Summary CSR and Good Corporate Governance Notes IEB/DBE Business Studies

IEB Business Studies




Nicola Waite

, Corporate Social Responsibility and
Good Corporate Governance
CSR vs CSI
Corporate Social Responsibility (CSR) is the obligation to A stakeholder is any
protect and promote the welfare of all stakeholders and individual or group
is an ongoing commitment by the business to behave in with an interest in
an ethical manner by contributing to economic and the business or is
social welfare. affected by the
CSR focuses on Triple Bottom Line (TBL) reporting, which business.
focuses on people (social responsibility), planet
(environmental sustainability) and profit (economic prosperity).
Corporate Social Investment (CSI) is the actual
resources invested into the CSR project, such as
manpower, money, machinery etc.
A sustainable structure enables a community to
become self-sufficient (e.g., teaching skills rather
than just donating items). It is a process to
continue independently, without the business’s
further input.



Stakeholders and their demands and the effect of CSR
STAKEHOLDER DEMAND IMPACT
Owners Profit Spending money without ROI

(shareholders)


Employees Salaries and wages Less money left over for wages
and salaries. Can distract
employees from their job
responsibilities. Can make a
difference in terms of job
creation.

Suppliers Prompt payment Some suppliers what to be
associated with an ethical
business. Can help with BBBEE
points.



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