Corporate Social

Responsibility
Lesson 4
Leading to CSR Two key questions in the debate on CSR
Initiatives were:

1 - Besides the economic responsibility

(to earn more and more profits), do
corporations (organizations) have social
responsibilities?
                                      
                     Yes           No

2 – And, If YES, what are those corporate

social responsibilities? (I.e. how to define
corporate social responsibilities?) 
Def: Corporate Social Responsibility
(CSR)
CSR is a concept whereby companies integrate social and environmental
concerns in their business operations and in their interaction with
stakeholders on a voluntary basis                             (European Commision)

European Commission has

defined the nature of
social responsibilities broadly,
considering both social
and environmental aspects
World Business Council for
Sustainable Development
makes a distinct differentiation
between corporate social
responsibility, corporate
environmental responsibility
and corporate financial
responsibility, forming the
triple bottom line of corporate
responsibility
CSR categorization

CSR

Internal External
CSR CSR

Working
Employees atmospher Society Nature
e
Two main considerations highlighted in CSR

Ethical considerations Sociatel considerations

Organizations need to behave ethical in Organizations need to support in solving
their decision making social issues
 According to the financial statement 2007 the Golden
Key Credit Card company posted a profit of Rs. 20
million but the actual loss was amounting to Rs. 7
billion. The auditor’s signature had also been forged and
the CEO of the company and one of the Vice Chairmen
of a Ceylinco Group company had allegedly siphoned
funds of the company, it was revealed in court
Unethical Behaviour; Tesla During Covid Pandemic
It seems Tesla CEO Elon Musk values profits over employees
according to his actions during the 2020 pandemic. With the
infection rate soaring, California enacted health measures
that restricted many businesses’ operations, including Tesla.

During the lockdown order, which caused most non-essential

businesses to stop operating, the company called its workers
back to the Fremont factory in defiance of the order in April.
However, this first attempt of defiance was unsuccessful
when Alameda County officials stepped in. This intervention
by the government was met with fierce verbal attacks from
CEO.

A month later, Tesla called back its workers and started

manufacturing vehicles, again in defiance of the orders. After
the company was back in operation, county officials decided
to allow Tesla to reopen as an “essential business.”

The reopening was met with controversy, and many workers  CEO: Elon Musk
contracted the coronavirus soon after opening. Musk later
attempted to be sympathetic about the situation and said
employees could stay at home if they felt unsafe. However,
some of those that did were subsequently terminated.
How we should look at CSR?

CSR should be viewed as a comprehensive set of

policies, practices and programmes that are
integrated into business operations, supply chains
and decision-making processes throughout the
company

CSR should also be viewed as a concept that

integrates social and environmental concerns into
business operations on a voluntary basis
Examples of Corporate Social Responsibility in Action

• Reducing carbon footprints

Siemens Pledging to Reduce Carbon Impact

The world’s largest industrial manufacturer has pledged to be completely
carbon neutral by the year 2030. Investing over €100 million into reducing
their environmental impact, Siemens aims to cut its carbon emissions in half

€100 million 
- Fair Trading
“The purpose of business should not merely be money, it should be about responsibility. It
should be about public good, not private greed”

Anita Lucia Roddick - Founder

- Donations 

+$1.9B
Globally, nonprofits received $1.9 billion
in donated or discounted technology
and services

Protect fundamental rights

We unequivocally support the fundamental
rights of people, from defending democracy,
to addressing systemic racial injustice and
inequity, to protecting human rights.
Discussion
What are the CSR initiations launched by various organizations?
Discussion
What benefits an organization can obtain by getting involved in CSR
activities?
The end