CSR and CSI

triple bottom line

people, profit and planet

link between social responsibility and tbl

People

• Business operations should not exploit people/ employees/customers/community.

• Businesses should invest in sustainable community programmes that will uplift communities. Improve the lifestyle of their employees

Profit

• businesses should not only focus on profit but should also invest in CSI projects.

• Businesses should not make a profit at the expense of its community.

Planet

• Businesses should not harm the environment for production.

• Re-use waste, e.g., packaging from recycled material.

Ways in which businesses deal with the following socioeconomic issues p1

HIV/Aids

• Encourage employees to join HIV/Aids support groups.

• Develop strategies to deal with stigma and discrimination.

Ways in which businesses deal with the following socioeconomic issues p2

Unemployment

• Provide skills development programmes through learnerships.

• Create jobs for members of the community.

Ways in which businesses deal with the following socioeconomic issues p3

Poverty

• Donate money/food parcels to local NGOs.

• attract the best employees by being socially responsible and offering the best volunteering programmes.

Components of CSR

• Environment

• Health and safety

• customers

• Community

impact of csr on businesses

Positives / Advantages

• Promotes customer loyalty resulting in more sales.

• CSI projects promote teamwork within businesses.

• The business enjoys the support of communities.

Negatives / Disadvantages

• Detailed reports must be drawn up, which can be time consuming.

• Most managers are not trained to handle social programmes.

• CSI activities distract business focus from its core business functions.

Impact of CSR on communities

Positives/ Advantages

• Better educational facilities are established in poor communities.

• The provision of medical infrastructure improves the health of communities.

• Socio-economic issues are attended to which will improve the welfare of the community.

Negatives/ Disadvantages

• Businesses are not always equipped to address social problems.

• Some businesses only participate in CSR initiatives to raise profit and do not really care for the community in which they operate.

• Businesses tend to focus on CSR programmes that does not directly benefit the community.

examples of csi projects

• donations to local organisations

• being involved in conservation projects

• investing in job creation projects

• providing adult basic education

difference between CSI and CSR

Corporate Social Responsibility

• The intention is to change business practices.

• Focus is on increasing image and profits.

• Often intended as a marketing initiative.

Corporate Social Investment

• Actively committing money and resources to uplift the community.

• Focus is on the upliftment of community without return on investment.

• Intended to benefit and uplift communities through social development.