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.