CORPORATE SOCIAL

RESPONSIBILITY(CSR)
Dr. SEEMA KHALID
LET’S EXPLORE THE MEANING
WHAT CSR IS?
• .
IMPORTANCE OF CSR
IMPORTANCE….

• Why is CSR important?

• Increasingly, society is becoming better informed and more socially aware of what firms
are doing. Businesses, especially those that survive and prosper directly from consumers,
risk their success and brand name when acting in ways that are not seen as socially
appropriate. What would be the impact on Coca-Cola, for example, if the employees in its
Minute Maid orange juice division were seen as exploited by poor wages or working
conditions?
CSR….

• Business would embrace responsibility for the impact of their activities on the
ENVIRONMENT, Consumer, Employees, Stakeholders, Communities and all the other
members of public sphere.
• Essentially… CSR is the deliberate inclusion of public interest into corporate decision
making and honouring the Triple Bottom Line approach: People, Profit, Planet.
• Concluding CSR is about how companies are managing their business to leave a positive
impact on society.
STAKE HOLDERS OWNERSHIP
WHY IS CSR INCREASINGLY RELEVANT TODAY?

• A variety of forces are heightening interest in CSR. Among these are increased affluence, ecological sustainability, globalization, the free flow
of information, and brands. Affluence means choices. Citizens of wealthy countries can make choices based on considerations that are more
varied and complex than simple survival and economics.
• Ecological sustainability matters, from both the reality of a shared planet and the public’s perceptions of a firm’s commitment to the health and
well-being of the communities in which it operates—especially since more people identify themselves as supporting ecological concerns than
either major political party in the United States. And, of course, firms that do obvious ecological damage are increasingly penalized by high
profile protests from activist groups such as Greenpeace, which have become particularly adept at gaining media attention.
• Globalization increasingly strips down geographical and cultural barriers, so that actions in one place (even if legal and proper) are subject to
evaluation from the perspective of multiple cultures, laws, and societal expectations. Globalization combined with the ever increasingly free
flow of information, further underscores the “shrinking planet” metaphor. Actions and practices in one locale can jump across the globe.
• Perhaps nowhere is the impact of CSR more obvious than when it comes to brands. The equity built up from customer use, advertising, and
other image-shaping actions represents an often-huge investment and an important “asset” to the firm. Maltreatment of workers, defective
products, and related problems can tarnish, even destroy, a brand and the investments made to create it.
CORE…
THE STRATEGIC MANAGEMENT PROCESS

• three processes
• strategy analysis:
• Analyzing Organizational Goals and Objectives
• Analyzing the External Environment of the Firm
• Assessing the Internal Environment of the Firm
• Assessing a Firm’s Intellectual Assets
• strategy formulation:
• strategy implementation
ROLE OF CORPORATE GOVERNANCE AND
STAKEHOLDER MANAGEMENT
•the relationship among various participants in determining the direction and
performance of corporations. The primary participants are
• (1) the shareholders,
• (2) the management (led by the chief executive officer), and
• (3) the board of directors
•Sole Proprietor, Partnership, Private Limited, Public Limited Listed, Public
Limited Unlisted
IMMEDIATE STAKEHOLDERS
BEYOND THE IMMEDIATE STAKEHOLDERS

• thinking about businesses and their relationship to society.

• social responsibility recognizes that businesses must respond to society’s
expectations regarding their obligations to society: Corporate Social
Responsibility
• Second, the triple bottom line approach evaluates a firm’s performance -
perspective takes into account financial, social, and environmental performance.
• Third, making the case for sustainability initiatives addresses some of the
challenges managers face in obtaining approvals for such projects—and how to
overcome them