“Doing good is good for business”

1
CORPORATE SOCIAL RESPONSIBILITY
Corporate Social Responsibility, or “CSR,” refers to the need for businesses to be good
corporate citizens. CSR involves going beyond the law’s requirements in protecting
the environment and contributing to social welfare. It is widely accepted as an
obligation of modern business.

2
 CORPORATE SOCIAL RESPONSIBILITY
Companies must take into consideration the following in designing their CSR:

1. Economic Perspective
2. Legal Perspective

Furthermore, it must benefit the organization itself.

3
Examples of Corporate Social Responsibility
1. corporations can provide funds, in-kind contributions or other resources to build awareness and concern
for social cause.
2. corporations commit to donating a percentage of revenues to a specific cause based on product sales.
3. corporations support the development and/or implementation of a behavior change campaign to improve
health, safety, and the environment or community well-being
4. corporations directly contribute to charity in the form of cash donations and/or in-kind services
5. corporations support and encourage retail partners and/or franchise members to volunteer their time to
support local community
6. corporations adopt and conduct discretionary business practices that support social causes to improve
community

4
BENEFITS OF CSR

5
CSR VS Ethics
Business ethics includes the moral principles and standards that guide behavior in the world of business; corporate social
responsibility (CSR) is an integrative management concept, which establishes responsible behavior within a company, its
objectives, values and competencies, and the interests of stakeholders

6
CSR and the Stakeholder Theory
Stakeholder Theory is a view of capitalism that stresses the interconnected relationships between a business and its
customers, suppliers, employees, investors, communities and others who have a stake in the organization. The theory
argues that a firm should create value for all stakeholders, not just shareholders.

Differently from stakeholder theory, CSR neither attempts to understand what business in its entirety is about nor tries to
stipulate its overall range of responsibilities. Instead, CSR focuses on one stream of business responsibilities – responsibility
to local communities and society at large – to ensure business does deliver on it. Although sometimes social responsibilities
could be organized per stakeholder, social orientation would still prevail there.

7
People, Planet, Profit: The Triple Bottom Line
Triple Bottom Line is a measure described in 1994 by John Elkington, a British business consultant and it forces us to
reconsider the very concept of the “bottom line.” Most businesses, and most consumers for that matter, think of the
bottom line as a shorthand expression of their financial well-being. Are they making a profit, staying solvent, or falling into
debt? That is the customary bottom line, but Elkington suggests that businesses need to consider not just one but rather
three measures of their true bottom line: the economic and also the social and environmental results of their actions. The
social and environmental impacts of doing business, called people and planet in the TBL, are the externalities of their
operations that companies must take into account.

The three components of the triple bottom line are interrelated.

8
People, Planet, Profit: The Triple Bottom Line (cont’d)

Challenges of using the Triple Bottom Line:

1. Measuring the TBL
2. Mixing inverse elements
3. Ignoring the TBL framework

9
Corporate Social Responsibility as a Public Relation Tool

CSR is nothing more than an opportunity for publicity as a firm tries to look good through
various environmentally or socially friendly initiatives without making systemic changes that
will have long-term positive effects. Carrying out superficial CSR efforts that merely cover up
systemic ethics problems in this inauthentic way (especially as it applies to the environment),
and acting simply for the sake of public relations is called greenwashing. To truly understand a
company’s approach toward the environment, we need to do more than blindly accept the
words on its website or its advertising.

10