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CORPORATE SOCIAL

RESPONSIBILITY

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WHAT IS CSR? • Refers to a business practice that involves participating in initiatives that benefit society • Taking initiatives to assess and take responsibility for the company effects on environmental and social well-being. . • Involves incurring costs that do not provide an immediate financial benefit to the company but instead promote positive social and environmental change.

TYPES OF CORPORATE RESPONSIBILITY • Environment Taking steps to reduce footprints are considered both good for the company and the society. • Philanthropy Donations to national and local charities • Ethical Labor Practices Treating the workforce fairly and ethically .

The Drivers of CSR • The Shrinking role of Government –Shrinking government resources coupled with distrust in the regulations • Demands for greater disclosure –A growing demand for disclosure by those persons who are directly and indirectly affected by such business .

The Drivers of CSR • Increased customer interest –Growing influence in the decisions of customers • Competitive Labor Markets –Companies must improve working conditions • Supplier relations –Companies are taking steps to ensure that their partners conduct themselves in a socially responsible manner. .

BENEFITS OF CSR •Building a strong corporate reputation. •Reducing regulatory oversight of the government . •Reducing risks and operating costs. and image as well as strengthen brand positioning. •Attracting and retaining a motivated workforce.

BENEFITS OF CSR •Increased appeal to investors and financial analysts. •Building strong community relationships with organizations and agencies that can provide technical expertise. .

promote positive change . mitigate negative effects Social Responsiveness – Proactive approach.LEVELS OF CSR Social Obligation – Meet minimum regulations. do what is required by law. no more Social Responsibility – Go beyond what is required by law.

CARROL’S CSR PYRAMID .

WHAT MAKES CSR IMPORTANT? .

WHAT MAKES CSR IMPORTANT? SUSTAINABILITY REPUTATION EMPLOYMENT INVESTORS STRATEGIC MANAGEMENT SOCIALLY RESPONSIBLE ACTIONS .

Companies may benchmark their CSR performance relative to peers and may also report on CSR policies or undergo social audits. and core strategies. communities. employees. consumers. employee volunteering. . • Corporate social responsibility may include philanthropic efforts.KEY POINTS • Corporate social responsibility (CSR) can be described as embracing responsibility and encouraging a positive impact through the company's activities related to the environment. and other stakeholders.

• Critics argue that CSR competes with shareholder value maximization .KEY POINTS • Proponents of CSR argue that socially responsible practices can have a positive impact on the bottom line and may also argue for the recognition of a "triple bottom line" that rewards social. environmental. and financial returns.