CORPORATE SOCIAL

RESPONSIBILITY IN VARIOUS
BUSINESS AREAS
Maria Zailah A. Cabanilla
(Reporter)
Table of contents

CSR in Manufacturing and Service

CSR in Retailing
Industries

specific traits of service industry ; 6 key The main CSR issues in the sphere of
business drivers of manufacturing industry retailing ; How to Develop a Retail CSR
in relation to CSR Strategy

CSR in Human Resource CSR in Finance and Banking

Management

ethical and social issues ; Main activities CSR activities in the banking sector
related to CSR
 01.
CSR in Manufacturing and Service
Industries
Manufacturing industry contributes to environmental pollution and social cost. Hence,
corporate social responsibility (CSR) functions as a way to reduce the effects of corporate
activities, to increase long-term performance and stakeholder trust

Service firms are likely to gain from focusing on some CSR activities (environment,
employees and good corporate governance) and should use their responsible behavior as a
valuable tool for public relations and differentiation in the market.
 Service industries traits

1 the industry tends to be more labor intensive

employee welfare has become a matter of prime concern

2
Six (6) key business drivers

● Engagement of younger generation

● Nurturing young talents
● Increase of productivity
● Community development
● Building collaborative and multi-dimensional partnerships
● Corporate citizenship involves organization’s understanding of
internal and external changes
 CSR in manufacturing and service industries

• CSR is needed as an ethical and moral obligation of the company in reduction of negative
impacts of the company.
• CSR effect on performance is higher for services firms than for manufacturing companies.
• From the investors’ viewpoint it is more difficult to evaluate services company performance
based on the financial results only.
• Service companies, on their part, are interested in spreading information to existing and
potential investors, as well as to customers, creating so-called ‘reputation capital’ (defined as
a public trust).
 
02. CSR in Retailing
Corporate social responsibility (or CSR) in retail has evolved from an
employee retention strategy to a necessity for longevity in the retail
industry. Engaging in Corporate Social Responsibility in retail comes
at the expense of short-term profitability to commit to long-term
values.
Three main attitude-based dimensions distinguished by J.
Anselmasson and U. Johansson (2007)

• human responsibility (fair-trade)

• product responsibility (user-friendly information)
• Environmental (eco-conscious actions)
 The main CSR issues in the sphere of retailing

• fair-trade, support of local producers, organic produce

• protection of natural environment, energy use and waste
reduction, recycling
• product safety, distribution of eco-goods and local produce
• ethical trading
• employment policies and working conditions, health and safety at
work, discrimination, corruption, foreign labor
• sustainability, corporate reputation
• charity, philanthropy, support for local communities, social,
educational and environmental programs
• consumer loyalty and purchasing behavior
In consumers’ perception, there are two main
aspects of retailers’ social initiatives

● beneficiary of activity
● retailers’ input
 14 RISK ASPECTS

• societal rules • foreign labor

• employee • employee wages
discrimination • local businesses
• local working • local employment
conditions • offensive material
• Dishonesty • foreign economies
• pricing policies • sales practices.
• natural environment
• employee benefits
How to Develop a Retail CSR
Strategy
● Identifying the causes that your team members care
about, as well as those that your operations are
already contributing to, either negatively or
positively.
● With this insight, decide how you’ll improve your
operations
● Once your plan is in motion, inform your
customers
 CSR in Human Resource
03. Management

Focus of the human resource management (HRM) is a ‘people’

side of organization interpersonal relations, internal (with
employees of a different level) and external (with stakeholders)
communication
 Ethical and Social issues
• Discrimination (gender, age, racial, professional, etc.),
• Lack or overselling of social benefits,
• Unfair compensation systems,
• Unsafe working conditions,
• pressuring employees to donate to different charities or to volunteer
their time against their true intentions,
• Violations of employee rights, etc.
• Human resource managers paly an instrumental role in helping their
organization achieve its goals of becoming a socially and environmentally
responsible company
• The HR department can ensure that there is an equilibrium between information
disclosed publicly and the ways company treats its employees.
• The HR department can provide the management with the tools and framework
for creating an ethical working culture and adopting CSR programs proactively
Main activities related to CSR

01
02
Implementation and
encouragement of green Fostering a Culture of Corporate
Social Responsibility

03
Social and community
connections company ties
with local communities
 CSR in Finance and
04.
Banking

CSR in the financial sector refers to the inclusion of ethical,

religious, social and/or environmental aspects in investment
decision processes – over and above considerations of financial
risk and return.
CSR activities in the banking sector

1 2
Economic responsibility Legal responsibility

3 4

Ethical responsibility Discretionary (philanthropic)

responsibility
• Banks’ engagement in CSR activities indirectly
ensure their competitive advantage – reflected in
their financial performance and reputation capital.
• A socially responsible bank or other financial
institution attempts to manage its banking activities
with integrity and hold itself accountable to
stakeholders when it comes to issues like
sustainability, environmental performance, and other
ethical concerns
THANK YOU!