CSR is the voluntary actions that business can take, over and above compliance with minimum legal

requirements, to address both its own competitive interests and the interests of wider society. The impact of a companys actions on society which requires a manager to consider his acts in terms of a whole social system, and holds him responsible for the effects of his acts anywhere in that system

 Corporate Citizenship
Corporate Responsibility

Responsible Business

Corporate Social Responsibility:

adds value

To increase reputation in the society. Business legal obligation. Change public expectations from business. Business has useful resources. Better environment condition.

Profit maximization Cost of social work Businessman is not expert in social work Social responsibility is not legal responsibility. International competition. Forgetting the business aim.

Business Criticism/ Social Response Cycle

Factors in the Societal Environment

Criticism of Business
Increased concern for the Social Environment A Changed Social Contract

Business Assumption of Corporate Social Responsibility Social Responsiveness, Social Performance, Corporate Citizenship

A More Satisfied Society

Fewer Factors Leading to Business Criticism Increased Expectations Leading to More Criticism

Ethical Responsibilities

Social Responsibilities

Legal Responsibilities

Economic Responsibilities

Business Case for CSR: Customer Loyalty Reputation and Brand Management Improved Relations with Regulators Employee Recruitment, Motivation and Retention

Commitment and Vision Planning

Implementation
Monitoring Reporting Continuous Improvement

Employment generation. Protecting Environment . Set up offices / factories in smaller towns / rural regions. Contribute towards increasing education. Contribute towards health. Ensuring reduced cost of ultimate services / products to poor people. Increase innovation and product development and reduce or eliminate unnecessary imports. Exact resource utilization.

Coca Cola

Johnson and Johnson

The Green Globe programme for benchmarking, certification and performance improvement, based on Agenda 21 proposals from the 1992 Rio Earth Summit

(www.greenglobe.org)
ISO 14000 international environmental management standards (www.14000.org)

The United Nations Global Compact (UNGC) framework and mechanism designed to encourage businesses to adopt CSR policies (www.unglobalcompact.org) The FTSE 4 Good Index measures the performance of companies who meet globally recognised CSR standards. (www.ftse.com/Indices/FTSE4Go od_Index_Series)

CSR considers the impact of the companys actions on society (Bauer) CSR requires decision makers to take actions that protect and improve the welfare of society as a whole along with their own interests (Davis and Blomstrom) CSR mandates that the corporation has not only economic and legal obligations, but also certain responsibilities to society that extend beyond these obligations (McGuire)

Demonstrate a commitment to societys values and contribute to societys social, environmental, and economic goals through action. Insulate society from the negative impacts of company operations, products and services. Share benefits of company activities with key stakeholders as well as with shareholders. Demonstrate that the company can make more money by doing the right thing.