Facilitated by Goldengate Consulting

July 2012
 Corporate Social Responsibility

Introduction
Objectives Corporate Social Responsibility
Objectives

• Understanding the basics and fundamental principles of Corporate

Social Responsibility (CSR)

• To appreciate the impact of CSR on businesses

• To discuss how CSR initiatives can benefit businesses

Definition Corporate Social Responsibility
Definition

What is Corporate Social Responsibility?

CSR! Is that really

for me? So
technical, very
expensive!!
I’m overwhelmed
Definition Corporate Social Responsibility
Definition

What is Corporate Social Responsibility?

‘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

Definition Corporate Social Responsibility
Definition

What is Corporate Social Responsibility?

Corporate Social Responsibility

The responsibility of business towards the society

Definition Corporate Social Responsibility
Definition

Our Definition

A voluntary initiative on the part of a business to

contribute to a better society and a greener and
cleaner environment.
Definition Corporate Social Responsibility
Definition

Analysis of the definition by the World Business Council For

Sustainable Development
• Expectation of stakeholders that companies should behave
ethically

• Expectation that business should contribute to economic

development

• Expectation that business should improve the quality of life of its

workforce and their families

• Expectation that business should play active part in the

improvement of the society
 Corporate Social Responsibility

CSR in South Africa

Past, Present and Future Trends Corporate Social Responsibility
Past, Present and Future Trends

CSR IN SOUTH AFRICA

Past Trend – Present Trend –

Future Trend
Pre 1994 Post 1994
 Corporate Social Responsibility

CSR Myths, Legislation and Benefits

Myths surrounding CSR Corporate Social Responsibility

CSR is not for small businesses

It is too complicated and technical

It is too expensive

It is a market gimmick

It is a separate corporate initiative

Legislative Framework Corporate Social Responsibility
Legislative Framework

Companies Act 71 of 2008

King III

BBBEE Act 53 of 2003

Benefits of CSR Corporate Social Responsibility
Legislative Framework

Winning new
ts

businesses
fi
ne

Increase in Enhanced
Be

Relationship with
customer retention
stakeholders

Saving money Attracting,

on energy and
operating cost
Benefits Retaining and
Maintaining a happy

of CSR workforce

Differentiating
yourself from the
Media interest
competitor
and good

s
reputation

fit
Enhancing your

ne
influence in the Access to funding

Be
industry opportunities
 Corporate Social Responsibility

CSR Corporate Culture and

Stakeholder Dynamics
CSR as a Corporate Culture Corporate Social Responsibility

Synchronisation
CSR as a group
Culture as a norm of CSR with company
concept
business strategy
Stakeholder Dynamics Corporate Social Responsibility

CSR – Driver and Stakeholder Dynamism

Use of Resistance Managing

Impact of
Driver of CSR Changer to Change the Change
Change
Agent
 Corporate Social Responsibility

CSR Initiatives and Application

CSR Initiatives Corporate Social Responsibility

Guiding Principles for CSR Projects

• CSR is about corporate citizenship

• It is about giving back to the society

• It is about business sustainability

• It is about thriving in a competitive business environment
CSR Initiatives Corporate Social Responsibility

CSR Projects for Businesses

Market focused initiative

Product focused initiative

Employee focused initiative

Society focused initiative

Environmental focused initiative

CSR Initiatives Corporate Social Responsibility

CSR Projects for Businesses

Employee Market focused

focused initiative initiative

Result - Driven CSR

= Benefits
Society focused Product focused
initiative initiative

Environmentally
focused initiative
Practical Application of CSR Corporate Social Responsibility

• A good CSR Policy must be result-driven

• Business assessment is important

Practical Application of CSR Corporate Social Responsibility

Guidelines
• You need to evaluate various aspects of your business and operations

• You need to evaluate the impact your business is having on your

stakeholders.

• Then set realistic targets on how to improve your business operations

and processes.

• Draw up a result- driven CSR Policy.

• Embed your CSR into your business strategy.

Practical Application of CSR Corporate Social Responsibility

Guidelines
• Appoint a driver for your CSR initiative

• Communicate your CSR efforts to all your stakeholders clearly and boldly.

• Make your CSR initiative part of your business culture

• Set up CSR measuring indicators to monitor progress and possible

deviations.

• Be enthusiastic about your CSR initiative; be committed to it.

• Report on your initiatives and measure progress/ impact made.

 Corporate Social Responsibility

Case Studies
Case Studies Corporate Social Responsibility

Case Study A – BYJ Consolidated Group

Facts

1. Company is the retail industry

2. Community based CSR initiative – supply of food items to local

schools and shelters

3. Business crisis – product recall

4. The response of the company to the crisis

Case Studies Corporate Social Responsibility

Case Study A – BYJ Consolidated Group

Outcomes

1. Community sympathy for company’s crisis

2. Customer loyalty

3. Sympathetic purchases

4. Increase in sale
Case Studies Corporate Social Responsibility

Case Study B – Lungile, Pillay & Associates

Facts

1. Small enterprise in a service industry

2. Community based CSR initiative – collaboration with the local

library to promote reading and studying among students in the
community

3. Specific guidelines were set for borrowing of books

4. The involvement of parents and the local authority in the

project
Case Studies Corporate Social Responsibility

Case Study B –Lungile, Pillay & Associates

Outcomes

1. Community support for the project

2. Parental support and approval for the project

3. Promotion of scholastic activities among students

4. Media attention- Good publicity

5. Customer loyalty

6. New business opportunities for Lungile, Pillay & Associates

Case Studies Corporate Social Responsibility

Case Study C – PCG Accounting Services

Facts

1. A small accounting firm

2. CSR initiative – market focused

3. Offering free tax seminar as a value added service to existing

clients
Case Studies Corporate Social Responsibility

Case Study C – PCG Accounting Services

Outcomes

1. PCG was offering their clients a service being charged for by other
accounting firms in the neighbourhood

2. PCG clients enjoyed the special treatment

3. Existing clients referred their friends and colleagues to PCG

4. PCG became a service provider of choice

5. Positive business reputation

Measuring Your Performance Corporate Social Responsibility

• Financial Indicators

• Non- Financial Indicators

 Corporate Social Responsibility

Thank You

For more information

please contact the
Fasset Call Centre
on 086 101 0001
or visit www.fasset.org.za