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Corporate Social

Responsibility and Social

History of CSR
The term Corporate Social Responsibility came in
to common use in the 1950s, 1960s and 1970s
with the beginning of the term stakeholder.
A stakeholder is any group or individual who can
affect or is affected by the achievement of an
organization's purpose. It is in the companys
strategic interest to respect the interests of all its
Definitions of Corporate Social
The World Bank:
Corporate Social Responsibility (CSR) is the
commitment of business to contribute to
sustainable economic development, working with
employees, their families, the local community
and society at large to improve quality of life, in
ways that are both good for business and good
for development.
Definition of CSR
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 of the local community and
society at large.

World Business Council For Sustainable Development

Definitions of CSR
Corporate Social Responsibility
Firms have responsibilities to societies
including economic, legal, ethical and
discretionary (or philanthropic).

Philanthropic: receiving aid from funds set

aside for humanitarian purposes. Some call it
Definition of CSR
Companies have two kinds of responsibilities,
commercial and social. Commercial entails
running the business successfully, social entails
taking responsibity as an actor in society and the
community by engaging in activities that go
beyond making profit, such as protecting the
environment, taking care of employees and being
ethical in trade.

CEO, McDonalds
Purpose of CSR
The purpose of CSR is to make corporate
business activities sustainable in its three
Benefits of CSR
Source of competitive advantage
Attracts ethically conscious customers
Increase profit in the long run
Reduction of costs (re-cycling)
Contribute to economic development
Improve the quality of life for it workforce and their
Improvement of society
Tax-free incentives for businesses
Corporate Social Responsibility
What is Corporate Social
The company must act responsibly, and criteria for
social responsibility must be adopted to contribute
toward consolidating better companies not only in
social terms that is, companies which are more
useful to society but better companies in purely
economic terms that is, better quality, more efficient,
more competitive companies
An inevitably broad concept of which we can say that it
includes voluntary actions by companies aimed at
dealing with workers, consumers, or investors or
shareholders concerns: in short, the concerns of all
What is Corporate Social
Some attempt to define it:

Responsible companies perceive the current

environment globalization, social demands,
transparency, broadening of markets, environmental
challenges, etc. as an opportunity to underscore their
role in society, their potential for leadership in
sustainable development.

Some call it a WIN-WIN situation

What is CSR?
The impact of a companys action on society
Requires a manager to consider his acts in
terms of a whole social system and holds him
responsible for the effects of his acts at all
levels in that system
Businesses have an obligation to society which
extends beyond economic and legal duties
Described as one of the most important social
movements of our time
Evolution of CSR
CSR refers to the strategies corporations or firms
conduct their business in a way that is ethical,
society friendly and beneficial to the community
in terms of development.
The definition has been changing in meaning and
in practice.
CSR was limited to philanthropy and has currently
shifted to emphasis on business-society relations.
Corporations contributing and providing
solutions for social problems.
Evolution of CSR
Phase One-Charity, Philanthropy-Drivers culture
and religion.
Phase Two-Dedication to the progress of society
Phase Three-1960-1980-Shift from the focus on
Public organizations to private organizations for
socio-economic development
Phase Four- 1980-present-Concern for labor and
environmental standards
Present Day CSR
The concept has evolved whereby organizations
consider the interest of society by taking
responsibility for the impact of their activities on
customers, suppliers, employees, shareholders,
communities and other stakeholders as well as
the environment.
Focusing on improving the well-being of the local
community and society at large.
Creating wealth in society and providing better
standards of living.
Corporate Social Responsibility
Key Issues in CSR
Labor rights

Environmental conditions

Human rights

Poverty Alleviation
Evolution of CSR
Although the contemporary CSR agenda is
maturing, the term CSR has not yet taken
hold within many public sector agencies,
either in industrial or developing countries.
Few government initiatives have been
undertaken explicitly as pro-CSR initiatives.
Different Names For CSR
Corporate Social Responsibility (CSR)
Corporate Conscience
Corporate Citizenship
Responsible Business
Responsible Management
Corporate Philanthropy
Sustainable Business
Creating Shared Values (CSV)
Levels of CSR
Social Obligation Meet minimum
regulations, do what is required by law, no
Social Responsibility Go beyond what is
required by law
Social Responsiveness Proactive approach,
promote positive change
CSR Concepts
Corporate Social Responsibility-emphasizes
obligation and accountability to society.
Corporate Social Responsiveness-emphasizes
action and activity.
Corporate Social Performance-emphasizes
outcomes and results.
ISO, the International Organization for Standardization,
has launched an International Standard providing
guidelines for social responsibility (SR) named ISO
26000 or simply ISO SR, released November 2010.

ISO 26000 gives guidance on SR. It integrates

international expertise on social responsibility what it
means, what issues an organization needs to address in
order to operate in a socially responsible manner, and
what is best practice in implementing SR.
ISO 26000
It is intended for use by organizations of all types,
in both public and private sectors, in developed
and developing countries, as well as in economies
in transition. ISO 26000 is a powerful SR tool to
assist organizations to move from good intentions
to good actions.
ISO 26000 contains voluntary guidance, not
requirements, and therefore is not for use as a
certification standard like ISO 9001 and ISO
What benefits can be achieved by
implementing ISO 26000?
Competitive advantage
Ability to attract and retain workers, customers, clients
Maintenance of employees morale, commitment and
View of investors, owners, donors, sponsors and the
financial community
Relationship with companies, governments, the media,
suppliers, peers, customers and the community in
which it operates.
Regulation of Corporate Responsibility
UN Global Compact-UN initiative to encourage
business worldwide to adopt sustainable and socially
responsible policies and report their implementations.
Supporting the Millennium Development Goals.
Launched by Kofi Enan in 2004.
The Global Compact is a principle based framework for
businesses, stating 10 principles in the areas of:
Human Rights
Labor Standards
CSR Management:
Organizational Structure
Audit Committee of Board
Board of Directors

President & CEO

Group Presidents Chief Financial VP of Human General Counsel Corporate Steering Committee
Officer Resources Responsibility Officer
CSR Management:
Plan, Do, Check, Act method
Consult stakeholders
Set targets
Establish management systems and
Plan, Do, Check, Act Method
Take Corrective action
Measure progress
Top Trends in CSR
According to Forbes magazine:
1. Going Global
2. Increasing the level of transparency
3. Employee engagement
4. Collaboration-companies compete and collaborate on CSR
5. Social Media-as a essential communicating tool for CSR
6. More focus on Human Rights
7. Earths growing population-stretching resources to cope with
increase, looking for more energy efficient ideas
Success Stories in Egypt
Coca Cola
Proctor and Gamble
Price WaterHouse Cooper (PWC)
Bank Misr (Misr el Kheir)
CSR and SE

What is the difference between

Corporate Social Responsibility
and Social Entrepreneurship?
To be answered individual