CORPORATE SOCIAL

RESPONSIBILITY

WHAT IS CSR?
Refers to a business practice that involves
participating in initiatives that benefit society
Taking initiatives to assess and take
responsibility for the company effects on
environmental and social well-being.
Involves incurring costs that do not provide an
immediate financial benefit to the company
but instead promote positive social and
environmental change.

TYPES OF CORPORATE RESPONSIBILITY

Environment
Taking steps to reduce footprints are
considered both good for the company and the
society.
Philanthropy
Donations to national and local charities

Ethical Labor Practices

Treating the workforce fairly and ethically

The Drivers of CSR

The Shrinking role of Government
Shrinking government resources coupled with
distrust in the regulations

Demands for greater disclosure

A growing demand for disclosure by those
persons who are directly and indirectly affected by
such business

The Drivers of CSR

Increased customer interest
Growing influence in the decisions of customers

Competitive Labor Markets

Companies must improve working conditions

Supplier relations
Companies are taking steps to ensure that their
partners conduct themselves in a socially
responsible manner.

BENEFITS OF CSR
Building a strong corporate reputation, and
image as well as strengthen brand positioning,
Attracting and retaining a motivated workforce,
Reducing risks and operating costs,
Reducing regulatory oversight of the government

BENEFITS OF CSR
Increased appeal to investors and financial
analysts.
Building strong community relationships with
organizations and agencies that can provide
technical expertise.

LEVELS OF CSR
Social Obligation Meet minimum
regulations, do what is required by law, no
more
Social Responsibility Go beyond what is
required by law, mitigate negative effects
Social Responsiveness Proactive approach,
promote positive change

CARROLS CSR PYRAMID

WHAT MAKES CSR IMPORTANT?

WHAT MAKES CSR IMPORTANT?

SUSTAINABILITY
REPUTATION
EMPLOYMENT
INVESTORS
STRATEGIC MANAGEMENT
SOCIALLY RESPONSIBLE ACTIONS

KEY POINTS
Corporate social responsibility (CSR) can be described as
embracing responsibility and encouraging a positive
impact through the company's activities related to the
environment, consumers, employees, communities, and
other stakeholders.
Corporate social responsibility may include philanthropic
efforts, employee volunteering, and core strategies.
Companies may benchmark their CSR performance
relative to peers and may also report on CSR policies or
undergo social audits.

KEY POINTS
Proponents of CSR argue that socially
responsible practices can have a positive
impact on the bottom line and may also argue
for the recognition of a "triple bottom line"
that rewards social, environmental, and
financial returns.
Critics argue that CSR competes
with shareholder value maximization