ To present the course syllabus

perspectives and some of the and recommended reference
benefits of CSR; material.

❖ To present the course objectives

and expected outcomes;

CSR: Ms. Zelda Arku 6/19/2023 Slide 8

 Introduction

CSR as a The global

concept has perspective is
become the relationship
dominant in between global
corporate corporations, the
reporting of both government of
large and countries and
medium individual The local
organisations. citizens. perspective
The broad views CSR as the
definition is relationship
viewed from two between a
paradigms corporation and
namely the the local society
global and local in which it
perspective. resides or
operates.

CSR: Ms. Zelda Arku 6/19/2023 Slide 9

 CSR Definitions
The responsibility of a
company for the impacts of its
decisions and activities on
society and the environment
through transparent and
ethical behaviour that
contributes to the sustainable
development, health and the
welfare of society.
It ensures the expectations of
stakeholders is in compliance
with applicable law; is
consistent with international
norms of behaviour; and is
integrated throughout the
company.
CSR: Ms. Zelda Arku
The concept of CSR
recognizes that businesses
have a broader responsibility
beyond profit-making and
should contribute positively to
society. CSR initiatives typically
involve voluntary actions that
aim to address social,
environmental, and economic
issues.
6/19/2023 Slide 10
 CSR DEFINED

“The duty a corporation has to create wealth by using means that

avoid harm, to protect, or enhance societal assets.” - Steiner &
Steiner

“A company’s actions that contribute to sustainable development

through the company’s core business activities, social investment
and public policy debate.” Forstater, MacDonald & Raynard

“The actions of a company to benefit society beyond the

requirements of the law and the direct interests of shareholders”
Pearce & Doh

CSR: Ms. Zelda Arku 6/19/2023 Slide 11

 Historical Perspective of CSR

• Evolution of the CSR concept has a long history associated with

how it impacts on organisations’ behaviour. This transformation is
aptly illustrated by the Ford Motor Company, which states that in
1919, the Ford shareholders agreed to the decision of the
Supreme Court of Michigan to grant Dodge brothers their request
for maximum dividends.

• This decision derided Henry Ford’s (company president and

principal stockholder) intention to reinvest the company’s
accumulated profits on plant expansion, and stated that the
purpose of his company was to serve society; in 1999, Henry
Ford’s great-grandson, William Clay Ford Jr tried again to
convince the company’s shareholders of the importance of
business as a service to society.

CSR: Ms. Zelda Arku 6/19/2023 Slide 12

 Historical Perspective of CSR

• At this time, however, the younger Ford not only faced no lawsuits
but also received considerable support from various stakeholders,
including shareholders.

• It is interesting to note that shareholders of Ford Motor Company

responded differently in the two periods. The meaning and business
implication of CSR in 1999 was much more palatable to
shareholders than the one advocated in 1919.

• In 1919, the concept of CSR was vaguely framed in moral and

macro-social terms, such that shareholders could not see how it
served their interest or how it was related to the performance and
management of the corporation

CSR: Ms. Zelda Arku 6/19/2023 Slide 13

 Historical Perspective of CSR

• For that reason, the Dodge brothers envisaged no

tangible benefit in running a business with the
greater public good in mind.

• In 1999, CSR had already been coupled with the

strategy literature and its relationship with market
outcome had been made more explicit, which
probably influenced shareholders’
behaviour.

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BENEFITS OF CSR

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 Benefits of CSR

Better Brand Recognition: When people can easily identify a

company because of a CSR project, they become a household
name. It is a common feature now that people have a better
affinity to Goldfields Ghana Limited (GGL) because they sponsored
and supported the Ghana Black Star to Ghana’s first world cup in
2012. This significant event will continue to enhance the image and
brand identity of GGL. In view of this, if GGL was producing and
selling a product to the general public, they would have had a
better advantage over their competitors.

CSR: Ms. Zelda Arku 6/19/2023 Slide 16

 Benefits of CSR

Positive Business Reputation: This is how positive

others think and feel about your business based
on their experience of what they have heard
and the facts they have gathered about your
business.

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 Benefits of CSR

Greater Ability to Attract and Retain Talent: The best indicator is how
well is the company taking care of her impacted community? An
answer to this question confirms how well the company will take care
of their staff. The preparedness of an organisation to be socially
responsible makes their staff very confident as they always feel they
have an association if a better company hence they intend to stay.

Easy Access to Capital: Most financial institutions have included in

their credit/lending requirement a CSR policy and evidence of CSR
projects undertaken within a period of time. This additional
requirement has become necessary as financial institutions believe
that a company with a good CSR policy and constantly undertakes
CSR projects enjoys both brand recognition and positive reputation
which translates to increase sales and customer loyalty.

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 Benefits of CSR
Increase Shareholder Values: Better
management of CSR implementation leads to
better brand image, a positive business
reputation which eventually enhances sales
and revenue leading to profitability and
batter share value to the shareholder.

Finally, increased sales and customer loyalty;

better financial performance; reduce
regulatory oversight; organisational growth;
and increase in accountability among others
are the benefits organisations accrue when
they undertake CSR activities.

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 Disadvantages of CSR
Disadvantage Explanation
Implementing CSR initiatives often incurs additional costs for companies.
This can include investments in sustainability measures, employee
training, community programs, and stakeholder engagement. These
added expenses may impact profitability, especially for small or
Increased Costs financially constrained businesses.
Greenwashing refers to when companies engage in deceptive
practices or superficial CSR activities to create a false impression of
being socially responsible. This undermines the credibility and integrity of
genuine CSR efforts and can lead to reputational damage if discovered
Greenwashing by stakeholders or the public.
Despite CSR efforts, some stakeholders may perceive a company's
initiatives as inadequate, insincere, or merely PR-driven. Critics argue
that companies should focus primarily on their core business functions
Potential for and profitability rather than diverting resources towards societal issues.
Stakeholder Managing and responding to stakeholder criticism can be demanding
Criticism and require effective communication and engagement strategies.
CSR: Ms. Zelda Arku 6/19/2023 Slide 20
 THANK YOU

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