What is Corporate Social Responsibility?

CSR = is about how companies manage the business

processes to produce an overall positive impact on society.
-Mallen Baker

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 the local community and society at
large. -Making Good Business Sense, The World Business
Council for Sustainable Development

The concept was driven by the growth in size, scope and

power of multi-national and transnational corporations in
the 20th-21st century. = use of power and influence

2.

Social Auditing
Social auditing uses different types of audit to measure and
report on an organizations social and ethical impacts,
policies, management systems or performance.
The audit criteria may be determined by the organizations
internal policies, practices or controls, statutory regulations,
and conventions. (Code of Conducts, Labor Code, ILO
declarations, UN resolutions)
Social auditing often focuses on the working conditions
(health and safety), labor relations, or broader issues like
human rights, in an organizations own facilities or in its
supply chain, but also on responsible social behavior
(responsible advertising, responsible consumption).
The most common goal of social auditing is ultimately to
improve the organizations social and ethical performance;
or enhance its transparency and accountability to its
stakeholders.

CSR is about capacity building for sustainable livelihoods. It

respects cultural differences and finds the business
opportunities in building the skills of employees, the community
and the Government. (-from Ghana, Africa)

CSR is about business giving back to society. (-Philippines)

Operating a business in a manner that meets or exceeds the
ethical, legal, commercial and public expectations that society
has of business.
-Business for Social Responsibility

CSR is a commitment to improve community well-being through

discretionary business practices and contributions of corporate
resources.
-Philip Kotler and Nancy Lee
Corporate Social Responsibility, 2005

A concept whereby companies decide voluntarily to contribute to

a better society and a cleaner environment. A concept whereby
companies integrate social and environmental concerns in their
business operations and in their interaction with their
stakeholders on a voluntary basis.
-European Commission

Corporate social responsibility (CSR, also called corporate

conscience, corporate citizenship, social performance, or
sustainable responsible business/Responsible Business) is a
form of corporate self-regulation integrated into a business
model. CSR policy functions as a built-in, self-regulating
mechanism whereby a business monitors and ensures its active
compliance with the spirit of the law, ethical standards, and
international norms. The goal of CSR is to embrace
responsibility for the companys actions and encourage a
positive impact through its activities on the environment,
consumers, employees, communities, stakeholders and all other
members of the public sphere who may also be considered as
stakeholders. -Wikipedia
Related Concepts and Models (Forms of CSR)
1. Corporate Citizenship
2. Social Auditing
3. Corporate Philanthropy
4. Corporate Social Initiative
5. Corporate Citizenship
1.

Corporate Citizenship
Corporate citizenship can be defined as extending the
relationship between business and society to include an
understanding of the social, environmental and political
responsibilities of business.
The notion of corporate citizenship sees the company as
having rights, duties and responsibilities in society in the
same way that citizens also have rights, duties and
responsibilities.
A company is a member of society which like a normal
citizen is involved and participates in the governance of
society in various shapes and forms.
Examples: Implementing labor standards
Promoting human rights
Corporate citizenship is often used as a synonym for
corporate social responsibility.

3.

Corporate Philanthropy
Corporate philanthropy is
a direct contribution by a
corporation to a charity or cause, most often in the form of
cash grants, donations and/or in-kind services

The most traditional of all corporate social initiatives, and

historically has been a major source of support for
community health and human service agencies, education,
the arts, as well as organizations with missions to protect
eg. the environment, etc.

Sometimes referred to also as community giving,

community relations, corporate citizenship and community
affairs

Typical examples:
Providing cash donations
Offering grants
Awarding scholarships
Donating products
Donating services
Providing technical expertise
Allowing the use of facilities and distribution channels
Offering the use of equipment
4. Corporate Social Initiative

Corporate social initiatives are major activities undertaken

by a corporation to support social causes and to fulfill
commitments to corporate social responsibility.

Causes most often supported through these initiatives are

those that contribute to community health, safety,
education, and employment; the environment, community
and economic development; and other basic human needs
and desires.
Why do Good?

What is the (business) justification and rationale for doing

good?

Can economic and financial benefits flow from CSR

activities and initiatives?

Can a firm really do well by being good?

Is there a return on investment to CSR?

According to Business for Social Responsibility, a leading

nonprofit global organization providing businesses with
information, tool, training, and advisory services related to
integrating corporate social responsibility in their business
operations and strategies, companies have experienced a
range of bottom-line benefits, including the ff:

Increased sales and market share.

Strengthened brand positioning.

Enhanced corporate image and clout.

Increased ability to attract, motivate, and retain

employees.

Decreased operating costs.

Increased appeal to investors and financial analysts.

-Kotler and Lee, 2005