1

Wel
come to Phoenix Beverages

Firstly our group, Thierry Marson, Namratah Boodhoo and Chetanand Sharma
Soondur heart fully thank our lecturer Mr. S. Matadeen for his monitory and help to
make this assignment to be better prepared.

“We are the leading beverages company in Mauritius and

have been providing world class beverages for over 45 years.”

“We offer a wide variety of beverages such as beers, wines, spirits,

sparkling drinks and table water.”
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Contents
Welcome to Phoenix Beverages............................................................................................................1
Company profile.....................................................................................................................................4
History and Evolution of CSR................................................................................................................4
Definition of CSR...................................................................................................................................4
Mauritius approach and requirements towards CSR............................................................................5
................................................................................................................................................................6
Corporate Social & Environmental Responsibility of Phoenix Beverages............................................6
CSER Activities of Phoenix Foundation................................................................................................6
SPORTS:............................................................................................................................................6
External:-.......................................................................................................................................7
EDUCATION:....................................................................................................................................7
Internal – Educational sponsorship:-............................................................................................7
External:-.......................................................................................................................................7
HEALTH:...........................................................................................................................................8
Internal:-........................................................................................................................................8
External:-.......................................................................................................................................8
ENVIRONMENT:...............................................................................................................................9
External:-.....................................................................................................................................10
OTHER ACTIONS WITHIN THE FRAME WORK OF THE COMPANY’S CSER:........................10
Helping Hands Foundation:-.......................................................................................................10
GML Fondation Joseph Lagesse:-...............................................................................................11
Charitable Donations:-................................................................................................................11
Carroll’s CSR Pyramid........................................................................................................................12
Mauritius’s CSR Pyramid....................................................................................................................12
Priority consideration in the allocation of CSR funds.........................................................................12
CSR as applied by Carroll (1991) and Visser (2006)..........................................................................12
CSR as applied to Mauritian firms......................................................................................................13
The Responsibilities of Corporate Social Responsibility.....................................................................14
Order of preference as per Respondent...............................................................................................14
The Pyramid of CSR.............................................................................................................................14
..........................................................................................................................................................15
Philanthropic Responsibilities – Be a good corporate citizen......................................................15
Ethical Responsibilities – Do what is right, fair and just............................................................16
..........................................................................................................................................................16
Legal Responsibilities – Obey laws and regulations......................................................................17
Economic Responsibilities...............................................................................................................18
Evaluation of Phoenix Beverages’ CSR and Operations with Carroll’s 4 part definition..................19
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Philanthropic Responsibilities:........................................................................................................19
Ethical Responsibilities:..................................................................................................................19
Legal Responsibilities:.....................................................................................................................19
Economic Responsibilities:..............................................................................................................19
Summary...............................................................................................................................................20
References :..........................................................................................................................................21
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Company profile
Phoenix Beverages Limited is a public company listed on the Stock Exchange of Mauritius. It
ranks amongst the top companies of Mauritius as the leading beverages company.

With a turnover of Rs 3.7 billion and employing more than 1000 employees, Phoenix
Beverages produces an average of 1.2 million hectoliters of alcoholic and non-alcoholic drinks and
delivers its products to over 9,000 outlets.

History and Evolution of CSR

The term "corporate social responsibility" came into common use in the late 1960s and
early 1970s after many multinational corporations formed the term stakeholder, meaning those on
whom an organization's activities have an impact. It was used to describe corporate owners beyond
shareholders as a result of an influential book by R. Edward Freeman, “Strategic management: a
stakeholder approach” in 1984. Proponents argue that corporations make more long term profits
by operating with a perspective, while critics argue that CSR distracts from the economic role of
businesses. Others argue CSR is merely window-dressing, or an attempt to pre-empt the role of
governments as a watchdog over powerful multinational corporations.

CSR is titled to aid an organization's mission as well as a guide to what the company stands
for and will uphold to its consumers. Development business ethics is one of the forms of applied
ethics that examines ethical principles and moral or ethical problems that can arise in a business
environment. ISO 26000 is the recognized international standard for CSR. Public sector
organizations (the United Nations for example) adhere to the triple bottom line (TBL). It is widely
accepted that CSR adheres to similar principles but with no formal act of legislation. The UN has
developed the Principles for Responsible Investment as guidelines for investing entities.

Corporate social responsibility is the concept that businesses should focus on more than just
the financial bottom line but should also act as good corporate citizens that contribute to the
betterment of the world. Corporate social responsibility is an idea that is becoming increasingly
common in top firms, and anyone working in the corporate world should become familiar with this
concept.

Definition of CSR
Although the concept of CSR has been developing since the early 1970s, there is no single,
commonly accepted definition of CSR. Below we provide some examples of CSR definitions.

"CSR is defined as operating a business in a manner that meets or exceeds the ethical, legal,
commercial and public expectations that society has of business. CSR is seen by leadership
companies as more than a collection of discrete practices or occasional gestures, or initiatives
motivated by marketing, public relations or other business benefits. Rather, it is viewed as a
comprehensive set of policies, practices and programs that are integrated throughout business
operations, and decision-making processes that are supported and rewarded by top management."
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Mauritius approach and requirements towards CSR

According to the guidelines on Corporate Social Responsibility (CSR) designed by the National
Empowerment Foundation (NEF), Corporate Social Responsibility (CSR) is the concept whereby
companies act to balance their own economic growth with the sustainable social and
environmental development of their areas of operation. A company performing highly in CSR is one
that goes beyond compliance with the legal framework to actively pursue positive impacts on local
communities and its environmental footprint.

As from July 2009, The Government of Mauritius has established a policy with the overall
objective of mandating registered companies to pay 2% of their book profit towards programs that
contribute to the social and environmental development of the country. Specific objectives of this
fund are to:
 Encourage companies to manage their own programs, impacting the intersection of
economic with social and environmental development
 Facilitate the contribution of companies to support existing Approved National Programs
implemented by Companies, national agencies or NGOs
 Promote a functional community on NGOs with complementary work plans that are
relevant to the national development program
 Socio-economic development (including Gender and Human Rights);
 Health;
 Education and Training;
 Leisure and Sports;
 Environment;
 Catastrophic Interventions and Support.

The Government of Mauritius has also given the CSR a legal framework, stipulating that ‘any
company making profit is required as per Section 50K and 50L of Income Tax Act to contribute 2%
of their book profit after income tax, in compliance with prevailing legislation, to set up a CSR Fund
to finance CSR activities, excluding companies holding a Global Business License Category 1 under
the Financial Services Act, secondly Incomes of banks derived from transactions with non-residents
and corporation holding a Global Business License, IRS Company and non-resident society, a trust or
a trustee of a unit trust scheme.’

A refinement of the law brought in December 2010 requires that half of all CSR contributions be
directed towards programmes contributing to social housing, welfare of children in vulnerable
groups and eradication of absolute poverty.
Activities can be implemented through:

 Approved Programmes by the Company;

 Approved National Programmes;
 Approved NGOs.

National CSR Committee comprising representatives of the public sector, private sector and civil
society is responsible for the approval and monitoring of corporate programmes and NGOs. The
Committee issues guidelines in order to assist companies in the practical implementation of their
statutory requirements.
 6

All companies must report to the Mauritius Revenue Authority (MRA) at the time of
submitting their tax returns. In the event that a company is unable to spend the total amount of the
mandatory two per cent of its profit, it should remit the remaining sum to the MRA at the time its
return of income is submitted.

Corporate Social & Environmental Responsibility of Phoenix Beverages

Phoenix Beverages is actively involved in the social life of Mauritians through contributions
to Non-Governmental Organizations (NGO) implementing community activities and by offering
assistance to Mauritians in need. During the year 2010/2011, Phoenix Beverages Corporate Social &
Environmental Responsibility (CSER) strategy is focused on four areas of interest namely: Sports,
Education, Health and Environment.

Since September 8, 2010, the Phoenix Foundation has been incorporated as a private
company limited by guarantee. Since July 2011, all CSER activities are channeled through the
Phoenix Foundation.

CSER Activities of Phoenix Foundation

SPORTS:
Sponsorship:-

Phoenix Beverages has been sponsoring local popular events as it firmly believes that sports
have a key element in the life and health of all Mauritians. The Foundation continues to support the
Association Sportive of Vacoas Phoenix and to Stephan Buckland, our national sprinter through an
annual podium fee.

The Maiden – Cup, a race that rallies the whole Mauritian population is sponsored by
Phoenix Beverages; the regatta of Rodrigues - which is a major annual event, is also partly financed
by the beer company.

Sports as well as cultural organisations have been sponsored by Phoenix Beverages through
its brands such as Crystal, Coca-Cola, Appletizer, Blue Marlin, Malta Guinness to mention a few.
 7

Internal:-

To promote sports and team spirit, Phoenix Beverages has again sponsored “Curepipe
Starlight Sports Club” (“CSSC”) for an amount of Rs 150,000. The employees of Phoenix Beverages
also take advantage of the Club facilities including football, volleyball, basketball grounds and
indoor games equipment.

For the year under review, Phoenix Beverages has participated in the following Sports
Events organised by the “Fédération Mauricienne de Sport Corporatif” (“FMSC”)

80 employees participated in the CSSC Inter Company Event held on May 7, 2011 and
Phoenix Beverages was ranked 4th over a total of 10 companies.

In order to select the best participants for that event, qualifying phases regrouping 150
employees were organized in Football, Pétanque, Domino and Carom.

External:-

Rs 368,000 was committed to the boxer Richarno Colin and the “Association Mauricienne de
Boxe”

Rs 350,000 was contributed to “Fondation Football” in the spirit of a private/public

partnership to promote football throughout Mauritius.

Moreover, employees have been offered entry tickets for football matches and a fan club
was set up.

EDUCATION:
Internal – Educational sponsorship:-

Phoenix Beverages has developed a scheme to help sponsoring the educational fee of its
employees so that their children can pursue higher and better studies. This is classified into 4
categories, and up to 35% will be paid by the Company:

 Primary Education
 Secondary Education – for the payment of examination fees
 Tertiary Education – for enrolment fees
 Computer acquisition – when required for studies

External:-

Zone d’Education Prioritaire (“ZEP”)

Since 2004, Phoenix Beverages has been participating in the ZEP Project and is continuing its
assistance to Candos & Albion Government schools.
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At the Candos Government School, Phoenix Beverages is involved in organising and

participating in different events such as recreational excursions, sports, music, Independence Day,
as well as end of year festivities where lunch and a present is offered to each and every pupil. The
positive results achieved by the Candos Government School with regards to absenteeism and
percentage pass at the CPE exams have been so satisfactory that Phoenix Beverages has reiterated
its support to this school.

The Company has continued its assistance to the Albion Government School through a
partnership with the Rotary Club of Albion. This NGO has reiterated its yearly “Opération Boîtes
Jaunes” and Phoenix Beverages contributed Rs 30,000, thus participating in offering a decent
breakfast to the pupils.

Pupils of the two schools, 210 at Albion and 170 at Candos, are given one 0.5 litre bottle of
Crystal water every day. Different objectives are reached through this project which integrates both
health and environment.

These two schools have engaged in a partnership with Polypet Recyclers Ltd in view of
collecting and selling these empty Crystal PET bottles to be recycled. The money earned will be
invested in Environmental Projects such as endemic tree planting in the school yard.

Adolescent Non Formal Education Network (“ANFEN”)

ANFEN is one of the few Mauritian NGOs to assist adolescents who have academic
difficulties. They have a proven track record in providing professional training to those who cannot
follow the classic educational system. Phoenix Beverages has donated Rs 50,000 to ANFEN.

HEALTH:
Internal:-

Phoenix Beverages offers its support to every one of its employees, particularly those with
long-term sickness or with incurable diseases and who may face financial difficulties for their
treatment.

External:-

The NGO “Prévention Information et Lutte contre le Sida” (PILS) has, since its creation,
accomplished much in terms of information on and prevention of AIDS for the Mauritian population
and also in terms of moral support and access to treatment for HIV positive Mauritians. This year
again, Phoenix Beverages has financially supported this NGO with a contribution of Rs 150,000.

The company’s support goes also to PILS (Prévention Information et Lutte contre le Sida) in
its fight to curtail the spread of HIV/AIDs in Mauritius. This NGO has been doing an excellent work
since its inception in 1994 and Phoenix Beverages has renewed its support to them.
 9

Victoria Hospital, Candos:-

Each year at Christmas time, a visit is organised by Phoenix Beverages to distribute gifts to
patients and ward personnel at the Radiotheraphy Unit of the Victoria Hospital in Candos. A hands-
on approach is fostered whereby Phoenix Beverages staff visits the unit and tries to bring some
warmth and joy in the hearts of those in the unit.

In addition, in the health field, Phoenix Beverages made substantial donations to other NGOs
under its health initiative, namely:

 Palliative Care Mauritius Limited – Rs 250,000 has been given to this company so that they
can continue caring for those suffering from cancer, as well as their families;
 Ti Diams – Rs 50,000 has been offered to this association so that they continue their
awareness campaign and assistance to persons suffering from diabetes;
 Link to Life has received Rs 400,000 as contribution to their project of vaccinating
adolescents and women under the age of 30, coming from underprivileged areas, against
cervical cancer;

Apart from these NGOs, several individuals have also been assisted by Phoenix Beverages in
their fight to recover their health.

ENVIRONMENT:
Environment:-

Phoenix Beverages is committed to implementing environmentally friendly strategies and

initiatives. The great majority of our beer products and a significant proportion of our sparkling
drinks products are marketed in returnable glass packaging.

We continue to invest heavily in this packaging medium and to configure our operations to
maximise usage, to minimise wastage and to limit our environmental footprint.

We continue to work as a member of the Mauritian Bottlers Association to develop the

collection and recycling of PET bottles, as used for sparkling drinks. In recent months, the
percentage of PET bottles recycled has exceeded 30% of total industry production and we are
developing plans to drive this further.

Phoenix Beverages also contributes in glass recycling. This activity is being carried out by the
Mauritius Glass Gallery Ltd where waste glass is transformed into 200 decorative and practical
products.

Phoenix Beverages has also invested in energy efficient technologies in its manufacturing
plants to optimise on energy use and has replaced the majority of its fleet force fleet by energy
efficient, low emission vehicles.
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Internal:-

Phoenix Beverages has implemented several measures, as listed hereunder, in view of having a
substantial positive impact on its global carbon footprint.

 Launched a “Save Energy” campaign across the Company;

 Launched the “je recycle les piles et les portables” campaign across the Company;
 Implemented paper/carton recycling (recycled paper is sent to MGG);
 Launch PET/Cans recycling for employees on sites;
 Undertook a solid water audit to structure the waste sorting; and
 Undertook an Energy audit in partnership with JEC/ADIR.

External:-

Phoenix Beverages participates in environmental protection mainly through its contribution

to the GML Fondation Joseph Lagesse within which the Comité Environnement operates, but also
by sponsoring Mission Verte for an amount of Rs 150,000. 

OTHER ACTIONS WITHIN THE FRAME WORK OF THE

COMPANY’S CSER:
Social initiatives:-

As a responsible citizen, Phoenix Beverages is committed to invest in the communities in

which it is operating. Our fields of actions are education and health.

Mauritius Glass Gallery:-

Phoenix Beverages, through its subsidiary Mauritius Glass Gallery (MGG), has contributed Rs
400, 000 for the well-being of children. It is an initiative of MGG’s Helping Hands foundation that
has come to aid to two charitable institutions, the Soroptimists’ Afternoon Children’s Care Center
and Shelter for Children in Distress Trust Fund. These donations are the revenues collected from
the Hands of Fame Exhibition – a collection of celebrities’ hands or feet prints, moulded in recycled
glass.

Helping Hands Foundation:-

Helping Hands Foundation, a subsidiary company of The (Mauritius) Glass Gallery Ltd, itself
a subsidiary company of Phoenix Beverages, remitted Rs 200,000 to SOROPTIMIST IPSAE in January
2011.
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GML Fondation Joseph Lagesse:-

During the year under review, Phoenix Beverages has donated to GML Fondation Joseph
Lagesse Rs 2,500,000, representing 1% of its 2009/2010 net profits. This financial commitment
reinforces the Company’s determination to support GML Fondation Joseph Lagesse in its constant
endeavours towards the needy, and specifically in terms of education focused on early childhood
issues from vulnerable groups through their nine “Centres d’Eveil”, training of youth in the
nineteen-ANFEN-schools throughout the island and their recent tertiary scholarship policy enabling
young adults, who have good academic results, but financial difficulties, to afford university fees, to
pursue their studies.

Charitable Donations:-

During the year under review, the Group donated Rs 5.4 million to 16 beneficiaries (2010: Rs
6.2 million to 27 beneficiaries). Please refer to page 84 – Statutory Disclosures.
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Carroll’s CSR Pyramid

According to Carroll (1983), “corporate social responsibility involves the conduct of a
business so that it is economically profitable, law abiding, ethical and socially supportive. To be
socially responsible then means that profitability and obedience to the law are foremost conditions
when discussing the firm’s ethics and the extent to which it supports the society in which it exists
with contributions of money, time and talent” (p.608). By Carroll’s (1999) own admission, this is
only one of countless definitions which have proliferated in the literature since the 1950s.

Carroll’s definition: "The social responsibility of business encompasses the economic, legal,
ethical and discretionary expectations that a society has of organizations at a given point in time."
This describes well what society might expect of a business but, simply, ignores external
stakeholders. 

Mauritius’s CSR Pyramid

Another objective was to determine which areas are given most priority by corporation in
the allocation of funds for CSR. Hence, for the purpose of this finding, a number of factors were
considered which bring towards the contribution of CSR in Mauritius.

Priority consideration in the allocation of CSR funds

Carroll identified four CSR components which together build up the total social
responsibilities. These are namely the economic responsibilities, legal responsibilities, ethical
responsibilities and philanthropic responsibilities. Carroll (1991) depicts these four components in
the form of a pyramid where later Visser (2006) revised this pyramid in the context of developing
countries.

CSR as applied by Carroll (1991) and Visser (2006)

Thus, in order to find out how the pyramid is applied to Mauritian firms, Respondents were
asked to rank the four components, their company gives most priority in the allocation of fund to
CSR activities. Mean values were used to rank the four components.
 13

CSR as applied to Mauritian firms

From data gathered, it has been observed that in Mauritius, Philanthropic responsibilities is
given the first most priority, the second most priority is given to Ethical responsibilities, then
comes the Economic responsibilities and last the legal responsibilities.

The identified trend differ that of Carroll (1991) and Visser (2006). As highlighted in the
literature review, Carroll pyramid was based mainly on American context which is applied to
developed countries. Thus, it was obvious that the order of ranking in Mauritius would not
resemble that’s of Carroll since Mauritius is a developing country.

However, it was expected that the result obtained, should have been consistent to that of
Visser (2006). The latter concluded that for developing countries, the order in which funds are
allocated for CSR activities, are not the same as demonstrated by Carroll. The economic layer being
the base of the pyramid is given first priority in developing countries, followed by the philanthropic,
then the legal and lastly the ethical. However, the result obtained show that even if Mauritius is
among the developing country, the order differ that of Visser (2006).

Mauritian firms give philanthropic responsibility the most priority so as to enhance their
general well – being of the community and to enhance their company’s reputation. Also, as per the
Guidelines on Corporate Social Responsibility specified by the MEF, firms are expected to conduct
CSR in areas such as Socio economic development (including gender and human rights), Health,
Education and training, Leisure and sports, Environment and Catastrophic interventions & support.
As such these areas form parts of philanthropic activities. Thus, it is given the highest important.

It is interesting to note that, part of the finding resemble that of Visser (2007). He pointed
out that “in developing countries CSR is most commonly associated with philanthropy or charity,
i.e. through corporate social investment in education, health, sports development, the
environment, and other community services.”

Ethical organizations demonstrate real concern to the society and respect for employees.
Hence, it is given the second most priority as companies in Mauritius do adopt code of conduct.

According to Visser (2006) and Carroll (1991), economic responsibilities are given the highest
priority. However, in Mauritius, it was observed that the economic responsibility is found at the
third position. This is so because as per the new law imposed by the government, all firms making a
profit should contribute 2 % of their profit towards CSR activities. Thus, firms consider them to be
socially responsible to engage in philanthropic activities rather than that of economic.

As far as legal responsibilities are concerned, firms are bound by the Companies law and the
Mauritian legislation thus it is obvious that they should comply with the law in order to be socially
responsible. Then, it is given least priority.
 14

The Responsibilities of Corporate Social Responsibility

For CSR to be accepted by a conscientious business person, it should be framed in such a

way that the entire range of business responsibilities is embraced. It is suggested here that four
kinds of social responsibilities constitute total CSR: economic, legal, ethical, and philanthropic.
Furthermore, these four categories or components of CSR might be depicted as a pyramid. To be
sure, all of these kinds of responsibilities have always existed to some extent. But it has only been
in recent years that ethical and philanthropic functions have taken a significant place. Each of these
four categories deserves closer consideration.

Order of preference as per Respondent

Respondents give philanthropic their main priority. This result reflects that of Mauritian
firms which also consider philanthropic activities as their first priority when allocating funds to CSR
activities. This is so, because as specified by the MEF in the Guidelines on Corporate Social
Responsibility, CSR activities need to be conducted in the areas like the Environment, education,
Sports, Health/ disable, poverty, Employees' and the local community.

Thus, both Mauritian firms and the Respondents find it necessary to give philanthropic
responsibilities the utmost importance. It is interesting to note that what firms are contributing
towards CSR activities, are in line with what the society is expecting from them.

Furthermore, Economic stands for the second most important while the legal is found to be
the third most important and the least priority is given to ethical responsibilities. Each component
will be further discussed in more details in the coming sub – section. Thus, to conclude, it can be
said that the order of preference when allocating CSR funds by Respondents differ from that
ranking as applied by Mauritian firms.

The Pyramid of CSR

The pyramid of corporate social responsibility is depicted below. It portrays the four
components of CSR, beginning with the basic building block notion that economic performance
undergirds all else. At the same time, business is expected to obey the law because the law is
society's codification of acceptable and unacceptable behaviour. Next is business's responsibility to
be ethical. At its most fundamental level, this is the obligation to do what is right, just, and fair, and
to avoid or minimize harm to stakeholders (employees, consumers, the environment, and others).
Finally, business is expected to be a good corporate citizen. This is captured in the philanthropic
responsibility, wherein business is expected to contribute financial and human resources to the
community and to improve the quality of life.
 15

Philanthropic Responsibilities – Be a good corporate citizen

As highlighted above, organizations are expected to be a good corporate citizen to fulfill the
philanthropic responsibilities. Thus, firms in Mauritius choose among the different areas of
intervention proposed by the government, to fulfill their philanthropic duties. These are namely:
The environment, Education, Employee welfare, Local community, Heath & disable and Poverty
alleviation. For analyzing which of the different approaches firms contribute the most, Respondents
were asked to choose among the different option provided to them.

Philanthropy encompasses those corporate actions that are in response to society’s

expectation that businesses be good corporate citizens. This includes actively engaging in acts or
programs to promote human welfare or goodwill. Examples of philanthropy include business
contributions to financial resources or executive time, such as contributions to the arts, education,
or the community. A loaned-executive program that provides leadership for a community’s United
Way campaign is one illustration of philanthropy.

At the top of the pyramid is ‘philanthropy'.  Prof. Donna Wood, one of the early pioneers in
CSR has had a fascination with Carroll's pyramid and cites her student who, famously, put the
pyramid on its head.  In this way, philanthropy is seen as a first step toward CSR.
 16

Ethical Responsibilities – Do what is right, fair and just

Organization is expected to be ethical. Ethical responsibilities is about being moral, doing
what is right and avoid harm. For the purpose of accessing if firms do adopt any code of conduct,
Respondents were provided with a series of such code which they probably abide by. 32 out of 44
respondents are found to adopt codes of ethics while 28 out 44 have a policy to ensure honesty
and quality in all its contacts. Overall, it can be seen that out of 44 companies surveyed, each and
every company do adopt at least one code of conduct.

The obtained results, thus reflects those of Carroll (1991). The author suggest that ethical
duties of organizations are to “embody those standards, norms, or expectations that reflect a
concern for what consumers, employees, shareholders, and the community regard as fair, just, or in
keeping with the respect or protection of stakeholders' moral right. Adoption of a company Code of
conduct helps to show management’s commitment to CSR and it gives a direction to stakeholders
thus promoting ethical behaviors. Hence, Mauritian firms are ethical when doing business.

Although economic and legal responsibilities embody ethical norms about fairness and
justice, ethical responsibilities embrace those activities and practices that are expected or
prohibited by societal members even though they are not codified into law. Ethical responsibilities
embody those standards, norms, or expectations that reflect a concern for what consumers,
employees, shareholders, and the community regard as fair, just, or in keeping with the respect or
protection of stakeholders' moral rights.

Ethical responsibilities come next, but it seems that ethical behavior is not so easy to
define.  Perhaps the best is 'do unto others as you would wish to be treated yourself'. 
 17

Legal Responsibilities – Obey laws and regulations

Society expects requires organization to obey the law. Thus, in order to be a socially
responsible company, business entities are required to comply with laws and regulations,
formulated by governments. For this part, Respondents were asked to indicate the different legal
law which they abide for.

The below chart summarizes the different approaches towards legal responsibilities.
Companies follow this type of responsibility in order to be socially responsible. Almost all
statements are found to be in the same range, whereby compliance with environmental
specifications the highest. This clearly indicates that firms consider them to be socially responsible
to comply with Mauritian legislation.

Society has not only sanctioned business to operate according to the profit motive; at the
same time business is expected to comply with the laws and regulations promulgated by
governments as the ground rules under which business must operate. As partial fulfillments of the
"social contract" between business and society, firms are expected to pursue their economic
missions within the framework of the law. Legal responsibilities reflect a view of "codified ethics" in
the sense that they embody basic notions of fair operations as established by our lawmakers. They
are depicted as the next layer on the pyramid to portray their historical development, but they are
appropriately seen as coexisting with economic responsibilities as fundamental precepts of the free
enterprise system.

Carroll then goes on to mention legal responsibilities but doesn't consider those countries
where the law is ignored (corrupt Governments for instance) or has been modified to support
cronyism.  No easy guide here, but remember that ‘rules are made for the guidance of wise men,
and the observance of fools'! 
 18

Economic Responsibilities – Be profitable, Maximize sales

& Minimize costs
There are numerous activities carried out by a firm which classified it to be economically
responsible. According to Carroll (1991), the first responsibility of any firm is the economic
responsibilities. To be able to find out if Mauritian firms are engaged in economic activities, the
Respondents were asked to choose among the different statements given to them. For this
question, Respondents were given the possibility to choose more than one option.

From the above statement is can be said that, most of the companies invest in human
capital. Companies prefer to invest in their employees in order for these employees to produce
economic value while performing their job. By so doing, firms can maximize their profits. Thus, this
result is consistent with Friedman’s (1962) work. The latter argued that corporations should engage
in activities designed to increase the firm’s profits. Thus, the author asserts that the business of
business is only to do business.

To some extent, companies are involved in the jobs creation activities, only to create public
awareness to their brand. These firms include the Air Mauritius Ltd, Compagnie Mauricienne de
Textile ltee, AML, Appavoo Group and Sonia Wear ltd.

According to Carroll (1979), a firm is considered as an economic unit when it is engaged in

producing goods and services that society desires and to sell them at a profit. Visser (2007 cited
Nelson, 2003)has identified 8 economic multipliers that firms can do in order to be an economic
unit. These are namely the to generate investment and income, produce safe products and
services, create jobs, invest in human capital, establish local business linkages, spread international
business standards, support technology transfer and build physical and institutional infrastructure.
Lleading firms in Mauritius are engaged on at least one of the economic multipliers, mentioned by
Visser (2007) in his paper, which make them to be socially responsible.

Historically, business organizations were created as economic entities designed to provide

goods and services to societal members. The profit motive was established as the primary incentive
for entrepreneurship. Before it was anything else, business organization was the basic economic
unit in our society. As such, its principal role was to produce goods and services that consumers
needed and wanted and to make an acceptable profit in the process. At some point the idea of the
profit motive got transformed into a notion of maximum profits, and this has been an enduring
value ever since. All other business responsibilities are predicated upon the economic responsibility
of the firm, because without it the others become moot considerations.
 19

Evaluation of Phoenix Beverages’ CSR and Operations with Carroll’s 4

part definition

Philanthropic Responsibilities:

Phoenix Beverages assumes this responsibility to be among its schedule of responsibility

towards the society at large. This responsibility deals with issues of Education & Training, General-
Welfare, Environmental Issues and Donations & Charity to mention a few. “Set aside funds for
corporate social and community projects” Donations of Rs 5,371,000 and Rs 6,395,000 have been
among the donations sum of 2011-2012 to many institutions. Example: Helping Hands, PILLS,
Educational Fees and amongst others.

Ethical Responsibilities:

Phoenix Beverages has real concern for society, respect for employees and undertake
socially acceptable activities. “Adopt voluntary codes of governance and ethics” the group is
mutually in respect of its stakeholders as such that it produces plastic and glass bottles but also take
a financial responsibility to collect and recycle them.

Legal Responsibilities:
Phoenix Beverages “Ensures good relations with government officials.” It is in accordance
with the ‘Social Contract’ and is bound by laws to be socially responsible for its operations. This is
mandatory required by the Corporation Act of Companies. PBL publishes all the financial
statements for the general public and undertake all legal business activities in respond to
regulations of the island.

Economic Responsibilities:
“Provide investment, Create jobs and pay taxes”, Phoenix Beverages create jobs for
Mauritians as well as foreigners; it also pays huge sum of taxes totaling around Rs 47,483,000,
leaving a Net Profit after Taxation of around Rs 192,000,000, the foundation spends more than 2%
of this money on CSER activities.
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Summary
Carroll's definition is often pictured in the above CSR Pyramid, and is where many CSR
practitioners and theoreticians start. As can be seen above, he argued that companies should have
economic responsibilities. Obviously, without making a profit then a company will cease to exist
and CSR dies. However, the key issue is that CSR is not anti-profits, simply is all about how profits
are made and what society expects from firm.

In the evaluation paragraph we have shown activities undertaken by Phoenix Beverages Ltd.
The group has satisfied all Carroll’s responsibility definition of CSR. In summary, the total corporate
social responsibility of business entails the simultaneous fulfillment of the firm's economic, legal,
ethical, and philanthropic responsibilities. Stated in more pragmatic and managerial terms, the CSR
firm (PBL) should strive to make a profit, obey the law, be ethical, and be a good corporate citizen.

End Note :
The above statements are some of the CSR activities of Phoenix Beverages. The second part
of the assignment comprises of evaluations of Carroll’s 4 part definition of CSR in the context and
respond of Phoenix Beverages. Our group firmly believes that the foundation has been doing
fabulous tasks along with the influence of CSR and customer responsibilities.

Thank You Sir….

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References :

http://www.ukessays.com/essays/management/csr-pyramid-as-applied-to-mauritian-companies-
management-essay.php

http://www.ukessays.com/essays/management/importance-of-csr-for-companies-in-mauritius-
management-essay.php

http://www.scribd.com/doc/40466951/Corporate-Social-Responsibility-Assignment#download

http://www.stockexchangeofmauritius.com/

http://www.phoenixbeverages.mu/news-events/latest-event-activities/?approvedage=1

http://www.phoenixbeverages.mu/corporate-social-responsibilities/philosophy/

http://www.phoenixbeverages.mu/

http://www.phoenixbeverages.mu/about-us/company-profile/

http://www.phoenixbeverages.mu/about-us/our-history/

SURVEY REPORT ON THE PRACTICAL IMPLEMENTATION OF CSR UNDER THE NEW LEGISLATION in
March 2011

MCB CSR Documentation

PBL Annual Report 2012

PBL Annual Report 2012 (Figures)

Review of Corporate Social Responsibility policies and actions in

Mauritius and Rodrigues - Final Report April 2008