8/3/2019 78030557-11CSR-ppt

1/29

Presented By:

Parvinder Singh501004047

MBA 2nd year

Corporate Social Responsibility

8/3/2019 78030557-11CSR-ppt

2/29

Objectives for this session:

At the end of this session, you should be able toidentify and describe:

A definition for CSR

Reasons for having a CSR programme

Objections to CSR

What makes a CSR programme

How a CSR programme is communicated Principles of reporting for CSR

Some alternative viewpoints on CSR

8/3/2019 78030557-11CSR-ppt

3/29

Corporate SocialResponsibility?

What is:

8/3/2019 78030557-11CSR-ppt

4/29

Also known as:

Corporate Citizenship

Corporate Responsibility

Responsible Business

8/3/2019 78030557-11CSR-ppt

5/29

Definition:

Specifically, we see CSR as the voluntaryactions that business can take, over and

above compliance with minimum legalrequirements, to address both its owncompetitive interests and the interests of

wider society.

Source: www.csr.gov.uk

8/3/2019 78030557-11CSR-ppt

6/29

Why CSR?

Consumers & investors: growingexpectation for organisations to behaveresponsibly

Consumer awareness: Green andEthical consumerism

Legislation: H&S, EPA, Sustainability,

Codes of Practice Globalisation:Adoption of Best Practice,

Consumer & Legal Acceptance.

8/3/2019 78030557-11CSR-ppt

7/29

Business advantages of CSR:

Human Resources

Recruitment, retention and morale of Staff

Risk Management

Investment in ethical brand equity

Greenwash effect?

Brand Differentiation

As USP Build brand loyalty

Reputation and brand attractiveness

8/3/2019 78030557-11CSR-ppt

8/29

Business advantages of CSR:

Business Development

New markets, products and services

Resources Management

Better management and conservation of

strategic assets

Stakeholder Management

Better internal and external relationships

Freedom of operation: reduce government,

public, NGO intervention in organisation

8/3/2019 78030557-11CSR-ppt

9/29

adds value

Corporate Social Responsibility:

8/3/2019 78030557-11CSR-ppt

10/29

Why not CSR?

May take management focus away from

core business activity

May appear cosmetic without genuinesocial benefit

May make organisation more vulnerable to

revelation of bad / unethical business

practice

A restriction to free trade?

8/3/2019 78030557-11CSR-ppt

11/29

Economist, Milton Friedman says:

The social responsibility of business is toincrease its profits.

What does it mean to say that "business"

has responsibilities? Only people can haveresponsibilities.

in a free society there is one and only one socialresponsibility of business to use its resources and engage in

activities designed to increase its profits so long as it stayswithin the rules of the game, which is to say, engages in openand free competition without deception or fraud."

8/3/2019 78030557-11CSR-ppt

12/29

Some of the most common ways in

which CSR is demonstrated: Specialist adopted

projects

Corporate charitable

donations

Voluntary schemes for

staff

Staff fundraising activities Changes to organisational

operations

8/3/2019 78030557-11CSR-ppt

13/29

The four components of CSR:

Economic

Legal Ethical

D

iscretionary

8/3/2019 78030557-11CSR-ppt

14/29

Communicating Corporate

Social Responsibility

8/3/2019 78030557-11CSR-ppt

15/29

General values statement

Organisations should develop a general

values statement which reflects their

stance towards CSR

This may form part of a more

comprehensive Mission Statement

Should define ethical framework that

guides the accomplishment of the overall

mission of an organization within a society

8/3/2019 78030557-11CSR-ppt

16/29

Example: Organisational Focus

JP Morgan Chase

8/3/2019 78030557-11CSR-ppt

17/29

Example: Environmental Focus

Coca Cola

8/3/2019 78030557-11CSR-ppt

18/29

Example: Customer Focus

Home Depot

8/3/2019 78030557-11CSR-ppt

19/29

Example: Employee Focus

Johnson and Johnson

8/3/2019 78030557-11CSR-ppt

20/29

Example: Stakeholder Focus

Credit Suisse

United

Technologies

8/3/2019 78030557-11CSR-ppt

21/29

Example: Social Focus

Bristol-Myers Squibb

8/3/2019 78030557-11CSR-ppt

22/29

Reporting CSR:

CSR projects may be administered and

communicate achievements via:

A dedicated CSR section or department The HR department

Business development section

Public Relations department Directly via CEO and / or Board of

Directors

8/3/2019 78030557-11CSR-ppt

23/29

Reporting Formats:

The Triple Bottom Line

This means expanding the traditional

reporting framework to take into account

performance in terms of:

Social (People)

Environmental (Planet), as well as

Financial (Profit)

8/3/2019 78030557-11CSR-ppt

24/29

Reporting Formats:

The Triple Bottom Line

Concept developed by John Elkington in1994

Expects organisations to be responsible tostakeholders interests rather thanshareholders profit

Related concepts:

Full-cost accounting Social entrepreneurialism

Social and natural capital

8/3/2019 78030557-11CSR-ppt

25/29

Other sources for CSR reporting:

Sustainability Guidelines

developed by the Global Reporting

Initiative

(www.globalreporting.org)

SA800 certification developed

by the international human

rights organisation Social

Accountability International.

(www.sa-intl.org)

8/3/2019 78030557-11CSR-ppt

26/29

Other sources for CSR reporting:

The Green Globe programme for

benchmarking, certification and

performance improvement, based

on Agenda 21 proposals from the

1992 Rio Earth Summit

(www.greenglobe.org)

ISO

14000 internationalenvironmental management

standards

(www.14000.org)

8/3/2019 78030557-11CSR-ppt

27/29

Other sources for CSR reporting:

The United Nations Global

Compact (UNGC) framework and

mechanism designed to encourage

businesses to adopt CSR policies

(www.unglobalcompact.org)

The FTSE 4 Good Index

measures the performance of

companies who meet globally

recognised CSR standards.

(www.ftse.com/Indices/FTSE4

Good_Index_Series)

8/3/2019 78030557-11CSR-ppt

28/29

Alternative sources of information:

www.corpwatch.org

www.naomiklein.org

8/3/2019 78030557-11CSR-ppt

29/29

In conclusion:

In this session we have looked at:

What is CSR

Why CSR is likely to be come more widelyadopted

The business case for CSR

The Value Statement (Customer, Employee,Stakeholder and Social focus)

Reporting and Accountability options for CSRincluding the Triple Bottom Line concept

CSR and social criticism of internationalorganisations