Corporate Citizenship and Social Responsibility

Corporate Citizenship and Corporate Social Responsibility

• South Africa faces socio-economic issues: crime, poverty, unemployment, low education, HIV/Aids.

• Corporations should acknowledge responsibility to society; individuals can also contribute.

Citizenship Roles and Responsibilities

• Individual Citizens: Contribute to products, services, jobs, and economy.

• Corporate Citizenship: Large businesses undertake projects for integrated reporting; smaller businesses assist NGOs and CBOs.

Corporate Citizenship

• Good corporate citizenship involves responsible actions:

  • Economic involvement.

  • Legal obligations (environmental care).

  • Ethical behavior.

  • Giving back to society.

• Efforts should focus on genuine responsibility, not just public relations.

• Corporations in emerging markets face societal expectations that are typically the government's responsibility.

Constitutional Rights

• Civil rights: Freedom of movement, protection from the state.

• Political rights: Right to vote, lobby, participate in political actions.

• Social rights: Proper infrastructure, water, sanitation, health care.

• Corporations should respect people and resources, limit pollution, and use technology responsibly.

CSR vs. Profit

• Counter-arguments: Corporation's only responsibility is to provide goods and services and satisfy needs.

• Profit-driven organizations can exploit nature and societies, increasing disparity.

Corporate Social Responsibility (CSR)

• CSR should move from donations to involvement: skills, time, effort.

• CSR is the moral obligation to help; CSI is the actual capital, resources, labor.

CSR Issues in SA

• Challenges include: inflation, economic crimes, unethical behavior, cultural pollution, illegal dumping, piracy, green-washing, resource misuse, illiteracy, poverty, health care, infrastructure, inequality, human rights, pandemics, and corruption.

Positive Impacts of CSR

• Job creation.

• Providing goods and services.

• Education and training.

• Social interaction.

• Inclusion and diversity.

• Encouraging entrepreneurship.

CSR Adherence

• Large South African organizations, especially JSE listed companies, adhere to FTSE/JSE Responsible Investment Index Series to advance corporate sustainability practices.

Interest Groups and Demands on Business

• Stakeholder demands can conflict.

• Primary responsibilities: owners, employees, suppliers, consumers, competitors.

• Broader responsibilities: government, broader community.

Arguments For and Against CSR

• For: Addresses detrimental socio-economic problems, utilizes existing resources, reduces government legislation, promotes business image, and improves living standards.

• Against: Providing goods and services is sufficient, accountability is only to shareholders, distracts employees, increases prices, and can create unmet expectations.

Solutions to Socio-Economic Problems

• Address raw material use, fair treatment of employees, product safety, and fair sourcing.

• Specific solutions for environmental, labor, ethical, piracy, and plagiarism issues.

Designing External CSR Programs

• Prioritize primary stakeholders and business sustainability.

• Consider business size, profitability, and type.

• Engage the community in decision-making.

Sustainability in CSR

• Move beyond short-term aims to long-term self-sufficiency.

• Teach skills for job attainment.

• Set up sustainable processes, e.g., vegetable gardens with maintenance training.

CSR Overview

• Business responsibility to people and the environment, not only profit.

• Address: crime, poverty, education, poor health, inequality, housing.

CSR Questions for Business

• What is the business’s responsibility?

• To whom is the business responsible?

• For how long will the business be responsible?

• How will the responsibility affect business?

• What is the responsibility of each stakeholder?

Pioneers in CSR

• Blowfield and Murray's Pyramid:

  • Economic responsibility: profit and benefit shareholders.

  • Legal responsibility: respect laws.

  • Ethical responsibility: make ethical decisions.

  • Discretionary responsibility: do no harm, give back.

Sustainable Business Practices

• Global awareness, waste reduction, environmental accountability (CO2 Tax).

• Address BEE/BBBEE, HIV/Aids, SDA, OHSA, Trade union involvement.

• Focus on community impact, capacity development (education, health).

• Ensure no negative environmental/societal consequences, monitor supply chain, and deal with unethical suppliers.

Interest Groups/Stakeholders

• Include: staff, clients, shareholders, regulators, government, media, communities, suppliers, unions.

• Prioritize demands; plot stakeholders to understand interests and responsibilities.

Designing a CSR Program

• Part of strategic planning, integrated into business identity.

• Management communicates need and creates CSR policy.

• Link CSR to success factors, involve employees in initiatives.

• Implement, monitor, and adapt CSR projects.

Implementation of CSR Strategy

• Citizenship concept, strategic intent, leadership vision, management commitment, structured resources, stakeholder relationships, and transparency.

CSR Reporting

• Report on social and environmental performance, not just finances.

• Include business profile, board commitment, environmental and social policy, and management systems.

UN Sustainable Development Goals

• 2030 Agenda: shared blueprint for peace and prosperity.

• 17 SDGs: urgent call for action to end poverty, improve health/education, reduce inequality, spur economic growth, tackle climate change, and preserve oceans/forests.

Individual Social Responsibility

• Individuals should play a part to address community and environmental needs.