Corporate Social Responsibility Overview NC

Corporate Social Responsibility (CSR)

Introduction to CSR

  • National governments focus on improving living conditions for citizens (e.g., adequate shelter, food, education).

  • In some countries, like the Philippines, many citizens lack basic needs (e.g., food, clean water, shelter, education).

  • The private sector plays a crucial role in providing employment and necessities, regulated by the government.

  • Successful businesses often have strong Corporate Social Responsibility (CSR) policies.

What is Corporate Social Responsibility?

  • Definition: CSR refers to the relationship between corporations, governments, and citizens; it emphasizes integrating social and environmental concerns into business operations.

  • Key Characteristics:

    • Voluntarily implemented.

    • Focused on sustainability.

  • Examples of CSR Initiatives:

    • Robinsons Land Corporation: Targeting environmental sustainability.

    • Coca Cola: Allocating 1% of income to community support.

  • CSR is about positively impacting communities and considering business decisions' social and environmental effects.

Advantages and Disadvantages of CSR

Advantages:

  • Enhances reputation of the company.

  • Builds respect and loyalty among customers and stakeholders.

  • Strengthens relationships within the community.

Disadvantages:

  • Potential for negative environmental impact due to poor practices.

  • Costs associated with CSR initiatives may not be valued equally across different companies.

Terminology Related to CSR

  • Other names for CSR include:

    • Corporate Responsibility

    • Corporate Accountability

    • Corporate Ethics

    • Corporate Citizenship/Stewardship

    • Responsible Entrepreneurship

The Triple Bottom Line Approach

  • This framework assesses corporate performance based on:

    • Economic viability

    • Environmental sustainability

    • Social responsibility

  • It aims to align business goals with sustainable global development.

Types of CSR Commitment and Activities

  • Health & Safety: Example: Disney aims for zero greenhouse gas emissions and zero waste.

  • Corporate Governance and Ethics: Companies like TOMS donate shoes; Google commits to environmental stewardship.

  • Sustainable Development: Dell’s Legacy of Good Plan focuses on community challenges and hiring diversity.

  • Work Conditions: Starbucks focuses on diversity hiring.

  • Community Involvement: NBA Cares promotes community support through sports and education initiatives.

  • Corporate Philanthropy: Example: ABS-CBN's humanitarian assistance program.

  • Accountability and Transparency: Performance reports are conducted to reflect CSR activities and impacts.

CSR and Governance

  • CSR is driven by public policy and business motivations, highlighting its relevance in operational costs and benefits of social initiatives.

  • CSR is increasingly important as businesses attract patrons by fulfilling societal responsibilities.

Factors Influencing CSR

  • Sustainable Development: A blueprint focusing on environmental, social, and economic improvement.

  • Globalization: Encourages international trade and cultural integration, impacting human resource development and promoting lower cost living through efficient markets.

Ethics in CSR

  • Ethical conduct is crucial for achieving business goals and influencing practices.

  • Key ethical principles: Trustworthiness, Respect, Responsibility, Fairness, Caring.

  • Businesses should engage in community-specific CSR programs to demonstrate consistent commitment.

Leadership in CSR

  • Strong leadership and commitment contribute to effective CSR programs, helping to address societal issues and government concerns.

  • Corporations addressing social needs can find incentives in CSR.

Business Tools and Benefits of CSR

  • CSR is beneficial for:

    • Reducing risks and anticipating disruption.

    • Gaining competitive advantages.

    • Enhancing media coverage and public perception.

  • Key Benefits of CSR Initiatives:

    • Improved risk management

    • Enhanced reputation

    • High employee retention rates

    • Innovation and competitiveness

    • Streamlined operations leading to cost savings

    • Better supplier relationships and social licensing to operate

    • Access to capital and improved relations with regulators.

  • Overall, CSR acts as a catalyst for responsible consumption and enhances corporate engagement within communities.