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.