Corporate

Social
Responsibility

Chapter 2 – Page 15 to 23

Grd 11 BUSINESS
STUDIES 1
 CSR is about the relationship between
the business (corporate) and society
(social) and the degree to which the
business impacts on society.

The business should not just focus on its http://bellforteconsulting.com/?

own profits, but that it has a

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responsibility towards the people and

the planet as well.

An example of a
https://www.y
CSR programme by outube.com/
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Grd 11 BUSINESS
STUDIES 2
 Reasons why businesses need to get involved with stakeholders:

Crime

Poor
Poverty
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policeman_914649.htm
Housing

http://www.flickriver.com/photos/puddleboy/tags/shack/

Inequality
CSR Lack of Activity 1
Issues Education – Page 16

Poor
Unem-
Health
ployment
Services
Environ-
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www.clipartpanda.com/ mental
categories/poverty-clipart
concerns
http://oxfamblogs.org/fp2p/where-has-the-global-movement-
against-inequality-got-to-and-what-happens-next/

Grd 11 BUSINESS
STUDIES 3
 Levels of responsibility

Primary responsibility → the Secondary or Broader

business’s obligation to look after responsibility → stakeholders
the interest of stakeholders who who are indirectly affected by
are directly affected by the the business’s activities.
success of the business.

Blowfield and Murray suggest a different approach:

Discretionary Responsibility

Ethical Responsibility

http://www.accuragroup.in/csr
Legal Responsibility
Activity 2 –
Page 16 Economic Responsibility

Grd 11 BUSINESS
STUDIES 4
Arguments FOR Refer to
Arguments AGAINST
CSR CSR
Page 17

for details on
arguments for
and against
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https://www.pinterest.com/explore/angry-face-emoji/

The social responsibility of

https://www.youtube.com/
business | Alex Edmans | watch?v=Z5KZhm19EO0
TEDxLondonBusinessSchool

https://www.youtu
be.com/watch?v=
Grd 11 qQLZDgm6Sww
BUSINESS
STUDIES 5
 Arguments For Arguments Against
Businesses assist the communities in which CSR detracts from their core business activities.
they operate; in turn, the community supports They start to neglect the business
the business.

If businesses act on crime and poverty, they will Shareholders and businesses see the money spent
make shopping safer for their customers. on CSR as less profits for the business
If not, customers will move away.

CSR is voluntary and many argue that It is difficult to measure the benefits of CSR and.
government should make it compulsory.

Increases the standard of living through
education and health programmes.
Ensuring environmental sustainability for future
generations
Communities become dependent on the CSR – this
puts additional strain on businesses to keep giving.
Business may be viewed in a negative light due to
this.
Not all CSR projects are sustainable – businesses
could waste money on “hit-and-run” projects.

Businesses that operate in sustainable ways are CSR misleads stakeholders regarding the
usual also innovative. environmental concerns.
CSR promotes ethical business practice. Greenwashing: misleading stakeholders that CSR is
helping the environment
Businesses may already have suitable CSR allows the government to shift their
Grd 11
programmes to deal with social issues, e.g., responsibility
BUSINESS
programmes that deal with leadership and
entrepreneurship STUDIES 6
 CSR and Sustainable Business Practice:

Making Operations

Sustainable Business
Refer to
Environmentally
Sustainable
Page 18

Making Operations
Socially Sustainable
for details on
sustainable
business Making Society
practice
Sustainable

Activity 3 –
Page 19
Influencing Suppliers

Grd 11 BUSINESS
STUDIES 7
Interest Groups
(Stakeholders) Staff

Clients
Unions

Suppliers Shareholders

Stakeholders

Communities Regulators

Media Government

Grd 11 BUSINESS
STUDIES 88
According to Blowfield and Murrary → stakeholders should be plotted on a
graph to help the business to understand the stakeholder’s interest in the
business and the business’s responsibility towards it.

Business Influence
LOW HIGH
Insignificant
Medium
Low priority
priority for
for attention
attention
Activity 4 –
Page 19
akeholders' interest

Significant

Medium
High priority
priority for
for attention
Grd 11 attention
BUSINESS
STUDIES 9
Activity 1
Describe the demands that each of the above interest group can place on the
business. Use the following format:

1. How can businesses make their operations environmentally sustainable?

2. How can a business’s operations become socially sustainable?

3. How can a business make society sustainable?

4. How can they influence suppliers?

Grd 11 BUSINESS
STUDIES 10
Activity 2
Describe the demands that each of the following interest group can place on the
business. Use the following format:
Stakeholder Demand placed on the business
Staff

Clients

Shareholders

Regulators

Government

Media

Communities

Suppliers

Unions Grd 11 BUSINESS

STUDIES 11
 Designing, implementing and reporting on a CSR Program:
 A CSR programme = strategic plan.
 Buy-in is critical

Top

Middle

Bottom

Only when CSR becomes part of the core and the identity of the
business and brand, will resources be directed towards the successful
implementation of a CSR programme.

Grd 11 BUSINESS
STUDIES 12
 Designing a CSR Programme:
Management must
communicate the need
for CSR across the
business
An inventory of skills and
resouces needed to
implement the
programme is drawn up
Implement the CSR
project(s)
Grd 11
Management needs to
communicate the CSR
Management should
policy throughout the
create a CSR policy for
businesses and ensure
the business
buy-in takesplace at all
levels
Management should link
Employees throughout
CSR to business
the business should
success factors (make it
brainstorm to come up
part of performance
with initiatives for CSR
appraisals)
Make necessary
Monitor CSR initiatives changes or go back to
brainstorming
BUSINESS
STUDIES 13
 Implementation of a
CSR strategy: Concept of Citizenship
(suggested by Blowfield and Murray)
Strategic intent

CSR STRATEGY
Leadership

Structure
Activity 5 –
Page 21 Management

Stakeholder
Activity 6 – Relationships
Page 22
Transparency

Grd 11 BUSINESS
STUDIES 14
 CSR State whether the following is TRUE or FALSE.

1 CSR focusses only on profit and environmental issues.

2 A business has a primary social responsibility towards the government.

3 Blowfield and Murry suggest that all businesses have a legal responsibility to broader society.

4 The government has a law that specifically states that businesses must get involved in CSR.

Some businesses believe that by selling a product they are already acting socially responsible
5
and therefore it is not necessary to complete CSR.

6 Strategic intent implies that a business has to understand its position within the community

Transparency is when all positive information about CSR initiatives are communicated to
7
stakeholders.

8 The media will be classified as a stakeholder to the business.

9 Suppliers are also considered shareholders of the business.

10 CSR reporting only includes: Business profile, Board commitment and Management systems.

Grd 11 5 min BUSINESS

10 marks STUDIES 15
 Answers CSR
1 False

2 False

3 True

4 False

5 True

6 False

7 False

8 True

9 False

10 False

Grd 11 BUSINESS
STUDIES 16
 Chapter 2:
Additional Page 15 - 23
activity Page 22

Corporate
Social
Responsibility

Grd 11 BUSINESS
STUDIES 17