CHAPTER 14
CSR AND CSI
COOPERATE SOCIAL RESPONSIBILITY (CSR)
MEANING OF CSR
• The way businesses manage their process to affect their stakeholders in a positive way - voluntarily takes
steps to improve the quality of life for employees and their families and communities
• The continuing commitment by business to behave ethically and contribute to economic development while
improving the quality of life of the local community and society at large
• CSR is the way a business conducts its operations ethically and morally regarding the use of human, physical
and their funds
• An obligation required by law and benefits both business and society
PURPOSE OF CSR
• CSR aims at creating a safe working environment for employees
• CSR may take the form of a monetary donation to support local organisations
• Business operations address Triple bottom line through CSR programmes by considering its impact on
people, profit and planet
• Key areas of concern are protecting the environment, the wellbeing of employees from the community and
civil society in general
COMPONENTS OF CORPORATE SOCIAL RESPONSIBILITY (CSR)
- Environment
- Ethical corporate social investment
- Health and safety
- Corporate governance
- Business ethics
- Employment equity
- Supply chain/Distribution channel
- Employees and customers
- Community
COOPERATE SOCIAL INVESTMENT (CSI)
MEANING OF CSI
• It is when a business commits money, resources and time to a specific project that will improve the lives of
people
• The projects are not directly for purposes of increasing company profits
• It is the money that the business spend on the community to improve the standard of living of the
community
• These projects have a strong developmental approach and utilise company resources to benefit and uplift
communities.
PURPOSE OF CSI
• Projects play a positive role in the development of communities
• Reveals a business’s attitude towards the community in which it operates
• Projects are long-term investment
• Relevant to the South African context where socio-economic upliftment is such a priority
CSR AND CSI
COOPERATE SOCIAL RESPONSIBILITY (CSR)
MEANING OF CSR
• The way businesses manage their process to affect their stakeholders in a positive way - voluntarily takes
steps to improve the quality of life for employees and their families and communities
• The continuing commitment by business to behave ethically and contribute to economic development while
improving the quality of life of the local community and society at large
• CSR is the way a business conducts its operations ethically and morally regarding the use of human, physical
and their funds
• An obligation required by law and benefits both business and society
PURPOSE OF CSR
• CSR aims at creating a safe working environment for employees
• CSR may take the form of a monetary donation to support local organisations
• Business operations address Triple bottom line through CSR programmes by considering its impact on
people, profit and planet
• Key areas of concern are protecting the environment, the wellbeing of employees from the community and
civil society in general
COMPONENTS OF CORPORATE SOCIAL RESPONSIBILITY (CSR)
- Environment
- Ethical corporate social investment
- Health and safety
- Corporate governance
- Business ethics
- Employment equity
- Supply chain/Distribution channel
- Employees and customers
- Community
COOPERATE SOCIAL INVESTMENT (CSI)
MEANING OF CSI
• It is when a business commits money, resources and time to a specific project that will improve the lives of
people
• The projects are not directly for purposes of increasing company profits
• It is the money that the business spend on the community to improve the standard of living of the
community
• These projects have a strong developmental approach and utilise company resources to benefit and uplift
communities.
PURPOSE OF CSI
• Projects play a positive role in the development of communities
• Reveals a business’s attitude towards the community in which it operates
• Projects are long-term investment
• Relevant to the South African context where socio-economic upliftment is such a priority
