Corporate Citizenship: Social Responsibility,

Responsiveness, and Performance

Models and frameworks of social

responsibility in the practice of
sound business

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 Topic Outline

1. Corporate social responsibility (CSR)

2. Types and nature of social responsibilities
3. CSR principles and strategies
4. Models of CSR
5. Best practice of CSR

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 Corporate Social Responsibility (CSR)

Corporate social responsibility is a

Corporate gesture of showing the company’s
Social concern and commitment towards
Responsibility society’s sustainability and
development.

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 Corporate Citizenship Concepts

Corporate Social… Emphasizes…

Responsibility Obligation, accountability

Responsiveness action, activity

Performance outcomes, results

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 The CSR Equation

Economic Responsibilities
+ Total
Legal Responsibilities

+ = Corporate
Ethical Responsibilities CSR
+
Philanthropic Responsibilities

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 CSR principles and strategies

 Respect for human rights’

 Respect for the differences of views
 Diversity and non-discrimination should be guiding
principle
 Make some social contribution
 Self-realization and creativity
 Fair dealings and collaboration
 Positive value-added
 Long term economic and social development

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 Types of Social Responsibility

1. Responsibility towards Society

- Carrying on business with moral and ethical
standards.
- Prevention of environment pollution.
- Minimizing ecological imbalance.
- Contributing towards the development of social
health and education.
- Making use of appropriate technology.
- Overall development of locality.

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 Types of Social Responsibility

1. Responsibility towards Government

- Obey rules and regulations.
- Regular payment of taxes.
- Cooperating with the government to promote
social values.
- Not to take advantage of loopholes in business
laws.
- Supporting the administration for economic
growth and development.

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 Types of Social Responsibility

1. Responsibility towards Shareholders

- To ensure a reasonable rate of return over
time.
- To work for the survival and the growth of the
concern.
- To build reputation and goodwill of the
company.
- To remain transparent and accountable.

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 Types of Social Responsibility

1. Responsibility towards Employee

- To provide a healthy working environment.
- To grant regular and fair wages.
- To provide welfare services.
- To provide training and promotion facilities.
- To provide reasonable working standard and
norms.
- To provide efficient mechanism to redress
workers’ grievances.
- Proper recognition of efficiency and hard work.
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 Types of Social Responsibility

1. Responsibility towards Consumers

- Supplying socially harmless products.
- Supplying the quality, standards, as promised.
- Adopt fair pricing.
- Provide after sales services.
- Resisting black-marketing and profiteering.
- Maintaining consumers’ grievances cell.
- Fair competition.

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Models of CSR
 Friedman Model (1962-73)

 A businessmen should perform his duty well, he

is performing a social as a well a moral duty.

 A businessmen has no other social

responsibility to perform except to serve his
shareholders and stockholders.

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 Axkerman Model (1976)

 The model has emphasized on the internal

policy goals and their relation to the CSR. It has
for stages.

1. Managers of the company get to know the most common social

problem and then express a willingness to take a particular
project which will solve the problems
2. Intensive study of problems by hiring experts and getting their
suggestions to make it operational
3. Managers take up the project actively and work hard
4. Evaluating of the project by addressing the issues.

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 The Pyramid of CSR Carroll Model

Figure 2-3 15
 Carroll’s Four-Part Definition of CSR

Societal
Responsibility Examples
Expectation

Be profitable. Maximize sales,

Economic Required
minimize costs.

Obey laws, adhere to

Legal Required
regulations

Avoid questionable practices.

Ethical Expected
Do what is right, fair, and just

Desired/ Be a good corporate citizen.

Philanthropic
Expected Give back.
Figure 2-2 16
 A Stakeholder View of CSR

Stakeholder Group Addressed and Primarily Affected

CSR Owners Con- Employees Community Others

Component sumers

Economic 1 4 2 3 5

Legal 3 2 1 4 5

Ethical 3 1 2 4 5

Philanthropic 3 4 2 1 5

Figure 2-4 17
 Best practices of CSR

 To set feasible, viable and measurable goal.

 Build a long lasting relationship with the
community.
 Retain the community and family values
 The impact of CSR needs to be assessed.
 Reporting the impact.
 Create community awareness.

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