CORPORATE SOCIAL

RESPONSIBILITY
GROUP 3
GANESH(CAPTAIN)
KALBE
ZAITON
NATHAN
Prepared by KALBE BIN ABD GHANI

Contents

What is CSR?
Defination of CSR?
Four Components of CSR
Main Concept of CSR
Stake Holder model
Approaches to CSR
Responsibilities Of CSR To Different Sections Of
The Society
Business Benefits of CSR
Critics

What is CSR?

Corporate social responsibility (CSR) is a

form of corporate self-regulation aiming to
embrace responsibility for the company's
actions and encourage a positive impact
through its activities on the environment,
consumers, employees, communities,
stakeholders and all other members of the
public sphere.

Define CSR
While there is no single, commonly accepted
definition of CSR. It generally refers to

business decision-making linked

to ethical values, compliance
with legal requirements, and
respect for people, communities
and the environment.

 CSR is also called as

corporate conscience
corporate citizenship,
social performance .

Do We Need CSR?

The term Corporate social responsibility (CSR) is gradually

gaining recognition as a strategic direction for large number
of organizations, both business and social driven, as well as
public and private.

But there are still number of misnomers about CSR, (tension

between profitability) in the corporate fraternity which is
resulting in difficulties to cope with this vast but intricate
strategic discipline.

Four Components Of CSR

Economic
Legal
Social
Ethical

Main Concepts of CSR

CSR (Carrol , 1979)

Firms have responsibilities to societies including economic,
legal, ethical and discretionary (or philanthropic).
- See also De George (1999) on the Myth of the Amoral
Firm
Social Contract (Donaldson, 1982; Donaldson and Dun
fee , 1999) There is a tacit social contract between the
firm and society; the contract bestows certain rights in
exchange for certain responsibilities.

 Stakeholder Theory (Freeman, 1984) A

stakeholder is any group or individual who can
affect or is affected by the achievement of an
organizations purpose. Argues that it is in the
companys strategic interest to respect the
interests of all its stakeholders.

Stake Holder Model

 CSR = political economy

The rights and responsibilities assigned to private
industry.

Approaches to CSR

New CSR Activities by Proton

1:
ProtonimplementCSRworkshopf
or 50single mothers
- Persona Empowerment workshop
Variety of activities to build their confident and
empower their self with knowledge
This workshopalso serves as aplatform for
sharingexperiences,learningand motivatingeach
other.

2. PROTON Provides Assistance To

Flood - In Johor
program aimed at assisting flood victims to get
their life back on track
distributed items including cooking stoves, school
bags, new clothing and towels

3. Proton Treats School Children To

The POWER of 1 Experience
The POWER OF 1 event is an extensive event to
showcase Protons milestones commemorating its
technology
advancements,
engineering
achievements, innovations and motorsports
success.
- The special tour is intended to provide a different
educationalexposure and experience to the
PINTAR School students and teachers involved

4. Proton gives orphans and

school kids F1 experience
offers the children the chance of a
lifetime, to be part of the Formula
One celebration with Proton
- 130 orphans and schoolchildren from
Pertubuhan Kebajikan Yayasan Anak
Yatim Piatu Darul Aitam and Rumah
Bakti Nur Syaheera in Cheras, as well
as schoolchildren from Sekolah Sultan
Alam Shah, Putrajaya and SK Tanjung
Malim Perak are joined this program.

5. Proton invest RM8

million a year to
coaching new talent
investedRM8million a yearthroughhuman
capitaltraining funds
to produce moreskilled workers
To meet the needs of particular companies
in the automotive field
PROTONis notexception from the positive
trace of the Economic Transformation
Program (ETP)

 which is designedto elevateMalaysiaasa

developed country statusby 2020
On 27 September 2011, Proton also signeda
memorandum of understanding(MoU) with
the Department of Skill Development (DSD)
and University of Kuala Lumpur (UniKL)
This isallto improvetechnical and
vocational skillsof workers inthe
automotive field.

Responsibilities Of
CSR To Different
Sections Of The
Society

Responsibility to
shareholders

To safeguard the capital of the shareholders

To provide a reasonable dividend
By:
Strengthening & consolidating its position thru
innovation & growth

Responsibility to employees
The payment of fair wages
The provision of the best possible working
conditions
The establishment of fair work standards & norms
Provision of labor welfare facilities to the extent
possible & desirable
Arrangements for proper training & education of the
workers

Responsibility to employeescont
Reasonable chances & proper system for
accomplishment & promotion.
Proper recognition, appreciation & encouragement
of special skill & capabilities of the workers
The installation of an efficient grievance handling
system
Opportunity to participate in managerial decision to
the extent possible

Responsibility to consumers
To improve the efficiency of the functioning of the business so
as to
Increase productivity & reduce prices
Improve quality
Smoothen the distribution system to make goods easily available.

To do research & development, to improve quality & introduce

better & new products
To take appropriate steps to remove the imperfections in the
distribution system, including black marketing or profiteering
by middle men or anti social elements
To supply goods at reasonable prices

Responsibility to consumerscont
To provide the required after sales service.
To ensure that the product supplied has no adverse effect on
the consumer
To provide sufficient information about the products, including
their adverse effects, risks, & care to be taken while using the
products
To avoid misleading the customers by improper
advertisements or otherwise
To provide an opportunity for being heard & to redress
genuine grievances
To understand customer needs & to take necessary measures
to satisfy these needs.

Responsibility to the
community
Taking appropriate steps to prevent environmental
pollution & to preserve the ecological balance
Rehabilitating the population displaced by the
operation of the business, if any
Assisting the overall development of the locality
Taking steps to conserve the scarce resources &
developing alternatives , wherever possible

Responsibility to the
community- cont
Improving the efficiency of the business operation
Contributing to R&D
Development of backward areas
Promotion of small scale industries
Making possible contribution to furthering social causes
like the promotion of education & population control
Contributing to the national effort to build up a better
society.

Responsibility to the dealers

Fairness & truthness of all the activities including
pricing, licensing to sell & rights to sell.
Ensure business activities are free from litigation
Develop long term stability in dealer relationship
Ensure that there is equity in relationship with all
dealers.

Responsibility to the
government
To behave like a law abiding citizen
To pay its dues & taxes to the state fully & honestly
Impartiality towards political affairs, i.e., to abstain
from direct political involvement, & not to support
political parties
To follow honest trade practices & avoid activities
leading to restraint of trade

Responsibility to the
government- cont

Not to corrupt public servants for selfish ends

To sell commodities & services without adulteration
Use scarce national resources properly
Environmental protection & reduce pollution
Respect to the community & citizens of the country
Contribute to social development.

Business Benefits of CSR

Lowering of tax rates

Reducing regulatory interventions
Improvement in market positions.
Reputations of brand.
Strengthen supplier relations.
Cost saving.
Improved relations with govt. authorities.
Reduced interest rates.

Critics

Violations to profit maximization.

Dilution of purpose.
Costs.
Too much power.
Lack of skill.
Lack of accountability.
May make organization more vulnerable to
revelation of bad/unethical business practice.
A restriction to free trade.

Critics

Business should confine to its own business

Can adversely affect the economic health of a
business
Can affect competitiveness if it causes an increase
in the price of the product
Can lead to an increase in the dominance of
business over the society