Corporate Social

Responsibility
______________________________

An Aulas Internacionales Program

© 2014 Laureate International Universities

Corporate Social Responsibility
Conceptual Framework, Origin and
Goals of Corporate Social Responsibility
(CSR)
 Unit 1

1. Basic Concepts of CSR

2. Evolution of CSR

3. Roles of CSR
 Unit 1

Context in Which Social

The New Social Contract Win – Win Definitions of CSR
Responsibility is Born

A Diagram
Representation of Cases Basic Concepts Related
and Criteria for the to CSR: Sustainable
CSR as a Management
Definition of Development,
and Development model
Philantropy, Social Eco-eficiency and Triple
Investment and Social Bottom Line
Responsibility

1. Basic CSR Concepts

Basic Concepts of CSR
 1. Context in which social
responsibility is born
The evolutionary history of CSR starts with the awareness within societies of
the social and environmental issues facing companies. Although the business
world reacted positively to these issues, it failed to take a leading role,
instead reacting to social pressures that become increasingly persistent and
well-organized.
 1. Context in which social
responsibility is born
Initially, the social and environmental awareness of the corporate world had
an altruistic motivation –businesses wanted to be good citizens. However, as
economic crises spawned protest movements and counter movements, the
private sector began to implement measures mainly in order to appease the
social tension and to be able to operate in the changing social landscape.
 2. A New Social Contract

The current global situation, and particularly in the Americas, is extremely

alarming and there is an urgent need to re-establish the broken
environmental, social, political and economical balances. Proposing a new
Social Contract is a matter of survival.
 2. A New Social Contract

One of the main contributions of this new paradigm is the idea of a new
strategic alliance among 3 equally important actors–Nation States, Societies
and the Business Word.
 3. A Win–Win Scenario

This, however, should not be a source of confusion: the idea is to

generate benefits for both the internal and external environment
of a company, and for the company itself as an economic entity.
 4. Definitions of CSR

Discussion and
Social relevance of
communication
the business –a
with concerned
social actor for
audiences
change

Management of impacts
and/or externalities
 Business for Social Responsability
– BSR (USA)

Corporate Social Responsibility is defined

as the management of a company in a
way that meets or exceeds the ethical,
legal, commercial and public
expectations that a society has of such
company.
 Banco Interamericano para el Desarrollo (BID)

[CSR is defined as] the practices carried out by a

firm as part of its corporate strategy, that make
business sense, avoid causing harm, and derive
benefits for the concerned parties (clients,
employees, shareholders, communities and the
environment), which are voluntary and go beyond
laws and regulations.
For the ISO, CRS is “the balanced integration by
companies, of social, financial and environmental
concerns, with the purpose of benefitting people,
communities and society at large.”
 United Nations Global Compact

Corporate citizenship makes it possible to reconcile

the interests and processes of business activity with
the values and demands of civil society.
CSE is “a form of management defined by the
ethical and transparent relationship of a firm with
all the communities it interacts with and by the
establishment of business goals that are
compatible with the sustainable development of
society, by preserving its natural and cultural
resources for future generations, respecting
diversity and contributing to the reduction of social
inequalities”.
 World Business Council for
Sustainable Development (WBCSD)

This organization sees CSR as a multifaceted

management strategy. Unlike the previous
definitions, the WBCSD sees revenue as a variable
of CSR. It also spells out the concept of sustainable
development; from an ethics perspective, business
success contributes to the sustainable growth of a
country or of humanity as a whole.
A good company delivers excellent products and
services. A great company does all that while trying
to make the world a better place.

source: http://www.ford.com/

William Ford
President, Ford Motor Co.
 Philantropy

Social
Investment

CSR

5. Criteria for the definitions of Philantropy,

Social Investment and Social Responsibility
 Criteria for the definitions of Philantropy,
Social Investment and Social Responsibility

Concept Motivation Types of Desired Impact Where it creates Benefits Tools for measuring Intervention Institution
Resources an impact impacts through… concerned

Corporate Exclusively Dividends Improving the Company’s Personal Activity reports from Third parties. Directorate.
Philanthropy - altruistic quality of life of external satisfaction the executive Own foundations.
CP society at large. environment institution
Social Investment Short term Allocated Improving the Company’s Improving Non-periodic Directly. President of the
SI benefits for the funds quality of life in the external Company process evaluations. Own foundations. directorate.
Company community where environment image and Random impact Third parties. General
through the well- the Company reputation. evaluations. management.
being of the operates. Impact assessment Special
community. of the implemented committees.
action

Social Proving short- Dividens. Improving the Company’s Improving Social balance or Own foundations. President of the
Responsibility- term benefits for Allocated quality of life of external and Company similar. Directly. directorate.
CSR workers, their funds. society. internal image and Impact assessments. Third parties. Directorate.
families and the Equipment. Improving the environments reputation. Social marketing Special
communities Human quality of life in the Increasing techniques. committees.
where the resources. community where bonuses. General
Company the Company Personal management.
operates, in operates. satisfaction.
order to obtain Improving the
mid- and long- quality of life of
term benefits for workers.
the Company
itself.
Presented by: Ricardo Ugaz

© 2014 Laureate International Universities