CORPORATE SOCIAL RESPONSIBILITY
• The development and implementation of corporate social responsibility (CSR) frameworks,
policies and practices in companies is an ongoing process.
• It calls for vision and commitment from the leadership and management of the company.
• Most corporates accept that they have a role to play to lessen the burden placed on
governments to provide comprehensive social services.
• For some companies, it is only about compliance compared to other leaders who display true
commitment and show impact towards developing their societies.
WHAT IS CORPORATE SOCIAL RESPONSIBILITY?
• Investec publicly declare that making a meaningful contribution to the world in which they
operate and live is at the heart of their values. Their philosophy towards being a responsible
corporate citizen is underpinned by making an unselfish contribution to society, nurturing an
entrepreneurial spirit, embracing diversity and respecting others.
• There has been increased pressure on business leaders to take a stand on social issues and
environmental issues.
• Consumers expect to hear what CEOs and companies think about issues that affect all of
society including inequality, globalised trade, social tensions, climate change, population
growth, ecological overshoot, geopolitical tensions, radical transparency and rapid
technological and scientific advancement.
• Corporate CEOs have the clout and credibility to lead the action and change required to
safeguard our planet and address socio-economic issues on which governments lag.
• The financial wealth and economic clout of such major players allow them to use their power
and influence to contribute to the common good of markets. They can do so through
partnerships with government, business, communities or by themselves, providing equitable
and safe job opportunities, investing in small and medium enterprises (SMMEs) through their
supply chains, and building infrastructure.
• Industry can even develop new technologies for energy efficiency or products to provide the
poor with access to markets. Corporations can also lessen their impact on societies and the
environment, or even contribute to social development. Many companies live up to society's
expectations to become part of the solution.
• Such power could also be exploited and result in real harm to human health, human society,
political governance and the natural environment. The challenge for major corporations with
global clout is to recognise and act on the mutual interdependence between nations, societies
and firms.
Corporate social responsibility (CSR) deals with how business organisations can meet essential needs
without dishonouring community values.
• Different companies also give varying emphasis to different aspects of CSR (for example,
community involvement, socially responsible products and processes, and socially responsible
employee relations) to realise their business objectives.
• The consensus is that CSR is an umbrella concept that recognises the following points:
o Companies have a responsibility for their impact on society and the natural
environment. This responsibility may extend beyond legal compliance and the liability
of individuals.
, • Companies have a responsibility for the behaviour of others with whom they do business.
o Companies need to manage their relationship with wider society, whether for reasons
of commercial viability or to add value to society.
• The King III Report' provides a broader definition of the responsibilities of corporations (not
limiting the scope to the social aspect only): Corporate responsibility is the responsibility of the
company for the impacts of its decisions and activities on society and the environment, through
transparent and ethical behaviour that:
o contributes to sustainable development, including health and the welfare of society.
o considers the legitimate interests and expectations of stakeholders.
o follows applicable law and consistent with international norms of behaviour.
o is integrated throughout the company and practiced in its relationships.
CORPORATE CITIZENSHIP AND CORPORATE SOCIAL INVESTMENT
• Although corporate social responsibility and corporate citizenship both refer to business's
conduct in society, the former focuses solely on the responsibility aspect of business while the
latter focuses on business being a social player by virtue of both its rights and its
responsibilities as a citizen.
• The term 'corporate citizenship' 'is the recognition that the organisation is an integral part of the
broader society in which it operates, affording the organisation standing as a juristic person in
the society with the rights but also the responsibilities and obligations.
• It is also the recognition that the broader society is the licensor of the organisation and
responsibilities include the right to govern corporate personhood means that corporates are
granted constitutions rights.
• These rights internal affairs, the right to enter into contracts, the right to hold assets, the right to
hire, and the right to sue and be sued.
• Corporate social responsibility, with its focus on the responsibilities of corporations, is therefore
a preferred term to corporate citizenship.
THE TRIPLE BOTTOM LINE
• Indeed, he argues that future market success often depends on a business's ability to satisfy
not just the traditional bottom line of profitability, but that companies are also required to focus
on environmental quality and social justice.
• This is an important concept as businesses operate in an environment in which the planet,
people and profit are inextricably intertwined. To illustrate this philosophy practically, imagine
being asked to provide investment advice about the following three companies described by
their CEOs as follows:
• Company 1: Our company is known for its green approach, meeting rigorous environmental
standards in terms of infrastructure, manufacturing and operations.
• Producing environmentally friendly products is more expensive but, given the international
emphasis on environmental sustainability, consumers are willing to pay a premium when
buying these products. I believe that the decline in market share is temporary and that In it will
recover along with the country's economy. I am, however, concerned about rumours of
possible retrenchments and low staff morale. Perhaps if we cut our advertising budget, we
could postpone this.
• Company 2: Staff is our priority and we are proud to announce that we won the Employer of the
Year award two years ago. Happy employees are productive employees and, as such, we
• The development and implementation of corporate social responsibility (CSR) frameworks,
policies and practices in companies is an ongoing process.
• It calls for vision and commitment from the leadership and management of the company.
• Most corporates accept that they have a role to play to lessen the burden placed on
governments to provide comprehensive social services.
• For some companies, it is only about compliance compared to other leaders who display true
commitment and show impact towards developing their societies.
WHAT IS CORPORATE SOCIAL RESPONSIBILITY?
• Investec publicly declare that making a meaningful contribution to the world in which they
operate and live is at the heart of their values. Their philosophy towards being a responsible
corporate citizen is underpinned by making an unselfish contribution to society, nurturing an
entrepreneurial spirit, embracing diversity and respecting others.
• There has been increased pressure on business leaders to take a stand on social issues and
environmental issues.
• Consumers expect to hear what CEOs and companies think about issues that affect all of
society including inequality, globalised trade, social tensions, climate change, population
growth, ecological overshoot, geopolitical tensions, radical transparency and rapid
technological and scientific advancement.
• Corporate CEOs have the clout and credibility to lead the action and change required to
safeguard our planet and address socio-economic issues on which governments lag.
• The financial wealth and economic clout of such major players allow them to use their power
and influence to contribute to the common good of markets. They can do so through
partnerships with government, business, communities or by themselves, providing equitable
and safe job opportunities, investing in small and medium enterprises (SMMEs) through their
supply chains, and building infrastructure.
• Industry can even develop new technologies for energy efficiency or products to provide the
poor with access to markets. Corporations can also lessen their impact on societies and the
environment, or even contribute to social development. Many companies live up to society's
expectations to become part of the solution.
• Such power could also be exploited and result in real harm to human health, human society,
political governance and the natural environment. The challenge for major corporations with
global clout is to recognise and act on the mutual interdependence between nations, societies
and firms.
Corporate social responsibility (CSR) deals with how business organisations can meet essential needs
without dishonouring community values.
• Different companies also give varying emphasis to different aspects of CSR (for example,
community involvement, socially responsible products and processes, and socially responsible
employee relations) to realise their business objectives.
• The consensus is that CSR is an umbrella concept that recognises the following points:
o Companies have a responsibility for their impact on society and the natural
environment. This responsibility may extend beyond legal compliance and the liability
of individuals.
, • Companies have a responsibility for the behaviour of others with whom they do business.
o Companies need to manage their relationship with wider society, whether for reasons
of commercial viability or to add value to society.
• The King III Report' provides a broader definition of the responsibilities of corporations (not
limiting the scope to the social aspect only): Corporate responsibility is the responsibility of the
company for the impacts of its decisions and activities on society and the environment, through
transparent and ethical behaviour that:
o contributes to sustainable development, including health and the welfare of society.
o considers the legitimate interests and expectations of stakeholders.
o follows applicable law and consistent with international norms of behaviour.
o is integrated throughout the company and practiced in its relationships.
CORPORATE CITIZENSHIP AND CORPORATE SOCIAL INVESTMENT
• Although corporate social responsibility and corporate citizenship both refer to business's
conduct in society, the former focuses solely on the responsibility aspect of business while the
latter focuses on business being a social player by virtue of both its rights and its
responsibilities as a citizen.
• The term 'corporate citizenship' 'is the recognition that the organisation is an integral part of the
broader society in which it operates, affording the organisation standing as a juristic person in
the society with the rights but also the responsibilities and obligations.
• It is also the recognition that the broader society is the licensor of the organisation and
responsibilities include the right to govern corporate personhood means that corporates are
granted constitutions rights.
• These rights internal affairs, the right to enter into contracts, the right to hold assets, the right to
hire, and the right to sue and be sued.
• Corporate social responsibility, with its focus on the responsibilities of corporations, is therefore
a preferred term to corporate citizenship.
THE TRIPLE BOTTOM LINE
• Indeed, he argues that future market success often depends on a business's ability to satisfy
not just the traditional bottom line of profitability, but that companies are also required to focus
on environmental quality and social justice.
• This is an important concept as businesses operate in an environment in which the planet,
people and profit are inextricably intertwined. To illustrate this philosophy practically, imagine
being asked to provide investment advice about the following three companies described by
their CEOs as follows:
• Company 1: Our company is known for its green approach, meeting rigorous environmental
standards in terms of infrastructure, manufacturing and operations.
• Producing environmentally friendly products is more expensive but, given the international
emphasis on environmental sustainability, consumers are willing to pay a premium when
buying these products. I believe that the decline in market share is temporary and that In it will
recover along with the country's economy. I am, however, concerned about rumours of
possible retrenchments and low staff morale. Perhaps if we cut our advertising budget, we
could postpone this.
• Company 2: Staff is our priority and we are proud to announce that we won the Employer of the
Year award two years ago. Happy employees are productive employees and, as such, we
