CSR & CORPORATE GOVERNANCE
SOCIAL RESPONSIBILITY
CSR:
● CSR = management’s obligation - protect + promote welfare - all stakeholders.
○ Act in an ethical manner - issues relating - stakeholders.
*stakeholders = any individual / group - have interest in / will be affected by a business.
CSI:
● CSI = actual resources - invested in stakeholders - money, manpower, products, machinery etc.
● More managers realise - actions - consequences - internal + external environ.
○ Financial performance + social performance - equally important.
● King Report on CG - move away from ‘Bottom Line Reporting’ + shift - TBL.
Sustainability:
● Sustainability = to make a difference - long-term.
○ Setting up structures - enable community - self-sufficient.
■ Teaching - skills - get jobs + sustain themselves.
● Sustainable projects = where a process - set up - ensure project continues.
○ Continue to benefit after CSI intervention.
IMPLICATIONS OF CSR ON THE BUSINESS & COMMUNITY
Negatives - business:
● Community might not be able - support business.
● Smaller business - difficult to implement CSI progs.
● CSR - distract business - core function.
● Paid from profit - could’ve lowered prices - benefit customers.
● Detailed reports - drawn up - time consuming.
● Reduced eco efficiency + becomes less comp.
● Directors - accountable - shareholders + not community.
● Difficult - measure effectiveness - investment + determine needs accurately.
● Managers - lack training + experience - handle these progs.
SANJANA VINOD
, Positives - business:
● Marketing strategy + promote - image.
● Gain comp adv - good publicity + improved rep.
● Attracts experienced employees + retain staff - believe in CSR.
● Attracts investors - conscious - importance of CSR.
● Gov - enforce - legislation - not implemented.
● Enjoy tax rebates - SARS.
● Higher rating - JSI.
Negatives - community:
● Distribution - scarce resources - selected people - cause problems - discrimination.
● Benefits - prog - may not filter - intended persons - community.
● Progs may not satisfy - all needs.
● Progs - discourage locals - own initiative + become dependent - progs.
● Sustaining projects after business withdraws assistance - difficult without right expertise.
● Money spent on CSR - business - recover it - higher prices + inflation - (-) impact - eco.
Positives - community:
● Community - labour, customers + suppliers - business.
● Bursaries - improve sol.
● Improves welfare - society.
● Quality of life - community - improved.
● Employees - involved - community projects.
● Better edu facilities - poor communities.
● Supports business - buying products + contributing - profitability.
CSR IN SOUTH AFRICA
Factors that have contributed to the need of CSR in SA:
1. Inequalities of the past:
● Esp in edu - many illiterate adults - unemployed.
2. Cycle of poverty:
● Difficult to break it.
● Takes courage - younger gen - break cycle - seek opp for edu.
3. Culture of crime & violence:
● Future gen - break out of cycle - become citizens - contribute - eco wellbeing of SA.
SANJANA VINOD
SOCIAL RESPONSIBILITY
CSR:
● CSR = management’s obligation - protect + promote welfare - all stakeholders.
○ Act in an ethical manner - issues relating - stakeholders.
*stakeholders = any individual / group - have interest in / will be affected by a business.
CSI:
● CSI = actual resources - invested in stakeholders - money, manpower, products, machinery etc.
● More managers realise - actions - consequences - internal + external environ.
○ Financial performance + social performance - equally important.
● King Report on CG - move away from ‘Bottom Line Reporting’ + shift - TBL.
Sustainability:
● Sustainability = to make a difference - long-term.
○ Setting up structures - enable community - self-sufficient.
■ Teaching - skills - get jobs + sustain themselves.
● Sustainable projects = where a process - set up - ensure project continues.
○ Continue to benefit after CSI intervention.
IMPLICATIONS OF CSR ON THE BUSINESS & COMMUNITY
Negatives - business:
● Community might not be able - support business.
● Smaller business - difficult to implement CSI progs.
● CSR - distract business - core function.
● Paid from profit - could’ve lowered prices - benefit customers.
● Detailed reports - drawn up - time consuming.
● Reduced eco efficiency + becomes less comp.
● Directors - accountable - shareholders + not community.
● Difficult - measure effectiveness - investment + determine needs accurately.
● Managers - lack training + experience - handle these progs.
SANJANA VINOD
, Positives - business:
● Marketing strategy + promote - image.
● Gain comp adv - good publicity + improved rep.
● Attracts experienced employees + retain staff - believe in CSR.
● Attracts investors - conscious - importance of CSR.
● Gov - enforce - legislation - not implemented.
● Enjoy tax rebates - SARS.
● Higher rating - JSI.
Negatives - community:
● Distribution - scarce resources - selected people - cause problems - discrimination.
● Benefits - prog - may not filter - intended persons - community.
● Progs may not satisfy - all needs.
● Progs - discourage locals - own initiative + become dependent - progs.
● Sustaining projects after business withdraws assistance - difficult without right expertise.
● Money spent on CSR - business - recover it - higher prices + inflation - (-) impact - eco.
Positives - community:
● Community - labour, customers + suppliers - business.
● Bursaries - improve sol.
● Improves welfare - society.
● Quality of life - community - improved.
● Employees - involved - community projects.
● Better edu facilities - poor communities.
● Supports business - buying products + contributing - profitability.
CSR IN SOUTH AFRICA
Factors that have contributed to the need of CSR in SA:
1. Inequalities of the past:
● Esp in edu - many illiterate adults - unemployed.
2. Cycle of poverty:
● Difficult to break it.
● Takes courage - younger gen - break cycle - seek opp for edu.
3. Culture of crime & violence:
● Future gen - break out of cycle - become citizens - contribute - eco wellbeing of SA.
SANJANA VINOD
