Chapter 6 – CSR and CSI

What is social responsibility?

It’s an ethical viewpoint that individuals and organisations have a duty to benefit society and contribute to the well-being of their communities and environment.

What is the relationship between social responsibility and the triple bottom line?

Social responsibility aligns with the triple bottom line:

• Profit: Businesses should not exploit communities just for profit.

• People: Businesses should uplift people and invest in community projects.

• Planet: They should protect the environment through sustainable practices.

Name any three socio-economic issues that challenge social responsibility.

• HIV/AIDS

• Unemployment

• Poverty

Suggest three ways in which a business can deal with HIV/AIDS.

• Conduct workshops and awareness programmes

• Provide ARV treatment

• Offer counselling and support groups

How can businesses help reduce unemployment?

• Offer skills development and learnerships

• Provide bursaries and job opportunities

• Support small businesses and promote entrepreneurship

Suggest strategies to reduce poverty in a community.

• Invest in SMEs

• Donate food parcels to NGOs

• Support government poverty alleviation programmes

How can businesses contribute to the well-being of employees?

• Pay fair wages and bonuses

• Offer medical aid, counselling, and flexible hours

• Provide safety, recreational facilities, and training opportunities

How can businesses contribute to the well-being of communities?

• Invest in education

• Avoid harmful/illegal business practices

• Run community upliftment projects and offer donations

What is CSR?

Corporate Social Responsibility (CSR) refers to the practice of businesses integrating social and environmental concerns in their operations, making a positive impact on society while conducting their commercial activities.

What is the purpose of CSR?

• To promote public interest and address the triple bottom line

• To ensure compliance with ethical standards and improve work environments

• To uplift communities and promote environmental sustainability

Name five components of CSR.

• Environment

• Business ethics

• Health and safety

• Corporate governance

• Employment equity

List three positive impacts of CSR/CSI on businesses.

• Improves public image and customer loyalty

• Increases staff motivation and retention

• Provides tax benefits and investor interest

List three negative impacts of CSR/CSI on businesses.

• High costs reduce profits

• Difficult to measure impact

• May distract from core business operations

What is CSI?

Corporate Social Investment, which involves business initiatives aimed at contributing to societal goals and enhancing community welfare.

What is the purpose of CSI?

• To uplift communities

• Support sustainable development

• Show commitment to social welfare and legal responsibilities

Name four CSI focus areas.

• Environment

• Rural development

• Community

• Employees

Give three examples of CSI projects.

• Sponsoring early childhood education

• Building infrastructure

• Donating to local organisations

What is the difference between CSR and CSI?

• CSR is a broad ethical business approach addressing the triple bottom line.

• CSI is a specific investment in social development projects, often externally focused.

List three advantages of CSR/CSI for the community.

• Improves quality of life and living standards

• Increases access to education and healthcare

• Provides training and job opportunities

List three disadvantages of CSR/CSI for the community.

• May create dependency

• Limited impact during poor economic times

• Resources may not reach intended beneficiaries