Chapter 13

Corporate Social
Responsibility (CSR)
and Community
Relations

BUS407 Corporate Communication

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 Corporate Social
Responsibility (CSR)

(Corporate
Citizenship)

Community
Relations

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 Defining CSR

Self-regulating business model

Socially accountable

Corporation, stakeholders, and public

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 Defining CSR

Social aspects

Environmental aspects

Economic aspects

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Video #1: What is CSR?
https://www.youtube.com/watch?v=1bpf_sHebLI

Video #2: What CSR has become

https://www.youtube.com/watch?v=wTidplpkqZE

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 Question:
What is CSR?

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 CSR: Triple Bottom Line

People
• Social and labour issues

Profits Planet
• Environmental care
Triple
bottom
line
Profit
• To generate income
Planet People

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 Table 13.1. Approaches to Corporate Social Responsibility
Approach to CSR Main vehicle Managerial responsibility Primary stakeholder audience

Public affairs team (as part of Primary stakeholders:

Defensive Ad hoc interventions
corporate communication) shareholders and governments

Community relations
Secondary stakeholders:
Charitable Charitable donations officer/team (as part of
communities
corporate communication)
PR and events managers (as Primary stakeholders (including
Public relations campaigns and
Promotional part of corporate customers) and the general
events
communication) public

Spread across the organization Primary stakeholders (including

Strategic Management systems (including involvement from customers) and the general
corporate communication) public

Spread across the organization

Primary stakeholders, including
Transformational Business models (including involvement from
current and future generations
corporate communication)
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 Example of CSR: Starbucks

According to its 2019 Global

Social Impact Report, these
Starbucks has long been
milestones include reaching
known for its keen sense of
99% of ethically sourced
corporate social Starbucks' goals for 2020
coffee, creating a global
responsibility and and beyond include hiring
network of farmers,
commitment to 10,000 refugees, reducing
pioneering green building
sustainability and the environmental impact of
throughout its stores,
community welfare. its cups, and engaging its
contributing millions of
According to the company, employees in environmental
hours of community service,
Starbucks has achieved leadership
and creating a
many of its CSR milestones
groundbreaking college
since it opened its doors
program for its
partner/employees

Source: https://stories.starbucks.com/uploads/2020/06/2019-Starbucks-Global-Social-Impact-Report.pdf 23
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Defining Corporate Citizenship

Legal Ethical
responsibilities responsibilities

Economic Established by
responsibilities shareholders

Pro bono activities, corporate

volunteerism, charitable contributions,
or support for community education

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 Defining Corporate Citizenship

The World Economic Forum defines corporate citizenship as the

contribution a company makes to society through its core business
activities, its social investment and philanthropy programmes, and
its engagement in public policy. The manner in which a company
manages its economic, social and environmental relationships, as
well as those with different stakeholders, in particular
shareholders, employees, customers, business partners,
governments and communities determines its impact

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CSR Codes

Broader than bribery and

corruption

Developed by business
associations, industry groups
and multi-stakeholder
coalitions

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 Video #3: Corporate citizenship
https://www.youtube.com/watch?v=YPPFjoeykmM

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Communicating
Corporate Social
Responsibility

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 CSR Communication

Three standard communication strategies

Stakeholder
Stakeholder Stakeholder
involvement strategy
information strategy response strategy
(mutual dialogue
(one-way information (two-way information
between a company
flow) flow)
and its stakeholders)

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 Video #4: Greenwashing (up to 4’50”)
https://www.youtube.com/watch?v=mOpa8kd6fBI
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 CSR Reporting and Dialogue

Publish reports Public

90% of the FTSE
• Launch CSR consultation
100 Index largest
campaigns • Ongoing surveys on listed corporations
stakeholder opinion
in the UK use CSR
reports

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 CSR Reporting Guidelines
Set clear objectives
• Demonstrates the company is serious about CSR by setting clear objectives for social and environmental
performance annually, and by systematically reporting on the results achieved afterwards
Set progressive objectives
• Objectives are progressive in bringing new aspirations and standards to bear upon business operations instead of
regurgitating of existing practices that may be seen as socially and environmentally viable
Involve stakeholders
• Objectives and targets include issues that are relevant to stakeholders, and are linked to clear benchmarks and
standards (at the industry and policy level)
Report transparently
• Reporting in an honest, transparent and full-scale self-assessment instead of a polishing of performance data
Accountability
• Performance data are rigorously assessed and verified by credible auditors (accountants or consultants).

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CSR Reporting

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Community Relations 36
 Community Relations

Communications and engagement

Specialised area of activity

Impact on reputation

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Target Community Impact: https://corporate.target.com/corporate-responsibility/community-impact 38
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Table 13.2. Characteristics of Old and New Approaches to Community Relations

Charitable donations Community involvement Citizenship approach

(prior to 1980) (1980–1990) (1990–present)

Goodwill (with local Reputation as employer of Trust and legitimacy (across

Objectives community leaders and choice (with resident stakeholders in the
resident employees) employees) community)

Employee volunteer Partnerships with local

Scope of community Charitable donations to local programmes, growing public institutions in
programmes charities and causes involvement in social improving the community
welfare programmes and increasing welfare

Idiosyncratic
implementation dependent
on requests from
General approach
community leaders or
managers’ personal
networks
Specific approach of
Wide-ranging approach
fostering productive
driven by mission, values
workplaces, linked to
and multiple stakeholders
competitive goals
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 Figure 13.1. Elements of a Community Relations Programme

Partnership

Level of Alignment
commitment between
Volunteering
to programme
community elements

Philantrophy
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 Conclusion

Corporate
social
responsibility
Corporate
communication
Community
relations

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 Chapter 13
Corporate Social
Responsibility (CSR)
and Community
Relations

BUS407 Corporate Communication