Topic 6 Social responsibility and corporate
citizenship/CSR
Overview
This topic deals with the concept of social responsibility and its implications for both
business and communities
Corporate Social Responsibility
§ Nature and process of Corporate Social Responsibility
§ Benefits to business and community
§ Problems/challenges: business and community
§ Components of Corporate Social Responsibility, e.g.
environment, ethical corporate social investment,
health and safety, etc.
Corporate Social Investment
§ Definition
§ Nature of Corporate Social Investment
§ Corporate Social Investment projects, (including
human rights issues)
§ Responsible business practice
§ Challenges to the business
§ A challenge to meet the longer term needs of the
society within which they operate
§ Legislative requirements,
-Employment Equity Act,
-Skills Development Act
-The National Skills Development Strategy
and Human Resources Development
Strategy
,1 The concept of social responsibility and its implications for both business
and communities
Social responsibility is a theory that a business or individual has an obligation to act to the
benefit of society. Social responsibility is a duty every individual or business has to perform
so as to maintain a balance between the economy and the ecosystem.
Corporate social responsibility (CSR) means that a business takes responsibility for the social
and environmental resources it uses, and puts something back into society and the
environment.
A shift in thinking in recent years has led to businesses aiming not only to make a profit but
to be socially responsible and to be environmentally sustainable.
2 Meaningful contributions of time and effort
2.1 Definition of Social Responsibility
Social responsibility means that a business or individual has an obligation to act in a way that
benefits society. Social responsibility is a duty every individual or business has to perform so
as to maintain a balance between the economy and the ecosystem.
2.2 Meaningful (as an individual) contribution of time and effort to advancing the well-
being of others in a business context
Although it would be naïve to think that we can change the world by ourselves we still have
an obligation and a duty to try and do the right thing.
2.3 Ways in which a business project can contribute towards the community
This can be done in several ways, such as:
• Contributions to NGOs
• Employees giving up their time to contribute to the community
• Involvement in issues that concern the community.
2.4 Corporate Social Responsibility
2.4.1 Definition
CSR is a form of corporate self-regulation whereby a business monitors and ensures its
compliance with the spirit of the law, ethical standards, and international norms. The goal of
,CSR is to embrace responsibility for the company's actions and encourage a positive impact
through its activities on the environment, consumers, employees, communities, stakeholders
and all other members of the public sphere.
CSR can be divided into two main categories: primary social responsibility and broad social
responsibility. The primary responsibility refers to those connected directly to the business
whilst the broad social responsibility refers to the community as a whole.
2.4.2 Nature and process of Corporate Social Responsibility
Businesses are encouraged to be more socially responsible by government, business
stakeholders and the community as a whole.
So that the CSR activities of a business are meaningful and make a positive contribution the
following processes must be put in place:
• A CSR programme or activity must be planned
• Employees have to be put in charge and divided into teams to drive the planned CSR
activity
• The activity must have identifiable and measurable impacts on the community
• The CSR programme must be monitored and evaluated for improvements.
2.4.3 Benefits: business and community
CSR can have the following benefits for businesses:
• Win new business
• Increase customer retention
• Develop and enhance relationships with customers, suppliers and networks
• Attract, retain and maintain a happy workforce and be an Employer of Choice
• Save money on energy and operating costs and manage risk
• Differentiate yourself from your competitors
• Generate innovation and learning and enhance your influence
• Improve your business reputation and standing
• Provide access to investment and funding opportunities
• Generate positive publicity and media opportunities due to media interest in ethical
business activities.
2.4.4 Problems/challenges for the business and community
, • Increased costs of production leading to higher prices or reduced profits and so
decreased competitiveness
• The sums of money spent by firms on CSR are often dictated by few directors and
may not reflect how shareholders want their money spent
• Consumers of CSR products often have to pay higher prices, reducing their ability to
consume
• Acting in a CSR manner can mean that workers in less developed economies are
sometimes further disadvantaged
• Smaller organisations that do not have significant resources to undertake extended
CSR programmes may find themself at a competitive disadvantage
• Loss of tax revenue for the Government as some CSR activities can be ‘written off’
against tax.
2.4.5 Components of Corporate Social Responsibility
The components of CSR include:
• Using sustainable practices that take care of the environment
• Using ethical corporate social investment and showing a real concern for all stakeholders
in the business
• Taking into account the health and safety of all stakeholders in the business.
2.5 Corporate Social Investment
2.5.1 Definition
CSI is about how a business spends its money. CSI is primarily about money, time, skills and
expertise that are invested to help communities or the environment.
Social development in a community is the development of services such as healthcare,
sanitation, education, housing and water supply.
Economic development is the development of a community’s economy through jobs, skills
and infrastructure.
2.5.2 Nature of Corporate Social Investment
The nature of CSI depends on the business in question. Businesses are to link their Corporate
Social Investment initiative with their business practices, especially when making use of the
skills, expertise and equipment available within the business.
2.5.3 Corporate Social Investment projects
Corporate Social Investment projects are aimed at improving social and environmental
conditions. Some businesses finance NGOs as part of their CSI programmes.
2.5.4 Responsible business practice
citizenship/CSR
Overview
This topic deals with the concept of social responsibility and its implications for both
business and communities
Corporate Social Responsibility
§ Nature and process of Corporate Social Responsibility
§ Benefits to business and community
§ Problems/challenges: business and community
§ Components of Corporate Social Responsibility, e.g.
environment, ethical corporate social investment,
health and safety, etc.
Corporate Social Investment
§ Definition
§ Nature of Corporate Social Investment
§ Corporate Social Investment projects, (including
human rights issues)
§ Responsible business practice
§ Challenges to the business
§ A challenge to meet the longer term needs of the
society within which they operate
§ Legislative requirements,
-Employment Equity Act,
-Skills Development Act
-The National Skills Development Strategy
and Human Resources Development
Strategy
,1 The concept of social responsibility and its implications for both business
and communities
Social responsibility is a theory that a business or individual has an obligation to act to the
benefit of society. Social responsibility is a duty every individual or business has to perform
so as to maintain a balance between the economy and the ecosystem.
Corporate social responsibility (CSR) means that a business takes responsibility for the social
and environmental resources it uses, and puts something back into society and the
environment.
A shift in thinking in recent years has led to businesses aiming not only to make a profit but
to be socially responsible and to be environmentally sustainable.
2 Meaningful contributions of time and effort
2.1 Definition of Social Responsibility
Social responsibility means that a business or individual has an obligation to act in a way that
benefits society. Social responsibility is a duty every individual or business has to perform so
as to maintain a balance between the economy and the ecosystem.
2.2 Meaningful (as an individual) contribution of time and effort to advancing the well-
being of others in a business context
Although it would be naïve to think that we can change the world by ourselves we still have
an obligation and a duty to try and do the right thing.
2.3 Ways in which a business project can contribute towards the community
This can be done in several ways, such as:
• Contributions to NGOs
• Employees giving up their time to contribute to the community
• Involvement in issues that concern the community.
2.4 Corporate Social Responsibility
2.4.1 Definition
CSR is a form of corporate self-regulation whereby a business monitors and ensures its
compliance with the spirit of the law, ethical standards, and international norms. The goal of
,CSR is to embrace responsibility for the company's actions and encourage a positive impact
through its activities on the environment, consumers, employees, communities, stakeholders
and all other members of the public sphere.
CSR can be divided into two main categories: primary social responsibility and broad social
responsibility. The primary responsibility refers to those connected directly to the business
whilst the broad social responsibility refers to the community as a whole.
2.4.2 Nature and process of Corporate Social Responsibility
Businesses are encouraged to be more socially responsible by government, business
stakeholders and the community as a whole.
So that the CSR activities of a business are meaningful and make a positive contribution the
following processes must be put in place:
• A CSR programme or activity must be planned
• Employees have to be put in charge and divided into teams to drive the planned CSR
activity
• The activity must have identifiable and measurable impacts on the community
• The CSR programme must be monitored and evaluated for improvements.
2.4.3 Benefits: business and community
CSR can have the following benefits for businesses:
• Win new business
• Increase customer retention
• Develop and enhance relationships with customers, suppliers and networks
• Attract, retain and maintain a happy workforce and be an Employer of Choice
• Save money on energy and operating costs and manage risk
• Differentiate yourself from your competitors
• Generate innovation and learning and enhance your influence
• Improve your business reputation and standing
• Provide access to investment and funding opportunities
• Generate positive publicity and media opportunities due to media interest in ethical
business activities.
2.4.4 Problems/challenges for the business and community
, • Increased costs of production leading to higher prices or reduced profits and so
decreased competitiveness
• The sums of money spent by firms on CSR are often dictated by few directors and
may not reflect how shareholders want their money spent
• Consumers of CSR products often have to pay higher prices, reducing their ability to
consume
• Acting in a CSR manner can mean that workers in less developed economies are
sometimes further disadvantaged
• Smaller organisations that do not have significant resources to undertake extended
CSR programmes may find themself at a competitive disadvantage
• Loss of tax revenue for the Government as some CSR activities can be ‘written off’
against tax.
2.4.5 Components of Corporate Social Responsibility
The components of CSR include:
• Using sustainable practices that take care of the environment
• Using ethical corporate social investment and showing a real concern for all stakeholders
in the business
• Taking into account the health and safety of all stakeholders in the business.
2.5 Corporate Social Investment
2.5.1 Definition
CSI is about how a business spends its money. CSI is primarily about money, time, skills and
expertise that are invested to help communities or the environment.
Social development in a community is the development of services such as healthcare,
sanitation, education, housing and water supply.
Economic development is the development of a community’s economy through jobs, skills
and infrastructure.
2.5.2 Nature of Corporate Social Investment
The nature of CSI depends on the business in question. Businesses are to link their Corporate
Social Investment initiative with their business practices, especially when making use of the
skills, expertise and equipment available within the business.
2.5.3 Corporate Social Investment projects
Corporate Social Investment projects are aimed at improving social and environmental
conditions. Some businesses finance NGOs as part of their CSI programmes.
2.5.4 Responsible business practice
