WHAT IS CORPORATE

SOCIAL RESPONSIBILITY?

CSR = is about how companies

manage the business processes to
produce an overall positive impact
on society.
-Mallen
Baker

Corporate Social Responsibility is the

continuing commitment by business to
behave ethically and contribute to economic
development while improving the quality of
life of the workforce and their families as
well as the local community and society at
large.
-Making Good Business Sense, The
World
Business Council for Sustainable
Development

CSR is about capacity building for sustainable

livelihoods. It respects cultural differences and
finds the business opportunities in building the
skills of employees, the community and the
Government.
(-from Ghana, Africa)

CSR is about business giving back to society

(-Philippines)

Operating a business in a manner

that meets or exceeds the ethical,
legal, commercial and public
expectations that society has of
business.
-Business for Social
Responsibility

CSR is a commitment to improve

community well-being through
discretionary business practices and
contributions of corporate resources.
-Philip Kotler and Nancy
Lee
2005

Corporate Social Responsibility,

A concept whereby companies decide

voluntarily to contribute to a better
society and a cleaner environment. A
concept whereby companies integrate
social and environmental concerns in
their business operations and in their
interaction with their stakeholders on a
voluntary basis.
-European
Commission

Corporate social responsibility (CSR, also called corporate

conscience, corporate citizenship, social performance, or
sustainable responsible business/Responsible Business) is a
form of corporate self-regulation integrated into a business
model. CSR policy functions as a built-in, self-regulating
mechanism whereby a business monitors and ensures its
active compliance with the spirit of the law, ethical
standards, and international norms. The goal of CSR is to
embrace responsibility for the companys actions and
encourage a positive impact through its activities on the
environment, consumers, employees, communities,
stakeholders and all other members of the public sphere who
may also be considered as stakeholders.
-Wikipedia

Related Concepts and Models (Forms of

CSR)
1.
2.
3.
4.

Corporate Citizenship
Social Auditing
Corporate Philanthropy
Corporate Social Initiative

1. Corporate Citizenship

Corporate citizenship can be defined as

extending the relationship between
business and society to include an
understanding of the social,
environmental and political
responsibilities of business.
The notion of corporate citizenship sees
the company as having rights, duties
and responsibilities in society in the
same way that citizens also have rights,
duties and responsibilities.

Corporate Citizenship

A company is a member of society which like a

normal citizen is involved and participates in
the governance of society in various shapes and
forms.
Examples: implementing labour standards
promoting human rights
Corporate citizenship is often used as a
synonym for corporate social responsibility.
The concept was driven by the growth in size,
scope and power of multi-national and
transnational corporations in the 20th-21st
century. = use of power and influence

2. Social Auditing

Social auditing uses different types of

audit to measure and report on an
organizations social and ethical impacts,
policies, management systems or
performance.
The audit criteria may be determined by
the organizations internal policies,
practices or controls, statutory
regulations, and conventions. (Code of
Conducts, Labor Code, ILO declarations,
UN resolutions)

Social Auditing

Social auditing often focuses on the working

conditions (health and safety), labour relations, or
broader issues like human rights, in an
organizations own facilities or in its supply chain,
but also on responsible social behaviour
(responsible advertising, responsible
consumption).
The most common goal of social auditing is
ultimately to improve the organizations social and
ethical performance; or enhance its transparency
and accountability to its stakeholders.

3. Corporate Philanthropy

Corporate philanthropy is a direct

contribution by a corporation to a charity or
cause, most often in the form of cash grants,
donations and/or in-kind services
The most traditional of all corporate social
initiatives, and historically has been a major
source of support for community health and
human service agencies, education, the arts,
as well as organizations with missions to
protect eg. the environment, etc.

Corporate Philanthropy

Sometimes referred to also as

community giving, community relations,
corporate citizenship and community
affairs
Typical examples:
Providing cash donations
Offering grants
Awarding scholarships
Donating products
Donating services

Providing technical expertise

Allowing the use of facilities and
distribution channels
Offering the use of equipments

4. Corporate Social Initiative

Corporate social initiatives are major

activities undertaken by a corporation to
support social causes and to fulfill
commitments to corporate social
responsibility.
Causes most often supported through
these initiatives are those that
contribute to community health, safety,
education, and employment; the
environment, community and economic
development; and other basic human

Why do Good?
What is the (business) justification and
rationale for doing good?
Can economic and financial benefits flow
from CSR activities and initiatives?
Can a firm really do well by being good?
Is there a return on investment to CSR?

According to Business for Social Responsibility, a leading

nonprofit global organization providing businesses with
information, tool, training, and advisory services related to
integrating corporate social responsibility in their business
operations and strategies, companies have experienced a
range of bottom-line benefits, including the ff:
Increased sales and market share.
Strengthened brand positioning.
Enhanced corporate image and clout.
Increased ability to attract, motivat,e and retain employees.
Decreased operating costs.
Increased appeal to investors and financial analysts.
-Kotler and Lee, 2005