Chapter 11

Corporate Social
Responsibility
CSR

CSR is a voluntary arrangement taking the
concerns and issues of ethical, legal,
social and environmental in the business.
The key issues of CSR

Environmental
Ethical
Way people are treated
Way people are employed
Impact upon society
and communities
Contemporay Issue
Define CSR
While there is no single, commonly accepted
definition of CSR. It generally refers to business
decision-making linked to ethical
values, compliance with legal
requirements, and respect for people,
communities and the environment.
Do we need CSR?
The term Corporate social responsibility (CSR) is gradually
gaining recognition as a strategic direction for large number
of organizations, both business and social driven, as well as
public and private.


But there are still number of misnomers about CSR, (tension
between profitability) in the corporate fraternity which is
resulting in difficulties to cope with this vast but intricate
strategic discipline.

6
ISO 20121
Introduction to BS8901
Evolution into ISO20121
GRI Event Sector Supplement




6
Why companies
need to integrate social and environmental concerns in their business?

Environmental impacts
Fossil fuel use due to transportation and energy
consumption
Emissions to air (pollution, gases)
Water use, waste water production and
chemical emissions to water
Materials and supplies purchasing
Solid waste creation and disposal
Chemical use and disposal
Noise and light pollution
Contemporay Issue
CSR approach
CSR approach is the enlightened shareholder
approach to governance for conducting ethical business.

- CSR is an ethical approach to conducting business.
- Should be concerns for all stakeholders.
- Taking social and environmental issues.
- Considering all above and the business must be profitable
and financially viable business.
- The ethical elements of CSR should be followed and not
condone with the unethical and illegal practices.

5 Principles of CSR
1. Respect - Treat employees fairly
2. Integrity Operate business in ethical
way with integrity.
3. To follow the law of basic human rights.
4. Sustainability for future generations.
5. Responsibilities for the communities.


CSR objectives
CSR policies fundamentally integrate social, economic
and environmental objectives.

Economic objective is very straightforward and well
understood. Long term profit, protecting shareholders
assets with satisfactory return with their investments.

Social and Environmental are comparative and
subjective and it differs with social policies, communities,
nature of industries and countries. e.g. King III code is the
key to corporate citizenship culture of South Africa.
CSR Impact
At the global level, globalization will accelerate demand
which is likely to have impact on every single country,
across business sectors and geopolitical jurisdictions. The
focus is likely to be for improvement in corporate social
and environmental performance.

Companies are now addressing their social and
environmental issues now face an increasingly prescribed
set of systems-based principles and protocols related to
governance, integration, engagement, measurement,
reporting and disclosure on non-financial performance.
These elements will essentially result in competitive
advantage for some, while those who are poor CSR
performers.
CSR for sustainable world
Sustainability/sustainable business/sustainable development
all are synonyms and strongly linked with CSR.

Sustainable development as development that meets the
needs of the present without compromising the ability of future
generations to meet their own needs.


Needs for the survival Measures for future
sometimes problematic
Sustainable environment evaluation
Pollution (air, water, noise, waste)
Purchasing reduction
Energy use
Waste management
Transportation
Water management
Environmental audits
Green suppliers
Community (socio/cultural) benefits
Increased volunteerism
Increased sustainable skills in business
Contemporay Issue
Developing CSR : 3 participants Government,
Investors and Company governance.
CSR and Government
- Taking with company law and the established guideline of
CSR. The general policies are linked with the basic principles
of CSR. For example- contribute economic development,
respect human rights, engaging local communitys business,
avoid improper involvement of local politics. Activist: green
marketing, green political party for sustainable world.
- Employment policy follow the labour law, child labour law,
any forced labour, health & safety, discrimination by race,
age, gender, religion etc.
- - Environmental policy for example, establish a system of
environmental management. Should protect environments
and waste management.

BS 8901: specification for a sustainable
event management system
ISO 20121: international standard for
event industry
ISO 14001: environmental management
ISO 26000: social responsibility
Green Tourism Business Scheme
Green Globe: international tourism
standard
Apex Green Meeting Standard
Global Reporting Initiative (GRI)
Standards
http://www.bsigroup.co.uk
Contemporay Issue
CSR and Investors
It involves the relationship, process and the engagement of
shareholders and companies.
- Investors must recognize the CSR risks and the corporate
CSR policies. Governance should be aware of the CSR risks
for the company. Nature of push (investors) and pull
(company governance) factors.
- CSR policies also associated with investment decisions
and the choice of shares of their investment portfolios.
- The CSR policy should be focused on more strategic
actions which are more socially responsible that could
be helpful for company branding.
- Engagement, investment preference, and strong
screening could be the best practices for pursuing a
sound strategy for effective CSR.

CSR and Corporate Strategy
3 participants Govt., Investors and Board of
governance. Therefore, perceptions about the benefits of
CSR may vary. (Singapore roads are free from Chewing
gum).
The advantages and benefits of implementing CSR.
a. Increase reputation ( branding, market acceptability)
e.g. reputational risks- Rana plaza incidence for BD
garments.
b. Increase public relations and marketing benefits.
c. Financial benefits.
Reputational risks
Advantages of better reputations:
1. Improve brand value with more sales.
2. Employees may prefer for working. Therefore, higher
job satisfaction.
3. Investors may holding the shares for a long time.
4. Reputation as ethical organization.
Public relations and
marketing benefits
There is a business probity risk for failing to act on honestly
and integrity.

The most common cases to win the contract and ensure
public relations by practicing unfair deeds. E.g. bribes etc.
Leakage of this contract could damage the company
reputations. Again the example of Padma bridge, Hall
Mark case, destiny products.

The best way is to practice fair business with honesty,
integrity and transparency since companies are dealing
with public money. (where CSR is important here)
Commercial & Financial
benefits
-Using environment friendly technology for the business.

- Reducing waste or effective waste-management.
- Developing innovative technology and products by
reducing existing production costs.
- Encourage employees talents and rewarding for
better performance that will accelerate company
sales.
Just link todays thinks
what should be the contents of
effective CSR policy in the
business ?
Enjoy your business !
Formulating CSR policy !!